Ex-CBOT chairman Pat Arbor – ‘I’m kind of doomed,’; Ex-wife on Arbor – ‘behavior replicates the devil’

Dec 17, 2018

Ex-CBOT chairman Pat Arbor – ‘I’m kind of doomed,’; Ex-wife on Arbor – ‘behavior replicates the devil’

Dec 17, 2018

First Read

Hits & Takes
JLN Staff

Chicago Sun-Times columnist Mark Brown has two big stories in JLN today. First is a piece that ran Friday in which Pat Arbor says he is doomed. Second is an interview in today’s Sun-Times with Pat Arbor’s ex-wife, Antoinette Vigilante. Lesson learned, never marry anyone named “Vigilante.”

I had a bad experience on Sunday. I took my dog Bella to the dog park for her to run around. On the way home I was rear ended by another driver. He suggested we move off the road to a nearby parking lot and I agreed. I drove to the parking lot, he drove off. Lesson learned, first thing after an accident, take a picture of the car and license plate. Both Bella and I are fine after the accident, but my chevy suburban needs some repair.~JJL

The man who made business suits for Leo Melamed, Syd Jerome founder Sidney Shapiro is dead at 86.~JJL

What did the acting director of the Bureau of Ocean Energy Management say about the record-setting bids for offshore wind leases on Friday? “We are truly blown away by this result.”~SD

We have added another remembrance to the Bob Cox piece, from Derek West of the DTCC.~SR

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Bob Cox On The Birth Of Simex and Growth Of Asia’s Futures Markets
JohnLothianNews.com

Bob Cox sat down with Jim Kharouf of John Lothian News in 2014 to speak about his experience in helping start Simex in Singapore in 1984. As the only CME floor trader with experience in Southeast Asia, having grown up in Manilla, Philippines, he was asked by a supporting bank to help build and launch the exchange. Cox, who passed away on December 7, was there for day one at Simex and led the Southeast Asia trading desk for Goldman Sachs.

Watch the video and read the rest»

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The Spread – Hiring Notices – 12/14
JohnLothianNews.com

According to Trade Alert’s Henry Schwartz, the week of December 17 – 21 will likely see the five billionth option of 2018 change hands. But while we all wait with bated breath for that milestone, JLN has you covered with a recap of some of the week’s notable news from the options world.

Watch the video and see the stories referenced here »

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Trading Technologies Appoints CEO Rick Lane as Chairman of the Board
Trading Technologies International, Inc.
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, today announced the appointment of CEO Rick Lane as chairman of the company’s board of directors. He succeeds outgoing chairman Harris Brumfield and maintains his responsibilities as chief executive officer.
bit.ly/2Ers8b3

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Inside the ICE House Episode 71: Institutionalizing Crypto: Bakkt and the Race to Win Wall Street
ICE
Recorded at CoinDesk’s Consensus:Invest Conference, Bakkt’s CEO Kelly Loeffler and ICE’s Chairman and CEO Jeff Sprecher’s chat with the MIT Media Lab’s Michael Casey. Bakkt plans to roll out the world’s first 1-day physically delivered Bitcoin contract in 2019, allowing institutions and consumers alike to seamlessly buy, sell, store, and spend the digital asset. While Bitcoin’s value may rise and fall, the profound appeal of crypto is not so much as an investment to buy and hold, but rather a currency to actually put to work.
bit.ly/2EA4474

***** ICE is cranking out the podcasts. This one is not to be missed.~JJL

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Don’t Let the Boy Scouts Go Bankrupt; Yes, the organization should have to pay for its misdeeds. But it serves an important purpose.
Stephen L. Carter – Bloomberg
The Boy Scouts of America is not exactly confirming reports that it’s considering bankruptcy, but it’s not exactly denying them, either. It’s hard to see how the organization has much choice. The many lawsuits it is facing because of abuse by adult leaders is in any case likely to deplete the group’s resources.
/bloom.bg/2EAVd4G

***** I second this message.~JJL

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Bridging the Week: December 10 – 14 and December 17, 2018 (Bitcoin; Ether; Blue Sheets; CPO Internal Controls; Disruptive Trading)
Gary DeWaal – Bridging the Week
The Commodity Futures Trading Commission issued a request for input regarding the virtual currency ether. It wants to understand better how bitcoin and ether are different, and any unique qualities of ether (ETH), as it potentially considers permitting regulated markets to list futures or other derivatives based on ETH. Separately, the Securities and Exchange Commission fined three broker-dealers in aggregate over US $6 million for not providing accurate trading information as requested through electronic blue sheets. In two circumstances, 100 percent of all EBS requests during the relevant time periods were purportedly responded to with inaccurate information.
/goo.gl/qPjwRv

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Friday’s Top Three
Our top read piece on Friday was JLN’s Bob Cox Remembrances, which included notes from John McPartland, Mike Dawley, Leslie Sutphen and Robert Steigerwald. Bob’s funeral was last Saturday. Second was Business Insider’s People quit high-paying jobs because prestige becomes less important. Third was the FT’s piece TP ICAP names veteran trading executive Richard Berliand as chairman, who says he’s retired but continues to fill more non-executive chairmanships than anyone we know.

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Lead Stories

Pat Arbor: ‘I’m kind of doomed,’ says ex-CBOT chairman, jailed for months in divorce fight
Mark Brown – Chicago Sun Times
A year ago, Patrick Arbor was living the good life of a wealthy American expatriate in Lugano, Switzerland, taking his meals on the patio of his condo overlooking a picturesque alpine lake and planning his next trekking adventure in the mountains beyond.
bit.ly/2QuN602

Ex-wife on former CBOT chairman: ‘I find his behavior replicates the devil’
Mark Brown – Chicago Sun Times
Former Chicago Board of Trade chairman Patrick Arbor says he heard from friends that his ex-wife, Antoinette Vigilante, hopes he rots in jail. Vigilante told the Sun-Times she just wants a fair divorce settlement from her 82-year-old ex-husband, now serving his seventh month as a prisoner in Cook County jail as a result of his determined efforts to avoid paying her and her determined efforts to make him.
/goo.gl/UVSdH4

Malaysia Files Criminal Charges Against Goldman Sachs; Charges stem from alleged misappropriation of $2.7 billion from Malaysian fund 1MDB
Tom Wright – WSJ
Malaysian authorities on Monday filed criminal charges against Goldman Sachs Group Inc. units and a former partner of the bank in connection with the 1MDB financial scandal, the country’s attorney general said.
/on.wsj.com/2EyJTGj

Calculating the Cost of Trump Turmoil in a Market Pushed to Brink
Sarah Ponczek and Vildana Hajric – Bloomberg
President’s former lawyer sentenced to three years in prison; Markets unable to gain their footing, stocks continue to lurch
From rising interest rates to stretched valuations and tariff wars — the things investors once had patience for, they no longer do.
/bloom.bg/2EyBdjh

Robinhood Checking Accounts May Not Be Insured, Says SPIC
Julie Verhage – Bloomberg
The Securities Investor Protection Corp. said a new checking account from Robinhood Financial LLC raises red flags and that the deposited funds may not be eligible for protection.
/bloom.bg/2EvcyMw

Germany plans to lower threshold for probes of foreign takeovers: Handelsblatt
Reuters
Berlin plans to cut to 10 percent the threshold at which it can launch national security probes of stake purchases by non-European companies in German firms, business newspaper Handelsblatt reported on Sunday.
/reut.rs/2EB1C01

Report Digs Into Russian Disinformation for Trump, Washington Post Says
Ben Brody – Bloomberg
Senate Intelligence Committee to release report this week; Oxford University studied millions of social media postings
The Senate Intelligence Committee will release a report this week that was the first to study the millions of social media posts provided to Congress detailing Russian efforts to help elect President Donald Trump, according to a Washington Post story Sunday.
/bloom.bg/2EyuENH

A Financial Canary in a Coal Mine; Parsing the sharp drop in bank shares. Also, reasons to worry about global growth.
John Authers – Bloomberg
Financial stocks are often regarded as a canary in a coalmine. When they are in trouble, it can be a warning for the rest of us to leave. After another messy week of trading, ending with another slide in share prices in New York, it is the behavior of financials that most requires explanation.
/bloom.bg/2ExEzDf

Margarita Louis-Dreyfus defends family buyout; Russian-born heiress on cusp of taking full control of agriculture trader
Neil Hume – FT
The life of Margarita Louis-Dreyfus reads like a classic rags to riches story. Orphaned at an early age; raised by a grandparent; finding love on a transatlantic flight; a bitter family feud played out in the courts and press; a $900m buyout to seize control of a 167-year-old storied company; and a promise fulfilled. It has it all.
/on.ft.com/2ExBLGd

The Big Interview: Peter Maragos; The chief executive of Dash Financial, Peter Maragos, discusses targeting growth in the US equities market and gives his views on the importance of order routing transparency, as well as the rebate debate.
By Hayley McDowell – The Trade
Hayley McDowell: Dash currently has significant market share in US options, but how are you targeting growth in the US equities market?
bit.ly/2Eu7hUu

Time-tested ways of holding business to account are crumbling
The Economist
The term “public company” to denote a group with shares listed on a stock market suggests that society at large has an interest in how they are run. Fair enough: one does not need to own shares in Royal Dutch Shell or Facebook to care what their bosses are up to. Comparisons between the market value of multinationals and countries’ GDP are wide of the mark, but their recurrence reflects a legitimate anxiety about the clout of business. Whether as employers, investments, polluters or purveyors of bestselling products, firms need monitoring just as governments do.
/econ.st/2EyqXaE

Exchanges, OTC and Clearing

LSEG Announces Appointment Of Donald Robert As A Non-Executive Director And Then To Succeed Donald Brydon As Chairman After 2019 AGM
Mondovisione
London Stock Exchange Group today announced the appointment of Donald (Don) Robert as a Non-Executive Director of the Board of LSEG, as of 1 January 2019. He will succeed Donald Brydon as Chairman of LSEG after the conclusion of the Annual General Meeting on 1 May 2019.
/goo.gl/7ttbm9

The CEO whose stock exchange is taking on Nasdaq and NYSE says people don’t realize how different entrepreneurship is from corporate life
Myelle Lansat & Richard Feloni – Business Insider
For 12 years, Brad Katsuyama worked at the Royal Bank of Canada before cofounding his company, the stock exchange IEX, in 2012 and then later becoming the star of Michael Lewis’ bestseller “Flash Boys.”
/read.bi/2ExK7Ob

NYSE execs staged trading-floor hoax to impress Snap CEO
By Kevin Dugan – NY Post
This video wasn’t caught on Snapchat ó but the New York Stock Exchange really wishes it would disappear.
/nyp.st/2EyOIPV

BNY Mellon hires government affairs boss from CME Group; Ben Pott, who is known for his expertise on a range of EU trading rules, will be based in Frankfurt
By Samuel Agini – Financial News
BNY Mellon has hired a European financial regulation specialist from CME, the large exchange group, and will place him in Frankfurt, which is likely to become an important EU trading hub after Brexit.
bit.ly/2EqmSo7

Swiss Stock Exchanges Set for EU Market Access Through June
By Alexander Weber and Corinne Gretler – Bloomberg
EU commission plans six-month equivalence-decision extension; SIX says permanent equivalence remains its highest priority
The European Union proposed granting Switzerland’s stock exchanges access to the single market until the end of June, and tied any further extension to the Swiss government’s endorsement of a new agreement on economic ties with the bloc.
/bloom.bg/2Eqnn1t

Trading hours at Eurex Exchange year-end 2018
Eurex
Please be aware of the changed trading hours over the holiday season and year-end 2018.
bit.ly/2Er5Lmj

Growth in volumes across the entire Euro curve
Eurex
Towards the end of the year, we take a look at our Fixed Income segment. Philip Simons shares his views on major milestones and the next steps.
bit.ly/2Eo1OPf

Common Report Engine (CRE) security upgrade
Eurex
In order to ensure reliable and secure communication with the infrastructure of the Common Report Engine (CRE), the SSH Key Exchange Algorithms, Ciphers and MACs have been updated accordingly.
bit.ly/2Ep0g7z

Deutsche Bˆrse reviving Chinese trading platform in Frankfurt; A joint venture with the Shanghai exchange has languished since 2015 but Trump’s new world order may provide renewed impetus.
Darrell Delamaide, Andreas Krˆner – Handelsblatt
Deutsche Bˆrse is eager to breathe new life into its languishing Ceinex joint venture with the Shanghai Stock Exchange and beef up their shared stock exchange in Frankfurt into a real trading platform.
bit.ly/2EurVnR

The Governance Institute Announces Governance Technology Partnership with Nasdaq
By GlobeNewswire
The Governance Institute, a service of NRC Health (Nasdaq:NRC), announced today a new partnership with Nasdaq Governance Solutions, a business of Nasdaq, Inc. (Nasdaq:NDAQ), to provide members of The Governance Institute with access to Nasdaq Boardvantage, an award-winning board portal and collaboration software solution.
bit.ly/2Eqpv9t

Fintech

Technancial and Options Announce TTC’S Janus Suite Availability Within Options’ Facilities
Options-IT.com
JANUS Risk Manager (JRM), will now be available in Options’ datacentres and accessible to institutional clients across its global platform. The Technancial Company (TTC) and Options entered into the agreement in order to facilitate cutting edge outsourced solutions, including JANUS, in all geographic regions.
bit.ly/2S21zNA

DriveWealth Partners with Avenue Securities to Bring Brazilian Investors Easy Digital Access to U.S. Equity Markets
CHATHAM, N.J., Dec. 17, 2018 – DriveWealth, LLC, a leader in global digital trading technology, today announced a new partnership with Avenue Securities, a ground-breaking U.S. digital brokerage founded earlier this year by Brazilian entrepreneur Roberto Lee to serve retail investors in Brazil. The DriveWealth platform is fueling the new offering, which is launching today, giving Brazilian investors their first seamless digital access to the U.S. equity markets.
/goo.gl/jWciXi

Cryptocurrencies

10-Year Jail Term Sought for Former Mt Gox CEO Mark Karpeles
Yogita Khatri – Coindesk
Japanese prosecutors are seeking a 10-year sentence for Mark Karpeles, the former chief executive officer of now-bankrupt bitcoin exchange Mt. Gox.
bit.ly/2EzZFB4

Price of bitcoin falls below cost to mine
Ed Zwirn – NY Post
To add further misery to bitcoin enthusiasts, the act of finding or “mining” the cryptocurrency has become unprofitable as the price continues to crater.
/nyp.st/2EA4QAF

Former Goldman Electronic Trading Head Sees Parallels in Crypto
Vildana Hajric – Bloomberg
Greg Tusar serves as Tagomi Holdings chief technology officer; Electronic brokerage has begun executing trades for clients
It’s been a horrific year for cryptocurrencies. But that hasn’t stopped Greg Tusar, the former global head of electronic trading at Goldman Sachs Group Inc., from being excited about the space even as the digital-asset universe continues to melt down.
/bloom.bg/2ErCO9S

Bitcoin peaked a year ago: Here’s a look at 12 months of misery
Aaron Hankin – MarketWatch
Monday, Dec. 17, will mark one year since the price of bitcoin ó the best-known cryptocurrency ó hit an all-time high just shy of $20,000. For bulls who bought the hype, it’s been a long ó and painful ó ride down.
/on.mktw.net/2Lk1Fh2

You know things are bad when Tether is in the crypto top 5
Jemima Kelly
Bitcoin might have been a popular gift in 2017, but this year, the crypto Christmas isn’t looking good. The Santa rally has been even more elusive than it has in other markets. Bitcoin dropped below $3,200 over the weekend for the first time since August 2017, while Ethereum slumped to its lowest in more than 18 months.
/on.ft.com/2EsBZh8

Bitcoin is plunging, but at least you can write your losses off your taxes
Irina Ivanova – CBS News
Anyone who bought into a high-flying cryptocurrency earlier this year is more than likely tearing their hair out right about now. The major cryptocurrencies, including bitcoin, bitcoin cash, litecoin and ethereum, have crashed to lows not seen in two years. Bitcoin slid below $3,250 this weekóa value it last saw in the summer of 2017.
/cbsn.ws/2BoPnzx

Petro Forced Upon Pensioners by Venezuelan Government
David Kimberley – Finance Magnates
With inflation reaching over 1,000,000 percent, people forced to eat animals they find in the street and president Nicolas Maduro’s nephews arrested for trying to traffic 800 kg of cocaine into the USA, Venezuela’s government has successfully driven the country into the ground.
bit.ly/2PJm8wn

Coinify Completes Acquisition of Crypto Broker BetterCoins
Celeste Skinner – Finance Magnates
Coinify, a Copenhagen-headquartered payment platform for cryptocurrencies, announced this Friday that it has acquired BetterCoins, a virtual currency broker. According to the statement, the company chose BetterCoins due to an “overlap in corporate values.”
bit.ly/2Bol6B2

The State Of Decentralized Exchanges And Plans For 2019
Yoav Vilner – Forbes
Cryptocurrencies originated from a predisposition towards privacy and the belief of a value system outside of the legacy financial structures. The movement has come a long way and, to an extent, cryptocurrencies – particularly Bitcoin – offer a viable and independent financial medium for anyone seeking an alternative to existing systems.
bit.ly/2BnFjqx

Swiss court shuts down ICO venture Envion; The cryptocurrency firm aimed to combine green power with blockchain, but a quarrel between its partners led to a meltdown. Investors may see little of the $100 million they shelled out.
Darrell Delamaide – Handlesblatt
A firm that began as a combination of two of the hottest trends going – ecological investing and cryptocurrencies – quickly became a bitter fight between the two partners and now has been shut down by a court in Switzerland.
bit.ly/2EpqneA

Politics

Trump Is Shattering Economic Taboos, and His Successors May Pay
Shawn Donnan – Bloomberg
Tying Huawei, Fed to trade war flouts decades of U.S. doctrine; Senior officials from past administrations warn of blowback
On the receiving end of Donald Trump’s crusade against the global economic order, it’s often assumed, are faceless multilateral institutions or the rules that have governed international commerce since World War II.
/bloom.bg/2EyLSuk

Nations agree on global climate pact rules, but they are seen as weak
Nina Chestney, Bate Felix, Agnieszka Barteczko – Reuters
Nearly 200 countries overcame political divisions late on Saturday to agree on rules for implementing a landmark global climate deal, but critics say it is not ambitious enough to prevent the dangerous effects of global warming.
/reut.rs/2EwCasB

When Impeachment Is Mandatory; In the case of certain crimes, the House is required, not merely permitted, to initiate proceedings.
Cass R. Sunstein – Bloomberg
Suppose that within the next few months, it becomes clear that President Donald Trump has committed impeachable offenses. Does the House of Representatives have discretion to decide whether to impeach him? Or does the Constitution require it to do so?
/bloom.bg/2EyXQEq

The Switch; New report on Russian disinformation, prepared for the Senate, shows the operation’s scale and sweep
Craig Timberg and Tony Romm – Washington Post
A report prepared for the Senate that provides the most sweeping analysis yet of Russia’s disinformation campaign around the 2016 election found the operation used every major social media platform to deliver words, images and videos tailored to voters’ interests to help elect President Trump ó and worked even harder to support him while in office.
/wapo.st/2EzYWzO

Mueller Exposes Putin’s Hold Over Trump
Steve Denning – Forbes
Just over a week ago, on Friday December 7, the Special Counsel’s Office headed by Robert Mueller for the first time outlined in a court filing the grand narrative of the Russia Probe. The court filing revealed what many had long suspected, that Trump and his family had used, or tried to use, his presidential candidacy, and then his presidency, to enhance their own wealth.
bit.ly/2EBo5dt

Schiff explains why he wants to obtain Trump’s Deutsche Bank records; “The concern about Deutsche Bank is they have a history of laundering Russian money,” Schiff said.
Allan Smith – NBC
Democratic Rep. Adam Schiff, the likely incoming chairman of the House Intelligence Committee, told NBC’s Chuck Todd on “Meet the Press” Sunday that he wants to obtain President Donald Trump’s records with Deutsche Bank because they could expose “a form of compromise” with Russia.
/nbcnews.to/2EvXdeA

Standoff over Trump border wall puts Congress in budget ‘pickle’
Richard Cowan, Amanda Becker – Reuters
A feud between President Donald Trump and Congress over funding his proposed U.S.-Mexico border wall gives lawmakers only five days to find a compromise and avert a partial shutdown of some government agencies that could leave about a quarter of the federal workforce without paychecks at Christmastime.
/reut.rs/2Eztu4u

Wow, a Financial Transactions Tax Is an Amazingly Good Idea
Hamilton Nolan – Splinter
Imagineójust imagineóif a tiny, barely noticed tax on Wall Street could solve many of our nation’s problems. Well it can!!!!!!!!
bit.ly/2EzxQsi

****A beyond oversimplified look at the .1 percent tax idea.~SD

Regulation

Jeffrey S. Mooney Named Associate Director in the Office of Clearance and Settlement
SEC
The Securities and Exchange Commission today announced that Jeffrey S. Mooney has been named Associate Director of the Office of Clearance and Settlement in the agency’s Division of Trading and Markets.
bit.ly/2ECCndE

Beware banking scam impersonating ASIC
ASIC
ASIC is warning the public to be wary of scammers claiming to be from ASIC in connection with Luxembourg Offshore Banking, also known as LUXOSB Limited.
bit.ly/2EsKzMR

FINRA Updates the OTCBB/OTC Equities High Price Dissemination List
FINRA
FINRA is publishing its quarterly OTCBB/OTC Equities High Price Dissemination List for the third quarter of 2018. This updated list of OTC equity securities eligible for trade report dissemination for trades of fewer than 100 shares is effective as of December 14, 2018. To view changes, visit the Daily List: Security Attribute Changes page, select the “Unit of Trades” filter and enter December 13, 2018 as the “Start” date and December 14, 2018 as the “End” date.
bit.ly/2EqLBZu

New rules for claims management companies to boost consumer protection and professionalism
UK FCA
The Financial Conduct Authority (FCA) today published new rules and fees that will apply to all claims management companies (CMCs) from April 2019. That’s when the FCA takes over responsibility for regulating the firms, which help thousands of people every year.
bit.ly/2Epq837

NFA Proposes Amendments Incorporating Swaps into Compliance Rules and Interpretive Notices; NFA Proposes Interpretive Notice Regarding CPO Internal Controls Systems
Christian B. Hennion, Jun Qiu of Katten Muchin Rosenman LLP via National Law Review
On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission for review and approval proposed amendments to various NFA Compliance Rules and four NFA Interpretive Notices to incorporate swaps into these rules and notices.
bit.ly/2Er4knG

Investing and Trading

The Bubble’s Losing Air. Get Ready for a Crisis; Investors need to focus on their response to financial stresses in an era in which policymakers will be constrained.
Satyajit Das – Bloomberg
The “everything bubble” is deflating. The fact that it’s happening relatively slowly shouldn’t blind us to the real threat: The world is dangerously underestimating how hard it’ll be to deal with the fallout once it pops.
/bloom.bg/2EyxQZH

Investment chiefs fret over high debt and liquidity crunch; CIOs overseeing $21tn expect volatility, protectionism and Brexit to pose big risks
Owen Walker – FT
Investment bosses at fund managers controlling $21tn of assets warn that high levels of corporate debt and tighter liquidity pose a risk to the global economy in 2019.
/on.ft.com/2EBVxQI

Recent market ‘jolt’ will be first of many as easy money era ends, says BIS
Tommy Wilkes – Reuters
Recent sharp selloffs across global financial markets are probably the first of many, as investors adjust to a world of tighter monetary conditions and the threat of economic downturn, the Bank of International Settlements said on Sunday.
/reut.rs/2EzZtli

Investors Are Piling Into Loans That Banks Have Avoided Since the Crash
Sally Bakewell and Christopher Cannon – Bloomberg
Jordan Selleck missed the grisly end last time, the Lehman moment that punctured the great American bubble in real estate, credit and foolishness.
/bloom.bg/2EyX7mG

These Tools for Picking Stocks Sometimes Even Work; Using quantifiable measures called factors to identify promising investments has exploded. But it’s not for amateurs.
Nir Kaissar and Noah Smith – Bloomberg
Like stocks that have low price-to-earnings ratios? How about ones that have outpaced the market? Or shares of small companies? Those are known as factors: quantifiable characteristics that some money managers use to identify stocks associated with above-market returns. But factor investing is tricky. Sometimes it pays; other times it doesn’t. Bloomberg Opinion columnists Nir Kaissar and Noah Smith recently met online to debate whether factor investing is worth the effort. They previously discussed corporate debt.
/bloom.bg/2EzYwtg

US credit markets dry up as volatility rattles investors; December on course to be first month without junk bond sale since Lehman crash
Eric Platt, Colby Smith and Joe Rennison – FT
US credit markets are grinding to a halt with fund managers refusing to bankroll buyouts and investors shunning high-yield bond sales as rising interest rates and market volatility weigh on sentiment.
/on.ft.com/2EATfkO

Institutions

Hedge Fund Employees Expect Fatter Paychecks in Beleaguered Year
Shelly Hagan – Bloomberg
Partners see 2018 median compensation of $950,000, survey says; Even junior employees expect a bump in their pay packages
Hedge fund employees of all stripes, from junior analysts to portfolio managers, have something in common this year: They’re all expecting fatter paychecks.
/bloom.bg/2EyMC2A

Major hedge funds are scrambling to prevent financial wipeout
John Aidan Byrne – NY Post
The stars of the biggest hedge funds are losing their shirts as analysts fear a major financial wipeout is imminent. From Ken Griffin’s Citadel, to Israel Englander’s MIllennium Management, one big name after another is racking up negative returns lately, amid bad bets in a saturated market.
/nyp.st/2EvYana

Goldman 1MDB Charges Will Give Bankers Shivers; Advisers in emerging markets where government mandates are often prized will have to think harder about where they do business.
Andy Mukherjee and Matthew Brooker – Bloomberg
First it was the private bankers who were scared. Now, it’s the investment bankers’ turn to cower in the corner.
/bloom.bg/2EBTVXa

Where the World’s Smart Money Made and Lost It in 2018
Melissa Karsh, Krista Gmelich, Nishant Kumar, Bei Hu and Suzy Waite – Bloomberg
Among the hedge fund winners: Crispin Odey, Robert Gibbins; Horseman, Quantedge, David Einhorn’s Greenlight at the bottom
The worst year for hedge funds since 2011 is drawing to a close. Returns evaporated, some of the biggest names shut up shop and investors pulled their money. But there were some bright spots.
/bloom.bg/2EAU25g

Malaysia files criminal charges against Goldman Sachs; Prosecutors accuse Wall Street bank of ‘gross violations’ in dealings with 1MDB fund
Edward White and John Reed – FT
Malaysian prosecutors have filed criminal charges against Goldman Sachs, alleging the Wall Street investment bank committed “gross violations” of securities laws in its dealings with the country’s scandal-wracked state investment fund 1MDB.
/on.ft.com/2Eztd1o

Regions

Don’t Count on the China Put; A likely fiscal stimulus probably won’t give a lasting boost to industry and commodities
Nathaniel Taplin – WSJ
First there was the Greenspan put. Then there was the Trump put, as the president has acted to ease trade tensions when financial markets get skittish.
/on.wsj.com/2Eyy9nh

Carney plans to test UK banks’ resilience to climate change; Green risks and opportunities may be covered in stress tests from 2019
Caroline Binham and David Crow – FT
The Bank of England is planning to include the impact of climate change in its UK bank stress tests as early as next year, in what would be an unprecedented move for a central bank of a major financial centre.
/on.ft.com/2EBmzrN

America Can’t Move Its Cheese; U.S. stockpiles of American, cheddar and other varieties continue to set new records as trade slows and tastes change
Heather Haddon – WSJ
America’s cheese hoard continues to balloon to unprecedented levels, as producers fear the mountain could grow further and put even more dairy farmers out of business.
/on.wsj.com/2EBnVCT

Denmark’s Saxo Bank strikes deal to buy BinckBank for EUR424m
Camilla Hodgson – FT
Denmark’s Saxo Bank has agreed to buy Dutch lender BinckBank for an equity value of EUR424m in order to better compete in light of growing competing in the online trading and investment sector, the companies announced on Monday.
/on.ft.com/2EqZEy8

Brexit

Brexit: May to urge MPs not to ‘break faith’ by demanding people’s vote; Theresa May’s statement aims to stifle growing demands for second referendum
Heather Stewart – The Guardian
Theresa May will urge MPs on Monday not to “break faith with the British people” by demanding a second referendum, as she faces intense pressure to give parliament a say on Brexit before Christmas.
The prime minister will make a statement to MPs on last week’s European council summit in Brussels, from which she returned with little evidence of progress in securing legal reassurances on the Irish backstop.
/goo.gl/EF8Y3n

Brexit: David Cameron ‘advising Theresa May on options’ if deal rejected
BBC News
The ex-prime minister has been speaking to his successor about what may happen if her proposed deal is vetoed by MPs. Several ministers want MPs to be allowed to express their views on “Plan B” options to try to find a consensus. Downing Street said there were “no plans” for this and Mrs May was focused on getting MPs’ support for her deal. But the BBC understands Mr Cameron has been speaking to the prime minister about how a series of “indicative votes” on various different Brexit outcomes may be handled if her deal is rejected.
/bbc.in/2S4LSFC

Theresa May Finds No Joy in Brussels. Now What for Brexit?
Steven Erlanger and Stephen Castle – New York Times
Prime Minister Theresa May of Britain headed home flustered and empty-handed on Friday after a blunt exchange at a European Union summit meeting, where Mrs. May’s entreaties for help to amend a withdrawal deal that would satisfy her Parliament were rejected.
/nyti.ms/2A251kB

Brexit: Labour would fall behind Lib Dems if Corbyn backs May’s deal, polls finds
Adam Forrest – The Independent
Labour will fall behind the Liberal Democrats if Jeremy Corbyn helps Theresa May secure a Brexit deal, according to the latest YouGov poll. The new survey shows Labour would slump to third place, on 22 per cent behind the Liberal Democrats on 26 per cent, should the party support the Conservatives in pushing a deal through parliament.
/ind.pn/2A1OAEO

Why Ireland’s Border Commands Its Own Brexit Backstop: QuickTake
Peter Flanagan – Bloomberg
The boundary between the Republic of Ireland and Northern Ireland, long the scene of tense checkpoints and violent protest, is once again caught up in a bitter division. When British and European Union leaders carry out the split — Brexit — that British voters ordered up, the border between Ireland’s north and south will be the only land crossing between the two jurisdictions.
/bloom.bg/2URDJ95

Miscellaneous

A Storm and a Strike Hit Blueberry Giant’s Global Supply Plans
Laura Millan Lombrana and Jonathan Gilbert – Bloomberg
Hailstorm, rains in November may curb Chile super-fruit crop; Port strike heads into 28th day as workers demand better wages
Getting hold of blueberries for your breakfast pancakes might get harder this season as the largest exporter of the so-called super food grapples with the impact of a hailstorm and a month-long port strike.
/bloom.bg/2EwD605

Insider Tips on Holiday Gifts for Traders; You won’t make a killing on these ideas, but this list Barry Ritholtz – Bloomberg
Every year about this time, we assemble an eclectic list of baubles, toys, trinkets and occasional necessities to give to the traders and fund managers who have been very good this year (an admittedly short list, I know). The goal is to make your holiday shopping a little bit easier.
/bloom.bg/2EyMG2k

Holocaust survivor Charlotte Knobloch on the rise of anti-Semitism and rebuilding Jewish life; The 86-year-old talks about her years in hiding on a farm, the rise of the far-right ó and building a new temple in Munich
Tobias Buck – FT
A short walk from Munich’s onion-domed cathedral stands a house of worship that is ó in its own way ó every bit as remarkable as the famous Frauenkirche.
/on.ft.com/2EzRK6r

Inside the Hidden Lives of New York’s Last Aristocrats; Empires rise and fall, but landed gentry is forever.
James Tarmy, Justine Ocean – Bloomberg
Given the news that New York’s housing slump has extended to the suburbs, it might behoove jittery homeowners to take the long view. As inspiration, they can look to a recent book by photographer Pieter Estersohn, Life Along the Hudson, The Historic Country Estates of the Livingston Family, for insight into what might be the longest view in modern American history.
/bloom.bg/2EAbwin

John Lothian Newsletter

So you want to know what’s happening in the financial markets?We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

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Past Newsletters

From Dutch Tulips to Internet Stocks, Bubbles Often Burst

From Dutch Tulips to Internet Stocks, Bubbles Often Burst

First Read $40,951/$300,000 (13.7%) Brian Duff ++++ JLN Editor-in-Chief Sarah Rudolph to Return to Full-Time Duties Monday; Suzanne Cosgrove Named JLN Deputy Managing Editor JLN Editor-in-Chief Sarah Rudolph has been working part time for the past few weeks and will...

CME to permanently close most trading pits

CME to permanently close most trading pits

First Read $40,626/$300,000 (13.5%) Anonymous ++++ Hits & Takes John Lothian & JLN Staff Without fanfare or amplification from its executives, the CME Group shut the books on most -- but not all -- of its floor trading history Tuesday afternoon with the...

NYSE Says More Staff Can Return to Trading Floor If Vaccinated

NYSE Says More Staff Can Return to Trading Floor If Vaccinated

First Read $40,526/$300,000 (13.5%) ++++ Hits & Takes John Lothian & JLN Staff Welcome to Star Wars Day. May the 4th be with you! -- Google Environmental derivative firm IncubEx has raised $11.7 million in its latest fundraising round (FT). But what was more...

John Lothian Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past JLN Newsletters

CME to permanently close most trading pits

CME to permanently close most trading pits

First Read $40,626/$300,000 (13.5%) Anonymous ++++ Hits & Takes John Lothian & JLN Staff Without fanfare or amplification from its executives, the CME Group shut the books on most -- but not all -- of its floor trading history Tuesday afternoon with the...

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