Capitalists Without Capital Are Ruling Capitalism; Credit Suisse hit with $6.5 million U.S. fine for supervisory lapses

Dec 24, 2019

First Read

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Hits & Takes
By JLN Staff

In the latest FIA Speaks podcast episode, FIA President and CEO Walt Lukken talks with SGX CEO Loh Boon Chye about growth at SGX and Singapore’s role in the global financial market.~JJL

Michael Gerson, a columnist of the Washington Post, has an article titled “Evangelicals need to follow Christianity’s morals, not Trump’s.” Sneaky putting something like that out at Christmas time.~JJL

Sears is selling the DieHard battery brand to Advance Auto Parts. This is not to be confused with the Christmas movie Die Hard.~JJL

R.J. O”Brien would like to wish you Happy Holidays with a Youtube video featuring Gerry Corcoran in an elf hat and RJO’s acapella rendition of Jingle Bell Rock with dance moves. It is not to be missed.~JJL

The OCC is redesigning their website. They have a beta version up here if you want to check it out.~MR

The employees of Goldman Sachs have some interesting hobbies.~JJL

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No midnight Mass at Notre-Dame in Paris this Christmas for first time in centuries
Associated Press
The Cathédrale Notre-Dame de Paris kept Christmas going even during two world wars — a beacon of hope amid the bloodshed. Yet an accidental fire in peacetime finally stopped the famed Paris cathedral from celebrating Midnight Mass this year, for the first time in over two centuries.
/on.mktw.net/2EZmJY9

****Time to start a new tradition,one that does not involve breathing lead fumes.~JJL

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2020 Outlook: Tony Saliba, Matrix Holding Group
MarketsMedia
What were the key theme(s) for your business in 2019?
Since the closure of the majority of the open outcry pits, some in the derivatives trading community have struggled to replicate the social utility that came along with having a mass of humanity all in the same space, living and breathing market action day in and day out together. We’ve been working on technology that replicates, or at least emulates, that communal aspect of real-time trading idea/strategy generation while embedding the process directly into trade execution.
bit.ly/35RnKgE

*****Tony Saliba was one of the traders who sat for an interview for the Open Outcry Traders History Project.~JJL

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Monday’s Top Three
Once again Terry Duffy’s salary makes our top three list in Crain’s Chicago Business’ article CME’s Duffy extends contract, gets bigger bonus. In second place, The Wall Street Journal’s article Nasdaq Prevails in Lawsuit Over Alleged ETF Theft is a puzzler since the claim is a billion dollars was stolen yet they recovered $80.6 million…I should probably read the whole story. Our third most read article was the Financial Times’ story Blythe’s back, but has she said bye-bye to blockchain?

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Lead Stories

Capitalists Without Capital Are Ruling Capitalism; What does it mean that some of the decade’s big market winners were companies with no real net worth?
John Authers – Bloomberg
As a rule in life, as soon as someone starts talking about “intangibles,” it’s time to be suspicious. A mediocre athlete who is worth his place on the team because of his intangible qualities should arouse skepticism. So should any company selling the intangible quality of their assets.
/bloom.bg/39d1mR0

Credit Suisse hit with $6.5 million U.S. fine for supervisory lapses
Reuters
The U.S. Financial Industry Regulatory Authority (FINRA) and major exchanges have fined Credit Suisse’s (CSGN.S) U.S.-based securities business $6.5 million for supervisory failings, FINRA said late on Monday.
/reut.rs/2MsbQC5

Fed May Be Quietly Masking Extent of Efforts to Calm Repo Market
Alex Harris – Bloomberg
Foreign central banks have reduced usage of a U.S. repo pool; That fits with Fed’s strategy of expanding banking reserves
Wall Street sleuths are wondering whether the Federal Reserve is quietly doing more to calm the U.S. repo market than just the headline-grabbing liquidity injections that have captivated observers for months.
/bloom.bg/2EN0sfJ

T. Rowe’s $1 Trillion Answer to Claims Stock-Picking Is Dead
Annie Massa and Heather Perlberg – Bloomberg
Firm’s retirement business helped boost revenue and assets; Narrow focus comes with trade-offs, like missing passive shift
Stock pickers may be under siege after decades of ruling Wall Street, but not every old-school champion of active mutual funds is losing ground to cheaper rivals tracking indexes.
/bloom.bg/3733uJ1

Goldman Sachs Beware: China Plans ‘Aircraft Carrier-Sized’ Banking Rival
Bloomberg News
China’s fragmented investment bank market faces consolidation; Foreign banks can take full control of local venture in 2020
China last week commissioned its first home built aircraft carrier to project its military might. It’s now on a mission to create “aircraft carrier-sized” investment banks to take on Wall Street’s giants.
/bloom.bg/2PQdPlL

Repo Oracle Claims Victory Even If Fed Skips QE; An ominous warning from Credit Suisse’s Zoltan Pozsar may not pan out at year-end.
Brian Chappatta – Bloomberg
Imagine you are a longtime Wall Street denizen, accustomed to analyzing trends in the public equity markets, sovereign interest rates, foreign exchange and corporate credit. You think you have a good handle on all these large asset classes.
/bloom.bg/2sYvCOG

Distressed-Asset Hedge Funds Run Into Trouble; York Capital Management, Southpaw put up gates after redemption requests on credit funds
Juliet Chung – WSJ
Hedge-fund firms York Capital Management and Southpaw Asset Management are barring clients from getting back all of the money they have requested for year-end, a sign of the pressure that investors in distressed assets are facing.
/on.wsj.com/35X37PW

Smaller banks turn to currency derivatives for short term liquidity; Volume of currency swaps trading by non-reporting banks increased by 139% over 3 years
Philip Stafford and Anna Gross – FT
Rapid growth in the volume of foreign exchange swaps handled in London over the past three years has been fuelled in part by smaller European banks and hedge funds using currency derivatives to fund their short-term liquidity requirements, the Bank of England said.
/on.ft.com/2s7EJwE

TP ICAP set to acquire Louis Capital Markets and MidCap Partners
Maria Nikolova – Finance Feeds
The initial consideration for the acquisition is $21 million in cash payable at completion, with deferred non-contingent consideration of $6 million to be paid over two years, and a further $17 million of consideration that may be payable
bit.ly/35SiUQ1

CFTC responds to arguments by TFS-ICAP’S CEO Ian Dibb in fraud case; The regulator argues that brokers at TFS-ICAP routinely reported fake, non-bona fide FX Options transactions on TFS-ICAP’s electronic trading platform.
Maria Nikolova – Finance Feeds
The action brought by the Commodity Futures Trading Commission (CFTC) against TFS-ICAP, the Chief Executive Officer, Ian Dibb, and the Head of Emerging Markets broking, Jeremy Woolfenden, continues at the New York Southern District Court. Earlier today, the Court has made available the CFTC response to Dibb’s arguments against the complaint.
bit.ly/2rnap0o

The TRADE’s best of 2019: Sell-side; John reviews the best of The TRADE News’ coverage of the sell-side over the past 12 months.
John Brazier – The Trade
Mergers and acquisitions were the flavour of the year for 2018 and although there were fewer big money deals completed in the past 12 months, that certainly wasn’t for the lack of attempts to do so. Pan-European trading venue Euronext completed its acquisition of Oslo Børs after a drawn-out bidding war with rival Nasdaq, and is currently engaged in a similar tussle over Spanish exchange Bolsas y Mercados Españoles (BME) with SIX Swiss Exchange. Elsewhere, Deutsche Börse closed its acquisition of analytics firm Axioma in mid-September, to form a new intelligence division, Qontigo.
bit.ly/2sYdpkt

SAC’s Richard Lee Admitted to Insider Trading. Then He Cleared His Name
Patricia Hurtado – Bloomberg
Ex-portfolio manager’s 2013 guilty plea was tossed in June; Lee says he confessed to a 2009 trade he didn’t remember
Richard Lee doesn’t remember the trades that upended his life. A former SAC Capital Advisors LP portfolio manager, Lee managed a $1.25 billion fund for his boss Steve Cohen. He had tens of thousands of trades under his belt, so the roughly $10 million in Yahoo Inc. shares he bought on July 10, 2009, didn’t really stand out. But when the FBI approached him in March 2013, saying they had proof the investment was based on an illegal tip, the forgotten trades left him feeling trapped.
/bloom.bg/2MpYCGa

Exchanges, OTC and Clearing

Cboe responds to speed bump comments
Cboe
Dear Ms. Countryman: Cboe EDGA Exchange, Inc. (“EDGA” or the “Exchange”) appreciates the opportunity to respond to comments submitted to the Securities and Exchange Commission (“Commission”) on the above-referenced proposed rule change (the “Proposal”).1 The Proposal was filed on June 7, 2019 to introduce a delay mechanism on EDGA that is designed to protect liquidity providers, and thereby enable those liquidity providers to make better markets in equity securities traded on the Exchange. On August 22, 2019, the Exchange filed its initial response letter, addressing a number of comments received on the Proposal, and explaining the potential for the proposed Liquidity Provider Protection (“LP2”) to reduce adverse selection risks for liquidity providers, and benefit the market through improvements to market quality.2 On September 24, 2019, the Commission instituted proceedings to determine whether to approve or disapprove the Proposal (“Order Instituting Proceedings”),3 and a number of additional comments have subsequently been filed by industry participants. The Exchange continues to believe that the Proposal would encourage fair, orderly, and efficient markets that benefit investors, including both liquidity providers and market participants that access liquidity on EDGA. This comment letter responds to comments filed after the Initial Response Letter and the Order Instituting Proceedings.
bit.ly/2rqwzPw

ASX appoints Robert Woods as a non-exec director
Maria Nikolova – Finance Feeds
Mr Woods will be replaced as Chairman of ASX Clear Pty Limited and ASX Settlement Pty Limited by Stephen Knight.
bit.ly/34RZU2P

Appointment of Director – Robert Woods
ASX
The Board of ASX Limited announces the appointment of Mr Robert Woods as a non-executive director with effect from 1 January 2020.
bit.ly/2ELybGC

MCX launches commodity indices; trading expected in a month or two; MCX has also introduced sector and commodity-specific indices, which may be allowed for trading as and when permitted by the regulator
Dilip Kumar Jha – Business Standard
India’s largest commodity exchange, the Multi Commodity Exchange of India (MCX), has launched a series of new indices based on commodity futures contracts traded on the platform.
bit.ly/34R5Adt

Dalian Commodity Exchange: Promoting “1 Completeness, 2 Connects” Of The Derivatives Market, Building A High-quality Iron & Steel Eco-Chain
Mondovisione
The 8th Iron & Steel Raw Materials Market Summit is held in Beijing on December 14. It is hosted by China Metallurgical Industry Planning and Research Institute (MPI) and co-organized by Dalian Commodity Exchange (DCE). DCE Vice President Zhu Lihong says at the Summit that iron ore is the first product realizing “1 completeness, 2 connects” in China, and the iron ore futures price has increasing international influence. In this context, how to correctly use futures, options and other derivatives instruments has been an unavoidable topic.
bit.ly/35ViRTx

Montréal Exchange Early Close Today – Exchange’s Markets Closed December 25 And 26, 2019
Mondovisione
Interest rate derivative and sector index futures trading will cease at 1:30 p.m., equity, currency, ETF, index derivatives, FTSE index and share futures trading will cease at 1:00 p.m. and basis trade on close (BTC) trading will cease at 12:30 p.m. today, December 24, 2019. Furthermore, the Exchange’s markets will be closed on December 25 and 26, 2019.
bit.ly/34Rfuf9

MIAX Amendment, Reorganization And Enhancement Of Registration Rules
Mondovisione
MIAX Options has proposed a rule change to adopt new Chapter XIX series of rules captioned Registration, Qualification and Continuing Education in the MIAX Options Rulebook. The rule change will become effective on January 9, 2020, pursuant to a notice recently issued by the Securities and Exchange Commission.
bit.ly/39d0o7k

Fintech

Phoenix Finance Ranked in the “2019 KPMG China Fintech 50”
Yahoo Finance
On December 23rd, KPMG officially announced the list of “2019 KPMG China Fintech 50” and held the awards ceremony for “2019 KPMG China Fintech 50” in Beijing. Phoenix Finance, a comprehensive intelligent financial service platform established by Phoenix TV Group for global Chinese, was selected for its development and applying of fintech innovations. Other listed companies include Ant Financial, WeBank, aiBank, JD Digits and FSG.
/yhoo.it/372e03h

What will Fintech scene look like in 2020 according to the industry…
Konstatin Rabin – Finextra
2019 was an excellent year for fintechs in terms of exposure and raising awareness among the majority of the population about what fintechs are and what potential they hold for the regular citizens. In 2019 we saw a major spike in the number of fintech, in the funding of these fintechs and the collaborations between these startups and the larger, more traditional institutions.
The collaborations between the two and the increased adoption of technologies provided by the new companies has earned the industry a spot on the 2019’s most talked-about industries.
bit.ly/2EN7xwP

Exclusive: Malware broker behind U.S. hacks is now teaching computer skills in China
Steve Stecklow, Alexandra Harney – Reuters
A Chinese malware broker who was sentenced in the United States this year for dealing in malicious software linked to major hacks is back at his old workplace: teaching high-school computer courses, including one on internet security.
/reut.rs/398g8s7

China’s Shanghai Futures Exchange to relax trading position limits
Reuters
China’s Shanghai Futures Exchange said on Tuesday it will relax trading position limits on its product contracts from next year in order to encourage trading activity and increase market participation.
/reut.rs/2QfPBQV

PayPal Continues to Scout for Potential Takeover Targets; The company, which recently acquired a majority stake in Chinese payment platform GoPay, plans to spend $1 billion to $3 billion on deals next year
Nina Trentmann – WSJ
PayPal Holdings Inc. will continue to pursue potential takeover targets in 2020 amid robust deal activity in the payments sector.
/on.wsj.com/3719wcY

Cryptocurrencies

Ethereum Network Draws Developer Ire After Scheduling New Year’s Day Upgrade
Bradley Keoun – Coindesk
The organization behind ether, the world’s second-largest cryptocurrency, is drawing criticism from developers after scheduling an upgrade on New Year’s Day – a work holiday in most countries. The Ethereum Foundation on Monday announced the plan to implement the “Muir Glacier” upgrade on Jan. 1. The upgrade will take place when the ethereum network hits its 9.2-millionth block, said a blog post on the organization’s website. The upgrade would come just less than a month after the network’s last upgrade in early December, known as “Istanbul.”
bit.ly/379Jk05

Unlike Libra, Digital Yuan Will Not Need Currency Reserves to Support Value: PBOC Official
Paddy Baker – Coindesk
The head of the People’s Bank of China’s (PBOC) digital currency research subsidiary, Changchun Mu, said China’s cryptocurrency will not need a currency basket to maintain a stable value. Speaking to reporters at The China Finance Association Academic Annual Meeting and China Finance Forum Annual Meeting in Beijing Saturday, Mu said the digital yuan would be distinct from other forms of cryptocurrencies, including Libra. “The [digital yuan] currency is not used for speculation. The RMB is used to spend, not for speculation.
bit.ly/34VVUym

Poloniex Drops KYC for Withdrawals Below $10,000 Following US Exit
Paddy Baker – Coindesk
Poloniex has introduced a new type of account that allows users to withdraw as much as $10,000 a day without completing know-your-customer (“KYC”) verification. The exchange said in a blog post Thursday its new “Level 1” accounts will only require users to register with an email address and password. “Any customers who sign up from here on out can begin trading in seconds with a Level 1 account,” reads the entry. Level 1 users can deposit and trade an unlimited amount of cryptocurrency. They can also withdraw a maximum of $10,000 every day. There are also opportunities to stake proof-of-stake (PoS) coins on the platform.
bit.ly/2ERb1yE

ByteDance Weighs TikTok Stake Sale Over U.S. Concerns
Zheping Huang, Lulu Yilun Chen, and Peter Elstrom – Bloomberg
Sale of majority stake is one of a range of possible options; Senators called ByteDance’s control of TikTok a security risk
China’s ByteDance Inc. created one of the country’s rare global hits with the addictive video app TikTok. Now the U.S. government is threatening that success as officials in Washington warn the service presents a security threat.
/bloom.bg/2Zn9DwR

Bitcoin Options Introduction Subdued in Wake of Futures Letdown
Olga Kharif – Bloomberg
Bitcoin advocates are taking a more measured approach over the introduction of options for the world’s largest cryptocurrency after the wild ride they took with futures.
/yhoo.it/2PTPfk7

Bombshell Report Finds Inclusion Lacking in the Blockchain Industry
Andrea Tinianow – Forbes
Since the introduction of bitcoin in 2009, blockchain technology has been heralded as the great democratizer because of its ability to enable parties to transfer value directly without the need for middlemen. In the last decade, blockchain technology has evolved and entered the mainstream. But has it lived up to its promise to become the great equalizer? For example, have women and minorities coalesced around the technology in great numbers?
bit.ly/2ZjlgVC

Year in a word: Libra
Izabella Kaminska – Financial Times
Libra (noun) 1. Sign of the zodiac represented by a pair of scales 2. Origin of the abbreviation for pound 3. Facebook’s cryptocurrency The forces polarising society politically and economically continued in 2019. But one development seemed to unite almost everyone: distrust of Facebook’s global cryptocurrency-based payments system, Libra.
/on.ft.com/2QjyTQL

China to Expand Blockchain Pilot, Study Forex Reforms for Cryptocurrency: Regulator
Reuters via the New York Times
China will expand the scope of its blockchain cross-border financing pilot platform, a senior official at the country’s foreign exchange regulator said on Tuesday. Lu Lei, deputy head of the State Administration of Foreign Exchange (SAFE) make his remarks at a forum in Beijing, where he said the regulator will strengthen the integration of fintech and the foreign exchange market, while maintaining a grip on supervising technology development. “We will gradually expand the scope of the pilot and the application scenarios of blockchain technology in cross-border financing and macro prudential management,” Lu said.
/nyti.ms/2s8ERfk

Crypto trading spreads have plunged 90%, pushing desks to rethink their strategies
Frank Chaparro – The Block
An active year for digital asset market participants is coming to an end – and new data underpins the degree of change that has occurred in that span of time. Over the course of 2019, new players emerged and old ones crumbled, and readers of The Block will recall the fall of Circle Trade, Circle’s once-mighty cryptocurrency trading operation. In 2018, the desk facilitated the trading of more than $24 billion worth of digital assets. As one source put it, the firm was in an excellent position: everyone was connected, and it also had some of the best-known talent. Indeed, prior to Circle selling the desk to Kraken earlier this month, the writing was on the wall for its demise.
bit.ly/2PTE76Q

Out of the Ashes: Four Trends to Shape Crypto in 2020
Charles Hayter – Coindesk
Cast your minds back to the beginning of 2019, and the tenth anniversary of the mining of the bitcoin genesis block. The industry had very little to celebrate. Prices had sunk to new lows, while startups and even some of the industry’s heavyweights were beginning to feel the pinch.
bit.ly/2Spfm3U

China to expand blockchain pilot, study forex reforms for cryptocurrency: regulator
Reuters
China will expand the scope of its blockchain cross-border financing pilot platform, a senior official at the country’s foreign exchange regulator said on Tuesday.
/reut.rs/2rsYfDm

Politics

Two Giuliani Associates Used Washington Connections to Chase Ukraine Gas Deal; Lev Parnas and Igor Fruman leveraged ties to seek a natural gas deal with Naftogaz
Rebecca Davis O’Brien, Christopher M. Matthews and Georgi Kantchev – WSJ
Last fall, as Igor Fruman and Lev Parnas barnstormed Ukraine on behalf of President Trump’s personal lawyer, cajoling officials to investigate Joe Biden and his son, the two Florida businessmen were also pursuing a side effort to cash in on the country’s dire need for natural gas.
/on.wsj.com/39c2ST9

How a String of Flukes Helped Pave the Way for Mayor Michael Bloomberg; He was told he would lose. In any other year, he probably would have. But 2001 was not any other year.
Matt Flegenheimer and Maggie Haberman – NY Times
Michael R. Bloomberg was not entirely picky. By the late 1990s, financially mega-secure and professionally restless, the billionaire businessman had told friends that four jobs on earth could tempt him away from his company: president of the United States, secretary general of the United Nations, president of the World Bank and mayor of New York.
/nyti.ms/35TjMUP

Rudy Giuliani Says He’s ‘More of a Jew’ Than George Soros; Mr. Soros, a liberal billionaire, is a Holocaust survivor from Hungary.
Daniel Victor – NY Tims
Rudolph W. Giuliani, who was raised as a Roman Catholic, said in an interview with New York Magazine published on Monday that he is “more of a Jew” than George Soros, a liberal billionaire and Holocaust survivor.
/nyti.ms/3989Ybf

Christianity Today again slams Trump, raises issue of ‘unconditional loyalty’
Heather Timmons – Reuters
Christianity Today, the magazine founded by the late Reverend Billy Graham, renewed its criticism of President Donald Trump in a new editorial that cited his “misuses of power” and asked fellow Christians to examine their loyalty to him, days after a controversial editorial that called for his impeachment.
/reut.rs/399twvZ

Millionaires support a wealth tax as long as they aren’t getting taxed
Robert Frank – CNBC
A majority of millionaires support a wealth tax on those worth $50 million or more, but their support declines for a tax on those worth $10 million, according to a new poll. Fifty-nine percent of millionaires said they would support a new federal tax on wealth over $50 million, according to the Q4 CNBC Millionaire Survey. Democratic presidential candidate Elizabeth Warren’s tax plan includes a wealth tax of 2% on wealth over $50 million and 6% over $1 billion. Forty-eight percent opposed a wealth tax on those worth over $10 million.
/cnb.cx/2Qe27R6

Regulation

BMW Investigated By SEC Over U.S. Sales Reporting Practices
Gabrielle Coppola and Gregory Mott – Bloomberg
Carmaker is in a tight race with Mercedes for luxury lead; Dealers have complained for years about service-loaner tactics
BMW AG is being scrutinized by the U.S. Securities and Exchange Commission over its sales reporting practices, months after the regulator extracted a penalty from Fiat Chrysler Automobiles NV over similar issues.
/bloom.bg/35SjBc5

ESMA extends recognition decisions for LCH, ICE Clear Europe, and LME Clear under no-deal Brexit scenario
Maria Nikolova – Finance Feeds
The move reflects the extension of the expiry date of the Implementing Decision (EU) 2018/2031 of the European Commission on the equivalence of the UK CCP legal framework.
bit.ly/2F1hiId

The TRADE’s best of 2019: Regulation; John reviews the best of The TRADE News’ coverage of regulation over the past 12 months.
John Brazier – The Trade
Last year may have been the year of that MiFID II arrived in the markets with a bang, albeit a slightly delayed and stuttered one, but 2019 has seen the effects of the landmark regime begin to take effect.
bit.ly/2ZkLt6a

FINRA, Cboe, Nasdaq, NYSE and Affiliated Exchanges Fine Credit Suisse Securities $6.5 Million for Supervision and Market Access Rule Violations
FINRA
FINRA, Cboe Global Markets, The Nasdaq Stock Market LLC, the New York Stock Exchange, and their affiliated Exchanges (collectively, “Exchanges”) today announced that they censured Credit Suisse Securities (USA) LLC, and fined the firm a total of $6.5 million for supervisory violations and violations of various provisions of Rule 15c3-5 of the Securities Exchange Act of 1934 (known as the Market Access Rule). The fine was apportioned among FINRA and the Exchanges.
bit.ly/376lFNX

Susan Nash, Associate Director in Division of Investment Management, to Leave SEC After 30 Years of Public Service
SEC
The Securities and Exchange Commission today announced that Susan Nash, Associate Director and Senior Policy Advisor to the Director, Division of Investment Management, will retire from the SEC at the end of this month after 30 years of public service.
bit.ly/35Tr2Qd

Investing and Trading

Euphoria, Greed and Fear Mark 2010s for Commodities Investors
Aoyon Ashraf – Bloomberg
Investors have piled into growth sectors like chemicals; Mining stocks could rally after enduring bear market
The past decade — a humbling one for investors in commodities and raw materials — was a roller-coaster ride for mining stocks while chemicals saw a rise in popularity.
/bloom.bg/2tOWa5t

How risky ETFs won the decade – and why they might not repeat that performance
David Randall – Reuters
Exchange-traded funds that use leverage to offer double or triple the daily return of benchmark U.S. stock indexes rank among the 10 top-performing funds of the decade, with returns that in some cases neared 2,000%, despite warnings that they are not suitable for most investors.
/reut.rs/2MpEF1T

Stocks and Bonds Haven’t Rallied Like This Since 1998; Improving economic outlook, U.S.-China trade deal, Fed’s rate cuts boosted investors’ optimism
Gunjan Banerji – WSJ
Stocks and bonds are staging an extraordinary run, on track for their biggest simultaneous gains in more than two decades.
/on.wsj.com/2PRoehd

S&P is the decade’s runaway winner
Chuck Mikolajczak – Reuters
U.S. stocks are poised to close out the decade with the longest bull market in history still intact.
/reut.rs/2PSQNuz

Disruptive decade: Ten things the teen years brought world markets
Reuters
The 21st century’s teen years, bookended by a financial crisis at the start and the fintech revolution at the end, were a decade of disruption. From negative borrowing costs to bitcoin, here are ten trends that have upended traditional economic and investment models in the past decade:
/reut.rs/2Mr9Qdf

Institutions

Citigroup set to post record revenues in Hong Kong; Despite months of often violent protest, earnings in the Asian financial hub rose 8%
George Hammond – FT
Citigroup is set to post record annual revenues in Hong Kong, even as the city struggles under the weight of months-long protests and the US-China trade war.
/on.ft.com/399ocsA

York Plans to Shutter $2 Billion Credit Fund Amid Withdrawals
Katia Porzecanski – Bloomberg
‘Substantial redemption requests’ have come in, firm says; York will begin returning capital to investors in January
Jamie Dinan’s York Capital Management is shuttering its main credit hedge fund following poor performance.
/bloom.bg/379Nvch

Woodford debacle could drive more to advice
Rachel Mortimer – FT Adviser
This year’s Woodford debacle could drive more consumers to seek advice as they attempt to navigate the complex world of investments, according to the head of the Quilter platform.
bit.ly/2MpjJIw

Better Returns Are Consistent With Doing Good; Making a benchmark-beating return isn’t at odds with environmental, social and corporate governance goals.
Barry Ritholtz – Bloomberg
Venture capitalists can outperform benchmarks by focusing on environmental, social and corporate governance (ESG) and impact investing. That’s according to this week’s guest on Masters in Business, Sarah Cone, founder of New York-based venture-capital firm Social Impact Capital.
/bloom.bg/2EO6RYn

Regions

Twitter Suspends 90,000 Accounts Used to Spread Saudi Spam
Kartikay Mehrotra and Kurt Wagner – Bloomberg
Most accounts linked to Saudi firm tied to royal family; Twitter describes account behavior as ‘platform manipulation’
Twitter Inc. removed almost 90,000 accounts linked to the Saudi Arabian government that researchers identified as part of a sweeping, state-backed propaganda campaign to spread their geopolitical interests.
/bloom.bg/2rnju9u

South Africa Proposes 20% Carried Interest in Oil and Gas Law
Paul Burkhardt – Bloomberg
Upstream petroleum bill published in government gazettel; Exploration, production rights to have 10% black participation
South Africa published a long-anticipated draft of oil and gas legislation that will give the state a 20% carried interest in exploration and production rights, with the aim of increasing development of the industry.
/bloom.bg/2MqqCcJ

The Permian Gas Problem Is Just Getting Worse
Rachel Adams-Heard and Catherine Ngai – Bloomberg
With less drilling, producers get stuck with gassier output; U.S. gas growth seen coming from the Delaware sub-basin
America’s top shale field is becoming increasingly gassy as drilling slows down, undercutting profits for explorers at a time when investors are demanding better returns.
/bloom.bg/2EOgENR

Fraud-Hit Bank in India Alleges It Has Been Swindled Again
Suvashree Ghosh and Anurag Kotoky – Bloomberg
Bank files complaint against founder of a car repairing firm; Third fraud complaint by bank since 2018 as bad loans weigh
Scandal-hit Indian lender Punjab National Bank alleged it has been cheated — its third complaint since 2018 when it suffered through a $2 billion blow.
/bloom.bg/2tNT4Pa

Brexit

CCP equivalence extension published in EU Official Journal
FIA.org
FIA welcomes and appreciates the work of European Commission Executive Vice President Valdis Dombrovskis and his staff on their recent announcement of a one-year equivalence determination in the case of a no-deal Brexit for UK CCPs, which was published today in the Official Journal of the European Union. Last month, 14 trade associations requested an extension beyond the previous expiration of 30 March 2020.
bit.ly/35QMlSN

Pound Drops on Fear of Hard Brexit
Anna Hirtenstein – WSJ
The British pound fell Monday in low-volume trading on concerns the U.K. could crash out of the European Union without a deal. The currency slumped as much as 0.7% against both the dollar and the euro. It was its lowest level against the dollar in a month at $1.2905, and below its 50-day moving average, reversing the gains from its rally leading up to the U.K. election. “The market is coming to realize that there is still a risk of a no-deal Brexit at the end of 2020,” said Jane Foley, head of currency strategy at Rabobank. “The U.K. prime minister’s reluctance to extend the transition phase could push the country over the edge without a deal at the end of the year; that risk wasn’t being fully appreciated but is being factored in now.”
/on.wsj.com/2SnLncw

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FIA Expo, Asia conferences go virtual for 2020

FIA Expo, Asia conferences go virtual for 2020

First Read SGX Execs See Return to Macro Trades; COVID-Led Push Toward Digitalization Suzanne Cosgrove - John Lothian News In a press briefing, Singapore Exchange Limited (SGX) CEO Loh Boon Chye Thursday said the pandemic has created both challenges and extreme market...

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