Digital Asset Holdings’ pivot raises doubt over blockchain future

Jun 7, 2019

First Read

Hits & Takes
JLN Staff

The young man from Bradley University I mentioned in JLN earlier this week who was looking for a summer internship has been hired by Barchart.com. Thank you to Barchart CEO and Bradley alum Mark Haraburda for his keen readership of this newsletter.~JJL

The CFTC is holding a farewell reception for Chairman Chris Giancarlo on June 27 at its Washington, DC headquarters after the work day is over.~JJL

OCC’s Amy Shelley is quoted in this Global Finance article about the CFO of the Future.~JJL

FIA’s Walt Lukken, the former acting CFTC Chairman who was nominated, but not confirmed, congratulated Heath Tarbert for being confirmed by the Senate to be the new CFTC Chairman. Walt knows a real accomplishment when he sees one.~JJL

JLN’s Thom Thompson used the phrase “crypto trading platform” instead of “exchange” to describe where cryptocurrencies trade in a recent paper. The initialism is “CTP.” Thom used this term in a “white paper” he wrote for Fintank’s committee looking into starting a self regulatory organization for crypto assets.~JJL

Thom Thompson was in full snark mood when he wrote the article about Bcause that was the most read article in JLN yesterday.~JJL

John Lothian Productions produced a video gratis for our friends at Illinois Tech to promote the TechX Awards that will honor Jack Sandner and Hazem Dawani. See below for more details.~JJL

It is national donut day in the U.S. Get your free donuts.~JJL

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Tech-X Second Biennial Awards
Sign-up HERE

The second biennial TechX awards will be held on the former trading floor of the Chicago Board of Trade on June 24. The event will honor Jack Sandner and Hazem Dawani for fostering innovation and advancing an entrepreneurial spirit in our community and around the world.

Created in 2017, Tech-X is a biennial event hosted by the Illinois Institute of Technology (“Illinois Tech”) to recognize a technology leader who fosters innovation and advances an entrepreneurial spirit in our community and around the world.

Location: Skylight Board of Trade 141 West Jackson Boulevard, Chicago, IL 60604
Date: Monday, June 24, 2019
Time: 6:00 p.m. Reception | 7:00 p.m. Dinner

Watch the video »

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Mirror, Mirror: Who’s the Most-Photographed NYSE Trader of All?
Until recently, it was Peter Tuchman. But now, a new, younger contender has emerged.
Matthew Kassel – WSJ
If you’ve read more than one or two articles about the stock market, you’ve probably seen a picture of Peter Tuchman—who for years has been known as the most photographed trader at the New York Stock Exchange. With his wild Einstein-style hair, vivid expressions and theatrical gestures, he has been the go-to guy for photographers and photo editors who need an action shot about the markets.
/jlne.ws/2IsDsEa

***** Peter Tuchman is the man.~JJL

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Ballyhooed Bitcoin Futures Contract Bows Out With a Whimper
Matthew Leising – Bloomberg
Final Cboe crypto contract expires at 2:45 p.m. CT on June 19; Chicago exchange doesn’t plan to list any more contracts
Just before 3 p.m. Chicago time on Wednesday June 19, a bit of Bitcoin fanfare will die. That’s the moment the last Bitcoin futures contract on Cboe Global Markets Inc. will settle, with no more to follow. Only a year and a half ago, the then-president of Cboe, Chris Concannon, heralded the derivatives as game changers for finance, saying “Over the next 10 years we believe that the cryptocurrency market will explode in terms of the assets that they touch, the currencies that they involve.” Cboe was the first U.S. exchange to list Bitcoin futures, followed shortly by CME Group Inc.
/jlne.ws/2ItQqSc

***** There still is not a stated or widely accepted reason for why Cboe pulled out of bitcoin futures. There is evidence the CME Group’s settlement was superior, which is a leading theory, but it does not tell the whole story.~JJL

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Coffee is the secret of health and happiness; Maybe we should be taking caffeine prophylactically, like aspirin?
Wendell Steavenson – FT
Coffee is second only to tea as the world’s most popular drink. Many of you may have a cup in your hand as you read this and will be relieved to hear that a study announced this week, part-funded by the British Heart Foundation and conducted by researchers at the Queen Mary University of London, found that even drinking up to 25 cups of coffee a day was no more likely to cause a stiffening of arteries than drinking no coffee at all.
/jlne.ws/2IoVlUC

***** I had to double check to make sure this article was not written by Nasdaq’s Allan Schoenberg, who seemingly has taken the title “Mr. Coffee” away from Joe DiMaggio.~JJL

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CryptoMarketsWiki Coin of the Week: Bitcoin (BTC)
It was a big week for bitcoin; after hitting a two-week low on Tuesday, the grandfather of all cryptocurrencies made a $400 recovery the following day. Tadge Dryja, the co-creator of bitcoin’s Lightning Network, released a research paper on new technology called Utreexo, a scaling solution that could help the network scale more efficiently. In other Lightning Network news, a bar in Japan began allowing customers to pay in bitcoin using the Lightning Network. Several members of the bitcoin community on Twitter began calling out the “toxic” nature of the community on Twitter last week, calling for greater inclusivity, especially for women. Michael J. Casey, chairman of CoinDesk’s advisory board and senior blockchain advisor at MIT, published an article this week calling for the community to confront these issues.
/jlne.ws/2MzYdDl

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Thursday’s Top Three
Our top read piece of the day on Thursday was Thom Thompson’s JLN article Mining Troubles Take Down Ecosystem on the Bcause bankruptcy court proceedings. Second was the scathing opinion piece in the New York Times, The Donald Thinks D-Day Is About Him. The third most read item was The Wall Street Journal’s piece Rahm Emanuel, Ex-Chicago Mayor, Is Going to Wall Street

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MarketsWiki Stats
154,208,354 pages viewed; 23,783 pages; 219,855 edits
MarketsWiki Statistics

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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.

Recently Updated Pages

Recently updated pages include
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Lead Stories

Digital Asset Holdings’ pivot raises doubt over blockchain future; Shadow cast over former chief Blythe Masters’ call to take the technology seriously
Izabella Kaminska in London and Philip Stafford – FT
A grand plan to apply blockchain technology to the world of securities and trade settlement appears to be stalling, with Digital Asset Holdings, one of its key proponents, switching its focus to so-called “smart contracts”.
/jlne.ws/2Imi17W

*****Many firms around the street invested in Digital Assets Holdings as a hedge in case blockchain turned out to be a game changer.~JJL

Blockchain’s Appeal Is Limited for Retail Banks, McKinsey Says
Matthew Leising and Alastair Marsh – Bloomberg
Remittances, anti-fraud and risk management may be best uses; Bank cooperation, creating digital identities are big hurdles
Retail banks have been slower to embrace blockchain technology and face greater challenges in reaping its potential benefits than their more adventurous counterparts in the investment-banking world, according to new research from McKinsey & Co.
/jlne.ws/2Ir4RGL

LIBOR is due to die in 2021. Hurry up and drop it, say regulators; Too late to get a new plan
The Economist
Just drop off the key. Yes, it means breaking a complicated yet rewarding long-term relationship: $240trn-worth of derivatives, loans and bonds are priced off libor, the London Interbank Offered Rate; $200trn-odd are in dollars alone. But this key interest rate is due to die. Almost two years ago Andrew Bailey, the head of Britain’s Financial Conduct Authority (fca), libor’s regulator, in effect said it would expire at the end of 2021. In recent days American and British supervisors have again urged banks: hop on the bus.
/jlne.ws/2ItW1YI

Libor isn’t dead yet, even if the banks and traders would like to bury it
Oonagh Mcdonald – City AM
The London Interbank Offered Rate (Libor) was once arguably the most important number in the world. It was the reference rate that banks used for variable rate mortgages, car loans, credit card debt, and much more besides.
/jlne.ws/2IkiZBq

City watchdog ‘missed Neil Woodford fund warning signs’
BBC
The UK’s financial regulator “should have been awake” to problems at Neil Woodford’s investment fund, according to former City Minister Lord Myners.
/jlne.ws/2Ipb8CW

Wolves of Wall Street Party to Save Actual Wolves of Westchester
Amanda L Gordon – Bloomberg
Rich Handler leads the pack to Tribeca for tunes and risotto; Ed Norton and Handler’s wife Martha champion conservation
Rich Handler drew some howls as he led the auction Wednesday night at a benefit in Tribeca for the Wolf Conservation Center.
/jlne.ws/2Ik8fmA

Deutsche Bank’s Ritchie Said to Be Among Staff in Tax Refund Probe
Steven Arons, Sonali Basak, and Karin Matussek – Bloomberg
Prosecutors are examining banks over controversial tax refunds; Case’s expansion prompted by statute of limitations, bank says
The headaches are mounting for Deutsche Bank AG’s Garth Ritchie. The chief of the investment bank, already contending with the lowest shareholder backing among top management and the prospect of massive cuts to his division, is among a growing number of employees and officials targeted by German prosecutors for their roles in an alleged tax scam, according to a person with knowledge of the matter.
/jlne.ws/2InsyzI

RBS has been fined £17m over currency rigging cartel
The Scotsman
Royal Bank of Scotland and Barclays are among five banks who have been fined for a second time in as many months over their role in a massive currency rigging cartel, authorities have revealed.
/jlne.ws/2IpbbP8

States sharing bank details expose ‘deep pool’ of offshore money: OECD
Reuters
Governments have uncovered trillions of dollars in offshore funds since they began sharing in bulk bank account details last September, the Organisation for Economic Cooperation said on Friday.
/jlne.ws/2Iwbzvk

Exchanges, OTC and Clearing

Eurex achieves half a billion euro of Open Interest in its ESG Derivatives; Since the launch of ESG Futures at Eurex, Open Interest grew to reach a value of EUR 564 million on 6 June. This corresponds to 40,640 open contracts.
Eurex
In total, more than 94,000 contracts have been traded since their launch in February, with most of the volume concentrated in STOXX® Europe 600 ESG-X Index Futures (FSEG) and 60 percent of the flow coming from end users and asset owners.
/jlne.ws/2IkeqHi

Marel lists on Euronext Amsterdam and issues new shares; Listing on Euronext Amsterdam supports Marel’s growth goals
Euronext
Marel (ticker symbol: MAREL), a leading global provider of advanced processing systems, software and services for the poultry, meat and fish processing industry, today began trading on Euronext Amsterdam, adding to its existing listing in Iceland.
/jlne.ws/2IsVG8B

IDX 2019 wrap-up: Making markets fairer, safer and more stable; From market structures to central clearing to ESG: the agenda of FIA’s International Derivatives Expo (IDX) 2019, which took place from 4 to 5 June at The Brewery in London, was packed with topics catching the attention of the industry.
Eurex
On Tuesday, besides Brexit and the role of Asia, new market models were discussed at the Exchange Leaders panel. “With our market structure roadmap, we aim at strengthening the fairness in the price discovery process,” Eurex CEO Thomas Book explained. As investment behavior and regulation change, we review our market models to best support regulatory effort and our clients. “We enhance our market models to attract as much diversified flow as possible into our main tool, the central limit order book.” Part of our new market models are Passive Liquidity Protection and our selective RfQ platform Eurex EnLight.
/jlne.ws/2QQNVNE

TMX Group Consolidated Trading Statistics – May 2019
TMX
TMX Group Limited today announced May 2019 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha) and Montréal Exchange (MX).
/jlne.ws/2Iumdmh

Fintech

Firstrade Securities Signs with Trillium Surveyor for Trade Surveillance
BusinessWire
Trillium, a proprietary trading and trading technology company, announced today that Firstrade Securities, a leading online investment firm, will now use Trillium’s Surveyor platform for trade surveillance.
/jlne.ws/31f6v6X

JPMorgan Scraps New App Service for Young People; Finn was hybrid, offering digital banking, as well as some branch access
David Benoit and Peter Rudegeair – WSJ
JPMorgan Chase & Co. is killing an experiment to attract younger customers to a new digital-banking app a year after making it available nationwide.
/jlne.ws/2IpzjRv

Commcise Launches COMMCISECS To Support Research Providers With Client Strategy Objectives
Mondovisione
Commcise, the award-winning provider of integrated commission management, research evaluation and reporting solutions for investment management and brokerage firms, today announced the launch of COMMCISECS to support client strategy teams within the research provider community. COMMCISECS, a cloud-based platform, allows research providers to review, price and publish research event interactions and analyse asset manager clients’ profitability using its flexible pricing and costing engine.
/jlne.ws/31j8W8K

SimCorp snaps up buy-side data management firm for EUR60 million; AIM Software provides data management technology to asset management firms.
Hayley McDowell – The Trade
Trading technology vendor SimCorp has acquired a buy-side data management specialist for EUR60 million as the firm looks to bolster its value proposition for asset management clients.
/jlne.ws/2Ir8MTZ

Appital launches new trading fintech
Sharon Kimathi – Bankingtech.com
UK-based fintech Appital is building a new financial technology platform to unlock liquidity in global capital markets.The platform was co-founded in mid-2018 by CEO Mark Badyra and CTO Pete Correia. Badyra worked in capital markets at Bank of America Merrill Lynch and at UBS, whilst Correia was head of technology at Fathom, creating solutions for clients such as Commerzbank, AlixPartners, Access Fintech, Aimia Inc and the GSMA.
/jlne.ws/2Ip7gBL

Cryptocurrencies

FSB warns tokenised liquidity could be illusory
Izabella Kaminska – FT
The FSB is out with a report this Thursday on the financial stability, and regulatory and governance implications, of decentralised financial technologies. It provides a thoroughly balanced picture of the associated pros and cons of what is becoming one of the widest spread trends in the financial sector.
/jlne.ws/2Ip359c

A $100 Million Crypto Fund Opens With the Goal of Going Long
Matthew Leising – Bloomberg
Darma Capital is betting Ether will have a 10-year bull run; Ether had 17,775% rise before almost all its gains disappeared
The crypto world might call it the Big Long. A new $100 million investment firm, Darma Capital, is opening to investors who want to bet that digital assets such as Ether are poised for a 10-year bull run. Of course, Ether saw one of the largest boom-and-bust cycles in crypto, rising an astounding 17,775% in 2017 only to see 94% of its gains erased by the end of last year. Darma’s founders, however, are counting on Ether’s long-term integral role in the Ethereum blockchain to counter such mania.
/jlne.ws/2IuVTrR

ConsenSys Capital Co-Founder Departs to Bring Wall Street Money to Ethereum
Nikhilesh De – Coindesk
ConsenSys Capital co-founder Andrew Keys will be the newest managing partner at DARMA Capital, a registered crypto-focused investment fund.
/jlne.ws/2IoSGKC

NEO Releases Detailed Financials Ahead of Cryptocurrency Relaunch
Leigh Cuen – Coindesk
The technology behind the cryptocurrency NEO, formerly known as Antshares, will be completely reconfigured by this time next year. In April, NEO co-founder Erik Zhang announced that an optimized version of the blockchain network will relaunch as NEO 3.0 in 2020. The underlying infrastructure will be so different that token holders will need to turn in their assets for newly issued tokens. Zhang told CoinDesk this process will not require know-your-customer (KYC) information, as the Singapore-based NEO Foundation will simply destroy the old assets and airdrop new tokens to designated wallets.
/jlne.ws/2ZdQ49g

What to Expect When the IRS Alters Its Bitcoin Tax Policy
Anna Baydakova – Coindesk
Coming guidance from the IRS will address longstanding questions about the tax treatment of cryptocurrency. The tax collector has identified several specific issues it will discuss, including whether investors owe taxes on free crypto they get from a fork. The industry is also hoping for clarity on a number of other matters, including the tax implications of airdrops, staking and crypto stored at overseas exchanges.
/jlne.ws/2Xve47n

Bitcoin And Crypto Took This Guy Around The World–But It Wasn’t Easy
Billy Bambrough – Forbes
Bitcoin and cryptocurrencies are often heavily criticized for their low real-world use, but as the Money2020 Payments Race shows every year, it’s slowly getting easier to use bitcoin and cryptocurrencies to buy things and get places. The Money2020 Payments Race sees four payments teams (Cash, Card, Crypto, Wearables) race around the world, stopping off at checkpoints along the way—and this year Team Crypto was the first to cross the finish line, though Team Mobile won on points.
/jlne.ws/2QRHiL8

Dutch ‘Big Brother’ creator sues Facebook over fake Bitcoin ads
Toby Sterling – Reuters
Dutch billionaire John de Mol filed a lawsuit against Facebook on Wednesday for allowing fake ads on its platform which used his name and image to perpetrate Bitcoin-related fraud. Lawyers for De Mol, the businessman who created the “Big Brother” reality television program, told an Amsterdam District Court judge that the company had failed to prevent the ads and had not responded in a timely fashion to complaints.
/jlne.ws/2K18WEN

Kodak Launches a Blockchain-Enabled Document Management System
Daniel Kuhn – Coindesk
Kodak’s pivot to blockchain is coming into focus. The legacy camera brand announced a new blockchain-based document management system, at a two-day conference in Rochester, New York. Unlike previous Kodak-blockchain announcements, Kodak Document Management Platform is not under license to a third-party and is an actual Kodak product. The platform, launched under the name Kodak Services for Business, is intended for businesses and governments to store and manage sensitive documents.
/jlne.ws/2WREfI6

Strong Currency Could Be Next Bad Omen for Europe
Michael Msika – Bloomberg
With trade tensions in the background, the market is digesting signals from the ECB. The euro jumped to a seven-week high yesterday as Draghi disappointed some observers who had expected the bank to be more dovish, and this is bad news for European exporters. Add to that the risk that today’s U.S. payrolls may weigh on the dollar.
/jlne.ws/2IoXqA0

Mt. Gox’s Karpeles: Press Rumors About My Blockchain Plans Are False
William Suberg – Cointelegraph
The former CEO of long-defunct Japanese cryptocurrency exchange Mt. Gox denied press claims he is returning to blockchain in comments to Cointelegraph on June 7. Mark Karpeles, whom a judge acquitted of embezzlement in March and is currently appealing a lesser conviction of data manipulation, says his activities with Tristan Technologies will not involve the cryptocurrency sector. As Cointelegraph reported, local Japanese media had interpreted remarks at a press conference on June 5 as meaning he was preparing to conduct blockchain-related activities.
/jlne.ws/2wJJ3k4

Bloomberg Terminal Lists Ethereum-Based Debt Instrument
Brady Dale – Coindesk
Cadence, which puts commercial debt into ERC-20 tokens, is now listed on Bloomberg Terminal. In a first for a blockchain-based financial instrument, Cadence has obtained a Financial Instrument Global Identifier (FIGI). With this new designation, Cadence becomes easy to research and trade for the broad array of financial professionals working with Bloomberg Terminal, the market-leading software. Each FIGI record carries with it metadata such as interest rate, maturity schedule and instrument type.
/jlne.ws/2IuGM1R

Blockchain for Enterprise Applications Market Analysis, Segmentation, Opportunities and Forecast 2025 | Key Players (ConsenSys, Digital Asset Holdings, Ericsson, Ethereum, Everledger, Evernym, Factom, Filament)
Orian Research
Blockchain for Enterprise Applications Industry 2019 Report presents in-depth assessment including key market trends, upcoming technologies, industry drivers, challenges, regulatory policies, with key company profiles and strategies of players. Furthermore, through the statistical analysis, the report depicts the Global total market of Blockchain for Enterprise Applications industry including capacity, production, production value, cost/profit, supply/demand and import/export.
/jlne.ws/2InAKjs

Australia to Crack Down on Crypto Tax Avoidance Schemes
Benedict Alibasa – Coindesk
The Australian Taxation Office (ATO) may soon crack down on major tax avoidance schemes using cryptocurrencies.
/jlne.ws/2IwiioK

Congressman Budd Defends Blockchain in Testimony to House Ways and Means Committee
Daniel Kuhn – Coindesk
North Carolina Congressperson Ted Budd highlighted two bills he hopes will receive bipartisan support, The Cryptocurrency Tax Fairness Act and the Virtual Value Tax Fix of 2018, while speaking at the U.S. House Ways and Means Committee on June 4.
/jlne.ws/2IooP4U

Binance Confirms Stablecoin Offering Coming Soon: Report
Benedict Alibasa – Coindesk
Binance, the top crypto exchange by adjusted trading volume, has confirmed it will soon issue its own stablecoins.
/jlne.ws/2IoLGx9

Crypto Developer Komodo ‘Hacks’ Wallet Users to Foil $13 Million Theft
Benedict Alibasa – Coindesk
Cryptocurrency wallet developer Komodo has effectively hacked its own customers to avert an attack that could have resulted in the theft of funds worth nearly $13 million.
/jlne.ws/2IkjziA

Politics

Google warns of US national security risks from Huawei ban; Tech group pushing Trump officials to exempt its Android operating system from measure
Kiran Stacey and James Politi – FT
Google has warned the Trump administration it risks compromising US national security if it pushes ahead with sweeping export restrictions on Huawei, as the technology group seeks to continue doing business with the blacklisted Chinese company.
/jlne.ws/2IwbOGq

Russia Detains Top Reporter on Drugs Charges, News Outlet Says
Stepan Kravchenko – Bloomberg
A prominent journalist who investigated corruption in Russia has been detained on drug trafficking charges, according to the online news outlet where he works.
/jlne.ws/2IsCrfk

Trump’s Tariffs Have Already Wiped Out Tax Bill Savings for Average Americans
Laura Davison – Bloomberg
The $930 average tax cut has been almost erased by tariffs; Chinese and Mexican tariffs could amount to $4,000 tax hikes
President Donald Trump’s trade wars have already wiped out all but $100 of the average American household’s windfall from Trump’s 2017 tax law. And that’s just the beginning.
/jlne.ws/2IoZqrP

How Donald Trump and Boris Johnson threaten democracy
FT
FT chief political commentator Philip Stephens says the US president and the Tory leadership favourite share a common politics that ignores truth.
/jlne.ws/2IoEYHD

Regulation

FCA confirms biggest shake-up to the overdraft market for a generation
UK FCA
The Financial Conduct Authority (FCA) has today confirmed it is introducing reforms to fix a dysfunctional overdraft market. These changes will make overdrafts simpler, fairer, and easier to manage and will protect the millions of consumers that use overdrafts, particularly more vulnerable consumers. The changes represent the biggest overhaul to the overdraft market for a generation.
/jlne.ws/2IuG8RZ

Regulator pushes ahead with overhaul of UK’s £2.4bn overdraft market; FCA says changes to ‘dysfunctional’ market are biggest ‘in a generation’
Caroline Binham – FT
The UK’s financial regulator is pushing ahead with plans to stop lenders from charging higher rates for unarranged overdrafts in what it dubbed the “biggest overhaul in a generation” to the £2.4bn overdraft market.
/jlne.ws/2IoZS9G

Former Adelaide adviser charged with theft
ASIC
Former Adelaide financial adviser, Robert Pryor Smith, has appeared in the Adelaide Magistrates’ Court after being charged with 27 dishonesty offences.
/jlne.ws/2Ip2wfC

Atlantic Hurricane Season Is Here: Don’t Let Disaster-Related Financial Fraud Wipe You Out
FINRA
Last year’s Atlantic hurricane season saw 15 named storms slam the East Coast and Gulf states—including mammoth Florence and Michael. It may not be possible to predict when or where the storms of 2019 will take place, but one thing you can count on is that when they hit, scammers will try to take advantage of the situation.
/jlne.ws/2IDC2XV

CFTC Staff Issues No-Action Relief from Uncleared Swap Margin Rule for Certain Amendments to Legacy Swaps
CFTC
The Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) today announced it will provide no-action relief to permit certain amendments to legacy swaps without losing their status as legacy swaps.
/jlne.ws/2IrafJZ

NFA orders Houston, Texas introducing broker Classic Energy LLC to pay a $200,000 fine and suspends its president, Mathew Webb, from NFA membership
NFA
NFA has ordered Houston, Texas introducing broker Classic Energy LLC (Classic Energy) to pay a $200,000 fine and has suspended its president, Mathew Webb from NFA membership through January 3, 2022.
/jlne.ws/2QQG8PS

Guernsey Stock Exchange and FCA in discord over Woodford fund
Pedro Gonçalves – Internationalinvestment.net
The Guernsey Stock Exchange has disputed the claims made by the Financial Conduct Authority over the suspension of the Woodford Equity Income fund, with a war of words breaking out between the watchdogs.
/jlne.ws/2Iqxrbn

Former UK City minister lambasts FCA over Woodford oversight; Paul Myners accuses watchdog of failing to act on warning signs
Owen Walker – FT
Former UK City minister Paul Myners has heavily criticised the Financial Conduct Authority for failing to act on warning signs that Neil Woodford’s investment empire was running into trouble.
/jlne.ws/2InBuVM

Trump Says Fed’s Rate Increases Restrained Stock Market Growth
Josh Wingrove – Bloomberg
President Donald Trump repeated his criticism of the Federal Reserve’s interest rate increases and said the stock market would be 10,000 points higher had the Fed kept rates lower.
/jlne.ws/2Ip66X6

Investing and Trading

Markets should beware the clock ticking back to the 1970s; Investors should not rule out a radical change to the financial regime
Pascal Blanqué – FT
Markets are trapped in their comfort zones. Few investors seem to expect a change to today’s financial regime.
/jlne.ws/2IoFULZ

Church of England Favors Private Credit Over Stocks
Marianna Duarte De Aragao – Bloomberg
Scheme will allocate 10% to asset class over next 10 years; ‘Escaping from price swings’ of equity cited as a reason
A pension scheme for the retired clergy of a 500-year old Christian institution in England is seeking to boost returns by shifting money into firms that extend private loans to small and medium-sized companies.
/jlne.ws/2IocAFu

‘Carnage’ in loan market can only get worse if the Fed cuts; A decade of ultra-loose monetary policy has caused an extraordinary lending boom
Joe Rennison – FT
The chorus of doomsayers warning of turmoil stemming from corporate borrowing added a powerful voice this week.
/jlne.ws/2IwfyHY

A $442 Billion Money Manager Says Tech’s Glory Days Are Over
Sarah Ponczek – Bloomberg
Technology stocks now face a trade war and regulatory concerns; ‘Without tech, you can’t have a strong equity market’: Shah
Calling a top in technology stocks isn’t for the squeamish, but that’s just what one brave investment manager is doing.
/jlne.ws/2Iv3fLZ

Institutions

Two Former Hedge Fund Employees Expected to Get $90 Million Jury Payout; The $46 million verdict against Paul Touradji’s hedge-fund firm is set to balloon due to interest mandated by New York statute
Juliet Chung – WSJ
Two former employees of commodities hedge fund Touradji Capital Management LP are expected to receive roughly $90 million after winning a decadelong lawsuit against the firm.
/jlne.ws/2IqNQwi

Former high-flying hedgie ordered to cough up $90M in bonus trial
Carleton English – NY Post
After a decade of sensational courtroom allegations about his rough treatment of underlings — ranging from death threats to taunting a worker with his blingy new watch — hedge-fund mogul Paul Touradji will have to pony up as much as $90 million to two ex-employees, who claim he stiffed them out of years’ worth of bonuses.
/jlne.ws/2Ip4VH8

What does Neil Woodford’s fund suspension mean for investors?; £10bn in assets five years ago have shrunk by nearly two-thirds
Kate Beioley – FT
Investors in Neil Woodford’s flagship fund were left reeling this week after the veteran fund manager halted withdrawals, following 22 months of outflows that had left him fighting to keep pace with redemptions.
/jlne.ws/2Iw4R8C

Barclays’ new chairman wastes no time trimming excess; Nigel Higgins avoids costly quirks that characterised his predecessor’s start in job
Patrick Jenkins – FT
Barclays’ new chairman formally assumed his role barely a month ago. But Nigel Higgins has wasted no time trimming excess at the UK lender. Rumours that he’s shrunk the pool of drivers for senior execs are apparently unfounded.
/jlne.ws/2IoWVWD

UBS switches stance with plan to offer $113 million tax settlement in Italy
Brenna Hughes Neghaiwi, Emilio Parodi – Reuters
UBS looks set to agree a 100 million euro ($113 million) settlement of a money laundering and tax case in Italy within the next few weeks, according to people familiar with the matter, in contrast to a similar case in France.
/jlne.ws/2IunMRb

Bank of America is busy making director-level hires in Paris
Sarah Butcher – eFinancialCareers.com
Who said banks wouldn’t be able to find enough experienced staff for their new Brexit-inspired European offices? Bank of America seems to be having no problem – it’s recruiting front office sales and trading staff in Paris with increasing alacrity.
/jlne.ws/2Ip5BfG

How Funds That Chase the Hottest Stocks Can Still Lag Behind
Evie Liu – Barron’s
There is always a time lag when chasing the market’s best performers, and sometimes it matters a lot.
/jlne.ws/2Ioo7og

Regions

Bank of Japan to Cut Negative Rate in September, JPMorgan Says
Toru Fujioka – Bloomberg
The Bank of Japan will lower its short-term interest rate to -0.3% from -0.1% in September to head off risks posed by an expected Federal Reserve rate cut, JPMorgan Chase & Co. said in a research note.
/jlne.ws/2IrTjTB

The Perils of Pot for British Investors
Sam Unsted and Ellen Milligan – Bloomberg
Proceeds of Crime Act has had ‘chilling effect’ on listings; Lawyers think more guidance needed from U.K. authorities
U.K. investors eager for a piece of the cannabis market are being deterred by a broad, catch-all law on proceeds from criminal activities.
/jlne.ws/2Iw2mDg

Russia keen to sell yuan bonds to deepen ties with China and further reduce US dollar dependence
Amanda Lee – South China Morning Post
Russia is again exploring selling yuan bonds to deepen its financial market connections with China and to boost trade in yuan and roubles to counter the dominance of the US dollar.It first considered selling a yuan bond back in 2016, and after reviving the idea last year, is revisiting the possibility as China and Russia seek to further strengthen ties amid escalating tensions with the United States.Russia would first sell a sovereign bond in yuan and list it on the Moscow Exchange, while China…
/jlne.ws/2IkiRlq

Italy’s Scary Parallel Currency Risk; Parliament’s proposals on so-called mini-BOTs aren’t really a credible threat to the euro, but you can see why they make investors anxious.
Ferdinando Giugliano – Bloomberg
It’s hard to think of a more important question for the future of the euro than how committed Rome really is to the single currency.
/jlne.ws/2ImmSWI

Emmanuel Macron Gets a Lesson in Capitalism; The French state needs to get out of the way of its industrial leaders, or missed opportunities like Fiat-Renault will keep happening.
Lionel Laurent – Bloomberg
The hunt for a scapegoat for the collapse of the merger talks between Fiat Chrysler Automobiles NV and Renault SA is in full cry. There’s furious leaking on all sides: The Italians blame the French, the French blame Fiat and the reluctance of Renault’s partner Nissan Motor Co Ltd. to bless the deal. A lot of people on both sides blame Bruno Le Maire, Emmanuel Macron’s finance minister, whose eleventh-hour request for more time to bring Nissan on board was the final straw for Fiat.
/jlne.ws/2ImmYO4

Brexit

Trump Leaves Irish Puzzled With Post-Brexit Border Promise
Dara Doyle – Bloomberg
Border issue will ‘work out very well,’ president says; Irish government concerned Brexit will mean border checkpoints
U.S. President Donald Trump reassured Ireland that it has nothing to fear from Brexit, telling the country’s prime minister that the border with Northern Ireland will be “just fine.”
/jlne.ws/2IoZqbu

Brexit: Boris Johnson £350m claim case thrown out by judges
BBC News
The High Court has thrown out an attempt to prosecute Boris Johnson over claims he lied during the 2016 referendum campaign by saying the UK gave the EU £350m a week. The Tory leadership candidate challenged a summons for him to attend court on three claims of misconduct in public office. His lawyers said he denied acting improperly or dishonestly.
/jlne.ws/2Xsx06I

Theresa May quits: PM’s most memorable moments
BBC
Friday 7 June sees the end of Theresa May’s leadership of the Conservative Party. During her three years in office, there have been plenty of ups and downs. Ahead of Mrs May standing down as prime minister in late July, we chart some of the most memorable moments.
/jlne.ws/31drTcK

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