Corzine Hedge Fund Firm Granted SEC Registration With Limits

Aug 7, 2019

First Read

Hits & Takes
JLN Staff

A Trading Technologies spokesperson added some information via email to yesterday’s story about TT’s cryptocurrency platform shutting down. TT is not abandoning cryptocurrencies, the email said. “TT Crypto users can and are migrating to the TT platform, which is already connected to BitMEX, CoinFLEX and Coinbase. TT is adding new exchanges in the coming months and will be enhancing its robust tools to aid in crypto trading via the TT platform.” TT also said they are making the TT platform free for cryptocurrency trading until October 1 and then returning to regular pricing, which starts at $50 per month. ~SR

Center for Strategic Finance Director Ben Van Vliet and Andy Kumiega have authored a book on project management for algorithmic trading system and quantitative fund strategy design and development. The book is titled “Quality Money Management: Process Engineering and Best Practices for Systematic Trading and Investment (Financial Market Technology)” and is available on Amazon.~JJL

John Lothian News will be publishing a Special Report next week about the launch of Ameribor. If any firms are interested in advertising in the Special Report, please reach out to me at johnlothian@johnlothian.com.~JJL

Also, we have some advertising opportunities for firms interested in the top banner on MarketsWiki. If you are interested in advertising on the homepage of our wiki, which sees about 2 million pageviews on the site every month, please email me as well.~JJL

As measured by average daily notional value, trading volume on SEFs was $816.2 billion in July, according to the FIA’s updated SEF tracker. That is down 18.8% MoM but up 42.8% YoY.~SD

According to the Reformed Broker’s calculations, bitcoin’s average rolling 30-day standard deviation was 12.3% compared to 2.7% for the S&P 500.~SD

Visualizing every day on the US stock market for the last 10 years (percentage move each day plotted using the S&P 500 Index).~JB

According to an updated LinkedIn profile, Maggie Sklar has a new position. She is the senior counsel to LabCFTC at U.S. Commodity Futures Trading Commission. Previously, she was the senior counsel, Office of Chairman Giancarlo.~JJL

There are a bunch of stories in the press about the Boy Scouts of America covering up years of abuse of Scouts, including this one from the Washington Post, “Boy Scouts failed to stop hundreds of previously unreported sexual predators, a lawsuit alleges. As the Boy Scouts deal with this onslaught of legal cases from abuse from years ago, the likelihood increases that the national organization will declare bankruptcy. This will not impact the local councils directly, as they are independent entities.~JJL

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Remembering Brian
Conor Twomey – Managing Director, Kx / First Derivatives North America
I met Brian Conlon for the first time on this day 10 years ago – imagine that – the 5th of August 2009. Christ, where does the time go? I had joined First Derivatives as part of its inaugural graduate program the previous day – the legendary Options Class of ’09 – with corkscrew curls down to my shoulders, two of my Da’s old suits and only a faint notion of the incredible platform for professional growth that was being laid out ahead of me.
/jlne.ws/2T9jmUu

**** A short reflection on the life of First Derivatives Founder and CEO Brian Conlon.~JJL

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dough, a New Commission-free Brokerage Firm With Premium Content for the Next Generation of Investors, Receives $20M in Funding From tastytrade
BusinessWire
dough, a new commission-free, online broker and wealth creator, has received funding of $20 million from tastytrade, Inc. dough is led by Victor Jones, former director of Trading and Operations at TD Ameritrade. Unlike other investment services, dough meets the demand as a commission-free broker offering investing capabilities and zero-commissions – investors no longer have to give up one for the other.
/jlne.ws/2yIvfrc

****In case anyone is confused, tastytrade used to be affiliated with a trading platform called dough, which became fully incorporated into its brokerage arm, tastyworks, when it was formed. This dough outfit is a new, separate company, albeit with plenty of overlap with the tasty family. In an interview on tastytrade, Victor Jones said the company had an aggressive 12-month rollout map. Stocks and ETFs are the starting point but he said more asset class additions are on the horizon. Jones didn’t rule out supporting sports betting on the platform, too. This development comes after tastytrade and Peak6 teamed up to invest $10 million in the Small Exchange in January.~SD

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DriveWealth Fuels Revolut’s Major New Commission-Free Stock Trading Service with Technology and Brokerage Execution Services; Ground-Breaking Partnership with One of World’s Fastest Growing Fintechs to Bring Millions of European Customers Easy, Affordable Access to U.S. Markets
DriveWealth, LLC
DriveWealth, LLC, a U.S. based leader in global digital trading technology, today announced that its technology and brokerage execution services are fueling the major new commission-free stock trading service just introduced by fast-growing fintech Revolut. The DriveWealth platform is the engine for the new offering launched Aug. 1, giving Revolut’s more than 6 million customers throughout Europe the ability to invest in the U.S. equity market. The initiative represents one of DriveWealth’s largest partnerships to date.
/jlne.ws/2yJz7rY

*****More commission-free trading. And you get a free lunch every day too.~JJL

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Domino’s is stockpiling pizza ingredients in case of a no-deal Brexit
Lianne Kolirin – CNN
Pizza chain Domino’s has spent £7 million ($8.5 million) to stockpile imported ingredients that might not be available if Britain crashes out of the European Union.
The UK arm of the American fast food company said in an earnings statement on Tuesday that a disorderly Brexit “carries the increased risk of disruption to raw material supplies.”
/jlne.ws/2ThY5YT

****Somehow brings it all closer to home when it affects your pizza. ~JB

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Tuesday’s Top Three
Our most read story on Tuesday was The Block’s Trading Technologies’ crypto platform shutting down as it failed to attract retail users. See above in Hits & Takes for some more information on TT’s plans for cryptocurrencies. Second was Reuters’ story Asset managers farm out trading as costs and complexity climb. And tied for third were the New York Post’s story, NYSE floor traders are facing job extinction and Bloomberg’s Wall Street’s Shady Swap Trades Spark Pushback From Regulators

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Lead Stories

Corzine Hedge Fund Firm Granted SEC Registration With Limits
Miles Weiss – Bloomberg
Former U.S. senator is barred from proprietary trading; Funds must be able to be liquidated within five trading days
Jon Corzine’s application to register his hedge fund firm was approved by the Securities and Exchange Commission, which attached a series of seldom-seen conditions on the company.
/jlne.ws/2OJ1ilG

Currency Dispute With U.S. Could Widen China’s Power in Asia; At a crucial moment in the 1990s, Beijing provided direction and seldom looked back. It can go further this time.
Daniel Moss – Bloomberg
Far from being a currency pariah as accused by the Trump administration, China has a shot at cementing economic leadership within Asia.
/jlne.ws/2OGwLEV

Hong Kong flips from China’s prized relative to financial rival; Mainland’s dynamism contrasts with the territory’s reliance on older sectors
Henny Sender – FT
On Monday as Carrie Lam, Hong Kong’s embattled chief executive, appeared in public before television cameras for the first time in days in an appeal for order, the Hong Kong Stock Exchange began dropping.
/jlne.ws/2OIXCQU

Currency war fears bolster demand for havens; Test for policymakers as worries mount over global economy and Sino-US tensions
Eva Szalay – FT
As tension between the US and China spill over to currency markets, Swiss and Japanese policymakers are coming under increasing pressure.
/jlne.ws/2yJJMTG

NFA takes emergency enforcement action against Walnut Creek, Calif., commodity pool operator and commodity trading advisor Denari Capital LLC and its principal Travis Gregory Capson
NFA
NFA has taken an emergency enforcement action against Denari Capital LLC (Denari), an NFA Member commodity pool operator and commodity trading advisor located in Walnut Creek, Calif., and its principal and sole associated person Travis Gregory Capson.
/jlne.ws/2OGuEAZ

Beware of ‘Lehman-like’ aftershock to stocks, analyst warns; Nomura offers ominous forecast after trade worries trigger biggest sell-off of 2019
Matthew Rocco – FT
A recovery in US stocks on Tuesday could merely be the calm before the storm, according to one analyst who has warned investors to brace for a possible “Lehman-like” aftershock following Monday’s broad sell-off.
/jlne.ws/2yHDlAl

BlackRock under fire, (dual) class war, PAC attack; Your guide to the investment and business revolution you can’t afford to ignore
Billy Nauman, Patrick Temple-West and Andrew Edgecliffe-Johnson – FT
Welcome to Moral Money! Gillian Tett is on holiday this week, but she has left you in the very capable hands of our full-time Moral Money reporters, Billy Nauman and Patrick Temple-West, and the FT’s US business editor Andrew Edgecliffe-Johnson. They have some great insights on the most recent fossil fuel divestment attack at BlackRock, a look at the growing scrutiny of dual-class share structures and some striking numbers from the ESG ETF market.
/jlne.ws/2yJJTi4

HSBC shows the need for succession planning; Fate of former chief executive provides a cautionary tale for bosses
The editorial board – FT
Succession planning is rarely easy, always essential. The abrupt exit of HSBC chief executive John Flint, removed by the board after just 18 months in the job, shows what happens when it goes wrong. The company now has the opportunity to correct course, break with tradition and look for a candidate who can change the bank’s culture and articulate a new strategy for the Chinese mainland.
/jlne.ws/2OJQIuK

Regulators warn 5m savers at risk of UK pension fraud; Survey finds financially ‘savvy’ investors just as likely to fall for scams
Emma Agyemang – FT
Millions of people in the UK are at risk of being conned out of their retirement savings, regulators warned after research revealed almost half of pension holders would probably fall for a scam.
/jlne.ws/2OK1Ac8

Debate: Are professional traders becoming obsolete?
City AM
Yes – Mike Read is chief executive and co-founder of Pelican Trading.
Trading as we know it is certainly becoming obsolete. Financial instruments will always be traded, but the traditional isolated trading model we know today will soon be consigned to the past.
/jlne.ws/2yGwK9g

Liquidity resilience in the long gilt futures market
Jonathan Fullwood and Daniele Massacci – Bank of England Blog
Episodes of vanishing market liquidity haunt dealers. This was true in the great stock market crash of 1929 and remains so today: in August 2018, professional corporate bond traders cited vanishing liquidity as their primary source of worry. Dealers in more-liquid long gilt futures – contracts on 10 year UK government bonds – might be less concerned. But have structural changes in the market led to less resilience over time? We address this question in a recent Staff Working Paper. We find that liquidity in the long gilt futures market has increased slightly over recent years, while remaining resilient to periods of market stress.
/jlne.ws/31mxs7Q

Exchanges, OTC and Clearing

Guest-of-honour speech by Tan Boon Gin, CEO, Singapore Exchange Regulation, at the launch of the Singapore Governance & Transparency Index 2019
SGX
Good morning. Back in the 1980s, Singapore began embracing the concept of a Neighbourhood Watch. For those who are unfamiliar with this, the Neighbourhood Watch programme was something we imported from the US. It involves a group of people living in the same area, a community. And the community would form a Neighbourhood Watch group with the intention of making their neighbourhoods safer.
/jlne.ws/2OINyaq

TMX Group Consolidated Trading Statistics – July 2019
TMX
TMX Group Limited today announced July 2019 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha) and Montréal Exchange (MX).
/jlne.ws/31nOym0

Periodic Review of “JPX-Nikkei Index 400” and “JPX-Nikkei Mid and Small Cap Index”
JPX
The periodic review of the JPX-Nikkei Index 400 and the JPX-Nikkei Mid and Small Cap Index, jointly calculated by Tokyo Stock Exchange, Inc. and Nikkei Inc., has been conducted as follows.
/jlne.ws/2OJW7ll

Corrections of Guidebook for JPX-Nikkei Index 400 and JPX-Nikkei Mid and Small Cap Index
JPX
Tokyo Stock Exchange, Inc. (TSE) and Nikkei Inc. (Nikkei) hereby announces the following corrections in its Guidebooks for JPX-Nikkei Index 400 and JPX-Nikkei Mid and Small Cap Index published on Dec. 17, 2018.
/jlne.ws/2OKz61J

Confidence in the ag economy soars; producers confirm large prevented plantings of corn and soybeans
CME Group
The Purdue University/CME Group Ag Economy Barometer reading jumped to 153 in July, up 27 points from June, and up 52 points from May. Improving crop conditions after an extraordinarily wet planting season, combined with a late spring/early summer crop price rally, boosted farmer sentiment. This improvement occurred despite the fact that many producers were in the midst of filing prevented planting crop insurance claims and wondering about the size of the USDA’s 2019 Market Facilitation Payments (MFP). Results are based on a survey of 400 agricultural producers across the U.S. conducted from July 15 through July 19, 2019, which was prior to USDA’s announcement of 2019 MFP payment rates.
/jlne.ws/2OHQAf7

Nasdaq July 2019 Volumes
GlobeNewswire
Nasdaq (Nasdaq:NDAQ) today reported monthly volumes for July 2019, on its investor relations website.
/jlne.ws/2yGr9jg

HKEX To Introduce Weekly Index Options From 16 September
Products
HKEX
Weekly HSI and Weekly HSCEI Options to be introduced from 16 September, subject to regulatory approval; Two Weekly Index Options contracts will be offered – spot week and next week; Commission Levy exempted in first six months
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce that it plans to introduce Weekly Hang Seng Index Options and Weekly Hang Seng China Enterprises Index Options contracts commencing from 16 September 2019, subject to regulatory approval.
/jlne.ws/2yFhbif

Fintech

The machines are coming for your pricing models
Kris Devasabai – Risk.net
Financial models are not perfect. The markets are so complex that to explain their behaviour, models make all sorts of simplifying assumptions, leave out lots of the details and try to capture the main dynamics. The Black-Scholes options pricing model, for instance, ignores trading costs and assumes that stock prices follow a random path, with constant volatility and drift.
/jlne.ws/31nlOtG

Snoop Dogg-Backed Klarna Now EU’s Most Valuable Fintech Startup
Allison Ingersoll and Niklas Magnusson – Bloomberg
New funding gives Klarna post-money valuation of $5.5 billion; TransferWise, N26 previously jostled for top value position
Swedish payments and banking firm Klarna became the most valuable European fintech startup after new funding pushed its post-money valuation to $5.5 billion.
/jlne.ws/2yHpU3m

Rival Systems Releases Real-Time Margin For Enterprise Risk Clients
Rival Systems
Rival Systems (Rival), an award-winning provider of trading and risk management software, today announced the addition of real-time margin within its enterprise risk management solution. The new functionality will allow clients to proactively monitor margin for futures and options positions, as well as net liquidation value across all of their accounts.
/jlne.ws/2yHqtKn

Northern Trust Launches New Investment Performance Reporting Tool Delivering Powerful Analytics to Investors Globally
Business Wire
Northern Trust (NTRS) has launched a new investment analytics tool to provide institutional investors across the globe with valuable insights when tracking and analyzing risk and performance across their portfolios.
/jlne.ws/2yFBThN

KRM22 launches Digital Client Onboarding application through its Global Risk Platform
KRM22
KRM22 plc, a provider of risk management technology and software for capital market firms, today announces a partnership agreement with Veridate Financial Limited to deliver its Digital Client Onboarding application through the Global Risk Platform.
/jlne.ws/2yL2HND

Cryptocurrencies

Coinbase Faces Negligence Charges Over Botch Bitcoin Cash Launch
Bitcoinist.com
A U.S. judge has ruled that Coinbase must face negligence charges over its actions around the launch of Bitcoin Cash trading. However, the majority of claims against the company, including those of fraud and unfair competition, were thrown out.
/jlne.ws/2yLOrV3

Chat app Kik fights back against SEC’s cryptocurrency lawsuit; Company accuses US regulator of ‘twisting’ facts over its $100m initial coin offering
Hannah Murphy – FT
Kik, the Canada-based messaging app, has filed a stinging rebuttal to a Securities and Exchange Commission lawsuit that claims its $100m initial coin offering was illegal, accusing the US regulator of “repeatedly twisting” the facts of the case.
/jlne.ws/2OJ2ANC

Thiel-Backed Valar Leads Finance Round for Crypto Startup
Jasmine Teng – Bloomberg
Crypto-lender BlockFi reaps $18.3 million in series A offering; Novogratz’s Galaxy, Winklevoss Capital also among backers
Peter Thiel-backed Valar Ventures led an $18.3 million financing round for a crypto-lending startup that plans to launch additional products including a crypto-rewards credit card.
/jlne.ws/2yUR4nH

GitHub and Slack Bans Are Hurting Iranian Bitcoin Businesses
Leigh Cuen – Coindesk
Iranian bitcoiners are showing the world what censorship resistance really looks like.
/jlne.ws/2OL1xwF

South Korean Watchdog Plans Direct Supervision of Crypto Exchanges
Daniel Palmer – Coindesk
A South Korean financial watchdog under the Financial Services Commission (FSC) is planning to more closely supervise cryptocurrency exchanges.
/jlne.ws/2OIv3mH

After SEC, Chinese police now investigating crypto token trading platform EtherDelta
The Block
Local police in China are reportedly investigating cryptocurrency token trading platform EtherDelta, months after the U.S. Securities and Exchange Commission (SEC) charged the platform’s founder Zachary Coburn. “EtherDelta is involved in a major scam in China, police officially take legal action against it,” tweeted Dovey Wan, a partner at cryptocurrency investment fund Primitive Ventures, on Wednesday.
/jlne.ws/2ZGBl7a

North Korea took $2 billion in cyberattacks to fund weapons program: U.N. report
Michelle Nichols – Reuters
North Korea has generated an estimated $2 billion for its weapons of mass destruction programs using “widespread and increasingly sophisticated” cyberattacks to steal from banks and cryptocurrency exchanges, according to a confidential U.N. report seen by Reuters on Monday.
/jlne.ws/2Yvgszj

Binance responds to an alleged KYC breach on Telegram, saying it is ‘false’ and there are ‘inconsistencies’ involved
Yogita Khatri – The Block
A Telegram channel named “FIND YOUR BINANCE KYC” has been leaking KYC documents, claiming it to be of Binance users. Binance told The Block that there are “inconsistencies” when comparing this data to the data in its system. The exchange has now issued an official statement, saying that the leak is “false.”
/jlne.ws/2TcR6jS

BlockFi, which lends money to cryptocurrency holders, just raised $18.3 million led by Valar Ventures
Connie Loizos – Tech Crunch
Last year, we told you about a New York-based startup that had begun lending cold, hard, cash to cryptocurrency holders who don’t want to offload their holdings but also don’t necessarily want so much of their assets tied up in cryptocurrencies. Today, that two-year-old company, BlockFi, is announcing $18.3 million in Series A funding led by Peter Thiel’s Valar Ventures, with participation from Winklevoss Capital, Morgan Creek Digital, Akuna Capital and earlier backers Galaxy Digital Ventures and ConsenSys Ventures.
/jlne.ws/2KAhwIF

Amazon Is Looking to Put Advertising Data on a Blockchain
Ian Allison – Coindesk
Amazon is seeking to integrate parts of its advertising business with a blockchain. The Seattle-based e-commerce giant is looking for a senior software engineer to join its “Advertising FinTech team focused on a Blockchain ledger,” according to a recent job posting.
/jlne.ws/2OMALUy

Bitcoin’s Use In Online Payments Faces A Serious Regulatory Hurdle
Kyle Torpey – Forbes
Over the past few years, the use of Bitcoin for payments has taken a backseat to the increased focus on the digital asset’s use as a store of value. However, the payments use case is now making a comeback thanks to the development of the Lightning Network, which is a secondary protocol layer that enables cheaper, instant transfers for Bitcoin users.
/jlne.ws/2YPchtJ

Report: BitMEX traders flee as exchange sheds $524m in July
Darryn Pollock – Decrypt
A new report from blockchain intelligence resource Token Analyst claims that many traders decided to ditch derivative trading platform BitMEX in July, taking with them funds worth half a billion dollars.
/jlne.ws/2YrZwK9

Politics

China Digs In to Outlast U.S. in Trade Dispute
President Xi Jinping, struggling to revive economy and quell Hong Kong protests, has little leeway for concessions that would undercut strongman image
Chao Deng and Chun Han Wong – The Wall Street Journal
The volley-for-volley trade war between China and the U.S. is accelerating at a time when Chinese President Xi Jinping can ill afford to make concessions, raising the likelihood of a protracted struggle between the world’s two biggest economies.
/jlne.ws/2KtsX4E

Former Fed chairs gang up on Trump
Claire Jones
Fed chairman Jay Powell has found some powerful allies in his battle to keep the Federal Reserve’s monetary policy independent of political pressure.
/jlne.ws/2OJCUR3

Trump Tech Tariffs Would Add $1 Billion Monthly to Import Costs
Mark Niquette – Bloomberg
Duties threatened on $300 billion in additional China products; Trade groups release estimates and data on impact of tariffs
U.S. technology companies would pay an additional $1 billion a month or more in tariffs if President Donald Trump follows through on his threat to impose duties on additional Chinese imports next month, a trade group said.
/jlne.ws/2yLpPeU

The punditocracy’s fatal flaw: Thinking other people care as much about politics
Philip Bump – The Washington Post
After political candidates finish a debate, there’s a vacuum. Before the debate, there’s all sorts of speculation about how people will do and what they will do and how those things will affect their candidacies. Right afterward, though, the accuracy of that speculation is hard to evaluate in any objective sense. So pundits and analysts like your humble writer rush to fill that vacuum with their own assessments of how things went. These assessments are often way off the mark and usually fail to correlate significantly to how the field actually changes once new polls come out.
/jlne.ws/2M4WB3A

The cracks in Trump’s trade war are expanding
Aaron Blake – The Washington Post
Wars should not be judged by one battle, and trade wars should not be judged by one day on the stock market. But even if you set aside the nearly 3 percent plunge in the Dow Jones industrial average on Monday — three days after President Trump announced new Chinese tariffs, triggering Beijing to allow the yuan to drop in value and causing the Trump administration to designate China a currency manipulator — there are signs that the cracks in the foundation of this economically and politically dicey trade war are expanding.
/jlne.ws/2KArUjh

Regulation

SEC says may give firms more time to comply with Europe’s research rules
Tomo Uetake – Reuters
The U.S. Securities and Exchange Commission (SEC) could extend a 30-month grace period granted to Wall Street firms to comply with European Union investment rules to unbundle research and other services, commissioner Hester Peirce said on Wednesday.
/jlne.ws/2OTq1DI

5 million pension savers could put their retirement savings at risk to scammers
UK FCA
New figures show cold calls, exotic investments and early access to cash among most persuasive tactics used by fraudsters; Those who consider themselves financially savvy are just as likely to be persuaded; FCA and TPR join forces to warn pension savers as part of latest ScamSmart campaign
The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) are joining forces again this summer to warn the public about fraudsters targeting people’s retirement savings. This warning comes as new research suggests that 42% of pension savers, which would equate over 5 million people across the UK, could be at risk of falling for at least one of six common tactics used by pension scammers.
/jlne.ws/2OMzrRA

Credit For Cooperation: Recognizing Extraordinary Efforts
FINRA
Extraordinary, adjective, very unusual or remarkable. But what does that really mean when it comes to FINRA members, both firms and individual registered representatives alike, looking to receive credit for cooperating on FINRA enforcement matters?
/jlne.ws/2OJBTZf

Updated: 529 Savings Plans—School Yourself Before You Invest
FINRA
Update: The Tax Cuts and Jobs Act of 2017 brought important changes to 529 savings plans, which can now be used to pay for K-12 tuition, up to $10,000 per taxable year per designated beneficiary for all 529 savings plans. We are updating and reissuing this alert to highlight these changes, and to remind investors to closely consider both their state of residency and the applicable fees—including fees associated with share classes—when making 529 investment decisions.
/jlne.ws/2OItEMX

Details for public hearings on ASIC’s responsible lending guidance announced
ASIC
ASIC will hold public hearings in Sydney on the 12th of August and Melbourne on the 19th of August.
/jlne.ws/2yFiaPt

Federal Court finds that Sydney lawyer acted dishonestly
ASIC
An appeal by Mr Yingjie Wang (also known as Jay Wang), a lawyer and accountant from Sydney, against his permanent banning from providing financial services has been dismissed by the Federal Court of Australia.
/jlne.ws/2yKN09q

ASIC updates guidance on the Markets Disciplinary Panel’s policies and procedures
ASIC
ASIC has updated its regulatory guidance on the operation of the Markets Disciplinary Panel (MDP).
/jlne.ws/2yKzIcY

ASIC consults on new guidance for companies on whistleblower policies
ASIC
ASIC is calling for public input on its proposed guidance on the new legal obligation on companies to implement a whistleblower policy.
/jlne.ws/2yFhNo3

A Financial Conduct Authority campaign against pension scams © FCA
Emma Agyemang – FT
Millions of people in the UK are at risk of being conned out of their retirement savings, regulators warned after research revealed almost half of pension holders would probably fall for a scam.
/jlne.ws/2OK1Ac8

FCA to delay online payments rules after threat to sales; Industry groups warn the EU regulation would hit a quarter of online sales
Nicholas Megaw – FT
The UK’s Financial Conduct Authority is set to delay enforcement of new EU online payments regulations by more than 18 months, after warnings that the rules would hamstring online sales.
/jlne.ws/2OHYepX

CFTC ‘Clarifies’ Anti-Money Laundering Rule Obligations of Certain Introducing Brokers
Sarah Riddell, Ignacio A. Sandoval – Morgan Lewis
A recent interpretation by the CFTC (in consultation with FinCEN) of the customer identification program and beneficial ownership rules specifies that these rules do not apply to nontraditional introducing brokers, or so-called “voice brokers,” but does not provide guidance on whether traditional introducing brokers may rely on the interpretation when engaged in both traditional and nontraditional activities.
/jlne.ws/2OL6pBX

Investing and Trading

World Economy Edges Closer to a Recession as Trade Fears Spread
Enda Curran and Katia Dmitrieva – Bloomberg
Yield curve indicates investors expected protracted weakness; Central banks from Wellington to Bangkok shock with rate cuts
The escalating trade war between the U.S. and China is nudging the world economy toward its first recession in a decade with investors demanding politicians and central bankers act fast to change course.
/jlne.ws/2yKx86M

Barchart Releases Daily Price Assessment Report for U.S. Grain
Barchart
Barchart, a leading provider of data and analytics to the commodities industry, is proud to announce the release of a free daily report that provides benchmark price assessments for the U.S. grain industry.
/jlne.ws/2yKSAbU

Institutions

ABN Amro says lower interest rates hit deposit margins; Dutch bank braces itself for more impact from regulatory scrutiny
Sarah Provan – FT
ABN Amro became the latest European bank to declare that lower interest rates were hitting its deposit margins, as the Dutch financial services group reported a 1 per cent increase in net profit that included a number of one-offs.
/jlne.ws/2yJLMLG

Commerzbank’s targeted rise in 2019 net profit ‘ambitious’
Reuters
Commerzbank (CBKG.DE) on Wednesday posted net profit in the second quarter that was little changed from a year ago, helped by low taxes, but the German bank said its target for a slight increase in full-year net profit had become “significantly more ambitious”.
/jlne.ws/2yFFyMK

SVS Securities bites the dust as traders face lengthy freeze on withdrawals
FinanceFeeds
Today, the grim reality of the demise of another stockbroking firm in the UK has come to pass. SVS Securities,…
/jlne.ws/2OEL50D

Short-seller Muddy Waters takes aim at UK’s Burford Capital; UK-listed litigation financing specialist rebuffs criticism of its accounting
Robert Smith and Lindsay Fortado – FT
Short-seller Muddy Waters is betting against the shares of litigation financing specialist Burford Capital, taking aim at a favourite of London’s junior market and one of the rare bright spots in Neil Woodford’s funds.
/jlne.ws/2OTj7ia

Mutual Funds Try to Get In on $894 Million in Dewan Repayments
Divya Patil and Suvashree Ghosh – Bloomberg
Asset managers in India are seeking regulatory approval to join creditors as one of the nation’s major shadow lenders tries to pull itself out of distress.
/jlne.ws/2yGpwlE

UBS Accounts Probed as Italian Agency Extends Tax Crackdown
Patrick Winters – Bloomberg
Italy tax agency seeks names of non-compliant UBS clients; Probe adds to list of tax-evasion cases centering on UBS
UBS Group AG accounts are being targeted in a long-running crackdown on wealthy Italians suspected of not paying taxes, in the bank’s latest tussle with authorities.
/jlne.ws/2yHjBNe

Ex-HSBC Banker Pleads Guilty in $1.8 Billion French Tax Case
Gaspard Sebag – Bloomberg
Plea shows authorities’ determination to go after individuals; HSBC paid $336 million in 2017 to settle as part of same case
The former chief executive officer of HSBC Holdings Plc’s Swiss private bank pleaded guilty to helping wealthy clients hide assets worth at least 1.6 billion euros ($1.8 billion) as French prosecutors flex their muscles to tackle white-collar crime.
/jlne.ws/2yJaXhb

Regions

China Scoops Up More Gold for Reserves During Trade War
Ranjeetha Pakiam – Bloomberg
PBOC increases bullion holdings as prices rally to 2013 high; Influx in July takes recent expansion to more than 90 tons
There’s a powerful constant amid the to-and-fro of the U.S.-China trade war as currency policy gets dragged into the standoff between the world’s two top economies: Beijing wants more gold in its reserves.
/jlne.ws/2OJXTD1

These Countries Are the Most at Risk From a Water Crisis
Hannah Dormido – Bloomberg
Nearly 1.8 billion people in seventeen countries, or a quarter of the world’s population, appear to be veering towards a water crisis—with the potential of severe shortages in the next few years.
/jlne.ws/2OMB6qi

Brexit

Tired of Waiting for Brexit, Britons Munch Through Nutella Stockpiles; Worriers squirreled away mozzarella and tea in case a messy exit from the EU sparked shortages; some are breaking into their stashes
Joanna Sugden – WSJ
Britain’s Brexit preppers have been stockpiling for months. Now their revolution is eating itself. Fed up with waiting for the U.K. to leave the European Union and mindful of product expiration dates, stockpilers are using up foodstuffs they had squirreled away in case a blunt exit leaves them cut off from imported treats, or spikes the price of necessities, like toilet paper and tea.
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RBS chief backs Bank of England’s no-deal Brexit warning; Ross McEwan warns of medium-term ‘pain and anguish’
Mure Dickie – FT
The departing Royal Bank of Scotland chief executive has backed Bank of England warnings about the impact of a no-deal Brexit, saying that leaving the EU without an agreement would cause some medium-term “pain and anguish”.
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Britain faces food shortages in no-deal Brexit scenario, industry body says
Kate Holton, Guy Faulconbridge – Reuters
LONDON (Reuters) – Britain will experience shortages of some fresh foods for weeks or even months if a disorderly no-deal Brexit leaves perishable produce rotting in lorries at ports, Britain’s food and drink lobby warned on Wednesday. Retailers such as Tesco (TSCO.L) have warned that leaving the European Union on Oct. 31 without a transition deal would be problematic as so much fresh produce is imported and warehouses are stocked full ahead of Christmas.
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(Video) No-deal Brexit: How might it affect the EU?
BBC News
The UK is due to leave the EU on 31 October. The current withdrawal deal has been rejected three times in Parliament. The government wants to renegotiate the current deal but says if this isn’t possible the UK will leave on World Trade Organization rules. The BBC’s Adam Fleming explores what a no-deal Brexit might mean for the EU, and how it has prepared so far.
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U.K. and EU Trade Blame Over Talks as No-Deal Brexit Risk Grows
Stuart Biggs – Bloomberg
Michael Gove, the minister in charge of planning for a no-deal Brexit, blamed the European Union for failing to engage on a new agreement, deepening the diplomatic standoff between the two sides less than three months before the U.K. is due to leave the bloc. “We will put all our energy into making sure that we can secure that good deal, but at the moment it is the EU that seems to be saying they are not interested,” Gove told the BBC on Tuesday. “They are simply saying ‘No, we don’t want to talk.’ I think that is wrong and sad. It is not in Europe’s interests.”
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