Chinese consortium wins approval for Chicago Stock Exchange takeover; NYSE to acquire NSX amid U.S. exchange consolidation; China Halts Trading in Key Bond Futures as Panicky Investors Sell Securities

Dec 15, 2016

First Read

Should ION and FIS be worried?
By Jim Kharouf, John Lothian News

Just days after our column about Cinnober’s plans to move into the post-trade space with plans to take on legacy system giants, an upstart from Switzerland says it is ready, willing and able to do just that.

And then there were two.

Revendex, a consulting and IT firm based outside Zurich, says that its post-trade settlement system is ready to take on ION Trading’s Rolfe & Nolan system and FIS’s Stream (formerly GMI) platforms. Those two have dominated the post-trade space for decades, but Revendex executives say the systems are expensive, out of date and too slow.

Revendex’s managing directors Peter Hollenstein and Bernhard Kessler said their 14-person team has spent the past four years developing the system in-house. Now it’s unveiling the new technology, called primedex, a real time derivatives settlement system for listed and OTC markets. The new technology is interesting because it can be applied to just certain parts of the back office system without affecting other components. For firms that want to pitch the whole system, however, the technology provides a suite of elements to cover the back office needs, they say.

Read the rest of the story here.

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SGX Titan

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Banks Turn to Mind Reading to Source Top Tech Graduates
Giles Turner – Bloomberg
RBS tests the attention span of students via headsets; Machine learning and data science among skills in demand
Want to work at a bank? First you have to let them read your mind. At career fairs and on university campuses as part of its graduate hiring scheme, Royal Bank of Scotland Group Plc has been attaching sensors to the heads of potential candidates, to measure brain activity and attention spans.
/goo.gl/yJi02M

***** I would not want my mind to have been read while I was in college. They would have asked me why I was obsessed with beer and Boilermakers.

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‘I’m Here to Help,’ Trump Tells Tech Executives at Meeting
By DAVID STREITFELD – NY Times
The meeting between President-elect Donald J. Trump and the nation’s tech elite was hyped as something out of “The Apprentice”: The new boss tells his minions to shape up. It turned out to be a charm offensive, a kind of “Dancing With the Silicon Valley Stars.”
/goo.gl/8WnGHp

***** Ronald Reagan said the nine most terrifying words in the English language are “I’m from the government and I’m here to help.”

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TT’s Top 10
Starting Monday (December, 19), @Trading_Tech will be doing a countdown on Twitter of the top 10 moments/stories of 2016. They will be using the hashtag #TTtop10 in their posts, adding one story per day for the last two weeks of the year. Follow along.
No link
**JK: Is a CEO announcement one of them?

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Wednesday’s Top Three
Yesterday’s top read pieces were led by FINRA’s FINRA Foundation Publishes In-depth Analysis of U.S. Investors, followed by Institutional Investor’s Robert Mercer’s Trade of the Century. Third went to Bloomberg’s piece
Finance Titans Face Off Over $5 Trillion London Gold Market

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Lead Stories

Chinese consortium wins approval for Chicago Stock Exchange takeover
by: Nicole Bullock – FT
The Chicago Stock Exchange has won approval for a takeover deal by a consortium led by China’s Chongqing Casin Enterprise Group from the Committee on Foreign Investment in the US, or Cfius, a spokesman for the Chicago exchange said.
/goo.gl/Y1yTnF

NYSE to acquire NSX amid U.S. exchange consolidation
John McCrank – Reuters
Intercontinental Exchange Inc’s (ICE.N) New York Stock Exchange unit said on Wednesday it agreed to acquire the National Stock Exchange, giving NYSE Group a fourth U.S. exchange license. Terms of the deal, which is expected to close in the first quarter of 2017, were not disclosed. ICE said the financial impact of the acquisition would not be material.
jlne.ws/2gJhL7S

China Halts Trading in Key Bond Futures as Panicky Investors Sell Securities; Slowing growth, capital outflows fuel concerns that bull market is coming to an end
WSJ
Chinese authorities halted trading in key bond futures for the first time on Thursday, as panicky investors sold the securities on concern that a long, credit-fueled bull market was coming to an end amid slowing growth, capital outflows and heightened government concern about asset bubbles.
/goo.gl/HsOiM6

Deutsche Börse and BSE India expand the market data partnership with the products of the international exchange India INX
Deutsche Börse
Deutsche Börse Market Data + Services and BSE India (formerly Bombay Stock Exchange) are intensifying their partnership in the field of market data. Deutsche Börse is licensor of market data products of the newly established international exchange India INX for international customers. India INX is a wholly-owned subsidiary of the BSE based in the International Financial Service Center (IFSC) in the state of Gujarat.
/goo.gl/ERHyUD

Recommended All-Share Merger Between Deutsche Börse AG And London Stock Exchange Group Plc
Press Release
Today, as part of the on-going EU Merger Regulation process, LSEG and Deutsche Börse confirm that they have received a Statement of Objections from the European Commission in relation to the proposed merger, reflecting a narrower scope of issues.
jlne.ws/2h1CRKV

LSE and Deutsche Boerse merger edges closer as EC’s concerns ‘narrow’; European Commission has narrowed scope of concerns over mega-merger.
By Hayley McDowell – The Trade
The European Commission’s objections over the proposed merger of the London Stock Exchange (LSE) and Deutsche Boerse have narrowed, according to a statement from both exchange groups.
/goo.gl/8mOGns

When to Send an Investing Model Into Retirement
Noah Smith – Bloomberg
Here’s a maxim for life as a famous economist: If your theory wins a Nobel Prize, look out — it might already be running into big problems. When the Black-Scholes-Merton option-pricing model won the prize in 1997, it had already required some major tweaks to fit new data; a decade later, it was being blamed for the financial crisis. By the time the real business cycle theory won in 2004, economists were already showing why it wasn’t a good explanation of recessions. In 2013, Eugene Fama won the Nobel for his work on the efficient markets theory. Should he be worried?
jlne.ws/2h1BFau

Put Forecasting in Its Final Resting Place
Barry Ritholtz – Bloomberg
One of the things I failed to learn after writing a book was the simple fact that methodically demonstrating a thing with data and evidence doesn’t resolve that issue. I shouldn’t have been so naive, given that some people still are flat-earthers, or are anti-vaxxers, or Holocaust deniers, or claim that global warming is a Chinese hoax. Which is why, despite all of the earlier discussions about the folly of forecasts, I find myself once again compelled to bring up this subject. Blame it on the time of year, when all of the forecasts for 2017 are being rolled out, while the old ones that were so-often wrong are forgotten instead of being reviewed.
jlne.ws/2h1Jugk

ESMA Recognises ICE Clear US Inc. as Third-Country CCP Under EMIR
ESMA
The European Securities and Markets Authority (ESMA) has today added ICE Clear US Inc. to its list of recognised third-country central counterparties (CCPs) under the European Markets Infrastructure Regulation (EMIR). EMIR requires EU-based CCPs to be authorised and non-EU CCPs to be recognised in the European Union (EU). Once a CCP has been authorised or recognised within the EU, EU firms can use these CCP to fulfil their clearing obligations.
/goo.gl/7vDmfJ

One-stop research tie-up launched in Asia
Louise Bowman – Euromoney Magazine
A December agreement between Société Générale and Asia-based equity research platform Smartkarma could provide a blueprint for research distribution in the post-Mifid II world. If successful, the concept could be rolled out globally.
jlne.ws/2h1RUEw

Citi invests in Cobalt as ex-Nasdaq NLX CEO joins as advisor; Charlotte Crosswell appointed as strategic advisor for blockchain firm, Cobalt DL as Citi becomes first launch client.
By Hayley McDowell – The Trade
FX blockchain firm Cobalt DL announced it has secured Citi as an investor and appointed the former chief executive officer at Nasdaq NLX as a strategic advisor.
/goo.gl/Al840h

CCP recovery role for MEP Swinburne; Kay Swinburne will lead the European Parliament’s team on CCP recovery and resolution.
By Paul Walsh – The Trade
The economic and monetary affairs committee of the European Parliament (ECON) has confirmed Kay Swinburne MEP as co-rapporteur for CCP (central counterparty) recovery and resolution.
/goo.gl/qxsRtD

Fannie-Freddie Regulator Said to Plan to Stay On Under Trump
by Joe Light – Bloomberg
Mel Watt said to tell FHFA employees of plan to remain in job; Republican efforts to reshape housing policy could be affected
When Barack Obama leaves office on Jan. 20, Democratic appointees across the government are expected to follow him out the door, to be replaced by officials chosen by Donald Trump. Not Mel Watt — he isn’t planning to go anywhere.
/goo.gl/eEAXfY

Here’s One Sign That the World Cares a Lot Less About Monetary Policy; From technocrats to Trump.
by Jake Ulick – Bloomberg
The prospect of more government spending has helped make the term “fiscal stimulus” more common in a Bloomberg count of news stories, helping it to overtake “monetary policy” by the biggest margin since 2008.
/goo.gl/GD7EPM

Brexit

Brexit: 40% of US firms with British offices are considering relocating to the EU
The Independent
Nearly 40 per cent of US businesses with a base in the UK say they are considering moving elsewhere in the EU because of Brexit, according to a report, warning that the vote to leave could also hit trade relations between Britain and America
jlne.ws/2h1NayH

Britain to Leave the EU, but ‘Brexit’ to Join the Oxford English Dictionary; The self-described record of the English language includes the word ‘Brexit’ in update
By NICHOLAS WINNING – WSJ
It’s official. Brexit means “the (proposed) withdrawal of the United Kingdom from the European Union, and the political process associated with it.”
/goo.gl/4gvEcg

How Brexit may not mean Brexit; Leavers should be dancing in the streets but are instead gripped by near-paranoia
by: Philip Stephens – FT
The risk with referendums, as Margaret Thatcher used to say, is that they become a device for demagogues and dictators: the people have spoken so now they must be silent ever more. The point about liberal democracy is that citizens are offered a chance to change their minds.
/goo.gl/pCtUiA

U.K. Plays Down Report Brexit Trade Deal Could Take 10 Years
by Timothy Ross – Bloomberg
BBC reports Ivan Rogers’s private advice to PM May’s team; Says national parliaments could still kill new free-trade deal
The U.K. government downplayed remarks attributed to a British diplomat that it could take 10 years to negotiate a final free-trade deal with the European Union after Brexit — and that even then it could fail.
/goo.gl/SoZIov

Exchanges, OTC and Clearing

NYSE to buy National Stock Exchange as it eyes new pricing model; Deal will give bourse its fourth licence and allow it to experiment on speed and pricing
by: Nicole Bullock in New York and Philip Stafford in London – FT
The New York Stock Exchange has hit the acquisition trail, agreeing to buy and keep open the National Stock Exchange, the US’s smallest bourse, giving NYSE a place to experiment with a new speed or pricing model.
/goo.gl/EHsFKY

CME Group Open Interest Surpasses 120 Million Contracts for First Time in its History
CME
CME Group, the world’s leading and most diverse derivatives marketplace, announced it set a total open interest record of 120.7 million contracts on December 13, 2016, surpassing the previous record of 119.4 million contracts set on December 12, 2016.
jlne.ws/2gJ59O5

ESMA Recognises ICE Clear US Inc. As Third-Country CCP Under EMIR
Mondovisione
The European Securities and Markets Authority (ESMA) has today added ICE Clear US Inc. to its list of recognised third-country central counterparties (CCPs) under the European Markets Infrastructure Regulation (EMIR).
jlne.ws/2h1tTxn

BAML joins CME swaptions clearing service
Joe Parsons – The Trade
Bank of America Merrill Lynch (BAML) has become the latest clearing member for CME Group’s interest rate swaptions clearing service. BAML joins five other banks to clear the product, including Barclays, BNP Paribas, Credit Suisse, Citi and RBS.
jlne.ws/2h0UFWF

CME to list April 2018 contract for live cattle
Reuters
CME Group: says effective Monday, Jan. 2, 2017 for trade date Tuesday, Jan. 3, 2017, and pending all relevant Commodity Futures Trading Commission (CFTC) regulatory review periods, the exchange will list the April 2018 contract month of the Live Cattle Futures and Options contracts
jlne.ws/2h1MlGb

BSE begins road shows for IPO
Business Standard News
BSE, oldest bourse in Asia, has started road shows to attract investors to the country’s first stock exchange listing. According to sources, the exchange’s top management, with bankers, is making presentations to investors in financial centres such as New York, London and Dubai.
jlne.ws/2gKh0eS

UK spread betting groups hit back over plans to limit trades
Chloe Cornish – Financial Times
UK spread betting companies are pushing back against proposals by the financial regulator to limit contract for difference trades, with one warning clients to expect to spend more and another hinting it could move large parts of its business abroad.
jlne.ws/2h1QCJr

BM&FBOVESPA Announces Second Cycle Of The Market Maker Program For Soybean And Light Sweet Crude Oil Futures Contracts – Itaú Unibanco Selected Again As Market Maker For The Two Contracts
MondoVisione
BM&FBOVESPA hereby announces the second cycle of the Market Maker Program for the Soybean (SJC) and Light Sweet Crude Oil (WTI) futures contracts. Itaú Unibanco S.A. has been chosen again as the institution to carry out this mandatory daily activity in both contracts as of December 14.
/goo.gl/MP2IBL

Osaka Exchange: Revision To Tick Size Of TSE Mothers Index Futures
MondoVisione
Osaka Exchange, Inc. (OSE) will revise the tick size of TSE Mothers Index Futures to invigorate trading by enhancing convenience for market participants.
/goo.gl/1QPgYC

BSE begins road shows for IPO; Executives touring financial centres abroad to tap investors; hope for early Sebi nod
Shrimi Choudhary – Business Standard
BSE, oldest bourse in Asia, has started road shows to attract investors to the country’s first stock exchange listing.
/goo.gl/xNajG9

Politics

How ‘Art of the Deal’ explains many of Trump’s actions as president-elect
Jeffry Bartash – MarketWatch
Donald Trump has horrified millions of Americans, delighted millions of others and befuddled traditional politicians in both parties on his way to winning the presidency. Yet the unprecedented path Trump has taken to get to the White House was developed a long time ago — and set out clearly in his 1987 book “The Art of the Deal.”
jlne.ws/2h1vrHC

Trump Must Divest His Washington Hotel, House Democrats Say
Ben Brody – Bloomberg
President-elect Donald Trump will be in violation of his lease for the Trump International Hotel in Washington when he takes office if he doesn’t divest all financial interests in it, according to Democratic lawmakers after exchanges with the agency in charge of government buildings.
jlne.ws/2h1AszM

Trump Has Bond Investors Rethinking What’s Normal; “It is something fundamental that has changed.”
by Brian Chappatta and John Gittelsohn – Bloomberg
Back when he was the chief executive officer of bond-fund giant Pacific Investment Management Co., better known as Pimco, Mohamed El-Erian popularized the term “new normal” to describe the long period of slow growth the world faced in the wake of the 2008 financial crisis. Others called it “secular stagnation.”
/goo.gl/yoRv8n

Trump Bank-Regulation Rollback Raises Global Risks, Sweden Warns
by Amanda Billner and Johan Carlstromn – Bloomberg
Sweden’s Andersson says fiscal policy now needs to stand ready; Sweden will use fiscal policy to clear economic bottlenecks
The world can ill afford U.S. President-Elect Donald Trump rolling back the regulatory banking framework that has been erected as a defense against future financial crises, Swedish Finance Minister Magdalena Andersson warned.
/goo.gl/CfGQkQ

Investing and Trading

The ETF graveyard is only going to get bigger
Robin Wigglesworth – Financial Times
After a long period of rampant growth, the exchange traded fund industry is finally taking a more hard-hearted approach to members of the herd that have not lived up to their promise. In September, Deutsche Asset Management, part of Deutsche Bank, added to the swelling ETF graveyard, liquidating 14 vehicles. They were a motley collection of mostly bond ETFs juiced up with derivatives, designed to give investors the ability to bet aggressively on or against Japanese, German and US government bonds. Despite some promise, all had failed to raech critical mass since launching in 2010-11, with total assets of $108m across the 14 ETFs.
jlne.ws/2h1V8b6

When Donald Trump Hate-Tweeted Lockheed Martin, Hedge Funds Were Ready
Jen Wieczner – Fortune
Even before Donald Trump went on Twitter and posted his market-cratering tweet lambasting Lockheed Martin’s F-35 fighter jets, the company’s stock was already falling. At 8:26 a.m. on Monday, Trump tweeted that Lockheed’s “F-35 program and cost is out of control,” referring to the defense contractor’s military equipment deals with the government.
jlne.ws/2h1Vq1t

Forex trading ain’t what it used to be
by: Alexandra Scaggs – FT
Remember the glory days of currency trading? Way back in 2013, when the Bank for International Settlements last reviewed the market’s structure, FX traders were feasting* on sweet, sweet fast-money volume around the Bank of Japan’s quantitative easing.
/goo.gl/ufEoZd

Actively-managed ETFs on track to lure more fund flows; Vehicle’s lower fees and greater insight are proving popular in the bond universe
by: Stephen Foley in New York – FT
What if the exchange traded fund were not the enemy of active management, as it has seemed, but its saviour?
/goo.gl/8oXgMh

Active Investing: Rest in Peace or Resurgent Force?
Aswath Damodaran – Musings on Markets
The debate between passive and active investing that he and others at the University of Chicago initiated has been part of the landscape for more than four decades, with passionate advocates on both sides, but even the most ardent promoters of active investing have to admit that passive investing is winning the battle.
jlne.ws/2h1LUeE

Traders puzzle over bets on oil benchmarks; Rise in derivatives volumes puts focus on potential for US tax policy change
by: Gregory Meyer in New York – Ft
Big bets on the convergence of two leading crude benchmarks this week have left oil traders scrambling to decipher the meaning, breathing life into an otherwise tiny corner of energy derivatives markets.
/goo.gl/Z2yjq7

Tell Investors of Climate Risks, Energy Sector Is Urged
By HIROKO TABUCHI – NY Times
A coalition of the world’s most powerful bankers, regulators and even executives at some heavy polluters have a message for oil and gas companies: Be more forthcoming about the risks posed by climate change.
/goo.gl/PPbUFc

U.S. IPOs set to rebound after dismal 2016
Sweta Singh – Reuters
The U.S. IPO market is expected to bounce back next year after a forgettable 2016, fueled by a sunnier economic outlook and a bit more certainty following the presidential election – factors that encouraged the Federal Reserve to hike interest rates.
jlne.ws/2h1yb7V

Financials Are Cheap, Even After the Rally
Aaron Back – WSJ
Financial stocks have been winning so much since the election that, as Donald Trump might put it, people are starting to get sick of them winning. Yet more victory laps could be in store. The sector’s rally, in fact, began before the surprise election outcome, as growth and inflation expectations, along with interest rates, began creeping up around midyear. Interest rates are of particular importance to the banks and insurance companies that make up the S&P 500 Financials index, which is now up 28% since the end of June and 17% since Nov. 8.
jlne.ws/2h1EqZ8

Fidelity Cuts Fees For Those Who Want to Trade Mutual Funds; Move is reaction to growing popularity of low-cost ETFs
By SARAH KROUSE – WSJ
Fidelity Investments is removing short-term trading fees for 75 funds, the latest move by the mutual-fund firm to adapt to the growing popularity of low cost exchange-traded funds.
/goo.gl/n91dZf

Traders See Free Money in Derivatives Linked to Monte Paschi
by Katie Linsell – Bloomberg
Opportunity emerges from difference in price of default swaps; Old swaps cost more than new ones protecting against bail-ins
Some credit traders think they’ve found free money in an obscure derivatives trade linked to Banca Monte dei Paschi di Siena SpA. Others are warning it may be a mirage.
/goo.gl/iQVTsh

Investors Sharpen Focus on Social and Environmental Risks to Stocks
By RANDALL SMITH – NY Times
Pfizer stock was riding high in June 2015, up 128 percent in five years, making it the second-most valuable American drug maker. Nine out of 10 Wall Street research analysts recommended that investors hold it in their portfolio, if not buy more.
/goo.gl/zt13AW

Institutions

Fed lifts rates, sees faster pace of hikes in Trump’s first year
Howard Schneider and Lindsay Dunsmuir – Reuters
The U.S. Federal Reserve raised interest rates on Wednesday and signaled a faster pace of increases in 2017 as central bankers adapted to the incoming Trump administration’s promises of tax cuts, spending and deregulation.
jlne.ws/2h1NBci

JP Morgan and Barclays lead market share for European fixed income
Hayley McDowell – The Trade
JP Morgan and Barclays have tied for the top spot in a list of share leaders for European fixed income. The Greenwich Associates Share Leaders this year polled 1,128 fixed income market participants about service providers, trading practices, market trend analysis and investor compensation.
jlne.ws/2h1I45B

Why FCMs Don’t Like Intraday Margin Calls
Tod Skarecky – Clarus FT
We keep on hearing how difficult it is to be a clearing broker these days. Case in point – this Risk.net article discusses how FCMs had to find billions of dollars in the middle of the day after the Brexit vote. This is because, when the market moves, Clearing Houses can choose to make margin calls intraday as added protection against default. However, some clearing houses are more conservative than others.
jlne.ws/2gJzb4y

Morningstar appoints Corr to investment business
Investment Week
Morningstar Investment Management Europe has hired Gavin Corr as director in its UK and EMEA team. He will work with the team on the Managed Portfolios for discretionary investment managers, supporting asset allocation decisions.
jlne.ws/2h1DunP

At Goldman, Top Departure Opens a Door for the Next Generation
By MICHAEL J. de la MERCED – NY Times
Goldman Sachs promoted a new generation of leaders on Wednesday, as Gary D. Cohn, its longtime No. 2 executive, leaves the Wall Street bank to join President-elect Donald J. Trump’s incoming administration.
/goo.gl/33DSYW

Fintech

LiquidityBook integrates benchmark data with platform
Hayley McDowell – The Trade
LiquidityBook has teamed up with FactSet to integrate real-time global exchange reference and benchmark data into its buy and sell-side order, portfolio and execution platform (POEMS).
jlne.ws/2h1I0m8

Duco Expands Into Payments Space With Currencycloud Agreement
Mondovisione
Duco, the global fintech provider of data control services, today announced a new agreement with Currencycloud, the international Payments Engine behind a number of leading payment firms. Currencycloud will use Duco Cube, the award-winning self-service data control platform, for a variety of operational functions including cash, trade-to-cash, and bank cash flow reconciliations. In addition to Currencycloud, Duco Cube is employed by a range of international banks, brokers, exchanges, hedge funds and asset managers.
/goo.gl/KuJGyf

LPC-Equinix doubles acquisition loan to EUR1 billion
Claire Ruckin – Reuters
US data center operator Equinix (EQIX.O) has doubled the size of a leveraged loan it is raising to back its acquisition of data centers from Verizon Communications (VZ.N), increasing it to EUR1bn and tightening pricing following overwhelming investor demand, banking sources said on Wednesday.
jlne.ws/2h1GEYD

TORA Launches Advanced New Charting Solution Powered by ChartIQ
TORA
Fully integrated charting engine allows users to trade directly from the chart, plot fills against real-time market data and visualize financial data
TORA, provider of the industry’s most advanced investment management platform, today announced the launch of a sophisticated new multi-asset charting technology powered by ChartIQ.
/goo.gl/hgHntG

Into the fintech sandbox of the United Arab Emirates; The UAE is striving to support and develop local financial technology start-ups
by: Kadhim Shubber – FT
Financial technology in the United Arab Emirates shares a great deal with the sector in places like New York, London and Singapore: the buzzwords, the hype, the enthusiasm. But one key difference is scale.
/goo.gl/597qsq

IHS Markit Completes POC for FRTB Aggregation
Emilia David – WatersTechnology
IHS Markit completed a proof of concept for one of its Fundamental Review of the Trading Book (FRTB) solutions, successfully performing capital calculations for millions of trades in a few seconds.
jlne.ws/2h1I1GZ

Regulation

Manhattan U.S. Attorney Announces Charges Against Six Individuals In International High-Yield Investment Fraud Scheme
Department of Justice
Scheme Participants Impersonated Federal Reserve Officials to Swindle Over $50 Million from Investors in the United States and Foreign Countries
jlne.ws/2h1MEjZ

ESMA Appoints New Member to its Management Board
ESMA
The European Securities and Markets Authority has elected a new member to its Management Board to replace an outgoing member who has stepped down from her position. The election took place at the Board of Supervisors meeting in Paris on 14 December and the successful candidate, who will serve the remainder of the outgoing member’s term until 31 May 2018, is Gabriela Figueiredo Dias, of the Comissão do mercado de valores mobiliários (CMVM) of Portugal.
/goo.gl/SP57hi

Trial of IMF’s Lagarde hears that payout decision was rushed through
Chine Labbé – Reuters
A French ex-treasury official told a court trying IMF chief Christine Lagarde for negligence on Wednesday that he had been shocked at how quickly the government had given up on contesting a huge state payout to business tycoon Bernard Tapie in 2008.
jlne.ws/2h1CdNB

Riskiest financial groups should pay more into compensation scheme, says FCA
Caroline Binham and Naomi Rovnick – Financial Times
The City watchdog has proposed extending consumer protection on investment products by raising the UK compensation limit to £1m per person — and making the riskiest financial services providers pay more towards it. On Wednesday, the Financial Conduct Authority began a consultation process on broadening the £3.5bn Financial Services Compensation Scheme — and the levies that fund it — to take in debt management companies and the Lloyd’s of London insurance syndicate. It is the first review of the scheme for three and half years.
jlne.ws/2h1MBVk

BlackRock awarded first license under U.S. RQFII scheme
Reuters
BlackRock has become the first asset manager globally to be awarded a license to buy Chinese stocks and bonds under a $38 billion United States quota scheme announced in June.
/goo.gl/9Q3VRV

ASIC releases world-first licensing exemption for fintech businesses
ASiC
ASIC has today released class waivers to allow eligible financial technology (fintech) businesses to test certain specified services without holding an Australian financial services or credit licence.
/goo.gl/AdmXcb

ASIC releases new instrument for buy-backs for ASX-listed schemes and updates guidance for scheme buy-backs
ASIC
Following public consultation, ASIC has released a new legislative instrument regarding on-market buy-backs of ASX-listed schemes, replacing the class order due to expire (‘sunset’) on 1 April 2018.
/goo.gl/2WvE1i

Hong Kong’s Securities And Futures Commission Emphasises Timely And Accurate Disclosure Of Inside Information
MondoVisione
The Securities and Futures Commission (SFC) today published the latest issue of its Corporate Regulation Newsletter, reminding listed companies to disclose inside information to the public as soon as reasonably practicable as this is central to the orderly operation of a fair and informed market.
/goo.gl/ZyAYCL

Sebi sends ‘not fit and proper’ notice to five brokers in Rs 5,600-cr NSEL scam; NSEL scam involves 13,000 trading members as investors and 24 defaulters with alleged siphoning off of funds worth Rs 5,600 crore
Dilip Kumar Jha – Business Standard
Markets’ regulator, Securities and Exchange Board of India (Sebi) has sent show-cause notices (SCN) to five leading stock brokers alleging they are not ‘fit and proper’ for holding the certificate of registration in the securities market with respect to the Rs 5,600-crore scam on the National Spot Exchange Ltd (NSEL).
/goo.gl/NzoMmT

Big Four auditors face crackdown on global operations; Deloitte’s Brazil fine highlights lapses in oversight depending on jurisdiction
by: Kara Scannell in New York – FT
The Big Four auditing firms routinely boast about their global footprint in more than 150 countries, promising clients joined up services around the world.
/goo.gl/Jly6Mp

Regions

Euro hits weakest level against dollar in a decade; Spread between short-dated US and German debt reaches a 16-year peak
by: FT Reporters
The US dollar marched higher on Thursday, reaching its strongest level against the euro in over a decade, after the Federal Reserve signalled a more aggressive outlook for interest rate policy.
/goo.gl/2cGrVS

Small Investors Join China’s Tycoons in Sending Money Abroad
By EMILY FENG and ALEXANDRA STEVENSON – NY Times
Adam Dahill saw promise in the three-story brownstone on a quiet Bedford-Stuyvesant street, despite its weather-beaten facade, crumbling front steps and broken windows. But he needed nearly $1.3 million to buy it and turn it into the sort of Brooklyn dream home for which the city’s lawyers and bankers pay big money.
/goo.gl/ZB4dnR

It’s Turning Into a Really Bad Week for China’s Markets
Bloomberg News
Shanghai Composite poised for worst week since April; Yuan weakens to lowest since June 2008 as dollar rallies
It’s turning out to be a really bad week for Chinese financial markets. The benchmark stock index has tumbled 3.6 percent, poised for its worst week since April. The yuan depreciated to its lowest level against the dollar since June 2008, while government bonds plunged, with the 10-year yield surging by a record 22 basis points on Thursday.
/goo.gl/UP3Zay

Miscellaneous

America’s First Offshore Wind Farm Spins to Life
Tatiana Schlossberg – NY Times
Until this week, all of the wind power generated in the United States was landlocked. But in a first for America, the ocean breeze is now generating clean, renewable power offshore — electricity that will supply a small island community off the coast of Rhode Island. Renewable energy, including from offshore wind, is crucial to the effort to avoid some of the worst effects of climate change, according to environmentalists and some elected officials.
jlne.ws/2h1E2Kq

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