The Gazillion-Dollar Standoff Over Two High-Frequency Trading Towers

Mar 11, 2019

First Read

Hits & Takes
JLN Staff

Mike Dawley is going to be saluted at Breakthrough New York’s annual Gala this year.
Breakthrough New York (www.btny.org) is a nonprofit ten-year college success program committed to getting selected high-potential, low-income New York City public school students to competitive four-year colleges. BTNY provides after-school tutoring and summer enrichment programs to these students, each of whom starts the program in the summer before 7th grade. BTNY and the students make a ten year commitment (7th grade through college). ~JJL

BTNY has a history of strong support from the futures and derivatives industry: Maria Chiodi, managing director in the General Counsel’s office at Credit Suisse Securities (USA) LLC, was a past honoree. This year’s sponsors include the CME, NFA, FIA, and Eurex and more. This year’s Gala will be held on Tuesday, April 30 at 583 Park Avenue. The Gala, which features its annual “Are You Smarter Than a Breakthrough New York Student?” quiz, is loads of fun.~JJL

A few of the winners of the U.S. Options Lifetime Contribution awards are: Tom Brady, who is retired from Cboe, Kim L. Koppien of NYSE Options, Tony Saliba from Matrix, and Jon Najarian. For more, see the press release below in Exchanges.~SR

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New York’s New West Coast Digs; Options trading floor just a part of NYSE’s new San Francisco facility
Spencer Doar – JLN
NYSE is set to have new digs in San Francisco when its NYSE West facility opens Monday, March 11.
Obviously, New York is the area most thought of when it comes to all things Buttonwood, but, through the Archipelago Holdings acquisition in 2006, which had purchased the Pacific Exchange, NYSE can trace its roots on the West Coast back to the formation of the San Francisco Stock and Bond Exchange in 1882.
/goo.gl/VeQ5Cc

****”There’s gold in them thar hills.” ~M. F. Stephenson

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BNP Paribas and Bank of the West Celebrate International Women’s Day With UN Women’s ‘HeForShe’ Movement at the BNP Paribas Open Other
BNP Paribas
BNP Paribas, one of the leading sponsors of tennis globally, will mark this year’s International Women’s Day by changing the color of the back walls in Stadium 1 to Magenta at the BNP Paribas Open, with a dedicated message in support of UN Women’s HeForShe movement, which seeks to engage men and boys as advocates for gender equality.
bit.ly/2EJsFDY

****Most of the JLN office is in sunny Boca now and probably playing tennis while they leave me here, chained to a desk in cold, cold Chicago. ~JB

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Decline in readers, ads leads hundreds of newspapers to fold
David Bauder, David A. Lieb – AP
Five minutes late, Darrell Todd Maurina sweeps into a meeting room and plugs in his laptop computer. He places a Wi-Fi hotspot on the table and turns on a digital recorder. The earplug in his left ear is attached to a police scanner in his pants pocket.
bit.ly/2Tuwk2N

****The JLN team is still here for you, though! ~JB

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Worst start to year for equity flows since 2008: BAML
Marc Jones – Reuters
A $10 billion wipeout over the last week has compounded the worst start to a year for equity flows since 2008, Bank of America Merrill Lynch strategists said on Friday.
/reut.rs/2J2bFOA

****Seems like just yesterday we were celebrating a 10 year bull market. ~JB

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Brexit, Briefly: REVISITED! (VIDEO)
CGP Grey – YouTube
bit.ly/2GMjG7y

****A succinct rundown of the main problem Brexit faces. ~JB

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Bribing Is Wrong; Smarter Swaps APs Are Better; Commercially Reasonable Prices for EFRPs Are Best
Gary DeWaal – Bridging the Week
Unexpectedly, the Commodity Futures Trading Commission announced a new initiative to encourage non-registrants to self-report foreign corrupt practices, which it claimed might also constitute violations of laws and rules it administers. Non-registrants who turn themselves in, cooperate with the CFTC and remediate their violations will benefit from a presumption that the CFTC’s Division of Enforcement will ordinarily recommend no fine to the Commission – although it appears likely their situations will be referred to other law enforcement agencies for consideration. Separately, the National Futures Association formally proposed bylaw and rule amendments, as well as a new Interpretive Notice, aimed at making swaps associated persons smarter about swaps markets and applicable regulations.
bit.ly/2F3uCfI

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Friday’s Top Three
Our top read story of the day on Friday was Alphacution’s The Complete Case Study on Spot Trading. Second was Reuters’ SEC scrutinizes fairness of stock exchange pricing. One wonders if the SEC people are wondering what they got themselves into. This could take years to figure out. Third went to the question, “You got paid what now?” in Bloomberg’s Tradeweb Paid Top Two Executives $38 Million in 2018 Pre-IPO

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Lead Stories

The Gazillion-Dollar Standoff Over Two High-Frequency Trading Towers; The hunt for a millionth-of-a-second advantage in the town best known for Wayne’s World is getting heated.
Nick Baker, Bryan Gruley – Bloomberg
In a weedy field 35 miles west of Chicago squats a tidy red-brick building with a peaked roof, about the size of a one-car garage. Against the eastern wall, reaching just above the roofline, are poles equipped with small dish antennas that send microwave signals to and gather them from financial markets on the East Coast. At the same time, the site communicates via subterranean cable with an enormous steel-and-glass building across the street. That fortress is home to CME Group Inc., a $63 billion exchange where some of the world’s most vital financial products trade, including derivatives on oil, gold, U.S. Treasuries, and the S&P 500. If you want to be a serious player in global markets, you have little choice but to stash your trading machines here.
/bloom.bg/2J3jvrq

Chicago chases the pot o’ crypto; Trading mogul Wilson, rivals race to make city a hub for digital currency trading.
Lynne Marek – Crain’s Chicago Business
Trading heavyweight Don Wilson is backing one of three nascent cryptocurrency exchanges vying to lure big institutions and their big money to digital currency markets. Wilson’s DRW Holdings invested in the Chicago-based ErisX crypto exchange last year, just as Seed CX, also in Chicago, and Atlanta-based Intercontinental Exchange’s Bakkt launched competing venues.
bit.ly/2J34c1D

Trading slips away from London ahead of Brexit
Huw Jones – Reuters
A quiet, permanent shift in trading from London to the European Union ahead of Brexit is picking up speed as stock and bond platforms in Amsterdam and Paris crank into action.
/reut.rs/2J7HoOq

SEC Chief Wants Smaller Investors to Have Better, Faster Stock Data; Official lays out improvements for lower-cost public feed, more transparent fee structure
Gabriel T. Rubin and Alexander Osipovich – WSJ
The government wants smaller investors to have better access to real-time information about stock prices as part of an effort to reduce the advantage big firms have in paying for faster stock-data feeds, a top securities official said Friday.
/on.wsj.com/2J49z0I

U.S. calls ‘OneCoin’ huge pyramid scheme, charges leaders
Jonathan Stempel – Reuters
U.S. authorities on Friday announced criminal charges against the alleged leaders of an multibillion-dollar pyramid scheme involving the sale of a fraudulent cryptocurrency, OneCoin.
/reut.rs/2J5BA8e

Money to Launder? Here’s How (Hint: Find a Bank)
Alexander Weber, Boris Groendahl, and Nicholas Comfort – Bloomberg
You’re a Russian criminal with millions of dollars in ill-gotten gains but one big problem: Transferring slugs of money or carrying suitcases of cash will raise eyebrows. You need to “launder” the dough — make the dirty money appear to be the proceeds of legitimate enterprise. Then it can be spent anywhere in the world — say, on real estate or luxury yachts — no questions asked. Most countries and all the world’s major banks have controls in place to flag suspicious funds coming into the financial system. But as shown by the so-called Troika Laundromat scandal and the probes roiling European banks, bad actors come up with innovative ways to skirt the rules.
/bloom.bg/2Tv1CX1

Deutsche Bank’s woes force boss to explore Commerzbank merger; Persistently low interest rates add to pressure on Christian Sewing to seek other options
Olaf Storbeck – FT
Deutsche Bank’s chief executive Christian Sewing has dropped his opposition to exploring a multibillion euro merger with German rival Commerzbank after persistently low interest rates and investor pressure over its grim performance forced him to consider other options.
/on.ft.com/2Tv2Bqb

Bitcoin Miners Are Investing Again, Expecting a Cheap Power Boom Soon
Wolfie Zhao – Coindesk
Bitcoin miners in China are buying used equipment and making deals with mining farms and hydroelectric plants, betting abundant water this summer will make their businesses profitable again.
bit.ly/2TudXuL

Higher Estate Taxes Can Prevent a Nation of Dynasties; Wealth concentration might not be as problematic if so much of it wasn’t passed from generation to generation.
Noah Smith – Bloomberg
It makes sense that President Donald Trump would change tax law to favor inherited wealth. The real-estate-entrepreneur-turned-television-host got his own start thanks to a super-wealthy father, and ended up inheriting hundreds of millions of dollars (much of it sheltered from taxes). Trump’s tax reform, passed in late 2017, makes it easier for people to follow in his footsteps. It increases the amount of money a married couple can pass to their heirs free of tax, to $22.36 million. It also raises the amount that rich people can leave directly to later family generations without paying the generation-skipping tax. Though the higher limits are set to expire in 2025, it leaves a window for rich people to avoid taxes permanently by placing their assets in dynasty trusts.
/bloom.bg/2TyzR05

Danske Laundering Contagion Feeds a New Fear in Borderless EU
Frances Schwartzkopff – Bloomberg
First it was subprime mortgages, then European debt. Now, it’s money laundering. In Denmark, where the latest crisis first grabbed the public’s attention thanks to Danske Bank A/S, the government has some worrying observations on what went wrong and what the scandal might mean for European ambitions to build a single market for financial services.
/bloom.bg/2TsY6wh

Japanese Banks Will Finally Stop Using a Piece of 1800s Technology; Personal stamps, or hanko, will no longer be required to open accounts or withdraw money at some of the country’s biggest lenders.
Yuki Hagiwara – Bloomberg
It has taken more than a century, but Japanese banks are finally parting ways with a piece of technology that hasn’t felt cutting edge since the shogun reigned.
/bloom.bg/2J7kvur

Global Economy Hits Its Weakest Spell Since Financial Crisis
Fergal O’Brien – Bloomberg
The global economy’s sharp loss of speed through 2018 has left the pace of expansion the weakest since the global financial crisis a decade ago, according to Bloomberg Economics. Its new GDP tracker puts world growth at 2.1 percent on a quarter-on-quarter annualized basis, down from about 4 percent in the middle of last year. While there’s a chance that the economy may find a foothold and arrest the slowdown, “the risk is that downward momentum will be self-sustaining,” say economists Dan Hanson and Tom Orlik.
/bloom.bg/2O0jvY4

Wall Street’s oldest-ever bull market turns 10 years old
Noel Randewich – Reuters
A savvy investor who managed to time the start of Wall Street’s bull market a decade ago – and hold on since then – would now be sitting on a handsome windfall. Born in the ashes of the financial crisis, Wall Street’s oldest-ever bull market turns 10 years old on Saturday, with the S&P 500 tripling in value and amply rewarding investors who have owned funds tracking the index for that period.
/reut.rs/2C8vxK0

Exchanges, OTC and Clearing

U.S. Options Industry Options Industry Conference Lifetime Contribution Award Recipients Announced!
The 2019 Lifetime Contribution Award recipients will be honored at this year’s Options Industry Conference, to be held May 1-3, 2019 in Miami, Florida. The award and the Crowd of Fame were created by the U.S. options exchanges and the Options Industry Council (OIC), an industry resource managed by OCC, to recognize a more expansive group of leaders and establish a place for the industry to honor their contributions. The recipients of the Lifetime Contribution Award will be inducted into the Options Industry Conference’s 2019’s newly-formed “Crowd of Fame”, along with all previous Sullivan Award winners.
/goo.gl/6kW26G

HKEX to launch MSCI A-share futures for China’s stock market
Hudson Lockett – FT
Hong Kong’s stock exchange has signed an agreement with MSCI to offer futures contracts on the A-share portion of the index provider’s flagship Emerging Markets index in November, laying the groundwork for investors to hedge risk from their exposure to China’s stock market.
/on.ft.com/2TrjySx

LME launches seven new contracts to try to boost volumes, profit
Eric Onstad – Reuters
The London Metal Exchange (LME) is launching seven new cash-settled futures contracts on Monday, including hot-rolled coil (HRC) steel, alumina and cobalt, aiming to attract more business after profits fell last year.
/goo.gl/SxjsWV

Cboe Europe gains approval for Dutch trading venue
Hayley McDowell – The Trade
Cboe Europe has received approval from authorities in the Netherlands to operate a trading venue in Amsterdam in preparation for Brexit.
The approval means that Cboe is now permitted to run a multilateral trading facility (MTF) and approved publication arrangement (APA), which will be regulated by the Dutch Authority or the Financial Markets (AFM).
/goo.gl/mFJAPk

Fintech

KRM22 launches Enterprise Risk Cockpit
KRM22
KRM22 plc, the technology and software investment company with a particular focus on risk management in capital markets, has announced the launch of the Enterprise Risk Cockpit, its real-time enterprise risk management application for capital markets firms.
bit.ly/2NYjK5J

The Small Exchange To Deploy Eventus Systems Technology For Real-Time Market Surveillance
Eventus
Eventus Systems, Inc., a leading global trade surveillance and market risk platform provider, and the Small Exchange, a new futures exchange (pending regulatory approval) backed by award-winning innovators focused on retail customers, announced today that Eventus will provide the exchange with its mission-critical real-time market surveillance system. The marketplace is deploying the cloud-based version of the Validus platform for its comprehensive surveillance activities.
bit.ly/2NX7mD4

How Data Scientists Turned Against Statistics
Kalev Leetaru – Forbes
One of the most remarkable stories of the rise of “big data” is the way in which it has coincided with the decline of the denominator and our shift towards using algorithms and workflows into which we have no visibility. Our great leap into the world of data has come with a giant leap of faith that the core tenets of statistics no longer apply when one works with sufficiently large datasets. As Twitter demonstrates, this assumption could not be further from the truth.
bit.ly/2EKdPNv

The Gazillion-Dollar Standoff Over Two High-Frequency Trading Towers
Nick Baker and Bryan Gruley – Bloomberg
In a weedy field 35 miles west of Chicago squats a tidy red-brick building with a peaked roof, about the size of a one-car garage. Against the eastern wall, reaching just above the roofline, are poles equipped with small dish antennas that send microwave signals to and gather them from financial markets on the East Coast. At the same time, the site communicates via subterranean cable with an enormous steel-and-glass building across the street. That fortress is home to CME Group Inc., a $63 billion exchange where some of the world’s most vital financial products trade, including derivatives on oil, gold, U.S. Treasuries, and the S&P 500.
/bloom.bg/2UqF1rh

The Small Exchange to Deploy Eventus Systems Technology for Real – Time Market Surveillance
Eventus Systems
Eventus Systems, Inc., a leading global trade surveillance and market risk platform provider, and the Small Exchange, a new futures exchange (pending regulatory approval) backed by award-winning innovators focused on retail customers, announced today that Eventus will provide the exchange with its mission-critical real-time market surveillance system. The marketplace is deploying the cloud-based version of the Validus platform for its comprehensive
surveillance activities.
bit.ly/2F4k9AH

Itiviti introduces unified offering following merger with Ullink
Press Release
Stockholm, Sweden, March 11, 2019 – Itiviti, a leading technology and service provider to financial institutions worldwide, today announced a unified products and solutions portfolio – the industry’s broadest range of solutions and services spanning asset classes and trading applications across Europe, Asia-Pacific and the Americas.
/goo.gl/dPx2PT

Dash Names Venu Palaparthi Chief Compliance Officer and Head of Regulatory Affairs
Dash Financial
Dash Financial Technologies, the industry’s leading capital markets technology and execution provider, today announced the addition of Venu Palaparthi as Chief Compliance Officer and Head of Regulatory Affairs. In this role, Mr. Palaparthi will be responsible for Dash’s compliance strategy, including the direction of internal regulatory policies and compliance with government regulations.
/goo.gl/MmDpbM

Cybersecurity Awareness Training 2019
Exchange Analytics
Our new Cybersecurity 19.1 course features updated content, added interactivity, recent regulatory cases, a new case study, a new quiz, new audio and entirely new graphics.
When the stakes are this high, training has to be best in class.
This course is just in time to meet the demands of the National Futures Association’s Notice to Members (NTM) I-19-0, which goes into effect April 1 and requires Cybersecurity training of employees upon hiring, at least annually thereafter, and more frequently if circumstances warrant (such as in the event of an attempted or successful cyber attack).
bit.ly/2F4rpg7

‘World’s Biggest’ Blockchain-Focused ETF to Start Trading on London Stock Exchange
Francisco Memoria – Cryptoglobe
While most in the cryptocurrency community are looking forward to a Bitcoin ETF, independent investment management company Invesco, which has over $800 billion in assets under management, has announced the launch of the ‘world’s biggest blockchain-focused ETF. According to ZeroHedge, the blockchain-focused exchange-traded fund will include upon launch a portfolio of 48 different companies with exposer to blockchain technology.
/bit.ly/2F0I18w

Technology ETF Celebrates Milestone Birthday; The Invesco QQQ Trust is now the sixth-largest ETF with $68 billion in assets
Asjylyn Loder – The Wall Street Journal
The Invesco QQQ Trust, the exchange-traded fund that was once practically synonymous with the dot-com boom and bust, turns 20 years old this week. Nicknamed “the Qs,” the fund made its debut just one year before the tech-heavy Nasdaq Composite Index hit what was then an all-time high.
/on.wsj.com/2J68Yf5

Cryptocurrencies

OneCoin Leaders Charged in Multibillion-Dollar Pyramid Scam
Chris Dolmetsch – Bloomberg
The leaders of an alleged multibillion-dollar international pyramid scheme that involved the marketing of the cryptocurrency OneCoin were charged by U.S. prosecutors with fraud and money laundering.
/goo.gl/ppNSMA

Fidelity’s bitcoin custody business is live: a conversation with Fidelity Digital Assets head Tom Jessop
Frank Chaparro – The Block
Last October Tom Jessop stepped on stage at an industry conference in New York to debut to the world Fidelity’s ambitions to launch a new crypto trading and custody business, Fidelity Digital Assets. “We built a lot of the capabilities underlying this platform months and years ago,” Jessop, who leads the business, said at the time. Now, part of the platform is live — with five clients. To start, the firm is offering bitcoin custody for crypto native firms, Jessop told The Block in an interview at the Chamber of Digital Commerce’s DC Blockchain Summit in the nation’s capital.
bit.ly/2H9xOJb

Kakao’s Crypto Unit Raises $90 Million in Private Coin Offering
Min Jeong Lee – Bloomberg
Ground X plans to raise similar sum starting on Tuesday; Kakao mulling launching services on unit’s blockchain platform
Kakao Corp.’s crypto unit raised $90 million through a private coin offering and is planning another round targeting a similar sum starting March 12, as it gears up to launch its blockchain platform in June.
/bloom.bg/2TtGSip

Winklevoss Twins Preach Trust, More Regulation for Crypto Market
Olga Kharif – Bloomberg
Machines will be an even bigger market than people in future; Investor confidence suffers after Quadriga, Mt. Gox fiascos
Building trust is key to regaining confidence among cryptocurrency traders after the death of a prominent exchange executive prevented thousands of people from accessing their accounts, according to Tyler and Cameron Winklevoss.
/bloom.bg/2TvWXUK

Invesco blockchain ETF to launch on London Stock Exchange; Move is a fresh sign of growing interest in the technology that underpins cryptocurrencies
Chris Flood – FT
Invesco is to launch an exchange traded fund targeting companies with potential to generate earnings from blockchain in a fresh sign of the growing interest among asset managers in the technology that underpins cryptocurrencies.
/on.ft.com/2TudeK3

JP Morgan’s Stablecoin: A Feat of Engineering or Marketing?
Ben Jessel – Coindesk
The world of blockchain and banking was set alight last month by the announcement that JP Morgan has created its own stablecoin. It was a rare move that has simultaneously excited the banking and enterprise blockchain community as well those in the cryptocurrency world. But is this excitement justified?
bit.ly/2TzTN2E

New Crypto Hardware Wallet Fits Your Phone’s SIM Card Slot
Yogita Khatri – Coindesk
The firm announced Tuesday that the wallet solution combines an app and the VaultTel Intellichip card to store cryptocurrency private keys on mobile devices, using biometric authentication and “military grade” encryption to keep the funds safe.
bit.ly/2TwvUZJ

Social Trading Giant eToro Adds Crypto Buying and Selling in 32 US States
Yogita Khatri – Coindesk
Israel-based social investing platform eToro has launched a cryptocurrency trading platform and wallet service in the U.S.
bit.ly/2TtI31j

SEC Commissioner Hester Peirce: Crypto Markets Should Self-Regulate When Possible
Marie Huillet – Cointelegraph
United States Securities and Exchange Commission (SEC) Commissioner Hester M. Peirce has argued in favor of self-regulation for cryptocurrency markets when possible. The commissioner made her remarks during a public talk together with former Commodity Futures Trading Commission (CFTC) chairman Gary Gensler at the MIT Bitcoin Expo 2019 on March 9.
/bit.ly/2F4fhvp

Samsung Unveils Cryptocurrency Wallet, Dapps for Galaxy S10 Phone
Yogita Khatri – Coindesk
Samsung Electronics has just revealed the cryptocurrency wallet for its just launched flagship phone, the Galaxy S10. According to a report from CoinDesk Korea published Sunday, the Samsung Blockchain Wallet is currently compatible only with ether (ETH) and ethereum-based ERC20 tokens. Bitcoin is not yet supported, despite the logo appearing on earlier pre-release presentation images. The wallet also supports four decentralized apps (dapps) at launch: crypto gaming platform Enjin, beauty community Cosmee, crypto collectibles platform CryptoKitties and merchant payments service CoinDuck.
/bit.ly/2F3pAzK

Bitcoin Coders Send International Lightning Payment Over Ham Radio
Alyssa Hertig – Coindesk
In what appears to be a first-of-its-kind transaction, two developers working in separate countries have successfully sent a bitcoin lightning payment over radio waves. Organized over Twitter this past weekend, the transaction was sent by Rodolfo Novak, co-founder of bitcoin hardware startup CoinKite, to developer and Bloomberg columnist Elaine Ou. The completed payment effectively moved real bitcoin from Toronto, Canada, to San Francisco, California.
/bit.ly/2tZQ2nA

Politics

Russian Trolls Shift Strategy to Disrupt U.S. Election in 2020
Alyza Sebenius – Bloomberg
Hackers infiltrate computers to create fake social media users; Fake accounts are used to amplify divisive messages by others
Russian internet trolls appear to be shifting strategy in their efforts to disrupt the 2020 U.S. elections, promoting politically divisive messages through phony social media accounts instead of creating propaganda themselves, cybersecurity experts say.
/bloom.bg/2J11qdd

Wall Street critic Warren sets sights on Big Tech; Carpooling Lyft founders, Kylie’s social media empire, Skype for Web
Shannon Bond – FT
Elizabeth Warren, the Democratic champion who made her name arguing for stricter regulation of Wall Street, has turned her eyes to Silicon Valley. On Friday she promised to break up Amazon, Google and Facebook if she is elected president in 2020.
/on.ft.com/2TuKj8s

Opinion: Medicare for All isn’t ‘radical,’ it’s popular
Paul Brandus – MarketWatch
Senate Majority Leader Mitch McConnell is so fascinated with the Green New Deal that he’s moving it to the top of his to-do list.
/on.mktw.net/2TuxPOt

Will the Issue of Character Be Trump’s Undoing?; The best way to unseat him may be to focus on restoring simple decency to the Oval Office
Gerard Baker – WSJ
We are supposedly days away from the conclusion of Robert Mueller’s investigation into Russian interference in the 2016 election. No one knows whether Mr. Mueller will allege criminal conduct by the president or any (more) of his close associates. Yet we can be reasonably confident that the report will not present a flattering portrait of the 45th president. But if there’s no crime, his supporters will say, “Who cares?”
/on.wsj.com/2TsZkHT

China Deal Would Mean ‘Very Big Spike’ for Markets, Trump Says
Margaret Talev and Andrew Mayeda – Bloomberg
At same time, Kudlow says U.S. won’t want to rush trade talks; U.S. stocks fell on Friday after disappointing jobs numbers
President Donald Trump said that the U.S. will enjoy a “very big spike” in stock markets if he closes a trade deal with China.
/bloom.bg/2TtpLgM

Mueller’s Report Must Be Made Public; Michael Cohen’s testimony shows why Americans need a full, transparent accounting of what happened in 2016.
Editorial Board – Bloomberg
Michael Cohen’s appearance last week before the House Committee on Oversight and Reform was surely a spectacle. The former personal lawyer to President Donald Trump, who had spent a decade lunging at anyone who threatened Trump’s image or interests, marshaled his own attack on the president’s character and behavior.
/bloom.bg/2CfAl0h

Will the Issue of Character Be Trump’s Undoing?
Gerard Baker – The Wall Street Journal
We are supposedly days away from the conclusion of Robert Mueller’s investigation into Russian interference in the 2016 election. No one knows whether Mr. Mueller will allege criminal conduct by the president or any (more) of his close associates. Yet we can be reasonably confident that the report will not present a flattering portrait of the 45th president. But if there’s no crime, his supporters will say, “Who cares?”
/on.wsj.com/2NVAgU2

Regulation

Easing financial controls is cause for wariness; The peak of the market is just the time when defences should be raised
The editorial board – FT
US regulators took three steps last week that either loosened or failed to tighten financial safeguards put in place after the 2008 global crisis. Big financial companies and the Trump administration, which have pushed to ease Obama-era controls, will celebrate. The decisions reflect officials’ confidence that banks are healthier than before the crisis. But there are reasons to be wary. The changes raise concerns that regulation is, once again, being eased just at the moment when it ought to be tightened. They also appear in part to be inconsistent, as new risks grow elsewhere in the financial system.
/on.ft.com/2Tsbt00

Musk Twitter Fight Goes to Court Again on SEC Contempt Charge
Bob Van Voris – Bloomberg
Tesla founder must file his response to agency claim on Monday; Punishment likely, but not loss of Tesla control, experts say
Elon Musk is about to urge a judge to go easy on him for tweets that U.S. regulators contend violated a court order, though legal experts say the pugnacious billionaire will have a hard time avoiding some kind of punishment.
/bloom.bg/2TxOL6v

Not Just Spoofing, Not Just CME Group Exchanges and ICE Futures U.S.
Gary DeWaal – Lexology
Two Weeks ago in the Compliance Weeds section addendum to the article, “Government Argues New Trial for Convicted Spoofer Not Justified by Data Available Before Trial End” (click here to access) I noted that, “…market participants must pay equal attention to exchanges’ prohibition against persons entering or causing the entry of order messages with the intent to disrupt or with reckless disregard for the consequences of such messages on the orderly trading of a market” and not just on prohibitions against spoofing.
bit.ly/2F4hHtZ

MMT Has Been Around for Decades. Here’s Why It Just Caught Fire
Ben Holland and Matthew Boesler – Bloomberg
Over a lifespan of about three decades, Modern Monetary Theory has often been badmouthed — by obscure bloggers. Not by the likes of Jerome Powell and Larry Fink. The economists who developed it mostly operated on the periphery of academia and the internet. Now their ideas have broken into the mainstream. Hardly a day passes without some Wall Street titan or policy heavyweight weighing in – – usually to dismiss the doctrine, though there’s been support too.
/bloom.bg/2J6mlf1

The First Line of Investing Defense? You
Jason Zweig – The Wall Street Journal
The push to require stockbrokers to act in their clients’ best interest is turning into a turf war. The Securities and Exchange Commission, after years of study, should complete new regulations later this year. But several states, no longer willing to wait and see what those rules will look like, are already moving on their own.
/on.wsj.com/2F4X8Oi

Contagion From Danske Case Feeds a New Fear in Borderless EU
Frances Schwartzkopff – Bloomberg
First it was subprime mortgages, then European debt. Now, it’s money laundering. In Denmark, where the latest crisis first grabbed the public’s attention thanks to Danske Bank A/S, the government has some worrying observations on what went wrong and what the scandal might mean for European ambitions to build a single market for financial services.
/bloom.bg/2EPf128

Warren Says Breaking Up Tech Giants Will Keep Market Competitive
Susan Warren – Bloomberg
Democratic presidential hopeful Elizabeth Warren said breaking up giant tech companies would “keep the marketplace competitive,” during an appearance at one of the biggest technology events in the U.S. The Massachusetts senator spoke Saturday at the annual South by Southwest cultural festival in Austin, Texas, a day after proposing to take steps to break up companies like Facebook Inc. and Alphabet Co.’s Google if she’s elected.
/bloom.bg/2HpWrR7

Investing and Trading

Bill Gross gets retirement gift from Bloomberg: free terminals; Retired bond trader receives lifetime subscription from former New York mayor
Robin Wigglesworth – FT
Bill Gross once donated his old Bloomberg terminal keyboard to the Smithsonian’s Museum of American History, so it is fitting that former New York mayor Michael Bloomberg has given the erstwhile “bond king” a free, lifetime subscription to his flagship product as a retirement gift.
/on.ft.com/2TqMmut

How a Day Trader Cashed In on the Trump-Kim Summit Collapse
Heejin Kim – Bloomberg
Volatility, volume surges for peace stocks on North Korea news; Retail investors lapped up Hyundai Rotem shares in past year
For Jung Jae-hoon, a 37-year-old day trader in South Korea, the botched Trump-Kim summit was a success: The volatility that rattled the market helped him earn a nice profit.
/bloom.bg/2Ttj7Hl

How worried should we be about the stock market wobble?’; The key concerns for the week ahead
FT
Major stock markets last week suffered their worst spell since the December carnage, as investors grew nervous about the health of the global economy. Was this just a slight wobble in the recovery or a sign of renewed trouble?
/on.ft.com/2Ttp47a

Private Investors Encroach on Fannie and Freddie’s Domain; Growing number of mortgages that meet agencies’ standards flow into private market
Ben Eisen – WSJ
Private investors are directly buying a small but growing share of loans that have long been the domain of Fannie Mae FNMA -2.20% and Freddie Mac , FMCC -1.92% a sign of the changing dynamics in the $11 trillion mortgage industry.
/on.wsj.com/2TxO6lx

Want to Understand the Shale Boom? Try a Microscope; All crude oil is not created equal. Once you know why, you’ll understand how OPEC cuts and the U.S. oil boom are upending markets.
Julian Lee – Bloomberg
Look at much of what is written about the oil market and it may be tempting to conclude that crude oil is a homogeneous commodity, the same the world over and seamlessly interchangeable. It’s not.
/bloom.bg/2Tue6yj

Visualizing U.S. Budget Gap That Scares Everyone Except Markets
Katia Dmitrieva and Alexandre Tanzi – Bloomberg
The expanding U.S. budget deficit is putting federal debt on course for levels last seen during the World War II era, a shift that may test the bond market’s willingness to keep funding the government at relatively low costs.
/bloom.bg/2Tuz5Bb

The Perfect Bull Market Portfolio Might Have Blown Up Your Firm
Sarah Ponczek – Bloomberg
Even best stocks suffered long periods of underperformance; ‘God portfolio’ not immune to stretches of ‘abysmal’ returns
Would you do it all over, knowing what you know now? For a professional money manager looking back on the bull market at its 10th anniversary, it’s a hard question to answer.
/bloom.bg/2J0S6WS

Wall Street’s Got It All Wrong When It Comes to the U.S. Bond Market
Liz McCormick – Bloomberg
What, exactly, is the bond market telling us? It’s an age-old question on Wall Street, but one that’s gained newfound urgency as the topsy-turvy markets leave everyone wondering where the U.S. economy is headed. Yet to a small but growing number of analysts, academics and former policy makers, the standard answers may not apply.
/bloom.bg/2VSJbIJ

Private Investors Encroach on Fannie and Freddie’s Domain
Ben Eisen – The Wall Street Journal
Private investors are directly buying a small but growing share of loans that have long been the domain of Fannie Mae and Freddie Mac, a sign of the changing dynamics in the $11 trillion mortgage industry.
/on.wsj.com/2XR9YqL

Norway’s investment cull leaves oil majors spared but shaken; By divesting stakes in smaller oil and gas producers, Oslo’s $1tn fund sent message to majors
David Sheppard, Richard Milne – Financial Times
Norway’s sovereign wealth fund may have spared the majors when announcing it was pulling investments from a host of oil and gas producers, but the move will still reverberate in the boardrooms of energy heavyweights like BP and ExxonMobil.
/on.ft.com/2u17bxh

Institutions

Deutsche Bank Executives Agree to Informal Merger Talks With Commerzbank
Talks involving the CEOs reflect deepening willingness to engage in a possible tie-up
Jenny Strasburg, Bojan Pancevski and Patricia Kowsmann – The Wall Street Journal
Deutsche Bank AG’s top executives have agreed to hold discussions with rival Commerzbank AG about a potential merger, as Germany’s two biggest banks explore strategic options after suffering prolonged performance and share-price declines, people close to the banks said.
/goo.gl/wDoyqx

Hedge Funds Used This Data Guru to Make Millions on Nintendo
Yuji Nakamura and Shintaro Inkyo – Bloomberg
Media Create supplied funds with early sign of Switch weakness; ‘Our data doesn’t fail,’ founder says of 25-year-old firm
Hedge funds will look almost anywhere for an edge. When it comes to trading shares of Nintendo Co., they’re turning to a tiny research shop in a corner of Tokyo better known for used booksellers and guitar stores.
/bloom.bg/2TqN5fb

China Traders Who Loved Leverage Left Reeling by Friday’s Plunge
Jeanny Yu – Bloomberg
Leveraged wagers jumped 89% among top stocks on CSI 300 Index; Reckless margin trading risks deep correction: JPMorgan Asset
Margin traders who drove a clutch of stocks to the forefront of a dramatic upswing in Chinese equities now have a tough decision to make.
/bloom.bg/2TpO5Qy

Bank of America names new co-heads of UK investment banking
Pamela Barbaglia – Reuters
Bank of America has appointed James Robertson and Peter Luck as co-heads of UK investment banking as part of its push to win business from large corporate clients in Britain.
/goo.gl/2PzSCG

Goldman’s ‘Flexible’ Dress Code Takes a Cue From Silicon Valley; Bankers, too, are expected to be innovators and disruptors. Now they can look the part.
Stephen Mihm – Bloomberg
Are these the end times? David Solomon, the chief executive of Goldman Sachs, announced this week that the bank would institute a “firmwide flexible dress code” for all of its employees, becoming the latest iconic company to reject strict regulations on workplace attire.
/bloom.bg/2J7jMtd

Swedbank under shareholder scrutiny over money-laundering report
Johan Ahlander, Esha Vaish – Reuters
Swedbank is facing pressure from some of its biggest shareholders to reveal more about what it knew about allegations of money-laundering linked to Danske Bank.
/reut.rs/2J3dyKR

Japanese Banks Will Finally Stop Using a Piece of 1800s Technology
Yuki Hagiwara – Bloomberg
It has taken more than a century, but Japanese banks are finally parting ways with a piece of technology that hasn’t felt cutting edge since the shogun reigned. Hanko, the personal stamps required for even simple transactions in Japan since the 1800s, are getting phased out at some of the country’s biggest financial institutions.
/bloom.bg/2SSkqur

Bank of America names new co-heads of UK investment banking
Pamela Barbaglia – Retuers
Bank of America has appointed James Robertson and Peter Luck as co-heads of UK investment banking as part of its push to win business from large corporate clients in Britain.
/reut.rs/2J67RvV

Hedge Funds Used This Data Guru to Make Millions on Nintendo
Yuji Nakamura and Shintaro Inkyo – Bloomberg
Hedge funds will look almost anywhere for an edge. When it comes to trading shares of Nintendo Co., they’re turning to a tiny research shop in a corner of Tokyo better known for used booksellers and guitar stores. Media Create Co. is the brainchild of Atsushi Hosokawa, a 63-year-old who got his start cold-calling video-game stores for information. His firm now tracks sales in Japan and other Asian countries, estimating shipments ahead of official company releases with enough precision that he’s drawn more than two dozen hedge funds as clients.
/bloom.bg/2J68jKD

Regions

U.S., China Near Currency Deal; Beijing Vows Not to Devalue Yuan to Help Exports; The yuan’s plunge last year raised concerns that Beijing was pushing down its value to offset U.S. tariffs on Chinese products
Lingling Wei and Chao Deng – WSJ
China’s top central banker signaled that Beijing and Washington are getting close to reaching a currency deal as part of their continuing negotiations to settle a yearlong trade battle.
/on.wsj.com/2Ts0ELg

New York City is edging toward financial disaster, experts warn
John Aidan Byrne – NY post
New York City is careening closer to all-out financial bankruptcy for the first time since Mayor Abraham Beame ran the city more than 40 years ago, experts say.
/nyp.st/2TtGuQZ

China says hopes countries don’t abuse rules to limit investment
Reuters
China hopes other countries do not abuse national security rules to impede normal investment, Vice Commerce Minister Qian Keming said on Saturday.
/reut.rs/2J6S67K

What Broke Venezuela’s Economy and What Could Fix It
Eric Martin, Patricia Laya – Bloomberg
Venezuela’s economic situation is unthinkably bad, especially for what was once South America’s richest nation. Hyperinflation, plunging oil production and unpayable debts will confront whoever wins the current struggle for control between Nicolas Maduro and Juan Guaido, both of whom claim to be president. But recovery plans are already being drafted inside and outside the country. Here’s a look at how Venezuela fell and at some of the ideas for getting it back on its feet.
/bloom.bg/2J4cjuQ

China Traders Who Loved Leverage Left Reeling by Friday Rout
Jeanny Yu – Bloomberg
Margin traders who drove a clutch of stocks to the forefront of a dramatic upswing in Chinese equities now have a tough decision to make. Friday’s 4 percent plunge in the CSI 300 Index was by far the steepest decline since the rally accelerated just over a month ago, and some of the bull run’s biggest winners were in the crosshairs.
/bloom.bg/2UwW8rg

China has made a clear effort to keep yuan exchange rate stable, says central bank
Cissy Zhou, Jane Cai – South China Morning Post
China has made a clear effort over the last four years to maintain a stable exchange rate in the face of sustained downward pressure on the yuan, People’s Bank of China governor Yi Gang said on Sunday. Yi also said there remains room to cut banks’ reserve requirement ratio, though that room is smaller than it was in the past.
/bit.ly/2HrUgMI

Ghost workers sap Tunisia’s phosphate wealth
Tarek Amara – Reuters
METLAOUI, Tunisia – Tunisia’s state phosphate firm CPG pays Abdel-Basset Klifhi a salary of $280 a month, even though he spends most days in his favorite cafe in the southern town of Metlaoui. He is one of 21,000 people taken on by the Companie des Phosphates de Gafsa (CPG) since Tunisia’s autocrat president Zine El-Abidine Ben Ali was toppled in 2011. Since then, the economy has been in crisis and CPG has lost its spot as the country’s top exporter. Unemployment, inflation and deficits have shot up and the value of the dinar currency has plummeted. Loans from the International Monetary Fund have kept the government afloat.
/reut.rs/2UuSCxD

Brexit

Britain’s Small Businesses Aren’t Prepared for Brexit; As the big divorce looms, they have no idea what the rules will be or what they’ll have to do to adapt.
Stefania Spezzati, Charlie Devereux – Bloomberg
Julianne Ponan doesn’t run a gigantic corporation, but she hasn’t been doing badly. When she bought Creative Nature, based in Surrey, about seven years ago, it was a money-losing maker of candles, among other things. In 2018 the company, which now produces and exports snacks for the booming health-and-wellness market around the world, about doubled its revenue from the year before, to £1.3 million ($1.7 million).
/bloom.bg/2TriVZb

May Could Lose Tuesday’s Brexit Vote by Huge Margin, Times Says
James Ludden – Bloomberg
Prime minister faces potential humiliation in vote on Tuesday; Sunday Times says Brexiteers are pushing for May to quit
Theresa May’s aides are increasingly concerned that Tuesday’s vote on her Brexit deal could result in an even worse humiliation than she endured in a similar vote in January, the Sunday Times reported. The majority against the government then was 230, the biggest defeat for a prime minister in more than a century.
/bloom.bg/2TuKW1O

Trading slips away from London ahead of Brexit
Huw Jones – Reuters
LONDON (Reuters) – A quiet, permanent shift in trading from London to the European Union ahead of Brexit is picking up speed as stock and bond platforms in Amsterdam and Paris crank into action. Few expect London to lose its position as Europe’s biggest financial hub, but Britain’s departure from the EU is turning into a multibillion-euro boost for the bloc’s protracted efforts to build a deeper capital market to rival the UK capital.
/reut.rs/2TzMh75

May Said to Be Weighing Options for Tuesday Vote: Brexit Update
Jess Shankleman, Kitty Donaldson, and Tim Ross – Bloomberg
Brexit talks in Brussels are deadlocked with just a day to go until Theresa May is meant to put her deal to Parliament. If she goes ahead and fails, her premiership and the Brexit process would be thrown into chaos. She’s said to be considering a vote on a vaguer motion instead.
/bloom.bg/2HcajPx

Britain’s Small Businesses Aren’t Prepared for Brexit; As the big divorce looms, they have no idea what the rules will be or what they’ll have to do to adapt.
Stefania Spezzati and Charlie Devereux – Bloomberg
Julianne Ponan doesn’t run a gigantic corporation, but she hasn’t been doing badly. When she bought Creative Nature, based in Surrey, about seven years ago, it was a money-losing maker of candles, among other things. In 2018 the company, which now produces and exports snacks for the booming health-and-wellness market around the world, about doubled its revenue from the year before, to £1.3 million ($1.7 million).
/bloom.bg/2XZlGj8

Labour Won’t Force U.K. Second Referendum Vote: Brexit Update
Kitty Donaldson – Bloomberg
The U.K. Parliament is headed for a key vote Tuesday on Prime Minister Theresa May’s Brexit deal, with expectations the proposal — similar to the measure overwhelmingly defeated in January — will lose again.
/bloom.bg/2TzxWIF

Miscellaneous

Mindfulness at work is not quite what it’s cracked up to be; Mindfulness proponents rail against US study showing meditation to be demotivating
Pilita Clark – FT
Not that long ago, an almost unknown American academic named Andrew Hafenbrack was sitting in a Berlin hotel room, idly scrolling through his emails after a day at a leadership conference, when he got a horrible shock.
/on.ft.com/2Ttnjae

John Lothian Newsletter

So you want to know what’s happening in the financial markets?We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past Newsletters

New York Stock Exchange

The Gazillion-Dollar Standoff Over Two High-Frequency Trading Towers

Mar 11, 2019

First Read

Hits & Takes
By JLN StaffOne takeaway from the CME’s second quarter earnings report yesterday: Average daily volume at the exchange through the first half of the year was 20.2 million. In 2000, ADV was just over 2.5 million.~JKB3, formerly BM&F Bovespa, posted a volume increase of 52 percent on 1.3 billion contracts for the first half of 2018. FOW noted that it topped the Intercontinental Exchange‘s volume, moving B3 into third in terms of volume behind top exchange, CME Group up 20 percent with 2.5 billion contracts and the National Stock Exchange of India, up 43 percent to 1.6 billion contracts.~JKDo you know who invented the “Ring The Bell” marketing event at the stock exchange? Equities.com points to a man named Enzo Villani, now a board member of a new crypto markets infrastructure firm called Alt 5 Sigma.~JKHere is a video of Blythe Masters and her CTO about the partnership between Google and Digital Asset from the Google Next ’18.~JJLThis July, NFA partnered with Six Flags Great America to offer staff discounted admission for the month. NFA auditors will be double checking for fake hand stamps and making sure rider harnesses are nice and tight.~JJL~JK++++Global Blockchain Company AlphaPoint Adds Industry Veteran Kristin Boggiano as Chief Legal Officer to Executive Team
AlphaPoint
AlphaPoint, a leading blockchain company focused on enabling institutions to launch, scale, and operate digital asset networks and exchanges all over the world, today announced the appointment of Kristin Boggiano as its Chief Legal Officer. In this role, Boggiano will oversee the company’s legal, regulatory, and government relations functions as well as contribute as a member of AlphaPoint’s executive team.
/jlne.ws/2LrzdNR**Kristin spoke at our MarketsWiki Education event in New York in 2016 about her trek through the jungles of Ecuador.~JK++++Kudlow says US GDP figure will be ‘big’; Top economic adviser says he has no specific knowledge but wanted to ‘help’
Mamta Badkar – FT
US President Trump’s top economic adviser on Thursday told Fox Business that he expected Friday’s US GDP figure to be “big” but denied knowing the specifics, less than two months after Mr Trump’s tweet in advance of a jobs report drew fire.
/jlne.ws/2JZMcR2***** This is irresponsible.~JJL++++Trump Predicts Data Will Show U.S. Economy in ‘Terrific’ Shape
Greg Sullivan and Toluse Olorunnipa – Bloomberg
Bloomberg survey points to 4.2% expansion in second quarter; Data to be released at 8:30 a.m. in Washington on Friday
President Donald Trump predicted data on Friday will show the U.S. economy is in “terrific” shape amid forecasts that growth topped 4 percent in the second quarter, the fastest since 2014.
/jlne.ws/2JXaZFj***** And so is this.~JJL++++Fake news of Napoleon’s death cited in guidance to help traders
Huw Jones – Reuters
Fake news that Napoleon had died is cited in new analysis aimed at helping commodity, bond and forex traders to stop fraud, an industry body said on Friday.
/jlne.ws/2mLvZWr***** Seems fake news, which we once called rumors, has been around a while.~JJL++++The Girl Scouts have gone from baking and sewing to cybersecurity and financial literacy
Myelle Lansat and Richard Feloni – Business Insider
The Girl Scouts is much more than selling cookies; it’s an organization that provides a foundation for young women to take leadership roles in society. And since Sylvia Acevedo was named CEO of Girl Scouts in 2017, it’s also teaching its members about STEM (science, technology, engineering, and math) — shifting the sole focus away from traditionally female tasks, like baking and sewing.
/goo.gl/kwHCjs***** In the name of fairness, some Girl Scout news.~JJL++++Thursday’s Top Three
Yesterday’s top stories were led by Bloomberg’s How Traders Have Changed Since the Massive Selloff Earlier This Year. Second was Equities.com’s From Exchanges Old To Exchanges New: Chicago Mercantile Exchange and Alt 5 Sigma about new crypto trading systems. Third went to Financefeeds’ FCA approves ION-Fidessa deal++++MarketsWiki Stats
130,088,709 pages viewed; 23,215 pages; 214,399 edits
MarketsWiki Statistics++++

Lead Stories

Up to Two-Thirds of Bitcoin Transactions Have No Economic Value
Olga Kharif – Bloomberg
Services developing tools to add clarity to blockchain data; Value of activity about half of what appears, researcher says
On any given day, as much as two-thirds of the transaction activity registered on the Bitcoin network has nothing to do with buying goods and services or trading the virtual currency.
/jlne.ws/2K5LOAMBitcoin Drops as U.S. Rejects Winklevoss ETF for Cboe Trading
Todd White – Bloomberg
Technical indicator also moves into bearish territory; Digital currency has declined after more than 30% July rally
Bitcoin fell for a third day, slipping below $8,000, after the U.S. Securities and Exchange Commission rejected a request to list an exchange-traded fund run by Tyler and Cameron Winklevoss.
/jlne.ws/2K14LEnFacebook’s $119 Billion One-Day Rout Makes U.S. History
Sophie Caronello – Bloomberg
It’s official. Facebook Inc. just had the biggest stock-market wipeout in American history. Shares tumbled 19 percent on Thursday to close at $176.26 after sales and user growth disappointed investors. The drop translates to a $119.4 billion decline in market capitalization, the largest-ever loss of value in one day for a U.S. traded company.
/jlne.ws/2JWxavvFINRA Announces Enforcement Structure, Senior Leadership Team; Integration of Enforcement Functions Complete; Unified Enforcement Program Key Outcome of FINRA360
FINRA
FINRA announced today the Department of Enforcement’s new structure and senior leadership team. This marks the completion of the final phase of the integration of FINRA’s enforcement functions—a process that began with the July 2017 promotion of Susan Schroeder to FINRA’s Head of Enforcement to create a unified enforcement function.
/jlne.ws/2K02VDGTwitter Shares Plunge 17% as Monthly Users Decline
Selina Wang – Bloomberg
Company reports 1 million fewer visitors from previous quarter; Revenue climbs to $711 million, topping analyst’ projections
Twitter Inc. said monthly users dropped by 1 million in the second quarter, and predicted that number will decline further as the company continues to fight against spam, fake accounts and malicious rhetoric on its social network. The shares plunged 17 percent in early trading.
/jlne.ws/2JWSiBOHedge Fund Titans Who Bet Big on India Now Say They Were Scammed
Olivia Carville, Anto Antony, and Jeanette Rodrigues – Bloomberg
Axon Capital, CIFF say they are victims of a massive fraud; Dispute is playing out in courts in India and Mauritius
The $1.5 billion India wager that went horribly wrong for some of the world’s biggest hedge funds began with a tantalizing offer.
/jlne.ws/2K0v9hOJuncker’s Trade Pitch to Trump: ‘I Can Be Stupid, as Well’; How bravado, flip cards and a White House ally helped European official sell U.S. president on trade detente
Valentina Pop and Vivian Salama – WSJ
When Jean-Claude Juncker arrived at the White House on Wednesday, he had no idea how the meeting with President Donald Trump would end.
/jlne.ws/2K01wNFHigh speed trader Virtu’s profits miss the mark
Nicole Bullock – FT
Virtu Financial, the high speed trader, reported adjusted net income of $59.6m in the second quarter below Wall Street expectations amid a “markedly worse” operating environment, the company said.
/jlne.ws/2LunLRp‘F’ Is For? This ETF Is Named After FANGs and Holds No Facebook
Carolina Wilson and Sarah Frier – Bloomberg
Fund, known by ticker FNG, sold out of Facebook during scandal; Earlier, ETF had dumped Apple holdings ahead of earnings boost. What’s in a name? When hearing the acronym FANG, four technology stocks come to mind: Facebook Inc., Amazon.com. Inc., Netflix Inc., and Alphabet Inc.’s Google.
/jlne.ws/2JXeQ5fSeveral banks dismissed from U.S. metals price-fixing lawsuits
Jonathan Stempel – Reuters
A U.S. judge has dismissed five large banks from two antitrust lawsuits by investors alleging multi-year conspiracies to rig prices for hundreds of billions of dollars of transactions in the global silver and gold markets.
/jlne.ws/2JWBVFnFyre Festival Promoter Pleads Guilty to Ticket-Scam Charges
Bob Van Voris – Bloomberg
Billy McFarland, the architect of the failed 2017 Fyre Festival, pleaded guilty to new charges that he ran a fraudulent ticket business while on bail facing earlier fraud charges connected to the disastrous luxury concert series in the Bahamas.
/jlne.ws/2K0AoOwFannie Mae Debt Sale Sets Milestone For New Borrowing Benchmark; New index taking aim at scandal-ridden Libor passes $6 billion test.
Vipal Monga and Daniel Kruger – WSJ
A benchmark lending rate that regulators and investors hope can replace the scandal-plagued Libor as the foundation for trillions of dollars of debt from credit cards to business loans easily passed a key test.
/jlne.ws/2JYY9GR

Exchanges, OTC and Clearing

CME to launch six gasoline futures contracts
Reuters Staff
CME Group says it plans to launch six gasoline futures contracts effective on Aug. 26 and for trading from Aug. 27
/jlne.ws/2K0xN7eCME Group Achieves International Average Daily Volume of 4.2 Million Contracts in Q2 2018, Up 13 Percent from Q2 2017
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that it achieved quarterly international (defined as outside of the US) average daily volume (ADV) of 4.2 million contracts during the second quarter of 2018, up 13 percent over the same period last year.
/jlne.ws/2K07pdJCME profits miss despite bump in trading volumes; Concerns around global protectionism sparked higher trade, particularly in agricultural products
Joe Rennison – FT
CME Group, the world’s largest futures exchange, today reported mixed earnings, tempered by trade concerns fuelling volumes as investors sought to protect against price fluctuations.
/jlne.ws/2K1xgSmCME quarterly earnings boosted by volumes, market data
John McCrank – Reuters
CME Group Inc (CME.O), the world’s largest futures exchange operator, said on Thursday its second-quarter earnings rose on the back of higher trading volumes and market data fees, as it works toward the close of its $5.5 billion acquisition of NEX Group (NXGN.L).
/jlne.ws/2K5ifiuMGEX Reports 25th Best Electronic Volume Day
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives
Clearing Organization (DCO), reports July 25th as the fourth July date on the Daily Electronic Volume’s top 25 records list. Coming in at 19,396 contracts and beating out the previous title holder by 160 contracts, yesterday’s electronic volume now occupies the 25th-best overall spot.
/jlne.ws/2K0yeP4While the ECB holds on to its monetary policy, why not visit the home of the euro yield curve?
Eurex
The European Central Bank has decided to keep its monetary policy unchanged and freeze its benchmark interest rate on the deposit facility at -0.40 per cent. This is again a good opportunity to take a closer look at what Eurex interest rate derivatives have to offer.
/jlne.ws/2LqwSCwExchange Publishes CG Code Consultation Conclusions and Guidance for Boards and Directors
HKEX
Proposed changes to CG Code and related Listing Rules receive strong support; Amendments to CG Code and related Listing Rules to take effect 1 January 2019; Exchange publishes “Guidance for Boards and Directors” to help directors to be more effective
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), published today (Friday) conclusions from its consultation on its Corporate Governance Code (CG Code) and related Listing Rules (Consultation Conclusions on Review of the Corporate Governance Code and Related Listing Rules, or Consultation Conclusions)1 along with “Guidance for Boards and Directors”.
/jlne.ws/2LuV7iW

Fintech

FIA Announces Partnership With Rise New York, Created By Barclays, To Promote Innovators Pavilion
Press Release
FIA today announced that Rise New York, created by Barclays, has joined the FIA Innovators Pavilion as a community partner. Rise New York will help FIA promote the Innovators Pavilion, FIA’s annual fintech showcase. Now in its fourth year, the Innovators Pavilion is part of FIA Expo, the world’s largest gathering of professionals in the derivatives markets. This year’s FIA Expo will take place in Chicago on Oct. 16-18.
bit.ly/2vbiG5HGoodbye HipChat: Slack and Atlassian Team Up on Chat Software; Stewart Butterfield’s startup will subsume Atlassian’s corporate chat tools to take on Microsoft.
Dina Bass and Ellen Huet – Bloomberg
Atlassian Corp. is selling its corporate chat software to rival Slack Technologies Inc. and taking a small stake in the startup, as they face greater competition from Microsoft Corp.
/jlne.ws/2JYY3isFortnite Mania Fuels Epic Growth to $8.5 Billion; Epic Games’ profits on the game have made “legendary character” Tim Sweeney a billionaire.
Devon Pendleton, Christopher Palmeri – Bloomberg
Tim Sweeney made Fortnite a phenomenon by doing something that sounds crazy: He gave it away. That strategy has made him a billionaire. In an industry chock-a-block with monster hits, such as Candy Crush and Pokemon Go, Fortnite’s popularity isn’t surprising. Its revenues are. Between the release of the current version in September and the end of May, Fortnite brought in more than $1.2 billion, according to SuperData Research. As of early June, it has been played by 125 million people.
/jlne.ws/2LoVcF5Schroders CEO: fintech is the ‘greatest opportunity we face’
Mark Cobley – Financial News
Peter Harrison, the boss of one of the UK’s largest asset managers, has said innovations in financial technology are the “single biggest opportunity” for his industry right now — as his firm Schroders steps up its efforts to build links with fintech entrepreneurs.
Speaking as the fund manager reported its first-half results on July 26, Harrison told Financial News the “really interesting step-change for our industry will come from technological innovation”. He added: “We are working with 25 or 26 fintechs across the business, across a whole range of different things — I see this as the single biggest opportunity we face.”
bit.ly/2v5pTnECySEC to Establish FinTech Innovation Hub with Focus on Blockchain
David Kimberley – Finance Magnates
Regulatory financial technology (FinTech) initiatives have been springing up across the globe over the past few years. This Friday, the main Cypriot regulator, the Cyprus Securities and Exchange Commission (CySEC), announced that it would also be creating an innovation hub.
bit.ly/2vaVB2ZAlexa, What’s Wall Street Saying About Amazon’s Earnings Beat?
Joe Easton and Jeran Wittenstein – Bloomberg
Shares up 4 percent pre-market amid cloud, advertising boost; Goldman Sachs, others raise price targets for the stock
Amazon.com Inc.’s record second-quarter profit drew a flurry of price target boosts on Wall Street. Analysts say strength in the cloud and advertising business, as well as operational improvements, have positioned the company for long-term growth. The shares rose 4 percent in pre-market trading in New York and are on track to open at a record high.
/jlne.ws/2K1e4nNThomson Reuters unit to be renamed Refinitiv after Blackstone deal
Reuters Staff
Thomson Reuters Corp’s (TRI.TO) Financial and Risk unit, in which U.S. private equity firm Blackstone Group (BX.N) is buying a majority stake, will be renamed Refinitiv once the deal closes, the company said in a statement on Friday.
/jlne.ws/2LptpnM

Cryptocurrencies

The Winklevoss Twins Want To Sell You A Bitcoin Fund; The Winklevoss twins filed a form with the SEC that’s the first step to selling shares in a fund that would track the price of Bitcoin. A look at the next move for the Facebook-suing twins.
Matthew Zeitlin – BuzzFeed News
Tyler and Cameron Winklevoss, impossibly strong-jawed and broad-shouldered rowers, tech entrepreneurs, and famous litigators of Mark Zuckerberg, are now two of the biggest and most famous players in Bitcoin, the cryptographic, digital currency whose wild price gyrations and security issues captivated the business press for a few weeks in March and April of this year. In April, the twins revealed to The New York Times that they owned some $11 million worth of Bitcoin.
/jlne.ws/2K14a5XWinklevoss-Backed Bid for Bitcoin-ETF Rejected by Regulators
Benjamin Bain – Bloomberg
Cryptocurrency declines after SEC announces its decision; Agency raises concern about oversight of Bitcoin’s spot market
Bitcoin fell after the U.S. Securities and Exchange Commission rejected a request to list an exchange-traded fund run by Tyler and Cameron Winklevoss, showing the regulator remains skeptical that the market for the cryptocurrency is sufficiently free of abuse to bring trading to the masses.
/jlne.ws/2K1syEaBrock Pierce: The Hippie King of Cryptocurrency
Neil Strauss – Rolling Stone
Twenty-six men and women are seated along four folding tables laid end to end in the ballroom of a former Masonic lodge in Old San Juan, Puerto Rico. An eclectic mix, ranging from local charity workers to Silicon Valley investors to cryptocurrency early adopters, they all believe that they’re about to make history. Specifically, they are here to help Brock Pierce – a child actor turned video-game entrepreneur turned crypto titan – give away a billion dollars to charity. Not in a will after his death, but now, in the prime of his life and the peak of his career, at age 37.
/rol.st/2v8YBwBBitcoin $500,000 Creates a Buzz, But Technicals Point to Rally
Olivia Schaber – Bloomberg
Hedge fund manager predicts correction, then massive rally; Directional index shows biggest divergence since last year=
Comments from Morgan Creek Capital Management hedge fund manager Mark Yusko that Bitcoin could reach $500,000 in six years are heartening battered crypto bulls. They may be better served taking a look at some underlying technicals in the meantime.
/jlne.ws/2K5gIJgCrypto Futures Expansion Won’t Happen Soon, CME’s Duffy Says
Brian Louis – Bloomberg
Exchange head reiterates cautious approach to other contracts; Rival Cboe has hinted at wanting to expand crypto derivatives=
CME Group Inc. Chief Executive Officer Terry Duffy said that in his nearly four decades in trading, Bitcoin futures “might have been the most controversial launch of a product” and he reiterated the company’s not in a hurry to list more cryptocurrency-related contracts.
/jlne.ws/2K1Qdo9The World’s Dominant Crypto-Mining Company Wants to Own AI; In a rare interview, Bitmain’s Jihan Wu talks about his plans to take on Nvidia, Intel, and AMD.
Max Chafkin and David Ramli – Bloomberg
Even by the standards of Bitcoin, things are crazy in China. As the boom in cryptocurrencies has become the biggest speculative bubble in recorded history, a single company in Beijing’s Haidian District has been selling the chips that generate as much as 80 percent of the world’s cryptocoins. “We feel lucky,” says Jihan Wu, the co-chief executive of Bitmain Technologies Ltd., which was more or less unknown two years ago and, according to Wu, booked revenue of $3.5 billion in 2017. (On June 4, a Bitmain spokesman said Wu misspoke and the actual figure was $2.5 billion.)
/jlne.ws/2K1LT8jCrypto Coin Tether Defies Logic on Kraken’s Market, Raising Red Flags
Matthew Leising, Mira Rojanasakul, Demetrios Pogkas and Brandon Kochkodin – Bloomberg
In the traditional world of securities exchanges, it would be akin to defying gravity. But at Kraken, one of the most popular venues for trading cryptocurrencies, a coin called Tether does it again and again.
/jlne.ws/2KjhdViSelf-Regulatory Organizations; Bats BZX Exchange, Inc.; Order Setting Aside Action by
Delegated Authority and Disapproving a Proposed Rule Change, as Modified by Amendments
No. 1 and 2, to List and Trade Shares of the Winklevoss Bitcoin Trust
SEC
/jlne.ws/2K1BbP9As Crypto Meets Prediction Markets, Regulators Take Notice
Matthew Leising – Bloomberg
The next confrontation between government regulators and a blockchain startup appears set to ensnare a prediction market platform that goes by the name Augur.
/jlne.ws/2K0zFNiMike Novogratz’s Crypto Firm Lost $134 Million in the First Quarter
Doug Alexander – Bloomberg
Crypto-focused merchant bank releases first financial results; Quarterly losses led by trading digital assets, investments
Galaxy Digital LP, the crypto-focused merchant bank founded by Mike Novogratz, posted a $134 million loss in its first quarter, when the value of Bitcoin and other cryptocurrencies plunged.
/jlne.ws/2K0dYwN

Politics

Butina Sought a Secret Kremlin Line to the U.S. A Rockefeller May Have Helped
Polly Mosendz , Greg Farrell , and Ilya Arkhipov – Bloomberg
O’Neill hosted 2017 dinner for prayer-breakfast delegates; A Russian-language guide to Rohrabacher and other guests
A scion of the Rockefeller clan, George D. O’Neill Jr., was one of the U.S. conservatives who allegedly helped Mariia Butina’s efforts to build a secret line of communication back to the Kremlin, judging by details in recent U.S. filings.
/jlne.ws/2JZwAgDMueller Examining Trump’s Tweets in Wide-Ranging Obstruction Inquiry
Michael S. Schmidt and Maggie Haberman – NY Times
For years, President Trump has used Twitter as his go-to public relations weapon, mounting a barrage of attacks on celebrities and then political rivals even after advisers warned he could be creating legal problems for himself.
/jlne.ws/2K07PRfSteve Bannon’s plot for the downfall of old Europe; The next EU parliament elections are a chance to defeat the far-right
FT
As an architect of Donald Trump’s 2016 presidential election victory, Steve Bannon knows a thing or two about unconventional political warfare. Now the godfather of the US alt-right is gearing for combat in Europe. His arena is the campaign for the next European Parliament elections, scheduled for May 23-26 2019. His chosen weapons, as in the US, are set to be the stoking of social tensions, economic nationalism, incitement of public anger at elites, systematic attempts to discredit reasoned argument and the spread of misinformation.
/jlne.ws/2K5jAWy

Regulation

U.S. regulator stands by decision to block Winklevoss bitcoin ETF
Trevor Hunnicutt, Michelle Price – Reuters
The U.S. Securities and Exchange Commission on Thursday stood by a decision blocking an exchange-traded fund that would have tracked bitcoin, citing concerns about market manipulation.
/jlne.ws/2K06iuzFinTech Regulation Bridges Silicon Valley and Washington D.C.
Stephanie MacConnell – Forbes
The FinTech community is closely watching the latest developments within the Consumer Financial Protection Bureau (CFPB). Recently, Kathy Kraninger was nominated as Director of the CFPB and, if confirmed, she will succeed acting Director Mike Mulvaney, who previously attacked the Bureau’s very existence and has worked to change policies and cut budget since taking the helm in November 2017.
/jlne.ws/2JZzO3JThe regulator is looking at platforms and so should you
Taha Lokhandwala – InvestorsChronicle
The Financial Conduct Authority (FCA), the financial services regulator, is investigating whether investment platforms are competitive and work in the interests of investors. It has recently published an interim report on its Investment Platforms Market Study, which has highlighted a number of areas of concern, including the difficulties in switching platforms and the poor rates of interest they offer on cash.
/jlne.ws/2K0xM3kCFTC Chairman Giancarlo To Keynote The West Texas Legislative
CFTC
/jlne.ws/2K1aXMDPodcast: CFTC Talks EP053: MARK YALLOP FMSB Part Two
CFTC
This week on CFTC Talks, we speak with Mark Yallop, chair of the Fixed Income, Currencies and Commodities Markets Standards Board. We cover the enormous cost to the world financial system of bad behavior, how to historically break down market misconduct into 7 categories and why trust is the heart of the financial markets.
/jlne.ws/2K1qLz8Nordic Credit Rating AS registered as Credit Rating Agency
ESMA
The EFTA Surveillance Authority (EFTA SA) has registered today the Nordic Credit Rating AS (NCR) as a credit rating agency under Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (the CRA Regulation), as incorporated into the Agreement on the European Economic Area (EEA Agreement). This decision comes into effect on 3 August 2018. NCR is based in Oslo, Norway, with a branch in Stockholm, Sweden. NRC intends to issue corporate ratings.
/jlne.ws/2mMeNQzFCA proposes changes to rules for crowdfunding platforms
FCA
Following a post-implementation review of its crowdfunding rules, the Financial Conduct Authority (FCA) is opening a consultation on new rules for loan-based crowdfunding platforms.
/jlne.ws/2mSFeo5

Investing and Trading

Is the Key to Beating the Market Written in the Stars?; Henry Weingarten invests his clients’ money by charting the movement of heavenly bodies.
Simon van Zuylen-Wood – Bloomberg
It’s 11 a.m. at the Princeton Club in Midtown Manhattan. A number of financial professionals have gathered here for the “AFund June 2018 Natural Resources Investment Symposium.” Our first speaker is HSBC’s chief precious metals analyst, the aptly named James Steel, who promotes gold as a hedge against populist upheaval. After Steel, there are slideshows from several mining companies seeking investors. After that, lunch. A generic networking event, by all appearances.
/jlne.ws/2K1DDVRECB Keeps to Policy Path to End Bond Purchases
Carolynn Look – Bloomberg
Mario Draghi holds media briefing at 2:30 p.m. in Frankfurt; President will be quizzed on economic risks as QE exit nears
The European Central Bank stuck to its plan to end bond purchases as the European Union and U.S. stepped back from a trade war and the currency bloc’s economic expansion remained solid.
/jlne.ws/2K0B2LOU.S. domestic stock funds report more demand than peers abroad: Lipper
James Thorne – Reuters
Investors in U.S. funds traded international equities for domestic stocks during the latest week as earnings beat expectations while trade tensions simmered, Lipper data showed on Thursday.
/jlne.ws/2K1vfFMWall Street faces up to “bombshell guidance” at Facebook
Jamie Powell
Facebook’s second-quarter results — which prompted the company’s shares to plunge as much as 24 per cent (!!) overnight — was the first time the surveillance-capitalism machine’s revenue growth had missed expectations since 2015.
/jlne.ws/2K5QE0UIt’s All About Social Media Contagion, Not FAANGs: Taking Stock
Arie Shapira – Bloomberg
Stock futures are holding on to their slight gains thanks to Amazon decoupling from most of its FAANG peers, though momentum gets hit from another whiff from a social media bellwether as Twitter plunges ~16% on weak monthly active user numbers.
/jlne.ws/2K5lDKe

Institutions

What Does a Bank Meltdown Cost? Not Much, Actually; Sabadell hasn’t suffered enough from the fiasco at Britain’s TSB.
Edward Evans – Bloomberg
It was a spectacular fiasco, made even worse by the clumsy way in which it was handled. TSB Banking Group Plc’s attempt in April to transfer the records of its 5 million customers to a new IT system left about a million of them unable to access their accounts and vulnerable to fraud. At first, TSB said things were running smoothly. It makes you wonder what their idea of chaos is.
/jlne.ws/2JWQvN6A $14 Billion Fund Manager Feels ‘Vindicated’ by Facebook Plunge
Olivia Carville and Emily Chasan – Bloomberg
John Streur, an investor who sold his fund’s Facebook Inc. holding after the Cambridge Analytica privacy scandal, said he felt “vindicated” watching the social media giant’s free-fall Thursday.
/jlne.ws/2JWSUaAHere’s How ETFs With Biggest Facebook Exposure Traded Today
Elena Popina , Sarah Ponczek , and Carolina Wilson – Bloomberg
A six-week old Communication Services Select Sector SPDR Fund just had its worst day ever. A rout in Facebook Inc. is to blame for that.
/jlne.ws/2K5PBy0UBS to review misconduct policies after rape claim; Woman alleged she was assaulted by a more senior bank employee
Laura Noonan in New York – FT
UBS is reviewing how it handles sexual misconduct allegations after an employee who claimed she was raped by a colleague contacted the head of its investment bank, Andrea Orcel, to complain about how the bank dealt with her case.
/jlne.ws/2JZQGHmUBS Is Cutting Dozens of Staff in Wealth-Management Revamp
Emily Chasan and Sonali Basak – Bloomberg
16.18CHF+0.18+1.16%
UBS Group AG is laying off dozens of staff at its wealth-management division as it revamps the unit’s leadership team, according to people briefed on the matter.
/jlne.ws/2K1BjhwThe $5 Trillion Question: How Did the Firm That Pioneered ETFs Lose Its Lead?; State Street developed a hit investment product 25 years ago. Then more-focused rivals came along with better marketing and lower costs. Now the trust bank is No. 3 in the market it started.
Asjylyn Loder – WSJ
For State Street Corp. STT -0.32% , the company that pioneered the $5 trillion exchange-traded fund industry, it’s been a long way down.
/jlne.ws/2JZIqr5

Regions

Why Is China’s Currency Falling?; Worries about competitive devaluation are almost certainly misplaced.
Christopher Balding – Bloomberg
Since April, the yuan has fallen by almost 8 percent against the U.S. dollar. This has led many analysts and politicians to speculate that China is intentionally trying to devalue its currency to offset the effect of President Donald Trump’s tariffs. It almost certainly isn’t.
/jlne.ws/2K1K2QZHey Buddy, Can You Spare 2 Million for Coffee?
Vivianne Rodrigues – Bloomberg
ONE. MILLION. PERCENT. That’s how high inflation will climb in Venezuela by year’s end, according to the latest forecast by the International Monetary Fund.
/jlne.ws/2JYUKryChina should really start to worry about Trump; As Europe wins a reprieve over trade the portents for Beijing have commensurately darkened
Edward Luce- FT
It was Wednesday so Europe went from being a “foe” of America to a “great friend”. Next Monday might be different. Perhaps Europe will still be in Donald Trump’s good books. The only person who can say for sure is Mr Trump. Even he probably has little idea. But my hunch is that the ceasefire he struck with Jean-Claude Juncker, president of the European Commission, will hold. Mr Trump loves applause and the last-minute trade agreement with Brussels earned a transatlantic ovation. Europe has won a reprieve. The portents for China have commensurately darkened.
/jlne.ws/2K5RWZOMizuho Eyes $11 Trillion Held by Japan’s Rich Elderly
Gareth Allan and Yuki Hagiwara – Bloomberg
Bank began offering tailor-made trusts for wealthy retirees; Also expanding consulting for Japan pension funds, CEO says
Mizuho Financial Group Inc.’s trust banking arm has its sights set on exactly where the wealth is in Japan: the $11 trillion held by the nation’s elderly.
/jlne.ws/2JZS8tiRussia Extends Rate Pause as Risks to Inflation Halt Easing
Olga Tanas and Anna Andrianova – Bloomberg
Benchmark kept at 7.25% for third meeting, in line with survey; Central bank stays just a step short of level deemed ‘neutral’
Russia’s central bank kept interest rates unchanged for a third consecutive meeting and warned that external risks and the highest inflation expectations in almost a year mean monetary easing probably won’t resume until 2019.
/jlne.ws/2K1O0cf

Brexit

U.K.’s Brexit Options Narrow as Perilous Choices Loom for May
Tim Ros , Emma Ross-Thomas, and Jess Shankleman – Bloomberg
Barnier rejects compromise at heart of May’s Brexit strategy; Chances of no-deal exit, another election creep higher
The U.K.’s Brexit options are narrowing, and most of the choices are hazardous for Prime Minister Theresa May.
/jlne.ws/2K0YwR5Major French Tech Company’s CEO Fears Effects of Hard Brexit
Giles Turner and Mark Barton – Bloomberg
Capgemini SE Chief Executive Officer Paul Hermelin is predicting a hard Brexit will cause a knock-on effect to its British clients, potentially weakening demand.
/jlne.ws/2JYXmpn

Miscellaneous

‘Disappeared’ U.S. Records on Detained Migrant Kids Sparks Probe
Erik Larson – Reuters
Claims by a U.S. ethics watchdog that the Department of Homeland Security and other agencies may have lost or destroyed files relating to the separation of migrant children at the border have triggered a government probe into the proper retention of records.
/jlne.ws/2K01vJm*****Unforgivable.~JJL

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