[the_ad_group id="5822"]

US regulator reports record surge in trade data

Feb 5, 2019

First Read

Hits & Takes
JLN Staff

We were going to run a Super Bowl commercial to introduce the trailer for our documentary series, “Game Changers: How Financial Futures Changed the World,” but decided it was going to be a terrible waste of money given the match-up in the game. So HERE is the second cut of our trailer, which comprises elements of segment one on the U.S. and segment two on Europe. Just have some nachos while you watch it and it will be just like watching the big game.~JJL

Other segments planned include ones on Asia, electronic trading, and regulation, as plans stand now. Let us know what you think. Hats off to Patrick Lothian for terrific work on this series so far.~JJL

CME Group’s equity index futures suite of contracts was on a roll in January, up 7 percent from a year earlier. Some stars in the group were E-mini Nasdaq 100 futures and options, up 51% to average daily volume of 530,000 contracts, E-mini Dow up 35 percent to 234,000, and E-mini Russell 2000 up 29 percent to 139,000.~JK

Intercontinental Exchange Chairman and CEO Jeffrey Sprecher will present at the Goldman Sachs 2019 Technology and Internet Conference on February 13 at 11 a.m. PST. If you miss the live presentation you can catch it in replay via webcast in the Investors section of ICE’s website at www.theice.com.~SR

Yesterday’s JLN Options was chock full of content, much of it stemming from a slew of Cboe filings at the end of last week. Besides Akuna getting dinged for roughly $1.3m for its VIX auction trading activities, there were 10 other disciplinary actions running the gamut from position limit infractions to failure to meet continuing education requirements. Those fines ranged from $225k to $5k.~SD

The following line stood out in the WSJ story How China Pressured MSCI to Add Its Market to Major Benchmark: “In 2018, more than $13.9 trillion in investment funds had stock portfolios that mimic the composition of MSCI indexes or used them as performance yardsticks, and nearly all investments by U.S. pension funds in global stocks are benchmarked against MSCI indexes.” ~SD

One of my Eagle Scouts is now a computer science major at the University of Illinois. He is part of the UIUC Entrepreneur Club, which is hosting a startup career fair at the end of February. They are looking for local startups to come down and recruit. Ping me if you are interested and need more details.~JJL

++++

Trading Venues and Best Execution – Roman Ginis, Imperative Execution

JohnLothianNews.com

Roman Ginis, CEO and founder of Imperative Execution, knew from his time as a trader what issues he wanted to address when building a venue: adverse selection and market impact. These implicit costs of trading led to the development of Intelligent Cross, a new mid-point only ATS that uses artificial intelligence to schedule matching at different times for each name.

In this video from STAC’s 93rd Annual Midwinter Meeting, Ginis talks about the equity venue landscape, integrating best execution into a trading venue, and the role of A.I. at Intelligent Cross.

Watch the video »

++++

Cambridge university receives £100m in record UK donation; Quant investor David Harding boosts postgraduate and undergraduate support
Andrew Jack – FT
The founder of Winton, one of the world’s largest quantitative investing firms, has given £100m to the University of Cambridge in a record for a British donor.
/jlne.ws/2GpYB2M

****** A generous example of paying it forward.~JJL

++++

How the ‘bond king’ Bill Gross lost his crown; Even investing stars need a supporting cast to excel, and forgetting this can be hazardous
Robin Wigglesworth – FT
In 2015, the Smithsonian’s Museum of American History announced it would display the Bloomberg terminal keyboard of Bill Gross at an upcoming exhibition celebrating the history of business — a fitting tribute to a colossus of finance.
/jlne.ws/2Gpbhql

***** Long live the bond king!~JJL

++++

How Cryptocurrencies Are Empowering Cybercriminals
Vishal Marria – Forbes
From email scams to ransomware, cybercrime can take many forms. In recent years, cryptocurrency has become the favored detergent for criminals to launder money. Last year, it was reported that £4bn ($5.2bn) had been laundered through cryptocurrencies in Europe alone. As a result, there has been a call from governments around the globe to introduce anti-money laundering regulations for cryptocurrencies.
/jlne.ws/2GpgO05

***** This is an issue cryptocurrencies must overcome to become widely accepted tools of finance. In the meantime, they have lots of image problems.~JJL

++++

Bud Light gets earful from corn lobby after ad slamming Chicago’s MillerCoors
Rebecca Greenfield – Bloomberg via Crain’s Chicago Business
Bud Light’s Super Bowl campaign called out competitors that use corn syrup—and the corn lobby is not happy about it.
In Anheuser-Busch InBev’s ads, a medieval crew delivers a cask of unwanted corn syrup to Miller Lite and Coors Light, both made by Chicago-based MillerCoors. Bud Light used the “brewed with no corn syrup” on its ads for the night.
/goo.gl/UCCXZU

***** Corn syrup – No wonder Miller Lite is less filling.~JJL

++++

Monday’s Top Three
Our top stories of the day on Monday were about getting killed, marketwise and literally. Leading the way was Bloomberg’s piece on exchange traded products, The ETF’s Wonky Cousin Can Trip Up a Sophisticated Investor. Second was Bloomberg’s Killing 22 Hogs a Minute, Meatpackers Test Old Limits of Safety. The third story was more of a flesh wound, The Wall Street Journal’s VIX Auction Bets Land Chicago Trader With $1.3 Million Fine

++++

MarketsWiki Stats
142,083,249 pages viewed; 23,402 pages; 216,659 edits
MarketsWiki Statistics

++++

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

Recently Updated Pages

Recently updated pages include
Petro
Nicol%C3%A1s Maduro
NEM
Kraken

CryptoMarketsWiki Stats

937 pages; 8,303 edits
CryptoMarketsWiki Statistics

Lead Stories

US regulator reports record surge in trade data; Finra processed an all-time high daily average of 135bn data points last month
Philip Stafford – FT
The US market watchdog chewed through record amounts of data last year, amid a surge in volatility and the steady rise of automated trading. Volumes of electronic records — spanning quotes for securities such as stocks, actual transactions and cancelled bids — registered by the Financial Industry Regulatory Authority, or Finra, hit a daily average of 66.7bn in 2018, according to a recent report. That is up 87 per cent from the year before. At their peak in late December, average volumes were 135bn, dwarfing the previous record of 75bn.
/jlne.ws/2GmlO5K

CurveGlobal sees volumes surge 350% after MiFID II
Hayley McDowell – The Trade
CurveGlobal has seen its volumes surge by 350% following the introduction of MiFID II in Europe, alongside several new records across the platform.
/jlne.ws/2GoPJdB

Sustainability is worth it – successful trading with ESG futures
Eurex
The investment behavior of institutional and private investors is changing. Over the last years, sustainability has become more and more important – and this is reflected in the product range of index providers and derivatives exchanges such as Eurex. Three letters are important in this context: ESG. They stand for three sustainability aspects:
/jlne.ws/2GnlfJ4

Tech Is Splitting the U.S. Work Force in Two; A small group of well-educated professionals enjoys rising wages, while most workers toil in low-wage jobs with few chances to advance.
Eduardo Porter – NY Times
It’s hard to miss the dogged technological ambition pervading this sprawling desert metropolis. There’s Intel’s $7 billion, seven-nanometer chip plant going up in Chandler. In Scottsdale, Axon, the maker of the Taser, is hungrily snatching talent from Silicon Valley as it embraces automation to keep up with growing demand. Start-ups in fields as varied as autonomous drones and blockchain are flocking to the area, drawn in large part by light regulation and tax incentives. Arizona State University is furiously churning out engineers.
/jlne.ws/2GsWFXj

Bill Gross, Onetime Bond King, Retiring After Messy Last Act; Investor helped make Pimco a powerhouse, but his later returns were underwhelming
Justin Baer – WSJ
One of the most-celebrated careers in the history of money management is coming to an unremarkable end.
/jlne.ws/2GpHZI8

Bill Gross bows out at Janus Henderson; Investor once dubbed ‘the bond king’ will focus on personal assets and charitable foundation
Chris Flood and Owen Walker – FT
Bill Gross, the one-time “bond king” of Wall Street, is stepping down from the global investment stage after a career spanning five decades in which he managed $300bn at his peak and co-founded bond-investing powerhouse Pimco.
/jlne.ws/2GoLxus

Watchdog urges funds to cut jargon; FCA announces new rules for UK asset managers
Kate Beioley – FT
Funds must slash the jargon they use and be more transparent about their objectives and performance, according to new rules handed down this week by the financial regulator.
/jlne.ws/2Gmo2lC

Australian Banks Overcharged Clients, Even After Some Died, Report Finds
Jamie Tarabay – NY Times
They charged their clients fees as they gave bad advice. They charged their clients fees for doing nothing at all. Sometimes, they kept charging the fees after their customers had died.
/jlne.ws/2Gp69m8

Janus Henderson assets under management dive $50bn; Fund house hit by investor outflows and turbulent markets
Peter Smith – FT
Janus Henderson reported a $50bn plunge in assets under management in the final quarter as the dual US-Australian-listed fund group was battered by a fresh wave of investor withdrawals and weaker performances across the board in its investment activities.
/jlne.ws/2GoP4J9

No More Trading Or Listing Fees? Decred Releases New DEX Proposal
Leslie Ankney – Forbes
With so many cryptocurrency projects creating decentralized exchanges (DEXs) of their own, it’s reasonable to be skeptical about yet another. Today, cryptocurrency project Decred released an official proposal for its own Decentralized Exchange (DEX). Decred founder Jacob Yocom-Piatt says frustrations with the listing process on large, centralized exchanges initially sparked his plan, but the Decred community will ultimately decide if a DEX is the right next step. While Decred may offer an alternative, will they be able to draw the liquidity missing from existing DEXs and meet regulatory concerns?
/jlne.ws/2Gpq3NR

Exchanges, OTC and Clearing

CME Group Averaged 17.8 Million Contracts Per Day in January 2019
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, reached average daily volume (ADV) of 17.8 million contracts per day in January 2019, down 6 percent from January 2018. Open interest at the end of January was 122 million contracts, down 1 percent from January 2018 and up 5 percent from year-end 2018.
/jlne.ws/2Gniszo

Nasdaq January 2019 Volumes
GlobeNewswire
Nasdaq (Nasdaq:NDAQ) today reported monthly volumes for January 2019, on its investor relations website.
/jlne.ws/2GnpKTT

Curveglobal January Volumes Up 3.5x Year-on-year
London Stock Exchange Group
CurveGlobal, the futures platform for Rates derivatives listed on LSEDM, has experienced year-on-year growth of more than 350% in average daily trading volume and 272% in open interest in January. The surge in activity has been building for several months, as participants look for more efficient and progressive alternatives to existing futures platforms.
/jlne.ws/2Gp6vJu

Intercontinental Exchange Reports January Statistics
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today reported January trading volume and related revenue statistics, which can be viewed on the company’s investor relations website at http://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet.
/jlne.ws/2GliPdX

Simone Reinhold leaves Deutsche Börse AG
Deutsche Börse AG
Simone Reinhold (53), previously Managing Director of Group Marketing, is leaving the company after 25 years. This happens in friendly agreement with the company.
/jlne.ws/2GsYraV

Euronext Dublin transitions Irish listed companies to Optiq; The migration to Optiq®, Euronext’s proprietary trading platform, enables Euronext Dublin Listed Companies and trading members to benefit from access to Euronext’s Pan-European Order Book.
Euronext
Euronext today announced the successful migration of the 53 companies currently listed on Euronext Dublin to Euronext’s state-of-the-art proprietary trading platform, Optiq®. This transition completes the equity migration from the Irish Stock Exchange plc to Euronext Dublin.
/jlne.ws/2Gpm43Y

APAC forges ahead in algo trading with rising levels of improvement; The TRADE’s 2018 APAC Algorithmic Trading Survey shows the recent trend of improving performance shows no signs of slowing down.
John Brazier – The Trade
While Europe has spent much of the past year grappling with the impact of MiFID II and its effect on algorithmic trading, Asia-Pacific (APAC) has instead continued to experience increasing improvements.
/jlne.ws/2GmTYX6

Euroclear UK to continue Irish securities settlement in ‘no-deal’ Brexit; Euroclear’s London-based CSD to settle Irish securities in a ‘no-deal’ Brexit scenario after agreement with ESMA and the Bank of England.
Joe Parsons – The Trade
Euroclear’s London-based central securities depository (CSD) will continue to settle Irish securities in a ‘no-deal’ Brexit scenario following an agreement with Europe’s financial watchdog and the Bank of England (BoE).
/jlne.ws/2GpeBBP

Euronext Dublin completes migration to prop trading platform Optiq; Following a delay in November, Euronext Dublin has now migrated to the proprietary cash markets trading platform Optiq.
Hayley McDowell – The Trade
Euronext Dublin has completed a technology migration to Euronext’s new proprietary trading platform, Optiq, following a delay to the project in November.
/jlne.ws/2GmvywK

FTSE Russell, Nasdaq Dubai to start Saudi equity indexes for derivatives trading
Reuters
Nasdaq Dubai has signed a license agreement to launch derivatives based on FTSE Russell’s Saudi Arabia equity indexes in the coming months, the two companies said on Monday.
/jlne.ws/2GngE9y

The World Federation of Exchanges responds to FSB’s discussion paper on financial resources to support CCP resolution
The World Federation of Exchanges
The World Federation of Exchanges (“WFE”), the global industry group for exchanges and CCPs, has today responded to the Financial Stability Board’s (FSB) discussion paper on financial resources to support CCP resolution and the treatment of CCP equity in resolution.
/jlne.ws/2GpxXXE

Fintech

Fintech Star Needs Better Answers to Accounting Allegations; Germany’s Wirecard says that no criminal conduct has been found so far in a probe sparked by a whistleblower
Paul J. Davies – WSJ
For a relatively simple business, German payments company Wirecard attracts a lot of questions. Now investors need answers quickly.
/jlne.ws/2GpZqso

Nasdaq’s head of tech says there are 2 big reasons open source companies fail, and named 2 that are getting it right and could IPO soon
Dan DeFrancesco – Business Insider
Companies are increasingly looking to build viable businesses around open source software, but the business plan isn’t foolproof.
/jlne.ws/2Gv2G5R

Sterling Trading Tech And Eventus Systems Collaborate To Monitor Trade Activity And Risk
BusinessWire via AP News
Sterling Trading Tech (STT), an innovative trading technology leader in the RaaS (Risk as a Service) space, and Eventus Systems, a leading global trade surveillance and market risk platform provider, announced today that Eventus has integrated the Sterling Cloud-Based Analytics Engine (SRE) into its Validus platform to benefit mutual customers.
/goo.gl/21Mjv3

Cryptocurrencies

Facebook hires London researchers in blockchain push
Hannah Murphy – FT
Facebook has hired a team of researchers from a London blockchain start-up, in a sign the social network is ramping up efforts to develop its own applications for the nascent technology.
/jlne.ws/2GoQzaj

Facebook acquires its first blockchain startup
The Block Crypto
Facebook has acquired Chainspace, a smart contract development platform, according to Cheddar. This move was an acqui-hire in which four of the five researchers behind the Chainspace white paper will join Facebook’s blockchain team. A Facebook spokesperson tells Cheddar that the company “had hired employees from Chainspace” but “isn’t acquiring any of Chainspace’s technology.”
/jlne.ws/2GtL2iu

Crypto exchange Kraken seals largest deal to date with swoop for UK rival; ‘Nine figure’ purchase of Crypto Facilities sees group push into futures trading
Philip Stafford – FT
Kraken, the US cryptocurrency exchange, has made its largest acquisition to date, pushing into futures trading with the purchase of London-based Crypto Facilities.
/jlne.ws/2GoXIHw

A Dubai Royal Is Taking His First Steps Into Crypto
Matthew Martin – Bloomberg
Dubai royal and Emirates Group Chairman Sheikh Ahmed bin Saeed Al Maktoum is backing cryptocurrency fund manager Invao as the Liechtenstein-based firm seeks to attract more investors from the United Arab Emirates.
/jlne.ws/2GoO4Vp

$312 Million in Mt Gox Cryptos Possibly Sold Via BitPoint Exchange
Yogita Khatri – Coindesk
What appear to be leaked bank documents suggest that millions of dollars-worth of cryptocurrency from the now-bankrupt bitcoin exchange Mt. Gox may have been sold on the the open market through Japan’s BitPoint exchange.
/jlne.ws/2GtLUDM

Gold-Backed Cryptocurrency Launched by Iranian Banks: Report
Yogita Khatri – Coindesk
A gold-backed cryptocurrency called “PayMon” has reportedly been launched in Iran. According to Financial Tribune, four Iranian banks – Bank Mellat, Bank Melli Iran, Bank Pasargad and Parsian Bank – have partnered with blockchain startup Kuknos Company for the project.
/jlne.ws/2GoU2pl

Bitcoin’s ‘Lightning Torch’ Has Blazed Through 37 Countries So Far
Alyssa Hertig – Coindesk
The bitcoin community is currently immersed in an experiment called the “lightning torch.” The effort is intended to show the value of bitcoin’s lightning network – an up-and-coming technology that is experimental and hard to use so far, but it does offer improvements over today’s most common payment systems by allowing users to pass money around the world quickly and without a third party, unlike Mastercard and Paypal.
/jlne.ws/2GmW4pW

A Major Canadian Bitcoin Exchange Has A Big Problem
Billy Bambrough – Forbes
Bitcoin and cryptocurrency exchange Quadriga, the largest crypto exchange in Canada, has said it’s lost access to millions of dollars worth of bitcoin and other cryptocurrencies after the exchange’s chief executive and co-founder died suddenly late last year—taking the passwords and recovery keys to computers with him.
/jlne.ws/2Gq1G2Q

Politics

Why Wall Street’s Muni-Bond Desks Welcome the Tax-the-Rich Push
Danielle Moran and Claire Ballentine – Bloomberg
Politics aside, one corner of Wall Street is likely welcoming Democrats’ talk of raising taxes on the rich.
Higher rates tend to be a good thing for the $3.8 trillion state and local government bond market, a haven for investors looking for income that’s exempt from federal taxes. And progressive Democrats looking to define their party’s platform ahead of next year’s presidential election have made boosting rates on the wealthiest Americans a key part of their agenda, seeking to seize on discontent with rising income inequality.
/goo.gl/oYwv2W

Bank of England ‘paralysed’ on rates by Brexit uncertainty; Turmoil of EU departure constrains policymakers despite tight labour market
Delphine Strauss – FT
The Bank of England’s rate-setters are in a difficult spot as they meet this week. In normal circumstances, the UK’s tight labour market would be reason to raise interest rates — but the extreme uncertainties of Brexit make it near impossible to act, for now.
/jlne.ws/2GoQd3t

Trump Inaugural Committee Ordered to Hand Over Documents to Federal Investigators
Maggie Haberman and Ben Protess – NY Times
Escalating one of the investigations into President Trump’s inaugural committee, federal prosecutors ordered on Monday that its officials turn over documents about donors, finances and activities, according to two people familiar with the inquiry.
/jlne.ws/2GmjThy

Schumer and Sanders: Limit Corporate Stock Buybacks; Corporate self-indulgence has become an enormous problem for workers and for the long-term strength of the economy.
Chuck Schumer and Bernie Sanders – NY Times
1541
From the mid-20th century until the 1970s, American corporations shared a belief that they had a duty not only to their shareholders but to their workers, their communities and the country that created the economic conditions and legal protections for them to thrive. It created an extremely prosperous America for working people and the broad middle of the country.
/jlne.ws/2Gp3x7O

Donald Trump’s Scotland Golf Courses Subpoenaed to Obtain Financial Records Over Potential Emoluments Clause Violation
Cristina Maza – Newsweek
Prosecutors in Maryland have subpoenaed financial documents of a company that owns President Donald Trump’s golf courses in Scotland
/jlne.ws/2GppzYa

Dirty money fears push Deutsche Bank into trans-Atlantic spotlight
Zachary Warmbrodt and Bjarke Smith-Meyer A- Politico
European lawmakers on Monday will probe Deutsche Bank’s possible involvement with money laundering by Danske Bank — with their American counterparts watching closely as they investigate the German lender and its dealings with President Donald Trump.
/jlne.ws/2GnoT5I

Regulation

ESMA publishes guidelines on supervisory reporting for credit rating agencies
ESMA
The European Securities and Markets Authority (ESMA) has today published its revised Guidelines on the information which credit rating agencies (CRAs) need to report to ESMA for supervisory purposes.
/jlne.ws/2GpmZRY

ESMA consults on liquidity stress test guidance for investment funds
ESMA
The European Securities and Markets Authority (ESMA) has started today a public consultation on its draft guidance regarding liquidity stress tests of investment funds – applicable to alternative investment funds (AIFs) and Undertakings for the Collective Investment in Transferable Securities (UCITS).
/jlne.ws/2GoSPyj

Manraj Virdee sentenced to 2 years for illegally operating an investment scheme and fraud
UK FCA
In a case brought by the Financial Conduct Authority (FCA), Manraj Virdee was yesterday sentenced at Southwark Crown Court to a 2 year prison sentence suspended for 2 years and he was further ordered to carry out 300 hours of unpaid work in the community. The sentence followed earlier guilty pleas to 4 charges relating to misleading consumers, fraud and the illegal operation of an unauthorised investment scheme worth over half a million pounds.
/jlne.ws/2Gm22HE

FCA fines former fund manager Paul Stephany
UK FCA
The Financial Conduct Authority (FCA) has fined Paul Stephany, a former fund manager at Newton Investment Management Limited, £32,200 for his conduct in relation to an Initial Public Offering (IPO) and a placing.
/jlne.ws/2GoNMhm

Regulators want closer scrutiny of shadow banks in leveraged loans
Huw Jones – Reuters
Better data is needed to spot risks from “shadow banks” stepping up credit to heavily indebted companies, an annual survey of the non-banking financial system said on Monday.
/jlne.ws/2Gm5jqq

Investing and Trading

Archer Daniels Midland profit misses estimates
Reuters
U.S. grains trader Archer Daniels Midland Co on Tuesday missed Wall Street estimates for quarterly profit, hurt by higher expenses and lower margins in its origination business.
/jlne.ws/2Gp0LPY

Negative Rates Would Have Sped Up Economic Recovery, Fed Paper Says; San Francisco Fed paper says a benchmark rate of negative 0.25% may have been the optimal setting
Michael S. Derby – WSJ
The Federal Reserve never played the negative interest rate card in response to the financial crisis, but new research claims the economy probably would have recovered faster if it had.
/jlne.ws/2GpIMc4

Market calm gives volatility funds a green light to buy; Robust start to 2019 for equities set to trigger more purchases from computer-driven funds
Richard Henderson and Robin Wigglesworth – FT
Computer-driven investment funds whose activity is based on the level of market volatility are forecast to buy tens of billions of dollars of US stocks, according to analysts, as the strong start to the year lures them back into the equity market.
/jlne.ws/2Gp4BIQ

Don’t Hold Your Breath for Big Stock Returns, Says Goldman Sachs
Ksenia Galouchko -Bloomberg
Growth in Europe, U.S. will stabilize but won’t fuel a rally; Europe will continue with ‘flat and skinny’ trading range
Investors that didn’t profit from the equity rally in January, missed out on most of the returns for the year, according to Goldman Sachs Group Inc. strategists.
/jlne.ws/2Gpb1HT

This Is What It Takes to Be in the 1% Around the World; From Mexico to India, a breakdown of the richest of the rich.
Ben Steverman and Reade Pickert – Bloomberg
Since the financial crisis, income inequality has garnered increasing attention from economists, politicians, and journalists, and perhaps no income level has been cited more than the so-called 1 Percent. Yet that term can describe a wide variety of earners, depending on where they live.
/jlne.ws/2GpXHTW

Bill Gross’ best investment over the last 10 years had nothing to do with bonds
Brett Arends – MarketWatch
Bill Gross, the former ‘bond king,’ who announced his retirement on Monday
Bill Gross once ruled the bond markets. But over the last decade of his career you’d likely have been better off investing in his famous stamp collection than in his bond funds.
/jlne.ws/2GmYPri

Slack Files Confidentially to Go Public With Direct Listing
Maureen Farrell – The Wall Street Journal
Slack Technologies Inc. has filed confidential paperwork for its direct listing, setting it up to be the second major company to use the nontraditional method for its IPO.
The workplace-messaging company’s initial public offering could come as soon as this spring, people familiar with the matter have said. By the time it hits public markets, Slack could be valued well in excess of $7 billion, the level at which it recently raised money.
/goo.gl/hpHxvL

Institutions

Leon Cooperman’s Last Year in the Game
Stephen Taub – Institutional Investor
Lee Cooperman’s final year of running a hedge fund ended on a bitter-sweet note.
The legendary investor — like scores of other managers — saw strong gains fritter away in the final month or so of 2018.
His fund Omega Overseas Partners finished the year down less than 1 percent while Omega Capital Investors, L.P., the domestic version, lost about 5 percent, according to Cooperman.
/jlne.ws/2DT15EQ

Janus Henderson Sees Investors Pull Out $8.4 Billion in Quarter
Suzy Waite – Bloomberg
Janus Henderson, the money manager that parted ways with Bill Gross after a bout of underperformance from the bond legend, has seen investor withdrawals accelerate across most strategies.
/jlne.ws/2GnlPGF

Deutsche Bank May Cut Bonuses If Revenue Stalls, CFO Says
Steven Arons – Bloomberg
Growth in 2019 depends on markets being benign, bank says; Von Moltke says shifting cash pile from ECB to lift top line
Deutsche Bank AG may cut bonuses if its revenue fails to grow, Chief Financial Officer James von Moltke said on Monday.
/jlne.ws/2Gr7cSv

Deutsche Bank’s Answers on Scandal Leave European Lawmakers Frustrated
Alexander Weber – Bloomberg
Bank, in rare hearing, defends role in money laundering case; Lawmakers say they’re unhappy with lack of details given
Deutsche Bank AG defended its role in one of Europe’s biggest money-laundering scandals in a rare hearing before European lawmakers that highlighted increasing frustration with the lender and its German supervisor.
/jlne.ws/2GtHAEy

Hedge Fund Founder David Harding Gives $130 Million to University of Cambridge
Benjamin Stupples – Bloomberg
Winton Group’s David Harding to fund doctoral scholarships; Brexit threatens funding for Britain’s academic institutions
David Harding, the billionaire founder of hedge fund firm Winton Group, donated 100 million pounds ($130 million) to the University of Cambridge, the biggest single private gift to a U.K. college from a British philanthropist.
/jlne.ws/2GmkKig

Deutsche cuts back correspondent banking after Danske scandal
Reuters
Deutsche Bank has sharply scaled back its role as a correspondent bank, an executive said on Monday of a business line that has dragged it into a money laundering scandal involving Danske Bank.
/jlne.ws/2GpgKgR

Regions

Australia must begin to rebuild trust in its banks; Scale of misconduct in financial sector is laid bare by inquiry report
The editorial board – FT
Greed and dishonesty; charges for services never provided, even levied on dead people; excessive commissions and rampant mis-selling. Ten years after Australia’s financial sector sailed through the global financial crisis almost unscathed, the scale of misconduct that was multiplying below the surface has been exposed by a 1,000-page Royal Commission report. Some bank chiefs may face criminal charges. Australia’s government, which held out against an inquiry for two years, should resist industry lobbying and implement the recommendations in full.
/jlne.ws/2GpJPJ2

Treasury to Take Over Turkey’s Largest Listed Bank, Erdogan Says
Firat Kozok – Bloomberg
Isbank is 28 percent held by the main opposition CHP party; Calls to nationalize lender by current leader date to 2015
Turkish President Recep Tayyip Erdogan escalated his campaign to seize the nation’s largest listed lender, Turkiye Is Bankasi A.S., calling for a parliamentary vote on the takeover.
/jlne.ws/2GoK4UY

A High-Stakes Fight Is Brewing in Norway Over EU Relations
Sveinung Sleire – Bloomberg
Kicking off the year in a T-shirt proclaiming that she “loves, loves the EEA,” Foreign Minister Ine Eriksen Soreide hinted at the high-stakes fight that’s brewing in Norway over its relationship with the European Union.
/jlne.ws/2Gl6SVD

Australian bank shares surge most in decade as investors cheer inquiry outcome
Byron Kaye, Paulina Duran – Reuters
Australian bank shares surged the most in a decade on Tuesday after a long-awaited report on finance-sector misconduct recommended dozens of rule changes but spared the “Big Four” lenders any serious threat to their market dominance.
/jlne.ws/2GoRuri

Brexit

Broker Numis warns Brexit and stock drop taking toll on clients; Transactions down at City stockbroker amid ‘depressed market activity’
Myles McCormick – FT
City stockbroker Numis warned on Tuesday a combination of a drop in equities prices and the impending exit of the UK from the EU were taking a toll on its corporate and institutional clients.
/jlne.ws/2GnmDvb

Exclusive: Britain’s financial heartland unbowed as Brexit risks deepen
Andrew MacAskill, Simon Jessop – Reuters
Britain’s financial services industry has emerged largely unscathed so far from the build-up to Brexit, with about 2,000 roles expected to have moved or been created overseas even as the risk of a disorderly exit grows, a new Reuters survey showed.
/jlne.ws/2Gt1CiR

Miscellaneous

Attacking a Pay Wall That Hides Public Court Filings
Adam Liptak – NY Times
WASHINGTON — The federal judiciary has built an imposing pay wall around its court filings, charging a preposterous 10 cents a page for electronic access to what are meant to be public records. A pending lawsuit could help tear that wall down.
The costs of storing and transmitting data have plunged, approaching zero. By one estimate, the actual cost of retrieving court documents, including secure storage, is about one half of one ten-thousandth of a penny per page. But the federal judiciary charges a dime a page to use its service, called Pacer (for Public Access to Court Electronic Records).
/jlne.ws/2DTptXi

****SD: PACER can be an eternal pain, and in the interest of transparency it sure ought to be easier to interact with.

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

[the_ad_group id="5825"]
[the_ad_group id="5822"]

Past Newsletters

Facebook Token Runs Into Instant Political Opposition in Europe

[the_ad_group id="5822"] Get a FREE 90 day trial of John Lothian Newsletter First ReadHits & TakesJLN StaffJustin Llewellyn-Jones, chief operating officer and global head of derivatives at Fidessa/ION, announced he is leaving at the end of the month. Justin is one...

Facebook Plans Global Financial System Based on Cryptocurrency

[the_ad_group id="5822"] Get a FREE 90 day trial of John Lothian Newsletter First ReadHits & TakesJLN StaffThe FT has an entire series of articles on "Libra: Facebook's digital currency."~JJLI will not be heading to Asia this fall after all. I declined the...

10 EU Countries OK Financial Transaction Tax Revenue-Sharing Plan

[the_ad_group id="5822"] Get a FREE 90 day trial of John Lothian Newsletter First ReadHits & TakesJLN StaffSidley partner David R. Sawyier passed away on June 10 after a battle with cancer. He founded the firm's private investment funds practice in their Chicago...

[the_ad_group id="5825"]

Pin It on Pinterest

Share This