First Read

A Note Of Thanks
By Jim Kharouf

Wow. Just a quick note of thanks to everyone for the outpouring of kind notes and encouragement. I’ve tried to respond to every email and note on Facebook. It is an honor to be named CEO of this company, not because of the title, but because of what John Lothian & Co. has come to represent in this industry.

As a journalist in this space for 20 years, and as a journalist for more than 27 years in total, I’ve never seen a publication that connects with its readers in the way this one does. Just ask any of our guest editors over the years how many readers reach out to them. The charitable portion of this newsletter, and indeed our own efforts within the company, also help connect many of us.

We have built a company that continues to reach tens of thousands of professionals in this space with our publications and millions of readers each month on MarketsWiki. Our MarketsWiki Education series is now approaching our fifth year (thank you CME Group as our premier global partner, CBOE and others) and is getting bigger each year. Yesterday I received a note from one longtime reader who said his son attended the series and now works at NFA in part due to our education event. We’re bringing a face of this industry to students and young professionals and inspiring them to join us. That is a very good thing.

We’ve expanded our video production work over the past several years with signature production projects such as our CBOE40 video, RJ O’Brien’s 100th anniversary video and this year’s Ivers Riley video. We hope to do more projects in the future.

All of this isn’t due to one person. John’s vision and instincts have led this company to where it is today. And our team, the “& Co.” part of our name, has worked hard to get us here. I hope to carry the company forward and truly am humbled by your support. Thank you again. I can’t wait to see what tomorrow brings.

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ICAP’s 24th Charity Day raises £8.2 million
ICAP, a leading markets operator and provider of post trade risk mitigation and information services, announces today that it has raised £8.2 million on its 24th annual global Charity Day, held yesterday. This is equivalent to approximately 4% of ICAP’s pre-tax trading profit reported for the year ended 31st March 2016.
/goo.gl/h9Dnvv

***** Nice work people.

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SGX Titan

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Videos: Preparing for the Variation Margin Rules
ISDA
ISDA has published a trio of videos looking at the implementation of margin rules for non-cleared derivatives. The series provides an overview of the margin rules, with a particular focus on the challenges posed by the variation margin ‘Big Bang’ on March 1, 2017.
/goo.gl/fxrCcL

***** Scott O’Malia does the sit down interview as well as anyone.

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One month of demonetisation: Indian markets have the fourth worst performance globally; S&P BSE Sensex and Nifty50 lost nearly 3.5% each. Only Mexico, Brazil and Philippines did worse at the global level, data show
Puneet Wadhwa – Business Standard
It has been a choppy ride for the Indian equity markets that had been hit by the double whammy of demonetisation and the surprise victory of Donald Trump in the US Presidential elections, exactly a month ago on November 8. India’s Nifty (down 3.5%) was the second worst performing index in Asia after Philippines, and the fourth globally – after Mexico (down 5.9%), Brazil (4.3%) and Philippines (down 3.9%).
/goo.gl/XTtqKP

***** Down, but not out.

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John Glenn, American Hero of the Space Age, Dies at 95
By JOHN NOBLE WILFORD – NY Times
John Glenn, a freckle-faced son of Ohio who was hailed as a national hero and a symbol of the space age as the first American to orbit Earth, then became a national political figure for 24 years in the Senate, died on Thursday in Columbus, Ohio. He was 95.
/goo.gl/tJCzwD

**** A true American hero.

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Guy Simpkin, Bats Europe – The Difficulties of Business Development

MarketsWikiEducation.com

“Perhaps the finest leader [Britain] has ever had once suggested that the three hardest things a man can do is, one, to climb a wall that’s leaning towards him, [another is] to kiss a girl that’s leaning away from him, and the third one is to make an after dinner speech. Now, had Winston Churchill turned his hand to business development, I do wonder whether or not he might have changed that last one around a little bit.”

How often do you think you have a pretty solid idea, only to realize that someone has already done it? Guy Simpkin, Bats Europe’s head of business development, knows that feeling.

In business development, numerous factors need to be taken into consideration and addressed in order to be successful — “Why are we making ‘x’ product?” “How do we market it?” “How do we get stakeholders to buy in?” “Who are our competitors?” and “How do we protect our (intellectual) property?” are just a few of those elements. If even one of those is not properly answered, the whole endeavor could come crashing down around you.

In this video, Simpkin discusses the trials and tribulations associated with developing a business in financial markets.

Watch the video »

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Top Three
Yesterday’s top three stories led with the trial of the year, in Bloomberg’s DRW Judge Casts Doubt on CFTC Case Defense Calls ‘Absurd’. Second went to Bloomberg’s S&P 500 Rockets Higher During One-Minute Futures Volume Frenzy. Finally, it’s been a tough year for hedge funds. FT’s
Hedge funds closures set for worst year since 2008 took third.
Have a good weekend everybody.

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Lead Stories

Candidate to Head Trump’s CFTC Seeks Revamp of U.S. Swaps Rules
by Silla Brush – Bloomberg
Giancarlo is said to lead the race for top post under Trump; Giancarlo says U.S. Dodd-Frank rules caused ‘numerous harms’
J. Christopher Giancarlo, a leading candidate to head the U.S. Commodity Futures Trading Commission under President-elect Donald Trump, called for an overhaul of swaps-trading regulations that he blamed for fracturing global markets.
/goo.gl/2M8vGb

Banks to Donald Trump: Don’t Kill Dodd-Frank; While banks favor a paring back of regulation, they tend to think in practical terms, rather than ideologically
By CHRISTINA REXRODE and EMILY GLAZER – WSJ
Big banks have an unexpected message for President-elect Donald Trump: Don’t trash the Dodd-Frank Act.
/goo.gl/cbgTm7

Silver Traders’ ‘STOP BUSTERS’ Seen as Rig Suit Smoking Gun
Edvard Pettersson and David Glovin – Bloomberg
After Deutsche Bank settled, it gave documents to plaintiffs; If manipulation succeeds, ‘we screw other people harder’
Silver traders at UBS Group AG and Deutsche Bank AG so regularly conspired with one another to trigger stop-loss orders that they coined a name for themselves: “STOP BUSTERS,” according to court documents. “And if u have stops…,” a UBS trader wrote in a June 8, 2011, chat detailed in recent court filings. “Oh boy.” A Deutsche Bank trader responded: “Who ya gonna call! STOP BUSTERS.”
jlne.ws/2gg3AlX

SGX’s Continuity Lapse
By Christopher Langner – Bloomberg
In the digital age, the ability to keep operating even in the midst of internal failures. known as business continuity planning, can mean the difference between survival and going under. When it comes to big banks or exchanges, the health of the entire financial system can be at stake.
/goo.gl/Q7OoDm

Deutsche Boerse CEO sees further hurdles ahead in LSE merger
Reuters
The chief executive of Deutsche Boerse (DB1Gn.DE) on Thursday said its planned merger with London Stock Exchange (LSE.L) was still a long way off, even if European regulators should give it the green light.
/goo.gl/mq7eqZ

Candidate to Head Trump’s CFTC Seeks Revamp of U.S. Swaps Rules
Bloomberg
J. Christopher Giancarlo, a leading candidate to head the U.S. Commodity Futures Trading Commission under President-elect Donald Trump, called for an overhaul of swaps-trading regulations that he blamed for fracturing global markets.
/goo.gl/2M8vGb

Giancarlo: March VM deadline is ‘massive challenge’; CFTC commissioner calls on regulators to address buy-side concerns if needed
Catherine Contiguglia – Risk.net
The March deadline for market participants to start posting variation margin (VM) will pose a “massive challenge”, according to J. Christopher Giancarlo, commissioner at the US Commodity Futures Trading Commission, who called the imposed deadline “unrealistic” and called on fellow regulators to ease the transition. Starting in March, almost all users of non-cleared derivatives must start posting VM to each other. There are fears smaller buy-side firms will not be prepared to comply with the required…
/goo.gl/RHxvN0

BlackRock to move to New York’s trendy Hudson Yards district
Herbert Lash – Reuters
BlackRock Inc, the world’s largest asset manager, plans to move its headquarters in 2022 from midtown Manhattan to a massive new office tower in the fast-growing Hudson Yards district on the city’s far West Side, the developers said on Thursday.
jlne.ws/2gg5suN

SEC Enforcement Chief to Step Down
Aruna Viswanatha – WSJ
The enforcement director for the Securities and Exchange Commission will leave the agency in the coming weeks, the agency said Thursday, the latest in a series of departures as the SEC prepares for a new administration that could take a more lenient approach. Andrew Ceresney, who came to the agency with Chairman Mary Jo White in early 2013, has overseen a unit that brought a record number of cases in the past three years using a strategy that targeted small infractions in addition to bigger frauds.
jlne.ws/2gg6bw1

Mexico’s Peso Problems Are a Warning Sign for Global Investors
by Isabella Cota and Eric Martin – Bloomberg
The world has never been so invested in Mexico, and so Mexico has never posed a bigger potential threat to the world. With a little more than six weeks before Donald Trump takes over with an agenda that could batter Latin America’s second-largest economy, Mexico is already showing signs of strain. Inflation is bouncing back, and traders bet it will only get worse; the peso has plummeted to record lows, and top analysts predict more pain; the government has lowered its growth forecast for four straight years, and Mexico is on the verge of a credit-rating cut just as Agustin Carstens gears up to leave the central bank after seven years at the helm.
/goo.gl/I9uVNQ

S&P Just Demolished One Big Distinction Between Emerging and Developed Markets
Sid Verma – Bloomberg
On Wednesday, S&P Global Inc. dropped a bombshell on the sovereign-credit ratings community. Sounding the alarm over the rise of populism in Europe and the U.S., the credit agency said key historic drivers of the creditworthiness of advanced economies over their emerging-market counterparts — the strength of institutions and quality of policy making — can no longer be taken for granted.
jlne.ws/2ggbpYy

ETFs: everywhere but not yet a systemic risk; Odd conduct of funds focused on gold mining highlight case for regulatory review
YESTERDAY by: Chris Newlands and Miles Johnson – FT
The morning after the US election Steven Bregman, a New York-based hedge fund manager, began to notice something strange going on in a corner of the stock market.
/goo.gl/AlPtZ5

Donald Trump’s Cabinet Selections Signal Deregulation Moves Are Coming; Business leaders predict changes may come in everything from overtime pay to power-plant emission rules
By NICK TIMIRAOS and ANDREW TANGEL – WSJ
Business leaders are predicting a dramatic unraveling of regulations on everything from overtime pay to power-plant emission rules as Donald Trump seeks to fill his cabinet with determined adversaries of the agencies they will lead.
/goo.gl/ffjnvg

Brexit

The Brexit Vote Didn’t Decide Much After All
By Therese Raphael – Bloomberg
When Britons voted to leave the European Union in June, the government assumed it had sole authority to chart the U.K.’s path out of Europe. Turns out it was mistaken. The “remain” camp may have lost the war over whether Britain stays in Europe, but it could win the peace.
/goo.gl/pJE3q6

Brexit minister vows to be ‘kind’ to EU if it wants an easy transition
By Sara Sjolin – MarketWatch
Davis doubts warnings that banks will move ops to the continent, says memo
The U.K.’s Brexit minister David Davis has opened the door to a smooth breakup with the European Union — but not in the way that most people would have thought.
/goo.gl/rlL8i5

Brexit Britain digests Brussels sprout picker drought; UK’s £3bn horticulture industry more dependent than any other on eastern European labour
by: Scheherazade Daneshkhu, Consumer Industries Editor – FT
Knocking the frost off his gloves, Vasile Logofatu pulls out an unwieldy 60cm-long celery from the sodden soil, deftly chops the root to a point with a long, flat knife and places it on a mechanised belt before repeating.
/goo.gl/zwX5qb

Brexit and the new devolution crisis: what are the issues?; Why should Brexit (or Ukexit) affect the UK’s internal arrangements, and what is Westminster’s response?
Dan Roberts Brexit policy editor – The Guardian
Why should Brexit affect the UK’s internal arrangements?
The last week has seen a flurry of interventions by Scotland, Wales and Northern Ireland arguing for a greater say in how the UK government conducts negotiations to leave the European Union.
/goo.gl/Bm1ik6

Brexit will affect the young more than anyone. Heed our voices
Joe Porter – The Guardian
The Undivided campaign draws its members from both sides of the referendum debate. We are resolved to get the best Brexit for people under
As the supreme court deliberates over who has the right to trigger article 50 and begin the process of leaving the EU, the political class is in disarray as old party loyalties are replaced by a new tribalism around hard or soft, open or closed Brexit.
/goo.gl/aag9aO

Exchanges, OTC and Clearing

Nasdaq Comes Clean About Giving Back
Miguel Forbes – Forbes
Griggs: Companies look for several advantages when they consider their exchange partner. In addition to offering the single deepest pool of liquidity for U.S. equities, Nasdaq provides a compelling value proposition given the unique support we provide companies at all stages in their lifecycle – before, during and after their IPO. We are the only exchange that owns and operates corporate solutions that help companies minimize risk, maximize efficiency, and increase transparency. Our listed companies also work closely with us to leverage our unique visibility assets, including the seven-story Nasdaq MarketSite tower, which has been a fixture in Times Square for over 15 years and viewed by over 400,000 visitors each day.
/goo.gl/10GYGt

CME Ventures lead Rumi Morales joins Digital Chamber of Commerce
Finextra
The Chamber of Digital Commerce has appointed Rumi Morales to its distinguished Board of Advisors.
jlne.ws/2gg1ZfS

SGX welcomes IMC Shipping as new Baltic Exchange member
SGX
Singapore Exchange (SGX) is pleased to announce that IMC Shipping has joined the Baltic Exchange, having been the first to apply for membership since SGX acquired the London shipping institution.
/goo.gl/M9c1Fc

Agriculture, Energy, FX, and Metals Margins – Effective December 9, 2016
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below.
/goo.gl/wbOROS

SFC and HKEX keep rights issues and open offers under scrutiny
HKEX
The Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), are closely monitoring rights issues and open offers that substantially dilute the interests of non-subscribing minority shareholders (highly dilutive offers) (Notes 1 & 2).
/goo.gl/KgXlyz

Two new precious metal ETCs launched by BNP Paribas on Xetra; ETCs provide access to the precious metals gold and palladium
Deutsche Börse
Two new Exchange Traded Commodities (ETCs) issued by issuer BNP Paribas Arbitrage Issuance BV have been tradable on Xetra and Börse Frankfurt since Friday.
/goo.gl/e6BY3M

HKEX: Exchange Launches Training For Company Directors
MondoVisione
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), has noted from its recent investigations and disciplinary actions that a number of company directors have failed in their duties and not taken a proactive role in fulfilling their responsibilities as directors, either due to a lack of understanding of the Listing Rules or because they did not give their compliance obligations the focus they require.
/goo.gl/nspVmA

November 2016: Strong growth over previous month
SIX
The statistical monthly report contains the latest trade and turnover figures for SIX Swiss Exchange.
There was a significant month-on-month increase in trading activity on SIX Swiss Exchange and SIX Structured Products Exchange Ltd in November 2016. The number of trades was up by 32.8% to 4’681’692, while trading turnover rose by as much as 36.6% to CHF 125.8 billion. In the year to date, a total of 43’774’231 transactions have been conducted on SIX Swiss Exchange and SIX Structured Products Exchange Ltd. This marks a year-on-year decrease of 8.2%.
/goo.gl/Meb2yV

Nasdaq Launches Copenhagen 25 For Danish Market – New C25 Index To Replace C20 As Leading Index At December 2017 Review
MondoVisione
Nasdaq (Nasdaq: NDAQ) today announced the introduction of the Copenhagen 25 index (OMXC25). The C25 is a capped index comprising the 25 shares with the highest six-month turnover and the largest free float adjusted market capitalization. The C25 index will be effective from December 19, 2016 with a base value of 1000.
/goo.gl/MtQe58

Politics

Trump’s Wall Street Rally Best Ever for New President
By Kevin Dugan – NY Post
Donald Trump’s election has spurred the biggest one-month rally in the S&P 500 of any incoming US president in the 93-year history of the index. Forged on a combination of expected job creation and higher wages, the Trump rally has pushed the S&P 500 up 4.98 percent since Nov. 8.
/goo.gl/Yr3R5A

Nigel Farage Has Some Radical International Trade Ideas for Trump
Joshua Green – Bloomberg
A day with Mr. Brexit, who has some radical international trade ideas for his new BFF, Donald Trump
jlne.ws/2ggdUua

Investing and Trading

S.E.C.’s Top Enforcer to Depart at Year-End
By MICHAEL J. de la MERCED – NY Times
The ranks of Wall Street’s regulators in Washington are continuing to turn over, as the Securities and Exchange Commission’s top enforcer announced plans to leave.
/goo.gl/xfeUfF

A Fast Thousand Points on the Dow Just Isn’t What It Used to Be
Lu Wang – Bloomberg
As it stands, the Donald Trump bull market has a shot at knocking off a dot com-era record pertaining to how fast the Dow Jones Industrial Average travels 1,000 points to a round-number milestone. But don’t be fooled, the rally remains a pipsqueak compared with past bouts of euphoria.
jlne.ws/2gfZMB4

The Stock Market of Our Dreams; Big banks think another good year beckons, with forecasts uniformly positive, but investors shouldn’t get carried away
By JAMES MACKINTOSH – WSJ
It’s the season when Wall Street strategists dust off their crystal balls and predict what markets will do for the year ahead, while conveniently forgetting what they said 12 months ago. As seemingly endless 2017 outlooks clog up investors’ inboxes, Wall Street has a rare reason to be merry: Forecasts are on track for one of their best years ever.
/goo.gl/RE1f2X

Hooked on QE: Hedge Funds See Dangerous Addiction; Top managers say central bank bond buying could worsen the very problems it tries to solve
By LAURENCE FLETCHER – WSJ
Some of the world’s top hedge-fund managers are worried. They say central bank bond buying programs that are pumping trillions of dollars into global markets will end badly.
/goo.gl/ptt2aJ

Oxford university start-up fund boosted by £230m injection; Incubator grows to £580m as Asian investors join backers of UK academic spin-offs
by: Madhumita Murgia, European Technology Correspondent
Oxford Sciences Innovation, which commercialises science and technology from Oxford university, has expanded its coffers to £580m in a new funding round, making it the largest private university fund in the UK.
/goo.gl/LfGyZL

Markets risk undervaluing the Trump effect; Washington rhetoric suggests a likely rate rise next week could be first of a series
by: Michael Mackenzie – FT
It is a story of the markets against the US Federal Reserve — and so far, the markets have been on the right side of the call. Bond market movements have this year proved a better guide to potential shifts in benchmark rates than has the Fed’s official range of projections.
/goo.gl/aVHjRC

Investor lawsuit accuses Facebook director of disloyalty; Network rejects claim Andreessen helped Zuckerberg secure control in shares move
by: Hannah Kuchler in San Francisco – Ft
Two of Silicon Valley’s most prominent leaders, Mark Zuckerberg and Marc Andreessen, have been accused of co-operating behind the scenes to prioritise the Facebook founder’s control over the company at the expense of ordinary investors.
/goo.gl/Ck7N6B

The Bond Market Doesn’t Believe Draghi
By Mark Gilbert – Bloomberg
The beatings will continue until morale improves, the saying goes. That’s one interpretation of the European Central Bank’s somewhat convoluted rejig of its quantitative easing program this week.
/goo.gl/e1vvZR

Gold ‘Getting Hit From All Directions’ as Investors Flee Funds
by Eddie Van Der Walt and Ranjeetha Pakiam – Bloomberg
Everything’s against gold at the moment. It’s heading for a fifth consecutive weekly loss, the longest run since November 2015, as the Federal Reserve gears up to raise rates, while U.S. equities at record levels lure money out of havens and fund holdings wither. Assets in bullion-backed exchange-traded funds contracted for a 20th straight day as of Thursday, the longest stretch since May 2013.
/goo.gl/9KQXMO

Ackman attempts to entice hedge fund execs to stay around
By Carleton English – NY Post
Icahn ups Herbalife stake to 23 percent
Some of Bill Ackman’s employees will be sporting golden handcuffs soon.
/goo.gl/gk4ELe

Institutions

Deutsche Bank Moves Top CDS Trader Amid $1.1 Trillion Wind-Down
by Donal Griffin – Bloomberg
Deutsche Bank AG moved the trader leading the wind-down of a $1.1 trillion credit-default swaps portfolio to a role in emerging-market bonds, according to an internal memorandum obtained by Bloomberg.
/goo.gl/SXt9aL

Watchdog launches crackdown on crowdfunding
Rhiannon Bury – Telegraph
Crowdfunding platforms need tougher rules and restrictions in order to protect investors, the Financial Conduct Authority has said.
/goo.gl/vnyN21

BlackRock Reaches a Deal for a Move to Hudson Yards
By CHARLES V. BAGLI – NY Times
BlackRock, the giant financial company that manages $5 trillion in assets, reached an agreement on Wednesday to move from a prestigious Park Avenue address to a neighborhood on the Far West Side of Manhattan that was once home to warehouses, rail yards, tenements, dockworkers and teamsters.
/goo.gl/zrrl1z

Fintech

Bloomberg terminal outage
Reuters via Business Insider
Users of Bloomberg LP’s terminals are experiencing slowness, a company spokesman confirmed on Thursday after complaints about outages on the terminals started hitting Twitter shortly before noon.
jlne.ws/2gg9IdT

Duco Wins FOW International Award for Third Year Running
Duco
Duco, the global fintech provider of post trade data control services, has won the FOW International Award for ‘Best Technology Product – Trade Reconciliation’ for the third year in a row. FOW, the leading news and data service for the global futures and options industry, presented the award at their International Awards Dinner on 7th December.
/goo.gl/GzpMKO

SoftBank’s $100 Billion Tech Fund Opens HQ in London’s Mayfair
by Giles Turner – Bloomberg
Company chooses London hedge fund district over tech hub; Senior advisers join fund that’s aiming for double-digit hires
SoftBank Group Corp. has decided to place the headquarters of its $100 billion technology private equity group in the hedge fund heartland of London, and has begun hiring investment advisers.
/goo.gl/z3K15I

Börse Berlin implements Scila Surveillance for Real Time Monitoring and Prevention of Market Abuse and Insider Dealing
Scila
Börse Berlin, the German exchange founded in 1685, has chosen to implement Scila Surveillance, provided by the Stockholm-based leading independent surveillance technology provider Scila. Scila will provide Börse Berlin with a powerful and highly flexible real-time market surveillance solution. Scila Surveillance will be used by Börse Berlin to monitor and prevent Market Abuse and Insider Dealing, protecting investors and strengthening confidence in the financial markets.
/goo.gl/TXFjHw

Regulation

Strict capital rules to cause further harm, says CFTC Commissioner; Constraints could prompt a future liquidity crisis.
By Joe Parsons – The Trade
A commissioner for the US derivatives regulator has warned that stricter capital rules on banks will only heighten a liquidity crisis in potential market stress scenarios.
/goo.gl/NUZA5N

Out of the shadows
Joe Parsons – The Trade
The MiFID II reporting regime will bring the buy-side out of the shadows and make them directly responsible for reporting. But what is the level of understanding of the rules?
MiFID I, which came into force in 2007, represented the European Union’s first attempt to regulate financial markets, and it introduced, for the first time, a harmonised transaction reporting regime across the EU. In MiFID II, the European Commission takes the current objective of transaction reporting – the detection and investigation of potential market abuse – and expands it into supporting “market integrity”.
jlne.ws/2gg2GFV

SEC chair says mistake to weaken post-crisis financial reforms
Lisa Lambert – Reuters
The outgoing chair of the U.S. Securities and Exchange Commission said on Thursday that reforms made by the agency after the financial crisis are indispensable to investors and markets and should not be undone.
jlne.ws/2gfLikM

SIFMA’s Rob Toomey Testifies before House Subcommittee on the Impact of Regulations on Short-Term Financing
SIFMA
SIFMA Managing Director Rob Toomey testified this morning on behalf of SIFMA before the House Committee on Financial Services Subcommittee on Capital Markets in a hearing entitled “The Impact of Regulations on Short-Term Financing.”
/goo.gl/3kZIwp

RBS ordered to hand over documents in shareholder cash call case
Reuters
Royal Bank of Scotland (RBS.L) on Thursday lost a court battle to withhold transcripts, notes and interview records from thousands of retail investors suing the bank over an ill-fated, 12 billion pound ($15 billion) share sale in 2008. Judge Robert Hildyard rejected an attempt by RBS to class the documents as legally privileged and confidential in a judgment welcomed by a group of 27,000 retail investors, who hope the information will bolster their case ahead of a trial next March.
jlne.ws/2gfNvg5

Remarks of Chairman Timothy Massad Before the American Gas Association 9th Annual Energy Market Regulation Conference
CFTC
Throughout my tenure as Chairman, it’s been a great pleasure to meet with groups like yours that represent commercial users of the derivatives markets. One of the best parts of this job is learning about different businesses and how they use these markets.
jlne.ws/2h1VUaW

Proposed Rule Change Relating to Rule 4554 Reporting Requirements for Alternative Trading Systems
FINRA
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend Rule 4554 to require alternative trading systems (“ATSs”) to submit additional order information to FINRA.
/goo.gl/yYbS73

Staffers move court against Sebi’s hiring policies; Bombay HC to hear the matter on Dec 21
Shrimi Choudhary – Business Standard
Market regulator Securities and Exchange Board of India (Sebi) has been dragged to the court by its own employees over hiring policy. Miffed over filling top posts through contract hiring, the Sebi Employee Association (SEA) has filed a writ petition in the Bombay High Court challenging the appointment of executive directors (EDs) on deputation. The court on December 21 will take a call on admission of the plea.
/goo.gl/qlxLnk

Out of the shadows; The MiFID II reporting regime will bring the buy-side out of the shadows and make them directly responsible for reporting. But what is the level of understanding of the rules? Joe Parsons reports.
By Joe Parsons – The Trade
MiFID I, which came into force in 2007, represented the European Union’s first attempt to regulate financial markets, and it introduced, for the first time, a harmonised transaction reporting regime across the EU.
/goo.gl/sq6SRw

Regions

Mexico’s Peso Problems Are a Warning Sign for Global Investors
Isabella Cota and Eric Martin – Bloomberg
The world has never been so invested in Mexico, and so Mexico has never posed a bigger potential threat to the world. With a little more than six weeks before Donald Trump takes over with an agenda that could batter Latin America’s second-largest economy, Mexico is already showing signs of strain. Inflation is bouncing back, and traders bet it will only get worse; the peso has plummeted to record lows, and top analysts predict more pain; the government has lowered its growth forecast for four straight years, and Mexico is on the verge of a credit-rating cut just as Agustin Carstens gears up to leave the central bank after seven years at the helm.
jlne.ws/2ggcJdT

The “sushi of finance” in Asia
Jessica Cheam – Eco-Business
Banking veteran Omar Selim started Arabesque Partners to revolutionise the way people invest. In this interview with Eco-Business editor Jessica Cheam, he shares how the fund manager is offering ‘healthy, transparent and clean’ investing options to tap into Asia’s growing appetite for sustainable investments.
jlne.ws/2gg7xqu

Marijuana Bubble Worries Grow in Canada After Two-Year Rally
Jen Skerritt – Bloomberg
The surge of capital into Canada’s nascent marijuana industry has sent stock prices soaring — and brought warnings it’s a bubble that could soon burst.
jlne.ws/2gg9Zxk

Europe’s Next Big Currency Opportunity Just Got a Lot Closer
by Peter Laca and Krystof Chamonikolas – Bloomberg
Czech inflation accelerates to highest in over three years; Price growth keeps central bank on track to exit koruna cap
After being held back by the central bank for three years, the Czech koruna is preparing for its final leap to freedom.
/goo.gl/tCqiQy

Exchange traded funds set Japan record; Next Funds Nikkei 225 Leveraged Index leads ETF boom among investors
by: Leo Lewis – FT
Japanese trading in exchange traded funds soared to an all-time high last month as retail investors bet heavily against the global market sell-off and attempted to second-guess purchases by the Bank of Japan.
/goo.gl/qa5QjX

Miscellaneous

Google Makes So Much Money, It Never Had to Worry About Financial Discipline
Max Chafkin and Mark Bergen – Bloomberg
Alphabet’s CFO Ruth Porat wants to bring focus to Mountain View. Can the moonshot factory adapt?
Earlier this year, Astro Teller, a ponytailed scientist and science fiction writer, gave a TED Talk.
It was a first for Teller, but not for X, or Google X, as the research lab he runs used to be known.
jlne.ws/2gg5u64

American psyche: Michael Lewis on the triumph of irrational thinking; The writer talks about how ‘the marketplace for politicians did something as weird as the marketplace for securities’
by: Gary Silverman – FT
The unexpected election of Donald Trump as US president will undoubtedly lead to a torrent of treatises trying to explain how such a thing was possible. Michael Lewis, a chronicler of the American experience with a knack for being in the right place at the right time, may have beaten the competition to the punch — without even trying.
/goo.gl/AlWKov

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