Exposing a $200B Russian Money-Laundering Scandal; JPX to start merger talks with TOCOM

Oct 24, 2018

Exposing a $200B Russian Money-Laundering Scandal; JPX to start merger talks with TOCOM

Oct 24, 2018

First Read

Hits & Takes
JLN Staff

The mother of all of ALTSO’s Rocktoberfest events is the Hedge Fund Rocktoberfest in New York. Now in its 15th year, the New York event is at the Hard Rock Cafe off Times Square and brings together more than 40 corporate sponsors and 2,000 industry pros. Great cause, great people, great time. What’s not to like?~SD

On Thursday, November 1, 2018, Chicago-Kent College of Law hosts the “10th Annual Conference on Futures and Derivatives.” This is a full day program covering important topics for compliance officers, in house counsel, regulators, accountants and attorneys who work within the Futures industry. Attorneys will receive 6 hours of CLE credit including an hour of ethics. Accountants will receive 7 hours of CPE including an hour of ethics.

A cocktail and networking reception will follow the program.

Registration can be completed by calling the Office of Continuing Legal & Professional Education at (312) 906-5090 or registering online at 10th Annual Kent Conference
~JJL

Join FIA in Singapore from 27-29 November for the 14th Annual Asia Derivatives Conference. Save $100 USD or more on Asia 2018 registration! Sign up for the full conference pass by Friday, 26 October to save.~JJL

Yesterday the Chicago Board of Trade Building had a fire drill for the 16th floor, where our offices are. We were evacuated to the 13th floor in the old building. The entire 13th floor was gutted, with no internal walls showing. There were only columns and elevators to separate the space. There was a great view of LaSalle Street and one of the 12th floor atrium in this office. The entire space is available for a company to come in and utilize. It was quite spectacular to see.~JJL

Yesterday’s cleared volume at the OCC was 25,969,313 contracts. The total would need to be 34+ million contracts to crack the top 10 best days list, something that has happened quite a few times this year. (Four of the top 10 days ever came from this past February.)~SD

Would you like a custom video for marketing purposes for your firm? John Lothian Productions can help you, whether you need 90 seconds or 30 minutes of video. We also have a deal that when you become a Friend Level sponsor of MarketsWiki, you can get a discounted 90-second video as part of the deal. Price is $2500. Normal Friend Level sponsorship is $2000. Contact us for more details.~JJL

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IFM

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Trading Technologies Partners with TradeStation to Offer Its Options-on-Futures Technology to TradeStation Customers
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, today announced that the company has entered into a long-term agreement with TradeStation Securities, Inc. (TradeStation Securities) to provide TT’s advanced options-on-futures trading functionality to TradeStation customers via the TT trading platform.
/goo.gl/Co6w8s

***** TradeStation’s move is significant. It used to be all about the TradeStation platform.~JJL

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New Memorial Monument Unveiled at the Site of Dojima Rice Exchange
JPX
Osaka Exchange, Inc. (OSE) today held the unveiling ceremony for a new memorial monument, “A GRAIN OF LIGHT”, at the historical site of Dojima Rice Exchange. Achieved with the cooperation of various entities, the construction of the new memorial monument and renewal of the site of Dojima Rice Exchange are aimed at commemorating the 30th anniversary of the launch of the equity index futures market in Japan, and drawing attention to its history as the forerunner to organized futures exchanges in the world.
bit.ly/2q6jXbW

***** Adding this to my bucket list to visit and see.~JJL

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Fraud costs telecoms industry $17bn a year; GLF report aims to improve industry co-ordination in the ‘internet of things’ age
Nic Filde – FT
Serious fraud in the telecoms sector costs the industry $17bn in revenue a year, with the proceeds frequently used by organised crime and terrorist networks to raise and distribute funds, according to a new report compiled by chief executives working in the industry.
/on.ft.com/2q8jqpS

****** Growing up, fraud against the phone company was a game played by many in order to get free phone calls. Pay phones were fair game for such hijinx, but $17 billion is a lot of fraud.~JJL

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Capital One Bank fined $100 million over money-laundering controls
Patrick Rucker, Katanga Johnson – Reuters
A leading bank regulator on Tuesday fined Capital One Bank [COFCO.UL] $100 million for failing to enforce anti-money laundering controls that have been in place for years.
/reut.rs/2q5X34t

***** It prompts the question, what’s in your wallet?~JJL

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Tuesday’s Top Three
Our top read items were all about people yesterday, led by The Block Crypto’s announcement about Seed CX in A Chicago crypto exchange has assembled a slate of new directors to help prepare for a November launch. Second went to LinkedIn’s Julie (Menacho) Armstrong, who left CME and moved to Uptake. Third was about teens and what they like in PiperJaffray’s Taking Stock With Teens report. Yes, teens are people too, and apparently they like Chick-fil-A and Starbucks the best.

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Lead Stories

How One Stubborn Banker Exposed a $200 Billion Russian Money-Laundering Scandal; A British employee of Danske Bank dug into the details and tried to alert his superiors
Bradley Hope, Drew Hinshaw and Patricia Kowsmann – WSJ
It took a £1 payment to uncover one of the world’s biggest money-laundering scandals. Howard Wilkinson, a British trader at a Danish bank’s branch in Estonia, noticed that a London business, which moved more than $1 million through the branch almost daily, had filed a report with the U.K. government claiming it had no income or assets. Downloading the report cost Mr. Wilkinson one pound.
/on.wsj.com/2q85oVl

Japan Exchange Group to start merger talks with Tokyo Commodity Exchange
Reuters
Japan Exchange Group Inc (JPX), owner of Tokyo Stock Exchange, will start merger talks with smaller rival Tokyo Commodity Exchange Inc, the companies said on Tuesday, as Japan pushes to create an all-in-one bourse to attract global money.
/reut.rs/2EDLN9F

Trump Steps Up Attacks on Fed Chairman Jerome Powell; President says central banker ‘almost looks like he’s happy raising interest rates’
Michael C. Bender, Rebecca Ballhaus, Peter Nicholas and Alex Leary – WSJ
President Trump escalated his attacks on Federal Reserve Chairman Jerome Powell, saying the head of the nation’s central bank threatened U.S. economic growth and appeared to enjoy raising interest rates.
/on.wsj.com/2q837cH

Forex traders wrap up defence in price fixing trial; Government’s star witness testified they did not think they were cheating anyone
Lindsay Fortado in New York – FT
Three traders on trial in New York over allegations they fixed prices in the global foreign exchange market were on Tuesday wrapping up their defence, which their lawyers kept short after deciding the government’s star witness had done most of their job for them.
/on.ft.com/2q82n7t

There is a fight over data brewing on Wall Street; Nasdaq and the New York Stock Exchange have long profited as aggregators
Brooke Masters – FT
The big beasts of Wall Street are duking it out over data. Last week, the US Securities and Exchange Commission issued a landmark decision in a decade-long fight over the cost of market data between the New York Stock Exchange and Nasdaq on the one hand, and the country’s biggest brokers on the other.
/on.ft.com/2EGSGqG

Italian banks’ fate tied to ‘lords of the spread’; Each basis point rise in sovereign yields heaps more pressure on domestic lenders
Robert Smith – FT
Matteo Salvini, the leader of Italy’s hard-right League party, has borrowed bond market language to create an ingenious new spin on the classic “enemies of the people” trope: the “lords of the spread”.
/on.ft.com/2q6oKKq

Deutsche Bank chief appeals for patience on revenue decline; Corporate and investment banking units suffer falling revenues in third quarter
Olaf Storbeck – FT
Deutsche Bank’s chief executive has asked investors for more patience on his efforts to reverse the slide in revenues after Germany’s largest lender lost further ground on its main investment banking rivals in the third quarter.
/on.ft.com/2q8kr1a

Barclays ‘100% prepared’ for hard Brexit but profits slip; Bank expands Irish subsidiary to become its main European hub outside London
Mark Sweney – The Guardian
Barclays reported a slide in pre-tax profits to £3.1bn for the nine months to the end of September. Photograph: Joe Giddens/PA The chief executive of Barclays said the bank is “100% prepared” for a hard Brexit, expanding its Irish subsidiary to become its main European hub outside London.
/goo.gl/CFHNpm

Wall Street’s Diversity Push Will Be Tested by Next Bear Market
Jordyn Holman and Lananh Nguyen – Bloomberg
‘Intensity’ plunges when job cuts hit: Morgan Stanley’s Harris; Industry leaders meet at Center for Financial Planning summit
Financial companies are all too happy to support diversity programs during good times — but what happens in a bear market? That’s the question posed by Carla Harris, vice chairman of wealth management at Morgan Stanley, who spoke Tuesday at the Center for Financial Planning’s inaugural Diversity Summit in New York. Firms need to foster diversity as a commercial priority or their pipeline of candidates will run dry every few years, she said.
/bloom.bg/2qaRJwN

The Story of Markets Told Through Semiconductors; What appeared to be a selloff in cyclical stocks prompted by fears over the economy may actually be more benign.
John Authers – Bloomberg
Tuesday saw an alarming sell-off in the U.S. equities markets, followed by a plucky comeback. I think the story is best told through the Philadelphia Stock Exchange Semiconductor Index, known by its ticker symbol of SOX. Semiconductors are notoriously cyclical. If there are worries about the economy, they will surely show up in the performance of the SOX. But this was a day when the SOX fought back.
/bloom.bg/2q82AYj

Exchanges, OTC and Clearing

Nasdaq profits weighed down by Nordic trader default
Nicole Bullock in New York – FT
Nasdaq, the exchanges operator, reported a 4.1 per cent drop in net income for the third quarter, which included an $8m loss related to the default of Einar Aas, a private Norwegian trader whose bets in the European power market collapsed last month.
/on.ft.com/2q926kP

Nasdaq Reports Third Quarter 2018 Results; Delivers Solid Organic Revenue Growth
GlobeNewswire
Nasdaq, Inc. (Nasdaq:NDAQ) today reported financial results for the third quarter of 2018. Third quarter 2018 net revenues were $600 million, including 5% organic revenue growth.
bit.ly/2q60bNL

Nasdaq Announces Quarterly Dividend of $0.44 Per Share
GlobeNewswire
The Board of Directors of Nasdaq, Inc. (Nasdaq:NDAQ) has declared a regular quarterly dividend of $0.44 per share on the company’s outstanding common stock. The dividend is payable on December 28, 2018 to shareowners of record at the close of business on December 14, 2018. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.
bit.ly/2q908AX

Qingdao Haier new on the Frankfurt Stock Exchange; Chinese manufacturer of household appliances listed in Prime Standard
Eurex
Qingdao Haier Co., Ltd. (ISIN: CNE1000031C1) was listed in the Prime Standard on the Frankfurt Stock Exchange today. The shares of the Chinese household appliance manufacturer were quoted at EUR1.06 at the start of trading. The issue price was EUR1.05.
bit.ly/2q8dld3

TS expands ITG partnership with addition of POSIT Alert; TradingScreen will integrate ITG POSIT Alert with its OEMS to provide clients with additional block liquidity.
Hayley McDowell – The Trade
TradingScreen (TS) has extended its agreement with equities broker ITG to provides its customers with access to block liquidity from POSIT Alert.
bit.ly/2q6DGIm

Regarding the Equity Trading System Glitch Occurring on October 9, 2018
JPX
We sincerely apologize for the inconvenience experienced by investors and many other market participants caused by the glitch that occurred in the equity trading system “arrowhead” on October 9, 2018.
bit.ly/2q614WB

BSE gets Sebi’s approval to launch Oman crude oil futures contract; The BSE will launch the monthly future contract for Oman Oil from Friday, with settlement on the last working day of the next month
Nidhi Verma -Reuters
India’s stock market regulator the Securities and Exchange Board of India (Sebi) on Wednesday approved the Bombay Stock Exchange (BSE) to launch an Oman oil futures contract, the BSE said in a statement.
bit.ly/2q63hBn

SET Unveils Extra Exhibition To Promote DCA Investment
MondoVisione
The Stock Exchange of Thailand (SET)’s INVESTORY, the first investment discovery museum in Thailand, has launched an extra exhibition to promote Dollar-Cost Averaging (DCA) investment on October 24.
bit.ly/2q85vQH

Fintech

Buy-side throws doubt on RFQ for equities as “last chance saloon” for liquidity; Ahead of the anticipated launch of RFQ for equities from two major trading venues, Hayley McDowell speaks to senior buy-siders and finds out that most are very sceptical of the idea.
Hayley McDowell – The Trade
Two major trading venues are set to launch a request for quote (RFQ) functionality for cash equities trading later this year, but some senior buy-siders are sceptical of the idea and have questioned the need for such a tool in a liquid market.
bit.ly/2q9QFZV

Post-trade providers stepping up as passive shift ‘jeopardises entire intermediary infrastructure’; Discussions around data helping illiquid instruments trade more effectively conjure up worries about what the future of passive investing and what it means for post-trade providers.
Jonathan Watkins – The Trade
One of DTCC’s top data experts has issued a stark warning about the potential threat of passive investing on the entire intermediary ecosystem unless custodians and market infrastructures overcome data challenges and show sentiment and liquidity in the markets.
bit.ly/2q85UTh

A Robo-Advisor at Goldman Sachs?
Barron’s
Goldman Sachs is known for serving the very wealthy, but a restructuring at the firm indicates it’s looking to expand its wealth management products to a broader clientele.
bit.ly/2q8aSiN

How will AI change the face of banking?
By Dr Giles Nelson, CTO Financial Services, MarkLogic
Research firm IDC is predicting banks worldwide will spend more than $4bn on Artificial Intelligence (AI) in 2018. If we factor in PwC’s Sizing the Prize report to understand the broader trend for global business, it seems AI could add a further $15.7 trillion to the global economy by 2030.
bit.ly/2q6rnMi

Blockchain could increase global trade volumes by $1.1 trillion by 2026, off the current base of $16 trillion
Bain & Company via AP
Solutions could provide a $2 billion annual revenue lift in documentary trade financing by 2026 for the global banking industry
bit.ly/2q63y7n

Cryptocurrencies

The Dollar Is The New VIX, And The Bitcoin Connection
Brian Kelly – Forbes
Over the last few months I have been hammering on the idea that the U.S. Dollar is a better gauge of risk in the global financial system than the so-called “Fear Gauge” – the CBOE Volatility Index (VIX). When on CNBC I have prefaced most of my equity market commentary with the view that as long the U.S. Dollar remains stable then the financial markets should remain calm. But if the U.S. Dollar rises, it creates risks to the global economy that are not captured by the VIX index.
bit.ly/2q814p1

Crypto Exchange Coinbase to List Stable Coin Backed by Circle
Julie Verhage – Bloomberg
Coinbase Inc., one of the biggest U.S. cryptocurrency trading platforms, said it’s joining a consortium, which includes Circle Internet Financial Ltd., that is offering a digital token pegged to the value of the U.S. dollar.
/bloom.bg/2q9wxXK

Coinbase Adds Its First Stablecoin Tied to the US Dollar
Nikhilesh De – Coindesk
Crypto exchange Coinbase announced support for the Circle-issued stablecoin Tuesday.In a blog post, the exchange said U.S. customers outside the state of New York can now buy, sell, send and receive the USD//Coin (USDC) through the company’s iOS and Android apps, as well as coinbase.com, which was first announced last month. It intends to offer the coin to customers in different regions going forward.
bit.ly/2qagfOE

Coinbase snags license to operate as a qualified custodian
The Block Crypto
Coinbase, the cryptocurrency exchange, announced Tuesday that it secured the necessary qualification to operate as a qualified custodian.
bit.ly/2q89BZ3

Japanese Crypto Exchange Group Gets Legal Status to Self-Regulate Industry
Wolfie Zhao – Coindesk
The Financial Services Agency (FSA), Japan’s finance regulator, has formally approved a cryptocurrency exchange association as a self-regulatory industry body.
bit.ly/2q6e928

Politics

Fear of Trump Helps Bring Rivals China and Japan Closer Together
Isabel Reynolds, Peter Martin and Emi Nobuhiro – Bloomberg
Abe heading to Beijing in landmark trip as relations warm; Underlying disputes over territory and history unresolved
When Shinzo Abe took office six years ago, it would’ve been unthinkable for China’s leaders to roll out the red carpet for him. The Japanese prime minister can thank U.S. President Donald Trump for the turnaround.
/bloom.bg/2q8bbdr

Trump Says He ‘Maybe’ Regrets Picking Fed’s Powell
Mike Dorning – Bloomberg
Demurs on what circumstances would cause him to fire Powell; Says Fed chair looks ‘happy’ increasing interest rates
President Donald Trump stepped up his attacks on Federal Reserve Chairman Jerome Powell, saying he “maybe” regrets appointing him and demurring when asked under what circumstances he would fire the central bank chief.
/bloom.bg/2q8SKoV

Polls Could Be Missing a GOP Surge. Here’s Why; It certainly looks like Democrats will do well in the midterms. But this cycle presents some unusual risks for pollsters.
Jonathan Bernstein – Bloomberg
If the polls are correct, we’re heading for either a good year for Democrats or a very good year for Democrats. They’ll do well in House contests, probably getting the 23 seats they need for a majority and possibly a lot more. They’ll win a bunch of races for governor, and regain up to half the state legislature seats they’ve lost since 2008. They’ll likely fall short of a Senate majority, but only because the playing field is tilted against them: Democrats will win more than half the Senate elections this year, and the vast majority of votes cast, but that probably won’t be enough to make up for the Republican lead in seats that aren’t up for election.
/bloom.bg/2qbs3Qp

Soros foundation condemns Campbell Soup executive tweet; Government affairs chief spread conspiracy theory on day bomb found at billionaire’s home
Lindsay Fortado and Alistair Gray – FT
George Soros’s foundation has demanded Campbell Soup take action after one of its executives promoted a rightwing conspiracy theory about the organisation on social media.
/on.ft.com/2qbqUIB

Opinion: The Fed could be wrong about inflation and rate hikes
Ed Yardeni – MarketWatch
Some Fed officials have signaled in the weeks since the September FOMC meeting that the economy may be so strong that they might have to raise the federal funds rate higher than they had mentioned doing. That would be unfortunate, given how well they’ve prepared the financial markets for a federal funds rate raised to 3.0% by the end of 2019.
/on.mktw.net/2q8jgig

Regulation

Ex-Goldman programmer sentenced to time served in theft case
Kevin Dugan – NY Post
A judge on Tuesday sentenced ex-Goldman Sachs programmer Sergey Aleynikov to time served for stealing secret computer codes that the bank had used for its trading programs.
/nyp.st/2q6DCbA

CFTC Commissioner Behnam to Keynote and Participate in a Panel Discussion at ASIFMA 2018 Annual Conference: Developing Asia’s Capital Markets
CFTC
bit.ly/2O06vjh

An Open Letter From EMA to the SEC and Stakeholders
Equity Markets Association
The U.S. Securities and Exchange Commission’s Roundtable this week on Market Data and Market Access is timely and welcome. We can all agree that, not unexpectedly, data and technology play a bigger role in the equity markets than they did when the foundational rules of market structure were established because all systems evolve over time, and it is appropriate for the SEC to periodically consider whether public policy is as well-tuned as possible to support our flourishing capital markets and protect investors. The Equity Markets Association appreciates the Commission’s sincere consideration of stakeholder input and advice, as evidenced by this two-day public meeting.
bit.ly/2OKi83d

DoJ probing AmEx’s foreign exchange international payments unit
Reuters
American Express Co (AXP.N) has received subpoenas from the U.S. Department of Justice and inquiries from other federal agencies related to its foreign exchange international payments business, the credit card issuer said on Tuesday.
/reut.rs/2qgkQPr

Video: Flipping the Boiler Room to Fight Fraud
FINRA
Learn how the FINRA Foundation works with partners to fight fraud, like the National Telemarketing Victim Call Center and a farmer.
bit.ly/2q7r583

Cybersecurity Awareness Month: Stay Connected and Protected
FINRA
In an era when much of our lives happen online, from banking to social media, cybersecurity is more important than ever. And we all have a role to playónot just in keeping ourselves safe, but also our employers and customers.
bit.ly/2q8X2wx

FCA publishes PPI complaints deadline Progress Report
UK FCA
The Financial Conduct Authority (FCA) has today published an update on the progress of its payment protection insurance (PPI) consumer communications campaign and supporting supervisory work.
bit.ly/2q8XyKZ

Alleged FX fraudster Jason Amada wants to stay CFTC action against him
Finance Feeds
Jason Amada and Amada Capital Management LLC want to stay the CFTC action pending resolution in related criminal proceedings.
bit.ly/2q9TrhN

Investing and Trading

Trading platform Plus500 targets Japan after European clampdown
Muvija M – Reuters
Online trading platform Plus500 said it will look to expand into regulated markets such as Japan to offset the impact of a crackdown in Europe on high-risk financial betting.
/reut.rs/2EHO3wJ

Drowning in Cash, Big Oil’s Biggest Challenge Is How to Spend It
Kevin Crowley and Kelly Gilblom – Bloomberg
Industry to make more cash in 2018 than previous half decade; Executives have history of bad investments in good times
Big Oil’s big payday has finally arrived. The question now is how to spend the extra cash.
/bloom.bg/2q9T478

Crude Tumbles 5% as Saudis Pledge to Produce as Much as They Can
Samuel Robinson and Jessica Summers – Bloomberg
Saudi oil chief says OPEC in ‘produce as much as you can’ mode; U.S. crude stocks rose 9.88 million barrels last week: API
Oil in New York slid more than 5 percent in Tuesday’s session as Saudi Arabia pledged to meet any supply shortfalls and as a risk-off sentiment spread throughout global markets.
/bloom.bg/2q7mZwH

It’s Too Late Now for Central Banks to Start Raising Rates; This economic cycle seems to have peaked. Nations that have kept rates low won’t have much room to cut when the downturn starts to hurt.
Daniel Moss – Bloomberg
If you haven’t started raising interest rates in earnest already, forget it. Central banks that have dawdled have missed the cycle. Growth seems to have peaked, and markets are signaling potential trouble. For those outside the U.S. who tightened consistently, this is a prudent time to look around and reassess.
/bloom.bg/2q82z6H

The Coming Market Freakout; This year’s sell-off may not yet be fully justified by facts on the ground, but the risks are becoming clearer.
Mark Gongloff – Bloomberg
One of these days, one of these market freakouts will be the real thing. Today was at least a preview of coming attractions.
/bloom.bg/2q6mJxQ

Mounting macro risks stall rally
Alec Young – FTSE Russell Blog
Markets have grown more turbulent as investors come to grips with the Federal Reserve’s rate-hiking resolve in the face of a robust US economy and slackening growth elsewhere. Rising US rates, slowing Chinese growth and simmering trade tensions also loom on investors’ risk radar.
/goo.gl/dmPoJu

Institutions

BNP Paribas Asset Management expands its ESG commitment through appointment of Head of Stewardship for the Americas
BNP Paribas Asset Management
BNP Paribas Asset Management (‘BNPP AM’) announces the appointment of Adam Kanzer as Head of Stewardship, Americas, within its Sustainability Centre. Based in New York, Adam joined on 19 October and reports to Helena ViÒes Fiestas, BNPP AM’s Global Head of Sustainability Research and Policy.
bit.ly/2O1dSHp

Barclays Trading Surge Bolsters CEO Staley in Activist Clash
Stefania Spezzati and Donal Griffin – Bloomberg
FICC revenue outshines American peers, rising almos 10 percent; Equities unit outperforms with derivatives, equity financing
Barclays Plc’s Jes Staley has a stronger case to fend off the British lender’s activist shareholder as he delivers on a promise to grow its securities trading business.
/bloom.bg/2q9TdHI

Deutsche Bank Seeks to Break Vicious Circle as Growth Eludes
Steven Arons – Bloomberg
Revenue shrinks more than expected as trading disappoints; Costs cuts put bank on track for first profit in four years
Just six months into the job, Deutsche Bank AG Chief Executive Officer Christian Sewing is conceding that the growth he promised remains elusive.
/bloom.bg/2q6hMoM

BNP Paribas Asset Management Expands ESG Commitment Through Appointment Of Head Of Stewardship For The Americas
Mondovisione
BNP Paribas Asset Management (‘BNPP AM’) announces the appointment of Adam Kanzer as Head of Stewardship, Americas, within its Sustainability Centre. Based in New York, Adam joined on 19 October and reports to Helena ViÒes Fiestas, BNPP AM’s Global Head of Sustainability Research and Policy.
bit.ly/2O1dSHp

JPMorgan U.S. Private Banking Chief Coffey to Leave Company
Michelle Davis and Sridhar Natarajan – Bloomberg
Coffey has ranked among the industry’s most powerful women; She’s leaving to pursue another opportunity, according to memo
JPMorgan Chase & Co.’s Kelly Coffey, one of Wall Street’s most prominent women, is stepping down as head of the firm’s U.S. private bank.
/bloom.bg/2q82sbh

Shares of Germany’s biggest lender, Deutsche Bank, flirt with lowest closing price ever
Mark December – MarketWatch
Frankfurt-listed shares of Deutsche Bank AG were on the verge of closing at an all-time low on Wednesday, surpassing a previous nadir hit back in June. Shares of Germany’s largest lender were down more than 3% at EUR9.026, amid a continued slump in third-quarter trading revenue that eroded its quarterly profit. If the embattled lender’s shares close at its current level, it would notch a fresh low since it ended at EUR9.052 on June 27, according to FactSet data.
/on.mktw.net/2q9wknq

Regions

Popularity of Indian Stocks This Decade Adds to Outflow Risk
Andrew Janes and Garfield Clinton Reynolds – Bloomberg
Foreigners bought a net $100b of India equities since 2009; Outsized inflows may make Sensex more vulnerable than peers
Monsoon season may be over, but India’s investors are at risk from a different kind of flood. Indian stocks have been the biggest emerging-Asian beneficiaries of the wave of liquidity that swept over world markets in the wake of the global financial crisis, according to data compiled by Bloomberg. That may also make them the most vulnerable, now that the waters are receding.
/bloom.bg/2qa82tI

Who Showed Up at the Saudi Investment Summit
Matthew Martin and Dinesh Nair – Bloomberg
Evercore’s Schlosstein joins financiers dodging Riyadh forum; Saudi conference marred by concerns over columnist’s killing
Ken Moelis showed up. The founder and chief of his eponymous investment bank traveled to Riyadh to extol the virtues of friendship. He stood out as many of the titans of U.S. finance sat out the kingdom’s signature investment summit amid international outrage over the killing of government critic Jamal Khashoggi. As the conference kicked off Tuesday, Turkish President Recep Tayyip Erdogan told his lawmakers he rejected the Saudis’ explanations for the Washington Post columnist’s death in their consulate in Istanbul.
/bloom.bg/2q9Pytd

Why China Is Worried About Forced Selling of Company Shares
Bloomberg News
There’s nothing like a bout of margin calls to deepen a rout. China’s epic stock crash in 2015 was compounded by individual investors borrowing money to buy shares, and then being forced by their brokerages to sell. In this year’s meltdown, the concern centers not so much on individual investors as on company insiders and major shareholders, and their practice of share pledging.
/bloom.bg/2q99jkU

Saudi crown prince proclaims investment conference despite boycott
Andrew Torchia, Rania El Gamal, Marwa Rashad – Reuters
Saudi Arabia’s crown prince trumpeted on Tuesday a conference that has drawn investment deals worth $50 billion despite a boycott over the killing of journalist Jamal Khashoggi, declaring the event as “great – more people more money”.
/reut.rs/2q8O6aJ

Saudis offer Pakistan $6 billion rescue package to ease economic crisis
Kay Johnson, Asif Shahzad – Reuters
Saudi Arabia has agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis, Pakistan’s government said on Tuesday.
/reut.rs/2q86b8A

A banker’s woe: Chinese wealth may get harder to snag for global bankers
Sumeet Chatterjee, Engen Tham – Reuters
News of a foreign wealth manager being denied exit from China last week is raising concerns for global private banks, as they seek to tap trillions of dollars of wealth offshore in the face of Beijing’s growing curbs on overseas investments and outflows.
/reut.rs/2qgket7

Slump persists, China fails to stimulate markets hobbled by pledged shares
Samuel Shen, Andrew Galbraith – Reuters
China is struggling to restore confidence in its stock markets, which are being weighed down by a massive amount of shares that have been pledged as collateral as credit-starved companies seek to raise funds.
/reut.rs/2q4LPxc

IPOs Amid a Global Rout: Thailand Bags $2 Billion in October
Anuchit Nguyen and Joyce Koh – Bloomberg
Thailand has emerged as an unlikely oasis for listings; Low interest rates and flush local liquidity are helping
Investors are snapping up first-time share sales in Thailand despite the rout in global equity markets.
/bloom.bg/2q6ALiS

Brexit

Carney’s Brexit Views Are About to Be Weaponized
Lucy Meakin and David Goodman – Bloomberg
BOE governor agreed to provide analysis of Brexit to lawmakers; Central bank report will surely be used for political ends
The Bank of England is getting dragged deeper into politics. Governor Mark Carney is getting it from all sides. He’s frequently lambasted by pro-Brexit lawmakers for outlining his economic views on the nation’s departure from the European Union, and in the past month another set of lawmakers has lined him up to assess any deal reached by the U.K. government.
/bloom.bg/2qbttdH

Miscellaneous

Developers are turning old bank vaults into secret party rooms
Christopher Cameron – NY Post
Downtown developers are transforming three former financial buildings into luxury condos that cater to the Wall Street crowd ó quite literally ó with vaults repurposed as swanky speakeasies, wine cellars and game rooms.
/nyp.st/2q5XYBX

John Lothian Newsletter

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Past Newsletters

Cboe Plans to Launch Enhanced Block Trading Service in Canada

Cboe Plans to Launch Enhanced Block Trading Service in Canada

First Read $46,041/$300,000 (15.3%) ++++ Hits & Takes John Lothian & JLN Staff Today JLN has a video interview with FIA President & CEO Walt Lukken and FIA Tech President & CEO Nick Solinger about the deal announced yesterday for 10 global banks to...

Ten global clearing firms make strategic investment in FIA Tech

Ten global clearing firms make strategic investment in FIA Tech

First Read $46,041/$300,000 (15.3%) ++++ Hits & Takes John Lothian & JLN Staff I am having a virtual fireside chat with former CFTC Chairman Chris Giancarlo today as part of the Chicago Bar Association Annual Seminar. Today Euronext launched its Euronext...

Apollo, Ares and Oaktree Team Up on Initiative to Lure Black Talent

Apollo, Ares and Oaktree Team Up on Initiative to Lure Black Talent

First Read $42,416/$300,000 (14.1%) ++++ Hits & Takes John Lothian & JLN Staff Longtime industry executive K. James Kleinops has passed away, his son Jeffrey shared on Facebook. Condolences to his friends and family. -- Facebook JLN is working on its...

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

Market Narratives Have Pushed Aside Fundamentals

Market Narratives Have Pushed Aside Fundamentals

First Read $46,041/$300,000 (15.3%) ++++ Hits & Takes John Lothian & JLN Staff We have a new and improved version of The Spread today. We have overhauled our approach to this video series and have the whole JLN team contributing to it. Suzanne Cosgrove has...

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