First Read

America’s Rich Get Richer and the Poor Get Replaced by Robots
Vincent Del Giudice and Wei Lu – Bloomberg
Gap widens as automation takes over more low-skill jobs; San Francisco, San Jose lead metro areas with greatest change
America’s working class is falling further behind. The rich-poor gap — the difference in annual income between households in the top 20 percent and those in the bottom 20 percent — ballooned by $29,200 to $189,600 between 2010 and 2015, based on Bloomberg calculations using U.S. Census Bureau data.
/goo.gl/Naujj4

***** Robin Hood would definitely have a problem with robots.

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Robin Hood, Favorite Charity on Wall Street, Gets New Leader
Elizabeth A. Harris – NY Times
The Robin Hood foundation, a poverty-fighting nonprofit organization that finances more than 200 programs across New York City, was set to announce on Tuesday that Wes Moore, an author, combat veteran and entrepreneur, will become its chief executive.
nyti.ms/2qbvCUI

****** Wes does not seem like a name for a merry man.

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Wake up investors — you ignore conspiracy theories at your peril; It seems the human psyche is comforted by stories that imply hidden order
Izabella Kaminska – FT
Market efficiency is predicated on the notion of rational agents. But what if markets are being misled by the empowerment of a particular type of irrational agent in the economic system?
/goo.gl/QVq6Cr

***** “Justin Trudeau is believed to be the illegitimate son of Fidel Castro?”

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Member Regulatory Workshops – Chicago and New York; NFA will hold Member Regulatory Workshops in Chicago, Ill. And New York, N.Y. in May 2017.
NFA
During its workshops in Chicago and New York, NFA is offering a session on NFA Members’ regulatory obligations regarding cybersecurity and a session on reporting commodity pool operator (CPO) and commodity trading advisor (CTA) financial information on Forms PQR and PR. In addition to the two sessions above, NFA is offering a session for swap dealers (SD) on SD examinations during its Member Regulatory Workshop in New York.
/goo.gl/FSG4T5

***** I always learned something at the NFA’s workshops. Back when I was a broker, I even found some business there.

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Could Theo Epstein Perform a Miracle for the Democrats?; David Axelrod says his baseball management skills, honed in Boston and Chicago, could win for him in politics too. If he wants it, that is.
Ben Strauss – Politico
When Fortune magazine unveiled its annual ranking of the world’s greatest leaders last month, there was a surprise at the top of the list: Theo Epstein, the president of baseball operations for the Chicago Cubs. “Some people never heard of him,” Fortune’s Geoff Colvin said in a video introducing Epstein.
/goo.gl/kh9p0T

****** If he could make the Cubs a World Series champion, anything is possible.

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The future of futures markets: Exchanges looking to fail fast
Jim Kharouf – JLN
At the IOMA: World Federation Exchanges conference in Frankfurt on Friday, he said his exchange will have to speed up its business processes exponentially in the next two to three years in order to thrive.
“The old way was seven months of iterations of prototypes,” Preuss said. “In the world I am aiming at, the business IT and operations will start on a concept at 9 am and know by noon if that is a flop.”
bit.ly/2qb2IEe

**JK: Our top story for two consecutive days. When Andreas Preuss talks, people listen.

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CFTC Adds 71 Names to Its List of Foreign Entities that Illegally Solicit U.S. Residents to Trade Binary Options and Forex; Registration Deficient (RED) List on CFTC Website Identifies Entities Operating Illegally Without Being Registered
U.S. Commodity Futures Trading Commission
As part of the U.S. Commodity Futures Trading Commission’s (CFTC) ongoing efforts to help protect Americans from fraud, today the CFTC added 71 new names to the RED List. These 71 new additions bring the total number of foreign entities on the RED List to over 110.
/goo.gl/rSrIEb

***** There are 10 kinds of people in the world and some of them are on this list.

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Kapos: Hillary Clinton friend gives Donald Trump a nod
Suntimes
Leo Melamed is chairman emeritus of the Chicago Mercantile Exchange and a pioneer in the futures industry. He’s also a friend and supporter of former presidential candidate Hillary Clinton. A picture of her and Melamed hangs on Melamed’s office wall among many photos of political movers and shakers. So what a surprise to hear the Chicago businessman offer supportive comments about President Donald Trump, who defeated Clinton in a fierce presidential race.
/goo.gl/Q67GlM

***** They buried the lead on an often told and important story.

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Tuesday’s Top Three
It happens, from time to time, that a top story remains so for more than one day. Such is the case today with our top read story from JLN in The future of futures markets: Exchanges looking to fail fast. Second was Business Insider’s piece on the impact of Mifid II, in Looming regulations will change business models of financial managers. Third went to the London Metal Exchange’s announcement LME launches discussion paper on market structure

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MarketsWiki Stats
98,880,720 pages viewed; 22,466 pages; 205,445 edits
MarketsWiki Statistics

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Lead Stories

LSE brushes off Deutsche Boerse blues with ‘strong start’
Lucy Burton – Telegraph
Xavier Rolet, the boss of the London Stock Exchange, confirmed that he is eyeing further deals as the group reported a “strong start” to the year despite its proposed merger with Deutsche Boerse collapsing.
/goo.gl/chNR3m

Acquisitions help Nasdaq beat profit estimates
Reuters
Nasdaq Inc (NDAQ.O) posted a better-than-expected quarterly profit as the transatlantic exchange operator benefited from its acquisitions.
/goo.gl/dHm7hi

Are Traders Getting an Early Glimpse at U.K. Government Data?
Mike Bird – WSJ
A comparison of trading data for the Swedish krona and British pound may provide further evidence that some investors could be trading with knowledge of U.K. official statistics before they are published.
/goo.gl/W025KG

Brokers “must specialise in research or execution” post-MiFID II; Panel agrees specialisation is a positive move for the industry as it forces competition based purely on quality of execution.
By Hayley McDowell – The Trade
Unbundling requirements under MiFID II will force brokers to specialise in either research or trade execution, according to a panel of experts at TradeTech.
/goo.gl/rmgQae

CFTC counsel warns of threat to clearing portability; Leverage ratio seen as biggest impediment to porting client positions
Joanna Wright – Risk.net
A senior staffer at the US Commodity Futures Trading Commission (CFTC) has raised concerns about the portability of client positions held at a central counterparty (CCP) in the event of a clearing member default. “I am personally quite concerned that during crisis times, during a time of market stress, the ability to find homes for these customers, to find firms that are willing and able to take customer positions on, is much less likely than I would like and it concerns me a great deal,”
/goo.gl/F9u6mc

Most global investors recognise financial risk of climate change, report finds
Paul Karp – The Guardian
For the first time a majority of global investor heavyweights recognise the financial risks of climate change, according to the results of a major global index rating how investors manage such risks.
/goo.gl/1gYAJe

Europe Better Than U.K. at Courting Finance Firms, ICE CEO Says
John Detrixhe – Bloomberg
The European Union is doing a better job than the U.K. at courting financial firms as the U.K. heads toward leaving the bloc, says the head of Atlanta-based market operator Intercontinental Exchange Inc.
/bloom.bg/2q7fS93

Virtu and Citadel Securities go head to head in HFT; Wall Street’s ‘flash boys’ discover the flipside of disruption
by: Philip Stafford in London and Nicole Bullock in New York – FT
After a decade in which high-frequency trading has transformed the US stock market, Wall Street’s “flash boys” are now discovering the flipside of disruption.
/goo.gl/66HApN

New LME chief seeks mandate to reform 140-year-old bourse; Impetus for change as exchange challenged by greater competition from rivals
Henry Sanderson and Neil Hume – FT
It’s taken the new chief executive of the London Metal Exchange Matthew Chamberlain four years to understand the complexity of the 140-year-old bourse. Now he’s on a mission to simplify it.
/goo.gl/ub2D3G

Variation margin – disaster averted
Julie Aelbrecht – FOW
After warnings during the first quarter of the year that the implementation of global variation margin requirements would result in major disruptions across EU and US markets, experts have told FOW that most of the foreseen issues will be resolved by the deferred deadline for implementation in September.
/goo.gl/bAz9f3

Exclusive: ITG’s Selway eyed to run markets division at U.S. SEC – sources
John McCrank and Sarah N. Lynch – Reuters
Jamie Selway, head of execution services at agency brokerage Investment Technology Group (ITG) (ITG.N), is a front runner to head the Trading and Markets division at the U.S. Securities and Exchange Commission, according to three sources familiar with the matter.
reut.rs/2qc1gkX

Calypso, R3 and five financial institutions develop trade matching application on Corda DLT platform
Bobs Guide
Calypso Technology Inc., a leading provider of capital markets and investment management software, and R3, the financial services industry’s largest distributed ledger (DLT) consortium, are developing a DLT application for trade matching confirmations with a group of global financial institutions.
/goo.gl/KmMDll

Virtu and Citadel Securities go head to head in HFT
Philip Stafford and Nicole Bullock – Financial Times
After a decade in which high-frequency trading has transformed the US stock market, Wall Street’s “flash boys” are now discovering the flipside of disruption. A combination of subdued volatility across financial markets and rising costs have thinned the ranks of hyper fast computerised trading firms, persuading New York-based Virtu Financial to pay $1.4bn last week for rival KCG Holdings.
on.ft.com/2qc23Cx

Fear of something worse seen as key to CCP recovery
Duncan Wood – Risk.net
Bank members of a central counterparty (CCP) must fear the arrival of a resolution authority if future attempts to rescue a failing venue are to succeed, a panel of industry experts has argued. That might mean giving the authorities a bigger stick to wield, such as forced allocation – the controversial ability to compel surviving banks to pick up a defaulted firm’s positions. “We need to think a little bit further about what the resolution authority should do when it comes in,” said Fredrik Ekström, head of Nordic fixed income and European clearing with Nasdaq in Stockholm. “We need to put more tools on the table, because just to continue with CCP business as usual – I don’t think that makes sense.”
/goo.gl/bc7IGi

Nasdaq Composite breaches 6,000 for the first time
Mamta Badkar and Adam Samson – Financial Times
The Nasdaq Composite breached the 6,000 level for the first time on Tuesday as investors pile into technology and smaller companies with strong growth prospects amid concerns Donald Trump will be unable to spark inflation through tax cuts and big public spending plans.
on.ft.com/2qbZMaC

Exchanges, OTC and Clearing

London Stock Exchange reports rise in profit after merger with Deutsche Boerse fails; Boosted also by weak sterling, total income from continuing operations rose 19% to £458.7m in the quarter ended 31 March
Esha Vaish – Independent
London Stock Exchange reported higher quarterly income as its clearing and FTSE Russell businesses grew strongly, and said it is exploring investments to drive growth after the collapse of its proposed Deutsche Boerse merger.
/goo.gl/3qFmxQ

LSE Group reveals ‘strong start’ to its financial year
Philip Stafford – FT
The London Stock Exchange Group on Wednesday reported growing demand for its key clearing and data businesses in the first quarter as it moved on from the collapse of its planned merger with Deutsche Börse.
/goo.gl/TBycgV

IMS for the period to 25 April, including revenues and KPIs for the three months ended 31 march (Q1)
London Stock Exchange Group
Strong start to 2017: Q1 total income from continuing operations up 19% to £458.7 million; gross profit (after cost of sales) up 17%
/goo.gl/Lw2gjP

SGX welcomes Aoxin Q & M Dental Group Limited to Catalist
SGX
Singapore Exchange (SGX) today welcomed Aoxin Q & M Dental Group Limited to Catalist under the stock code “1D4”
/goo.gl/Wo1BnP

Nasdaq Reports Record Quarterly Earnings; Announces 19% Increase in Quarterly Dividend
GlobeNewswire
Net revenues1 were $583 million in the first quarter of 2017, an increase of 9% compared to the first quarter of 2016. Subscription and recurring revenues2 in the first quarter of 2017 represented 75% of total net revenues.
Nasdaq
Nasdaq, Inc. (Nasdaq:NDAQ) today reported financial results for the first quarter of 2017. First quarter net revenues were $583 million, up $49 million or 9% from $534 million in the prior year period. The first quarter increase in net revenues included a $50 million positive impact from acquisitions and $15 million, or 5%, organic growth in non-trading segments, partially offset by a $12 million organic decline in Market Services net revenues driven by lower industry trading volumes, as well as an overall $4 million impact from unfavorable changes in foreign exchange rates.
/goo.gl/ODQS7D

Nasdaq Announces 19% Increase in Quarterly Dividend to $0.38 Per Share
GlobeNewswire
The Board of Directors of Nasdaq, Inc (Nasdaq:NDAQ) has declared a regular quarterly dividend of $0.38 per share on the company’s outstanding common stock, an increase of 19% from the prior $0.32 per share quarterly dividend.
/goo.gl/ndzA67

Poll Results of the 2017 Annual General Meeting and Changes in Directorate
HKEX
Poll Results of the 2017 Annual General Meeting At the Annual General Meeting of Hong Kong Exchanges and Clearing Limited (“HKEX”) held on 26 April 2017 (“AGM”), a poll was demanded by the Chairman for voting on all proposed resolutions as set out in the notice of AGM dated 22 March 2017 (“AGM Notice”).
/goo.gl/hqlWzI

Tech, post trade and weak pound bolster LSE earnings; Despite a rough quarter for its capital markets business, LSEG’s other key business lines all saw good growth.
John Bakie – The Trade
London Stock Exchange Group (LSEG) has seen its profits jump 17% in Q1 due to strong growth in its technology, data and post trade operations, though currency fluctuations also played a major role.
/goo.gl/iC9ifa

Glass Lewis urges vote against Deutsche Boerse board actions
Reuters
Influential proxy adviser Glass Lewis has recommended shareholders in Deutsche Boerse (DB1Gn.DE) vote against ratifying the actions of the management and supervisory board at the exchange’s 2017 annual general meeting.
/goo.gl/CZEBIh

London Metal Exchange to delay launch of precious metal contracts
Reuters
The launch of the London Metal Exchange’s new precious metals contracts will be delayed until July 10, more than a month later than previously announced, it said on Monday.
/goo.gl/Ya831S

Baltic Exchange outlines bold plans to enhance maritime leadership role
SGX
Development of post-trade digital maritime market infrastructure; Move into LNG and container indices; Enhancement of regulatory role; Change of data distribution policies
Newly appointed Baltic Exchange Chief Executive Mark Jackson has set out the Exchange’s ambitious vision of the near-future in a wide-ranging speech in Singapore during the concurrent MPA Singapore Maritime and Singapore Iron Ore Weeks.
/goo.gl/SNxvRS

PMEX wheat futures contracts get SECP go-ahead
The News
The Securities and Exchange Commission of Pakistan (SECP) has approved the listing of wheat futures contracts on Pakistan Mercantile Exchange Limited (PMEX) in an endeavor to augment the portfolio of agricultural commodities in domestic market, a statement said on Tuesday.
/goo.gl/PgwGfO

Saudi exchange may be ready for equity futures, options in 24 months; Futures and options would provide hedging tools for the foreign institutional investors that are expected to enter kingdom
Reuters
Saudi Arabia’s stock exchange should be ready to introduce equity futures and options in about 24 months, after it completes reforms to help it manage the risks of such products, the exchange’s chief executive Khalid Al Hussan said.
/goo.gl/U1eqzK

Fintech

Bilski Blog: Federal Circuit Denies SHzoom’s Bid to Make Trading Technologies Decision Precedential, But the Case is Still Good Law
www.bilskiblog.com
The case is noteworthy because it is the first true “business method” patent that the Federal Circuit has upheld. The claims of the patents specifically recited steps for placing trade orders in electronic exchanges. Claim 1 of Trading Technologies’ US 6,766,304 is shown here as example
bit.ly/2q77iXK

SWIFT to Use Hyperledger for Joint Blockchain Payments Project
Coin Telegraph
The global payment relay network SWIFT has announced it will use Hyperledger as a basis for simplifying international transactions. In a trial together with Australia and New Zealand Banking Group, BNP Paribas, BNY Mellon and others, SWIFT will seek to use the Blockchain to update its practices in an ever-evolving cross-border payments market.
/goo.gl/eG5ZQD

Vela launches European Best Bid Offer solution
Vela
Vela Trading Technologies (Vela), a global leader in high performance trading and market data technology, has launched a fully-managed European Best Bid Offer (EBBO) solution in response to increased client demand to comply with the changing pre-trade transparency and best execution rules which will come into force with MiFID II in January 2018.
bit.ly/2q7b6Ze

Regulators told to play greater role in cyber security; Companies can’t battle threats on their own, CFTC told
Steve Marlin – Risk.net
US federal regulators should play a greater role combating cyber attacks on financial institutions as they lack the resources to tackle these threats on their own, a panel of information security experts told officials at the Commodity Futures Trading Commission (CFTC) earlier today (April 25). Cyber attacks on banks and central counterparties (CCPs) have increased in recent years to the point where even the largest financial institutions may be unable to cope with the sheer number of threat
/goo.gl/I4pYQp

YCharts Announces Deeper Integration with Morningstar
YCharts
YCharts, Inc, announced the launch of Portfolio Sync, an automatic client portfolio holdings integration with Morningstar ByAllAccountsSM. This expanded relationship further demonstrates both companies’ dedication to listening to feedback from wealth advisors and delivering meaningful solutions to meet their needs.
/goo.gl/Avz0Er

YCharts Integrates Morningstar Custodian Data for ‘Portfolio Sync’
WatersTechnology.com
Portfoilio Sync allows wealth manager clients to automate the uploading of client portfolio holdings data, enabling them to analyze specific client account information within YCharts’ platform.
/goo.gl/7DxmyS

OpenDoor Re-Boots U.S. Treasury Market With Dedicated All-To-All Trading Platform
Mondovisione
OpenDoor Securities is today launching the first trading platform dedicated to improving liquidity in the less liquid segments of the U.S. Treasury bond market. Nearly three dozen firms representing more than $5 trillion of AUM and six sponsor-dealers are already onboarded to participate.
/goo.gl/B9M4DC

ABGSC Deploys Fidessa’s Trading Platform
Aggelos Andreou – WatersTechnology
ABG Sundal Collier is using Fidessa’s platform for its sales and execution business operations in Stockholm, Oslo, Copenhagen, Frankfurt, London and New York.
/goo.gl/Nz6zdm

Vela launches European Best Bid Offer solution
Vela
Providing a consolidated view of liquidity, essential for cross-market trading and best execution
Vela Trading Technologies (Vela), a global leader in high performance trading and market data technology, has launched a fully-managed European Best Bid Offer (EBBO) solution in response to increased client demand to comply with the changing pre-trade transparency and best execution rules which will come into force with MiFID II in January 2018.
/goo.gl/30J9ix

Politics

GOP Bid to Gut Dodd-Frank Renews Debate Over Breaking Up Banks
Elizabeth Dexheimer – Bloomberg
Republicans poised to issue bill overhauling financial rules; l Democrats want to make fight a referendum on Glass-Steagall
The roll-out of legislation this week that would rip up much of the Dodd-Frank Act marks a pivotal moment for Republicans’ efforts to overhaul post-crisis financial rules.
/goo.gl/7KDkfA

Obama to give $400,000 speech at Wall Street conference
Blair Guild – CBS News
Former President Obama has agreed to speak at a Wall Street conference run by Cantor Fitzgerald LP, senior officials at the firm told FOX Business. Obama will speak at Cantor’s health care conference this September for a fee of $400,000 and has agreed to be the keynote speaker at a luncheon held on one day of the event.
cbsn.ws/2qbUgob

Trudeau and Trump clash over lumber and dairy tariffs; US and Canada are set up for wider battle as they renegotiate Nafta
Demetri Sevastopulo, Katrina Manson and Anna Nicolaou – FT
A US-Canada trade dispute intensified on Tuesday as Justin Trudeau and Donald Trump clashed over softwood lumber and dairy tariffs, setting the two countries up for a wider battle as they renegotiate the North American Free Trade Agreement.
/goo.gl/VI4Qvu

Regulation

Order Protection Rule Tug-of-War
Ivy Schmerken, FlexTrade Systems via TABB Forum
There is still uncertainty around the fate of the Order Protection Rule. Rather than recommend a clear direction on whether to keep or remove the trade-through rule, representatives of buy- and sell-side firms at the SEC’s recent Equity Market Structure Advisory Committee meeting acknowledged that more data is needed to evaluate what needs to be done, and the subcommittee provided a framework for conducting a potential pilot on the rule, reports FlexTrade’s Ivy Schmerken.
/goo.gl/Laq5t5

SEC Awards Nearly $4 Million to Whistleblower
SEC
The Securities and Exchange Commission today announced an award of nearly $4 million to a whistleblower who tipped the agency with detailed and specific information about serious misconduct and provided additional assistance during the ensuing investigation, including industry-specific knowledge and expertise.
/goo.gl/sO8II0

You could have a share in $1.1 billion of unclaimed money
ASIC
The Australian Securities and Investments Commission (ASIC) is urging Australians to do a quick and free search on ASIC’s MoneySmart website to see if a share of $1.1 billion of unclaimed money is theirs.
/goo.gl/VcniVd

ASIC remakes ‘sunsetting’ class order on reporting requirements for Australian financial services licensees who are natural persons
ASIC
ASIC has remade Class Order [CO 03/748] Reporting requirements under s 989B (Class Order) in ASIC Corporations (Financial Reporting: Natural Person Licensees) Instrument 2017/307. [CO 03/748] was due to expire (‘sunset’) on 1 October 2017.
/goo.gl/O3G8sv

Broker Charged With Defrauding Customers
SEC
The Securities and Exchange Commission today charged a former broker with knowingly or recklessly trading unsuitable investment products in the accounts of five customers and misappropriating more than $170,000 from one of those customers.
/goo.gl/5acZvQ

Former Jefferies trader to be sentenced for fraud in bond sales
Reuters
A federal judge in Connecticut on Wednesday is set to sentence a former Jefferies Group bond trader after he was found guilty earlier this year of defrauding customers on bond prices.
/goo.gl/ZrLnBL

US regulators to review decision denying bitcoin ETF
CNBC
The U.S. Securities and Exchange Commission plans to review a decision last month to deny a request to list what would have been the first U.S. exchange-traded fund built to track the digital currency bitcoin.
cnb.cx/2qbhtHe

Guidance on Social Networking Websites and Business Communications
FINRA
This Notice provides guidance regarding the application of FINRA rules governing communications with the public to digital communications, in light of emerging technologies and communications innovations.
/goo.gl/ebXwgC

ESMA publishes an opinion on MAR accepted market practices on liquidity contracts
ESMA
The European Securities and Markets Authority (ESMA) has published an opinion on the points for convergence in relation to accepted market practices (AMP) under the Market Abuse Regulation (MAR) on liquidity contracts. These agreed points are expected to be used as a reference in the assessment of the MAR AMPs on liquidity contracts that national competent authorities (NCAs) may submit to ESMA after a domestic consultation and on which ESMA will have to issue an opinion.
/goo.gl/fzf1MI

Will MiFID II Destroy European Exchanges?
Larry Tabb – TABB Forum
While a lot of time has been invested in analyzing MiFID II’s impact on research and unbundling, the impact of the regulation on European market structure perhaps will be even greater. The rules around dark pool caps and Systemic Internalizers could facilitate the disaggregation of the European equities marketplace, leaving the exchanges with order flow that no one else wants to interact with. As a result, says Larry Tabb, on-exchange spreads will widen, which will degrade the exchange/MTF flow even further and eventually diminish the value of the exchanges’ market data, co-location, and infrastructure franchises.
/goo.gl/nJt2wi

U.S. regulators to review decision denying Bitcoin ETF: filing
Trevor Hunnicutt – Reuters
The U.S. Securities and Exchange Commission plans to review its decision last month to block the listing of the first U.S. exchange-traded fund tracking the digital currency bitcoin, a regulatory filing showed on Tuesday.
/goo.gl/H20okw

Investing and Trading

Famed stockpicker who spotted his big Amazon error; Fidelity fund manager preaches virtue of humility — and is left unsure by Trump
by: Robin Wigglesworth – FT
William Danoff saw the potential in Amazon’s burgeoning cloud computing platform, which by 2013 was beginning to be a big contributor to the online retailer’s bottom line. But concerned at signs of budding price pressures on Amazon Web Services, the Fidelity fund manager began dumping his position.
/goo.gl/NLMxYX

Man Group serves as latest example of advisers’ shift to robots; Man Group’s new role follows BlackRock’s move
Ryan Vlastelica – MarketWatch
Investment managers appear to be going all in on using new types of computer analysis to pick stocks.
/goo.gl/XQ92Tx

Security Selection & Sector Allocation Effects of Equal Weighting the S&P 500
S&P Dow Jones Indices Indexology
Constituents of the S&P 500 Equal Weight (EW) and S&P 500 are identical, but the EW version is rebalanced quarterly so that every company has equal representation after the rebalance. That often results in significantly different performance between the two indices, because equal weighting gives more representation to smaller stocks and alters the distribution of sector exposure.
/goo.gl/WBgzET

Multi-asset services key for buy-side execution; Panel at TradeTech agree multi-asset services can simplify the execution process for the buy-side.
Hayley McDowell – The Trade
Brokers offering the buy-side multi-asset services and capabilities will thrive as they allow for a simpler route when executing orders, according to a panel at TradeTech.
/goo.gl/CL8cJn

Trading in Bonds, Commodities Highlights Skepticism; Investors brace for faster growth that could lead to inflation that would erode the value of fixed-bond payments
Min Zeng – WSJ
U.S. stocks are roaring again, with the Nasdaq Composite Index reaching 6000 for first time on Tuesday. But many analysts warn that bond and commodities markets are sending less-upbeat signals.
/goo.gl/1i2d20

A struggling hedge fund says it is cutting costs and still trying to find a partner
Rachael Levy – Business Insider
A highly-backed hedge fund that has struggled from its start says it is cutting costs as it continues to look for fresh money to buoy assets.
/goo.gl/Ab09t2

Institutions

35 year-old ex-BAML equity researcher’s fancy career moves
eFinancialCareers
Equity research is not a good place to be in Europe now. With MiFID II forcing buy-side firms to pay separately for research, minds are being focused on how much is being spent on unread research reports. In future, far fewer researchers will be required and research jobs are already drying up. Our own figures suggest there have been 60% fewer research jobs on offer in London in March and April 2017 than one year earlier.
/goo.gl/rDitL9

Credit Suisse launches $4bn share issue to ease capital fears; Bank abandons plans for listing of Swiss business
Laura Noonan, in London – FT
Credit Suisse has launched a SFr4bn ($4bn) share issue and said it will abandon plans to list its Swiss division in an attempt to draw a line under capital fears that have dogged the bank since chief executive Tidjane Thiam took over two years ago.
/goo.gl/QX72tr

Credit Suisse Should Give Thanks for Emmanuel Macron
Lionel Laurent – Bloomberg Gadfly
Credit Suisse’s Tidjane Thiam should doff his cap to Emmanuel Macron, the 39-year-old ex-Rothschild banker on track to win the French presidency. Macron’s first-round win on Sunday and expected victory in the May run-off — which has lightened the mood in European markets — should allow the Swiss bank to seal a $4 billion rights issue and avoid selling off part of its lucrative domestic unit to bolster its finances.
/goo.gl/FGZY34

Credit Suisse to Raise $4 Billion as Swiss IPO Plans Dropped
Jan-Henrik Foerster – Bloomberg
Bank will also switch to all-cash dividend from part scrip; IPO was too complex, unit too important to income, bank says
Credit Suisse Group AG Chief Executive Officer Tidjane Thiam is bowing to investor pressure to keep the bank’s biggest profit generator and instead will bolster capital by selling stock in a rights offer.
/goo.gl/8T7Hm1

BlackRock Forges Two-Tiered ETF Strategy to Fend Off Vanguard
Charles Stein – Bloomberg
Market leader sells cheap and expensive funds at the same time; Catering to both advisers and big traders spurs record inflows
BlackRock Inc. signaled its willingness to engage in a price war last October by cutting fees on 15 exchange-traded funds, going head-to-head with faster-growing ETF rivals Vanguard Group and Charles Schwab Corp. in the fight for investors flocking to passive products.
/goo.gl/9GspDn

Guy Kicked Out of Wells Fargo Meeting Still Wants Answers
WSJ
Bruce Marks came to the & Co. shareholder meeting on Tuesday seeking answers, not diplomacy. He got kicked out shortly after it began. At the tense meeting, where shareholders eventually re-elected all board members, Mr. Marks stood up after the names of the board members had been read. From the third row, he called out to the board members sitting in the front row that he wanted to hear from each of them about what they knew about the sales-practice scandal that has bruised the San Francisco bank since it was disclosed in September.
on.wsj.com/2qbNOxK

Wells Fargo board gets black eye in shareholder vote
Dan Freed and Ross Kerber – Reuters
Wells Fargo & Co (WFC.N) shareholders showed displeasure with the scandal-hit bank’s board on Tuesday, offering scant support for several directors, including Chairman Stephen Sanger, in a vote capping a contentious annual meeting.
reut.rs/2qbvLHT

Wells Fargo Directors Face Shareholders’ Ire; Chairman cites ‘clear message of dissatisfaction’ as some longtime directors get as little as 53% of the shares voted
Emily Glazer – WSJ
Shareholders at scandal-scarred Wells Fargo WFC 1.70% & Co. voted Tuesday to keep all 15 of the bank’s directors, but in a stinging rebuke rarely seen in corporate elections did so in some cases by slim margins.
/goo.gl/ALGW1F

Former Morgan Stanley, Deutsche Bank fixed income head goes live with startup platform; OpenDoor Securities aims to bring traders to the less-liquid segments of the US Treasury market.
Joe Parsons – The Trade
A new fixed income platform led by Susan Estes, the former global head of Treasury trading at both Morgan Stanley and Deutsche Bank, has gone live in a bid to bring traders to the less liquid segments of the US Treasury market.
/goo.gl/1JCde7

Regions

Hong Kong vs. Singapore: Weighing Asia’s financial hubs
Rohini Samtani – CNBC
Many cities lay claim to being important financial centers, but two metropolises are usually seen vying for the title of Asia’s most important financial hub: It’s Hong Kong versus Singapore. Singapore is a gateway to Southeast Asia and is seen as a wealth management hub, but Hong Kong boasts easy access to China’s trade and capital flows, and has held the title of top global IPO market for two consecutive years.
cnb.cx/2qbKd2s

A $37 Billion Manager Cautions on India’s World-Beating Stocks
Anto Antony and Bhuma Shrivastava – Bloomberg
India stock valuations higher than emerging-market rivals; Canadian fund plans investments in India’s soverign debt
Canada Pension Plan Investment Board, the country’s largest pension fund, is turning cautious on India’s stock market amid the South Asian nation’s world-beating equity rally and may buy sovereign debt for the first time.
/goo.gl/mh8vCw

Opinion: Chinese stocks are experiencing the mother of all dead cat bounces
Ivan Martchev – MarketWatch
There has been a mysterious weakening in the Shanghai Composite Index over the past two weeks after the Chinese benchmark traded within a tight band during the time that President Xi met with President Trump.
/goo.gl/s120zR

Asia investors boost use of unorthodox data sources in battle to beat benchmarks
Reuters
Sometime in the third quarter of 2016, Blackrock’s (BLK.N) scientific active equity team, which manages $80 billion globally, began picking up increased signs of construction activity on the ground in China by using satellite imagery.
/goo.gl/JOucVQ

China Markets Reel as $1.7 Trillion in Shadow Funds Unwind
Bloomberg News
A $1.7 trillion source of inflows into Chinese markets has suddenly switched into reverse, roiling the nation’s money management industry and sending local bonds and stocks to their biggest losses of the year.
/goo.gl/Iwq0ps

Brexit

Labour Rules Out Second Brexit Referendum as May Heads to Wales
Alex Morales and Thomas Penny – Bloomberg
The U.K.’s opposition Labour Party effectively extinguished all prospect of a second referendum on Britain’s European Union membership as Prime Minister Theresa May headed for Wales, where polling suggests she’ll win most of the seats for the first time in more than 150 years.
/bloom.bg/2qbC1j5

Banks Get Serious About Moving Jobs to Frankfurt on Brexit
Stephan Kahl – Bloomberg
Realtor says some lenders have already reserved space in city; Frankfurt has lower cost-of-living than other European cities
International banks are getting serious about moving staff to Frankfurt after last year’s Brexit vote spurred a competition among European cities to lure jobs away from London.
/goo.gl/fZ16DQ

Barclays’ Jes Staley: Immigration policy is top worry for City post-Brexit
Lucy Burton – Telegraph
Barclays boss Jess Staley has laid out his concerns for the City post-Brexit, warning that immigration – not passporting – should be the financial sector’s biggest worry.
/goo.gl/iHJ9VQ

Miscellaneous

A banker-turned-Googler explains how a finance background makes you the ideal candidate for tech jobs
Áine Cain – Business Insider
The devil is sometimes in the details, according to Sameer Syed (pictured). Sameer Syed
When Sameer Syed worked as an investment banker at JP Morgan, he knew that every email had to be perfect.
/goo.gl/DnXn8z

Apprenticeship programs increasingly put workers on track for jobs in finance
Alexia Elejalde-RuizContact Reporter – Chicago Tribune
Victor Gutierrez graduated from high school with a clear career goal: to become an actuary. What he didn’t have was a clear path to get there. Juggling community college with jobs at McDonald’s and a Holiday Inn, Gutierrez had little time for his studies. He worked nearly every day, leaving home at 4 a.m. and returning at midnight, always exhausted and rarely seeing his wife and infant daughter.
trib.in/2qbQqLZ

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