Wall Street Is Expecting a Drop in Treasury Issuance. It Won’t Last Long

Apr 30, 2019

First Read

Hits & Takes
JLN Staff

The 37th Options Industry Conference is being held at the Trump National Doral Miami starting tomorrow. The keynote speaker is Jeb Bush. This year’s host exchange is MIAX, along with OCC.~JK

Among the list of Lifetime Contribution Award winners at OIC this year are: Tom Brady from Cboe (aka Mr. Big), Jon Najarian (aka Dr. J), and Anthony Saliba (aka Tony). The late Joe Levin was also named to the award. Joe is credited for his instrumental work on the VIX futures contract.~JK

EEX Group, a subsidiary of Eurex, reported a 19 percent jump in sales revenue to EUR 267.7 million in 2018, with net profits of EUR 66.7 million, up 24 percent.~JK

Garry Jones, the former CEO of the London Metal Exchange, has been appointed as an independent non-executive director of KRM22 plc, a technology and software investment company that focuses on risk management for capital markets. ~SR

The SEC charged one James Siniscalchi of NYC with fraud for stealing millions of dollars from investors who thought they were buying into a ticket reselling business. Siniscalchi claimed he had access to tickets to popular events such as Broadway shows and the McGregor vs. Mayweather fight. Meanwhile, he attempted to keep the involvement of his cousin, one Joseph Meli, a secret, as Meli pled guilty to SEC fraud charges in 2017. Meli was referred to by Siniscalchi as “Keyser Soze.”~SD

++++

Addressing (Legacy) Risk – Rob D’Arco, Rival Systems

JohnLothianNews.com

One of Rival Systems’ big pushes in 2018 was developing value-at-risk (VaR) functionality for its platform. The rollout was a success, with one client successfully using Rivals VaR calculations to settle a debate with its clearing firm.

In this video, Rival Systems CEO Rob D’Arco talks about how the marketplace is rethinking risk and how the prevalence of legacy systems in a world of constant exchange updates provides opportunity.

Watch the video »

++++

Reflections on Bart Chilton
John Lothian News

I am very saddened to learn about the passing away of Bart Chilton. I had the privilege of working with Bart while he was Commissioner and I was a division director at the CFTC. Bart was very dedicated to his responsibilities. My heartfelt condolences to his family. ~Ananda Radhakrishnan, Vice President, Center for Bank Derivatives Policy. at American Bankers Association

Our industry mourns the unexpected passing of a former colleague, Bart Chilton, who served with me at the CFTC. Bart was a colorful friend that lived life to the fullest with determination, humor and passion for everything he did in life. We extend our sincere condolences to his wife and family. ~ Walt Lukken, FIA President & CEO

Read more HERE.

++++

Step Into The Matrix: A “Market Wizards” Retrospective With Tony Saliba, Part One
Matrix Execution Technologies
Thirty years ago, one of the all-time most influential books about trading was published, Market Wizards. In it, author Jack Schwager interviewed top traders from the era to let readers know what it takes to become?—?and remain?—?a successful trader. Since then, over 200,000 copies of the book have been sold, making it one of the most popular sources of information about trading ever published, and it has spawned numerous sequels. Our Matrix Holding Group CEO, Tony Saliba, was one of the original “market wizards”, and the only options trader, interviewed in the book. As we approach the 30-year anniversary of the book’s publishing, we’ve circled back with Tony to get a sense of what has changed, what remains the same, and what is needed to make it in today’s vast and quickly evolving electronic trading industry.
bit.ly/2DEZD8W

****SD: Wizards AND the Matrix – now that’s a Hollywood mashup.

++++

Starbucks, Dunkin Race Against Bans, Taxes on Disposable Cups
Inspired by plastic bag bans, jurisdictions have set their sights on a much bigger target: the to-go coffee cup
Emily Chasan and Hema Parmar – Bloomberg
The People’s Republic of Berkeley, Calif., takes pride in its leadership on all things civic and environmental. The small liberal city east of San Francisco was one of the first U.S. cities to adopt curbside recycling. It banned styrofoam and was early to take on plastic shopping bags. Earlier this year, the Berkeley city council put on notice a new environmental scourge: The to-go coffee cup.
/bloom.bg/2IP6W1E

****JB: Is everyone really going to carry a nasty, dirty cup with them everywhere to get their coffee?

++++

Federal Reserve warns against Internet ‘scranks’
John Crudele – New York Post
Sometimes, it’s hard to tell an Internet scam from something that is merely a prank. This is one of those times.
But whatever this is, it has the Federal Reserve baffled and worried.
I’ll start from the beginning of this “scrank” — a combination of the words scam and prank.
/nyp.st/2PEm0zP

****JB: “Sovereign citizen.” Need I say more?

++++

Buffett’s Berkshire Hathaway to invest $10 billion in Occidental Petroleum for Anadarko takeover
Tom DiChristopher – CNBC
Warren Buffett is getting involved in a rare bidding war unfolding in the energy industry.
Berkshire Hathaway has committed a $10 billion investment in Occidental Petroleum contingent on the company completing its proposed takeover of Anadarko Petroleum. Last week, Occidental made a rival bid for the oil and gas driller, challenging Chevron’s $33 billion buyout of Anadarko.
/cnb.cx/2WhzmEW

***SR: This could be problematic – see the top story below under “Regulation and Enforcement.”

++++

Monday’s Top Three
There are few more important steps to one’s morning than coffee. Thus, Marketwatch’s Why your latte costs nearly $5, despite plummeting coffee-bean prices became our top story on Monday. Second was Bart Chilton Dies; Former CFTC Commissioner Was 58, from Bloomberg. Third was Bloomberg’s The Chicago Brokerage Chasing Clients Wall Street Left Behind, about R.J. O’Brien’s bid to grow where others are shrinking.

++++

MarketsWiki Stats
149,848,561 pages viewed; 23,696 pages; 218,669 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
Galaxy Digital
DeFi (Decentralized Finance)
Circle
Bitfinex

CryptoMarketsWiki Stats

1,059 pages; 9,433 edits
CryptoMarketsWiki Statistics

Lead Stories

Wall Street Is Expecting a Drop in Treasury Issuance. It Won’t Last Long
Liz McCormick and Saleha Mohsin – Bloomberg
Dealers see May refunding holding steady at record $84 billion
At some point in 2019, Wall Street dealers expect the U.S. Treasury to announce something the bond market hasn’t seen in years: Lower debt issuance.
/bloom.bg/2V5F3cs

Bridgewater’s Ray Dalio Tops the List of Hedge Fund Manager Compensation
NY Times
Ray Dalio has been sounding the alarm about income inequality, and a new ranking of top hedge fund managers demonstrates that he knows what he’s talking about.
/nyti.ms/2XX9y0W

Deutsche Börse chairman to step down amid shareholder pressure
Philip Stafford – Financial Times
Joachim Faber is to step down as chairman of Deutsche Börse following pressure from shareholders over his handling of an insider trading case against the exchange.
Mr Faber, who has headed the Frankfurt group’s supervisory board since 2012, will leave at the group’s annual meeting in May next year, it said in a statement on Monday.
/on.ft.com/2PCoQWc

Want to Understand Bitfinex? Understand Mt. Gox
Daniel Cawrey and Sina Nader – CoinDesk
“History doesn’t repeat itself, but it often rhymes”
This quote is often attributed to Mark Twain. And while Bitfinex doesn’t exactly rhyme with Mt. Gox, there are several parallels in the stories of these two exchanges. People interested in understanding Bitfinex are well-served to understand what happened with Mt. Gox.
bit.ly/2PCiWUU

U.S. Farmer Income Drops Most Since 2016 Amid Trade War Pain
Mike Dorning and Katia Dmitrieva – Bloomberg
Personal income for farmers fell by the most in three years in the first quarter, as losses to U.S. agriculture mount from President Donald Trump’s trade wars.
The Commerce Department on Monday cited the steep decline in farm proprietors’ income as a key factor weighing on the nation’s overall personal income growth in March, even though agricultural producers represent only about 2 percent of total employed Americans.
/bloom.bg/2PBZGqE

EEX Group Achieves Record Result
Press Release
In 2018, EEX Group significantly increased its sales revenue and annual net profit achieving the best corporate result in its history so far. On the power market, EEX Group again recorded the biggest power trading volume worldwide. On the markets for emission allowances and natural gas, EEX Group was the second- and, respectively, third-biggest trading platform worldwide in the past financial year. In North America, EEX Group launched new contracts for emission allowances and also strengthened its presence in Asia with the establishment of EEX Asia. In total, the Group has further expanded its global position and generated significant volume growth in almost all its markets.
bit.ly/2XT5JKj

Novogratz’s Galaxy Digital Lost $272.7 Million As Bitcoin Crashed
Olga Kharif – Bloomberg
Galaxy Digital Holding Ltd., billionaire Michael Novogratz’s crypto investment firm, lost $272.7 million during its first year of operations as prices of digital assets collapsed.
Galaxy had $249.1 million in digital assets and investments as of Dec. 31, down from $323 million at the end of September, the New York-based company said in a statement Monday. The fourth-quarter decrease was primarily a result of $48.7 million of net realized losses on digital assets and $25.0 million of unrealized loss on investments.
/bloom.bg/2PCpfId

Trump’s Tax Cuts Aren’t Leading to More Business Investment
Mark Whitehouse – Bloomberg
Remember the big corporate tax cuts of 2017? Wonder how they’re doing? Not so well, judging from the latest government data on the U.S. economy.
When President Donald Trump signed the cuts into law in December 2017, there was a lot of talk about how they would affect jobs and wages. But the real test of their effectiveness is whether lower rates encourage companies to invest more in things like factories, equipment and innovation. Such investment would both boost growth immediately and increase the economy’s productive capacity in the longer term.
/bloom.bg/2PC0FXS

New York Officials Still Reaping Millions From Predatory Lenders
Zachary Mider and Zeke Faux – Bloomberg
The good times continue to roll for two New York City marshals whose work collecting debts for predatory lenders is making them millionaires.
Vadim Barbarovich, who already had the most lucrative city job in 2017, made 11 percent more last year, earning $1.9 million, according to documents released in response to a public-records request. His main competitor in collections work for the cash-advance industry, Stephen Biegel, almost doubled his take to $1.4 million.
/bloom.bg/2PCqNSx

Exchanges, OTC and Clearing

Nasdaq Extends the Acceptance Period for its Offer for Oslo Børs VPS
Nasdaq Press Release
OSLO, Norway and STOCKHOLM, Sweden, April 30, 2019 (GLOBE NEWSWIRE) — Nasdaq AB, an indirect subsidiary of Nasdaq, Inc. (Nasdaq: NDAQ) (“Nasdaq”), announced today that it is extending the acceptance period of its offer (the “Offer”) to acquire all of the issued shares of Oslo Børs VPS Holding ASA (NOTC: OSLO/OTCMKTS: OSBHF) (“Oslo Børs VPS”) made pursuant to its offer document published on February 4, 2019, as amended by the announcement made on March 4, 2019 (the “Offer Document”), previously set to expire April 30, 2019 at 17.30 CET, to May 31, 2019 at 17.30 CET.
bit.ly/2ZUujfQ

Cboe Marks Third Anniversary Of Target Outcome Investment Benchmarks
Mondovisione
Cboe Vest Financial, an asset management subsidiary of Cboe Global Markets, led creation of Target Outcome Investment index methodologies and products
Fast-growing Target Outcome Investment category now boasts 45 indexes, numerous products
Target Outcome Investment strategies designed to provide downside protection, income generation, or enhanced returns over a defined horizon
bit.ly/2DF6pLw

Nasdaq Adding Index for XRP Cryptocurrency to Global Data Service
Yogita Khatri – CoinDesk
Stock exchange operator Nasdaq is adding yet another cryptocurrency index – this time for the world’s third-largest cryptocurrency, XRP.
The company announced Monday that, through its partnership with New Zealand-based blockchain data and research firm Brave New Coin, it will offer “real-time” index information for XRP starting May 1.
bit.ly/2PCrrzq

Another Canadian pot stock is headed for a U.S. exchange
Max A. Cherney – MarketWatch
Organigram Holdings Inc. sold the second-most amount of recreational cannabis in Canada, after only Canopy Growth Corp., in the most recent quarter. It sold twice as much pot as rival Aphria Inc.
That success isn’t showing up in Organigram’s valuation, though — the market cap is 5% of Canopy’s and half of Aphria’s, according to FactSet data. That is likely a large reason for the company’s move to list its stock on the Nasdaq, which should happen in about a month after Organigram filed for a listing on Friday.
/on.mktw.net/2PzNmXO

Fintech

India unseats China as Asia’s top fintech funding source
Rita Liao – TechCrunch
China’s massive fintech industry took a beating in recent months as the government continued to wind down online lending nationwide, rattling investor confidence.
/tcrn.ch/2PCbSaR

Fintech lobby spending targets cryptocurrency taxation
Jim Saksa – Roll Call
Lobbying disclosures for the first quarter of 2019 show a wide swath of industries and advocacy groups focusing on financial technology issues, including the Association of National Advertisers, Intuit, Mastercard, Alibaba, FreedomWorks, IBM, the Entertainment Software Association and U.S. Public Interest Research Group.
bit.ly/2PE5JLo

BSO Announces Support For Google Cloud Interconnect
BSO
We’re pleased to announce we’re now an official Google Cloud Partner Interconnect provider.
Google Dedicated Interconnect provides higher-speed and lower cost connectivity than a virtual private network (VPN) solution, and has become the “go-to” solution to connect on-premise data centres to Google Cloud.
bit.ly/2Le8EvM

ORATS Helps Clients Strengthen Options Trading Strategies; Upgrades its User-Friendly Backtest Service
Oratd Blog
Option Research & Technology Services, a leader in US equity options data and analysis, has released a major upgrade to its options backtest service.
bit.ly/2LgkMME

Cryptocurrencies

Bakkt acquires custodian DACC as it builds out its own solution for storing cryptocurrencies
Celia Wan – The Block
Crypto exchange Bakkt is stepping up its game in becoming a serious player in the bitcoin exchange business.
The Intercontinental Exchange (ICE) backed venture announced on Monday that it has acquired Digital Asset Custody Company (DACC), a custodian of digital assets, per a Medium post by Bakkt COO Adam White.
bit.ly/2PCf4mQ

SEC Temporarily Suspends Trading in Little-Known Bitcoin Miner’s Shares
Nikhilesh De – CoinDesk
The U.S. Securities and Exchange Commission (SEC) is temporarily suspending trading of shares in a little-known, self-described crypto exchange and mining firm called Bitcoin Generation (BTGN).
The regulator announced Monday that it was suspending trading until 11:59 P.M. Eastern Daylight Time on May 10, 2019 (or 03:59 UTC May 11) due to concerns that some information BTGN has made public may be inaccurate.
bit.ly/2PBKI42

Quebec Keeps Electricity Cheap for Crypto Miners Under New Rules
Sandrine Rastello – Bloomberg
Electricity will stay cheap for cryptocurrency miners in Quebec — as long as they get selected.
New rules released by the Canadian province’s energy regulator Monday create blockchain as a client category of its own and order utility Hydro-Quebec to set aside an extra 300 megawatt for the industry, on top of 368 megawatts already committed. Applying companies will be judged on four criteria, including the number of jobs created, planned investments and heat recovery plans for the energy-intensive computing process that makes transactions with digital currencies possible.
/bloom.bg/2PCphzP

ConsenSys Spins Off Ethereum Startup Truffle To Take Blockchain To Big Business
Michael del Castillo – Forbes
Some of the largest companies in the world are already using the code that lies at the core of ethereum.
A copy, or “fork,” of ethereum powers Quorum, the enterprise-grade blockchain at the heart of JPMorgan’s JPM Coin, a cryptocurrency designed to simplify payments between the giant bank’s partners.
bit.ly/2XPbEjw

Inside the breakout crypto exchange, backed by a British millionaire, now fighting for survival
Isabel Woodford – The Block
A millionaire who made his wealth in London real estate isn’t the most obvious investor for a crypto exchange.
But Jonathan Sandelson was more than an investor in Ben Dives’s vision of a digital exchange for the British masses. He was a friend and mentor first and foremost, having hired Dives straight out of university as his driver in 2001. Having forgiven Dives for scratching his luxury car in their early days, the two eventually went into business in 2017, riding the bitcoin wave.
bit.ly/2PAhlyS

UK Baroness’ Luxury Bitcoin Property Project Reportedly Suffering Delay
Yogita Khatri – CoinDesk
A luxury residential project targeting the crypto rich may be in trouble.
According to a report from The Times on Sunday, the Aston Plaza project in Dubai – launched in 2017 by high-profile U.K. entrepreneurs Baroness Michelle Mone and Doug Barrowman – appears to have stalled, with its website still displaying the project as “25 percent complete,” the same figure as used in its marketing materials.
bit.ly/2PIa7ZW

BreakerMag is shutting down
Frank Chaparro – The Block
Breaker Magazine, the crypto publication tied to an entertainment studio of the same name, is shutting down, according to sources familiar with the situation.
The publication was launched last year as an independent unit of SingularDTV, a self-proclaimed blockchain firm for the entertainment industry, which rebranded to Breaker earlier this year.
bit.ly/2PG54t0

Politics

IRS Commissioner Charged with Releasing Trump Tax Returns Profits from Trump-Branded Property
Caroline Zhang – CREW
President Trump’s hand-picked IRS Commissioner, Charles Rettig, earns as much as $1 million in rental income from the Trump-branded properties he co-owns while facing demands from Congress to release Trump’s tax returns. The IRS has already missed more than one deadline set by the House Ways and Means Committee to turn over Trump’s tax returns.
bit.ly/2PE09bU

Wells Fargo spends big on lobbying, as pressure from Capitol Hill mounts
Mark Schoeff Jr. – InvestmentNews
Wells Fargo spent more on lobbying Congress in the first quarter than any other commercial bank or investment firm.
The company spent $1.2 million on lobbying in Q1, according to data from the Center for Responsive Politics. That put it second to the American Bankers Association ($2.4 million) in the commercial banking category.
bit.ly/2PIaELq

Trump sues Deutsche Bank, Capital One to block House subpoenas
Zachary Warmbrodt and Andrew Desiderio – Politico
President Donald Trump and his family are suing Deutsche Bank and Capital One to block subpoenas issued by House Democrats seeking Trump’s financial records.
In the federal lawsuit filed Monday in New York, Trump’s lawyers argued that the subpoenas serve “no legitimate or lawful purpose.”
/politi.co/2PCqSFO

The Fed Has a Problem at Heart of Its Battle to Spark Inflation
Craig Torres – Bloomberg
There’s a flaw at the heart of central banking’s approach to inflation targeting that’s become a hot issue for the Federal Reserve as it takes a long, hard look at its strategy.
For decades, central bankers have pursued price goals while saying financial stability risks are better curbed by regulation. The contradiction is that monetary policy is often the most powerful fuel for asset bubbles as central bankers hold interest rates low to try and lift inflation that remains weak despite solid growth and rising productivity.
/bloom.bg/2PBf1rD

Regulation

U.S. SEC freezes assets over suspected insider trading in Anadarko
Stephanie Kelly and Pete Schroeder – Reuters
The U.S. Securities and Exchange Commission on Monday obtained an asset freeze in connection with suspected insider trading in Anadarko Petroleum Corp before the oil company agreed to be acquired by rival Chevron Corp.
U.S. District Judge Gregory Woods in Manhattan granted the freeze over accounts linked to suspicious purchases between Feb. 8 and April 1 by unknown buyers of Anadarko securities, who the SEC said stand to make roughly $2.5 million in illicit profits, according to a court filing.
bit.ly/2PEMSj8

SEC Announces Fraud Charges in Ticket Resale Investment Scam
SEC
The Securities and Exchange Commission today charged a New York City man with continuing a previously charged scheme, stealing millions of dollars from investors who were allegedly falsely promised their funds would be used for the purchase and resale of tickets to Broadway shows and a sporting event.
bit.ly/2GGQwVO

Bank of England deputy governor warns against curbing financial regulations post-Brexit
Elliot Smith – CNBC
Light touch financial regulation after the U.K. leaves the European Union will not help the British financial sector, according to a deputy governor at the Bank of England.
Speaking to CNBC’s Joumanna Bercetche at the Innovate Finance Global Summit in London, Deputy Governor for Markets and Banking Dave Ramsden indicated that adopting light touch regulation to gain a competitive advantage for the U.K. financial sector after Brexit was not on the agenda.
/cnb.cx/2PE50d8

Eight blockchain and DLT-focused projects selected for UK FCA’s fifth cohort of regulatory sandbox
Tokenpost
The UK Financial Conduct Authority (FCA) has announced the names of the firms that have been selected for the fifth cohort of its fintech regulatory sandbox.
According to the announcement, the regulator received 99 applications for the latest cohort – the largest number of applications it has received to date.
bit.ly/2UP1cGV

Federal Court Orders Binary Options Firm and Principal to Pay More Than $22 Million for Fraudulent Scheme
CFTC
The Commodity Futures Trading Commission (CFTC) today announced that Judge Timothy Corrigan of the U.S. District Court for the Middle District of Florida entered a Consent Order for Permanent Injunction, Civil Monetary Penalty, and Other Equitable Relief (Order) against Dr. Michael Shah and Zilmil, Inc. (Zilmil) (collectively, defendants) of Jacksonville, Florida, who engaged in a large-scale internet fraud scheme from at least June 2013 through July 10, 2017 (the Relevant Period) involving off-exchange binary options.
bit.ly/2PCfn10

CFTC Proposes to Amend Derivatives Clearing Organization Regulations
CFTC
The Commodity Futures Trading Commission (CFTC) today approved a proposed rule to amend certain regulations that apply to derivatives clearing organizations (DCOs) under Part 39 of the CFTC’s regulations. Part 39 implements the statutory core principles for DCOs.
bit.ly/2PCfSYW

FCA warns against Walton Securities LLC
UK financial regulator Financial Conduct Authority (FCA) has issued its latest warning against an unregulated financial services provider targeting UK consumers.
The FCA’s latest warning is against the company Walton Securities LLC.
bit.ly/2J3FEUN

Investing and Trading

Morgan Stanley $6 Billion Wealth Team Departs to Woo Rich Texans
Pierre Paulden – Bloomberg
A team of Morgan Stanley wealth advisers based in Texas has left to create Americana Partners.
Jason Fertitta is the president of the new firm, which has partnered with Dynasty Financial Partners, according to a statement Monday. He worked at Morgan Stanley since 2008 and managed more than $6 billion of client assets, according to the statement.
/bloom.bg/2PESHwZ

Stock Traders Learn to Stop Worrying and Love Bonds
Robert Burgess – Bloomberg
Despite this year’s big gains in stocks, with the S&P 500 Index rising more than 17 percent to set an all-time high on Monday, any number of sentiment and positioning indicators have suggested that many equity investors remain wary of chasing the rally. The main reason for the trepidation is the bond market, which has also rallied, driving Treasury yields down to levels that may portend a recession is on the horizon. But instead of debating which market has it right, a growing number of strategists are pointing out how both markets are actually in harmony.
/bloom.bg/2PC10K8

FTSE Russell launches US Municipal Bond Index
Press Release
FTSE Russell, the global index, analytics and data provider, today announced the launch of the FTSE Municipal Tax-Exempt Investment-Grade Bond Index. The index tracks the market for tax-exempt US dollar-denominated bonds issued by municipalities domiciled in the US and US territories with an investment grade credit rating. The index is a new barometer for this large and diverse fixed income market, which is compact by design to allow for ease of replication, without compromising representativeness.
bit.ly/2LchKcq

New funds targeting China’s Nasdaq-style tech board in hot demand
Samuel Shen and John Ruwitch – Reuters
China’s first batch of mutual funds targeting Shanghai’s Nasdaq-style technology board have sold out quickly, reflecting keen investor interest in the sector and also raising concerns about price bubbles on the new board set to launch as early as June.
/reut.rs/2PCazIZ

A Little Chaos in Markets Is Just Fine With These Stock Traders
Sarah Ponczek and Lu Wang – Bloomberg
Under a bland surface, anarchy reigns in stocks. For the people paid to trade them, that’s not a bad thing.
This earnings season, when one company blows up, another surges. Intel Corp. goes down, and Microsoft Corp. rises. Hit by disparate moves, stocks are falling out of step with each other at one of the fastest rates in a decade. The name of the game has been rotation roulette.
/bloom.bg/2PAonDW

Pariah no more? Greece needs big bond investors to seal its comeback
Dhara Ranasinghe, Abhinav Ramnarayan, Lefteris Papadimas – Reuters
As Greece readies for its next foray into international bond markets, it will be hoping to draw more big-name, mainstream asset managers rather than the hedge funds who have been its main clients in recent years.
/reut.rs/2ZPeqY7

Institutions

A Chinese Firm’s Plunge Cost Interactive Brokers (IBKR) Millions
Matt Robinson and Annie Massa – Bloomberg
In late February, Interactive Brokers Group Inc. revealed in a lengthy regulatory filing that it might lose as much as $59 million from loans it made that were backed by essentially worthless collateral.
/bloom.bg/2PBallz

JPMorgan throws weight behind $3.8bn Sirius Minerals fund raising
Neil Hume – The Financial Times
JPMorgan has thrown its weight behind Sirius Minerals, the UK-listed mining company building a giant fertiliser project in North Yorkshire, backing the key elements of a $3.8bn financing package.
/on.ft.com/2ZDpZ4i

Danske Bank cuts outlook as money laundering scandal weighs
Jacob Gronholt-Pedersen – Reuters
Danske Bank lowered its outlook for 2019 after a disappointing first quarter, due in part to the effects of a massive money laundering scandal at its Estonian branch that has sent ripples across the Nordic banking sector.
/reut.rs/2GR9wBc

Regions

HSBC’s Dominance in Hong Kong Is Juicy Target for Virtual Banks
Alfred Liu and Matt Turner – Bloomberg
HSBC Holdings Plc spent 150 years building a financial fortress around Hong Kong that touches nearly every aspect of life in the former British colony.
A pack of upstart virtual lenders, which barely existed two months ago, are going after that business. They’re backed by the likes of Standard Chartered Plc and Chinese internet insurer ZhongAn Online P&C Insurance Co.
/bloom.bg/2PENy8a

Brazil’s Farmers Refuse to Sell Coffee, Waiting on a Price Miracle
Fabiana Batista – Bloomberg
Coffee farmers in Brazil, the world’s largest producer and exporter, are refusing to sell their beans after arabica futures dropped to the lowest in more than 13 years.
/bloom.bg/2GTU3S8

Visa and Mastercard to cut foreign card fees in EU
Rochelle Toplensky – Financial Times
Mastercard and Visa will cut the fees they charge on purchases made in the EU with foreign-issued debit and credit cards, a concession the payment companies hope will end their long-running antitrust battles with Brussels.
Retailers will be charged an average of 40 per cent less on purchases made in the European Economic Area using Mastercard, Maestro, Visa, Visa Electron and V-PAY credit and debit cards issued in countries outside the EEA.
/on.ft.com/2PG48F0

Warning Signs Are Flashing in China Stock Market After Surge
Bloomberg
Investors are running out of reasons to chase the bull market in Chinese stocks.
After adding as much as $2.5 trillion to share values and outpacing gains everywhere else in the world, the rally in China is starting to look tired. Headwinds include an uninspiring earnings season, as well as the likelihood that Beijing will pursue a less aggressive stimulus policy than anticipated. Talks with the U.S. on trade also resume this week.
/bloom.bg/2PCljXJ

Weak lithium prices drive 83% fall in profits at Tianqi
China’s largest lithium company the latest casualty of lower battery raw material prices
Henry Sanderson – The Financial Times
Tianqi Lithium, China’s biggest producer of lithium, said its net profit fell by 83 per cent in the first quarter because of weak lithium prices and high interest payments on a loan taken out to buy a stake in Chilean rival SQM for $4.1bn.
/on.ft.com/2IQJa5K

Miscellaneous

Wall Street Rides FAR Co-Founder Bryan Harkins Honored for Philanthropy at Markets Choice Awards
Globe Newswire
Wall Street Rides FAR, an annual charity cycling event benefiting the Autism Science Foundation, today announced that co-founder Bryan Harkins was recognized for his philanthropic work at the Markets Choice Awards, a Markets Media-hosted ceremony recognizing industry leaders in institutional trading and technology.
Bryan, Executive Vice President and Co-Head of Markets Division at Cboe Global Markets, one of the world’s largest exchange holding companies, founded Wall Street Rides FAR along with his wife Melissa in 2015 with the goal of bringing the Wall Street community together to benefit autism research. The charity has continued to hit new fundraising records each year, raising over $350,000 last fall. In total, the charity has raised over $1 million in just four short years. The fifth annual Ride FAR will be held on October 5, 2019, at Saxon Woods Park in White Plains, NY.
bit.ly/2PE17VA

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

Pin It on Pinterest

Share This