Facebook Token Runs Into Instant Political Opposition in Europe

Jun 19, 2019

First Read

Hits & Takes
JLN Staff

Justin Llewellyn-Jones, chief operating officer and global head of derivatives at Fidessa/ION, announced he is leaving at the end of the month. Justin is one of the stars of that team that helped build Fidessa into a global technology and brand. He is also one of the most polite people you’ll meet. His departure follows Steve Grob, chief operating officer and global head of derivatives at Fidessa, who recently announced he too is leaving. ION purchased Fidessa last year.~JK

Women in Listed Derivatives (WILD) and ADM Investor Services are sponsoring a Trivia Night in Chicago on Thursday, July 11 from 5:30pm – 8:30pm at the CBOT Annex Rooftop. The cost is $300 for a team of 6 or $25 individual entrance with no trivia (but with food and drinks). All proceeds go to fund the WILD NEXTGEN scholarship for women in finance/tech. You can go here for more information and to register. Both women and men are welcome.~SR

Cboe just let loose a slew of eight disciplinary notices (unclear why they are dated from two weeks ago as they are newly disclosed). There are eight different notices pertaining to six firms and an array of infractions.~SD

With the announcement of Facebook’s Libra endeavor, and knowing that Gemini is the Winklevii’s cryptocurrency exchange, I started wondering if all zodiac signs are present in the crypto realm. Answer: everything but Sagittarius. Aries is a Hyperledger project. Taurus is a digital asset trading platform. Cancer has a more “kinda, sorta” crypto fit, as the closest thing I could find is Curecoin, which somehow merges scientific computing and cryptocurrencies in a way that furthers cancer research. There is a LEOcoin. VirgoCX is a crypto exchange. There are fleeting references on the internet to a “Scorpio Protocol ICO,” though info is thin on that front. There is a Capricoin and also a coin for Aquarius. Who with an end of year birthday wants to take the Sagittarius plunge?~SD

Intercontinental Exchange is in the midst of its roll week and trading has been busy across the ICE MSCI Inc. complex with over 1.24m contracts traded Monday and 809k contracts traded in MSCI Emerging Markets contract alone amidst a record 358,684 traded in MSCI EAFE futures.~JJL

The Managed Futures Pinnacle Awards recognizing excellence exclusively in the managed futures space and presented by CME Group and BarclayHedge will be held tonight in Chicago. Sarah Rudolph and Spencer Doar will be covering the event and representing John Lothian News.~JJL

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Breaking Down Eurex’s Latency Protection

JohnLothianNews.com

In this video from FIA IDX, Eurex Executive Board Member Randolf Roth discusses Eurex’s plans for latency protection (a speed bump) in its French and German equity options markets.

Watch the video »

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Charlotte Crosswell, CEO of Innovate Finance, on the future of fintech, making finance accessible, and being a woman in STEM
Joanna Jones – Business Insider
Charlotte Crosswell has an impressive finance career behind her – and she’s just getting started. Here, Charlotte speaks to BLM about her early years in the city, the latest developments in fintech, and how finance needs to adapt to become more accessible.
bit.ly/2XVOetm

***** Charlotte Crosswell is always worth listening to.~JJL

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The bankers that define the decades: John Reed, Citibank
Peter Lee – Euromoney Magazine
It is with some quiet satisfaction that Euromoney finally sits down with John Reed in an old and exclusive private social club close to Boston Common renowned as home to New England’s traditional elite.
Spry and mischievous for an 80 year old, Reed advises his open-collared English guests straight off the plane on the choice of ties kept behind reception. These are required for all visitors.
bit.ly/2XWO3Oe

****SD: Reed is indicative of the ’80s. In these longform Euromoney pieces, the ’90s are represented by Hilmar Kopper of Deutsche Bank, the 2000s are Santander’s Emilio Botin and the 2010s are JPM’s Jamie Dimon.

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Former MEP Swinburne to join KPMG UK; Former MEP to join KPMG as chair of its risk and regulatory insight centre division.
Joe Parsons – The Trade
Kay Swinburne, one of the authors for the European Union’s MiFID regulations, is set to join audit firm KPMG in the UK.
bit.ly/2ZvpwjO

**** Kay Swinburne has been a regular presence at FIA events. Now she can continue.~JJL

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Google Calendar went out for three hours and we all had an existential crisis
Scottie Andrew and Brian Ries – CNN
That much we know.
What we don’t know is all that we lost.
When the popular calendar tool went offline mid-morning on Tuesday, it took with it a sense of time and stability in offices and households across the country (and parts of Europe, South America, Asia and Africa).
/cnn.it/31HjYol

****JB: There was some angst over it in our office.

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Predictive Analytics Platform Predata Launches U.S. Equities Offering; Financial Industry Expert Scott Nations Joins Predata as an Advisor
Business Wire
Predata, the predictive analytics company for anticipating geopolitical risk, today announced the release of a new suite of signals for U.S. equities. The signals quantify online attention and concern to each of the eleven S&P equity sectors, as well as constituent companies and macro themes within those sectors.
bit.ly/2Xr5Gc0

***** Predata’s Hazem Dawani will receive the Tech-X Emerging Leader Award at the Tech-X Award during Illinois Institute of Technology’s Tech-X fundraiser on June 24.~JJL

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Tuesday’s Top Three
When a firm like Facebook threatens to upend the global payment system, people pay attention. Our top story of the day was about Libra in The Block Crypto’s The 10 most important things you need to know about Facebook’s new cryptocurrency, Libra. Second was more about Libra (just think of the Nacho Libre sequel branding possibilities!) in the New York Times’ Facebook Plans Global Financial System Based on Cryptocurrency. Third was a top three from Monday, the Reuters’ story about how weather changes have drowned the planting season in Illinois farmers give up on planting after floods, throw party instead

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Lead Stories

Facebook Token Runs Into Instant Political Opposition in Europe
Alastair Marsh – Bloomberg
Facebook Inc.’s ambitious plan to roll out its own cryptocurrency ran into immediate political opposition in Europe, with calls for tighter regulation of the social-media giant.
French Finance Minister Bruno Le Maire said the digital currency known as Libra shouldn’t be seen as a replacement for traditional currencies.
/bloom.bg/2x0P6kv

Hedge Funds for Everyone: SEC Ponders Letting in the Not-So-Rich
Benjamin Bain – Bloomberg
Agency asks if it should change rules that exclude mom-and-pop; Any revisions to SEC regulations would likely be years off
Hedge funds and private equity firms may be inching closer to getting their hands on a big pot of money that U.S. regulators have mostly kept out of reach: Cash from mom-and-pop investors.
/bloom.bg/2XsgfeS

UK regulator opens formal investigation into Woodford meltdown; FCA said fund manager had twice breached a liquidity limit in 2018
Kate Beioley and Caroline Binham – FT
The UK financial watchdog has opened a formal investigation into the freezing of Neil Woodford’s flagship fund and admitted that the star stockpicker twice breached a key liquidity limit.
/on.ft.com/2ZwzcKP

Nasdaq Launches Center for Corporate Governance
Nasdaq
Nasdaq, Inc. today announced the founding of the Nasdaq Center for Corporate Governance, a global information and research hub that will integrate Nasdaq’s expertise, insights, and technology to accelerate the understanding of emerging corporate governance and sustainable business practices. The ambition of the Governance Center is to support the work of boards, senior executives, and governance professionals at public, private, and nonprofit organizations.
bit.ly/2ZHneyn

Nasdaq Proposes Regulatory Reform to Help Main Street Investors
GlobeNewswire
TotalMarkets effort seeks to update regulations for Non Professional market data users
Following up on Nasdaq’s initiative to modernize the U.S. capital markets as set forth in TotalMarkets, Nasdaq (Nasdaq:NDAQ) today is proposing changes to the definitions of Professional and Non-Professional users of market data as used in the fee schedule for products regulated by the Securities and Exchange Commission. The public is encouraged to submit comments on Nasdaq’s proposed changes, which seek to update regulations to keep pace with technology, increase market participation, and reduce complexity and administrative burden.
bit.ly/2ZBuOKv

ICE Data Services Launches the ICE US Broad Municipal Index
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Data Services has launched the ICE US Broad Municipal Index (ticker: MUNI), which significantly expands its coverage of the U.S. investment grade rated municipal securities market.
bit.ly/2MYWXdb

Euronext completes the acquisition of Oslo Bors VPS
Euronext
Euronext, the leading pan-European exchange, announces today that it has completed settlement of shares under its offers launched on 14 January 2019 and 31 May 2019. Euronext now owns 97.8% of the total issued and outstanding share capital of Oslo Bors VPS and will fully consolidate Oslo Bors VPS accounts.
bit.ly/2XUPay8

LCH goes live with first Chinese clearing member; Bank of China gains access to clearing of interest rate derivatives, will also act as a clearing broker to its client base.
Joe Parsons – The Trade
The UK entity of the Bank of China has joined LCH’s SwapClear as a new member, becoming the first from a Chinese banking group to join the interest rate clearing house.
bit.ly/2ZBWyil

Brussels threatens to cut off Swiss stocks trading access
Mehreen Khan in Brussels and Philip Stafford – FT
Brussels has warned Switzerland it will cut off the country’s stock traders from EU markets at the end of the month, saying it will not tolerate any “watering down” of the single market’s rules during a “decisive” phase in the Brexit talks.
/on.ft.com/2Xshafk

Lakefront Futures & Options to market Trucking Freight Futures
FreightWaves
Lakefront Futures & Options, LLC., a Chicago-based derivatives brokerage, has created a derivatives group focused on the U.S. trucking and freight shipping sector.
bit.ly/2XXiELC

Ethical investing has reached a tipping point; Environmental, social and governance considerations are finally moving into the mainstream
Gillian Tett – FT
This year Verizon, the American telecoms group, embarked on a $1bn experiment: in February it became the first telecoms company in the US to issue a “green” bond, or a security that raises funds for sustainable business.
/on.ft.com/2ZwCkGB

BNY Mellon now live with cleared securities lending for clients; BNY Mellon has become the first agent lender to centrally clear a securities lending transaction on behalf of a buy-side client through Eurex Clearing’s Lending CCP platform.
Eurex
The trade, which was executed by BNY Mellon on behalf of an insurance company client, originally faced Morgan Stanley as counterparty, and ultimately cleared with Eurex Clearing, a central counterparty (CCP). The trade was matched and novated through Pirum’s CCP Gateway.
bit.ly/2XTR8il

Crédit Agricole boss says regulatory ‘noose’ is throttling growth; Brassac says risk-averse rules on capital are squeezing funding of the economy
David Keohane – FT
The head of France’s largest retail bank has hit out at European regulators, arguing their capital requirements form “a noose” for banks, discouraging risk-taking and threatening their role in funding the economy.
/on.ft.com/2ZCMEgv

Hong Kong financial watchdog doubled fines over last year
Don Weinland – FT
Fines handed out by Hong Kong’s Securities and Futures Commission nearly doubled over the past year to HK$940m ($120m) as the securities watchdog cracked down on shoddy work on initial public offerings by global banks such as UBS, Morgan Stanley and Citigroup.
/on.ft.com/2ZybApa

Guernsey exchange had concerns over valuations in Woodford fund; International Stock Exchange detailed its concerns to the UK regulator
Caroline Binham – FT
The Guernsey stock exchange harboured concerns about the valuations of the listed assets of Neil Woodford’s flagship even after the fund froze over £3bn of investors’ money.
/on.ft.com/2ZznxLy

Carney keeping ‘open mind’ to Facebook backed digital currency; BoE governor says Libra would have to meet the ‘highest standards’
Chris Giles – FT
Mark Carney, governor of the Bank of England, said he had an “open mind” to Libra, the new digital currency backed by Facebook, but there would be no “open door” to its launch and it would have to meet the “highest standards”.
/on.ft.com/2XvyXTf

Exchanges, OTC and Clearing

Bank of China (UK) Limited goes live as a clearing member of LCH’s SwapClear
Loh
The UK entity of Bank of China is LCH’s first clearing member from a Chinese banking group
Highlights LCH’s growing business in and commitment to Asia; LCH, a leading global clearing house, today announced that Bank of China (UK) Limited, Bank of China’s UK entity, has joined its SwapClear service as its first clearing member from a Chinese banking group. By joining the service, Bank of China now has access to clearing of interest rate derivatives at LCH. The bank will also act as a clearing broker, offering clearing services to its client base.
bit.ly/2ZwkOCn

BNY Mellon now live with cleared securities lending for clients
Eurex Exchange
The trade, which was executed by BNY Mellon on behalf of an insurance company client, originally faced Morgan Stanley as counterparty, and ultimately cleared with Eurex Clearing, a central counterparty (CCP). The trade was matched and novated through Pirum’s CCP Gateway.
bit.ly/2XTR8il

London Stock Exchange To Expand Footprint
GlobalTrading
“There is a huge opportunity for the UK bourse to do more in Asia and the Americas and substantially grow beyond our primarily European footprint,” said Schwimmer.
bit.ly/2XVxum1

SGX Orb Awards invites insights on Singapore’s evolution as an international financial hub
SGX
Special #SGX20 award category invites media and content producers to share their ideas of what financial marketplace of future may look like and what it means for Singapore; Second edition of awards part of SGX’s efforts to encourage financial education, empower investors
Singapore Exchange (SGX) today launched the second edition of its SGX Orb Awards to recognise excellence in financial journalism and content. A special category, marking SGX’s 20th anniversary, invites members of the media as well as content producers to share their thoughts on what Singapore as an international financial marketplace of the future may look like.
bit.ly/2ZAjyy9

LME welcomes Chinese Vice Premier
LME
Chinese Vice Premier, Hu Chunhua, yesterday (Tuesday) visited the London Metal Exchange (LME), a member of Hong Kong Exchanges and Clearing Limited (HKEX), during his trip to the United Kingdom (UK) for the 10th UK-China Economic and Financial Dialogue (EFD).
bit.ly/2ZCOiib

UnaVista welcomes new firms to its partner programme to ease industry SFTR burden
London Stock Exchange Group
UnaVista, part of London Stock Exchange Group, is pleased to announce that 25 Independent Software Vendors (ISVs) within UnaVista’s Partner Programme are now looking to include SFTR services as part of their offering to clients. Partner firms include Calypso Technology, Equilend, IHS Markit, MarketAxess Trax, Message Automation and Murex S.A.S. The ISVs will be connected directly into UnaVista, allowing their clients to be able to report all their required transactions through their existing connections and on to UnaVista’s Trade Repository, following the introduction of new Securities Financing Transaction Regulations (SFTR) next year. The Partner Programme has been instrumental in helping reduce the burden of previous reporting obligations, such as MiFID II.
bit.ly/2ZHn6yT

Peter Nash Appointed to the ASX Board
ASX
The Board of ASX Limited announces the appointment of Mr Peter Nash as a non-executive director effective today. Mr Nash will stand for election at ASX’s Annual General Meeting on 24 September 2019
bit.ly/2ZyGrSu

ASX’s Australian Liquidity Centre to support high-density computing
ASX
The Australian Securities Exchange (ASX) has opened the first of its newly constructed high-density pods at its co-location data centre, the Australian Liquidity Centre (ALC).
bit.ly/2Zwldon

Launch of Inline Warrants on HKEX
HKEX
Hong Kong is world’s biggest equity structured products market; Inline Warrants’ launch in July will be on 5 most actively-traded stocks and on the Hang Seng Index
Complements other existing structured products such as Derivative Warrants and Callable Bull/Bear Contracts
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the launch of Inline Warrants in July, further enhancing Hong Kong’s structured product offerings.
bit.ly/2ZE9tjT

Buy side goes Total Return Futures
Eurex
Eurex’s Total Return Futures (TRF) are in the middle of their next phase of growth. After the TRF launch, the exchange initially saw mainly dealer-driven flow. Over the last couple of months, hedge funds, asset managers and insurers became increasingly active.
bit.ly/2Zz6Xve

Euronext completes the acquisition of Oslo Børs VPS
Euronext
Euronext, the leading pan-European exchange, announces today that it has completed settlement of shares under its offers launched on 14 January 2019 and 31 May 2019. Euronext now owns 97.8% of the total issued and outstanding share capital of Oslo Børs VPS and will fully consolidate Oslo Børs VPS accounts.
bit.ly/2XUPay8

Direct Listings: An Innovative Way to Take a Company Public
John Tuttle – NYSE
There’s more than one way to go public. When most people hear about companies listing on the New York Stock Exchange, they naturally think of the Initial Public Offering. In an IPO, a company raises money — typically hundreds of millions to billions of dollars — by selling stock to public investors. The biggest IPOs are the stuff of Wall Street legend.
bit.ly/2XW0oSV

Fintech

Eventus Systems Wins Market Surveillance Product of the Year in Risk Technology Awards 2019
Eventus
Eventus Systems, Inc.,a leading global trade surveillance and market risk platform provider, last night won the award for Market Surveillance Product of the Year in the Risk Technology Awards 2019. London-based Risk.net bestowed the global honors last night at an awards dinner in New York. Eventus won for its Validus platform, which last year processed over 250 billion trade messages for global clients.
/prn.to/31CdMOt

Fintech algorithms discriminate 40% less than traditional lenders
John Detrixhe – Quartz
Algorithmic fintech lending is less discriminatory against minorities than traditional loan officers, according to a recent study of US mortgages. The findings signal hope that technology could provide financing that’s more fair, but the research also underscores how widespread discrimination remains.
bit.ly/31Jrijp

Tech and fintech firms aren’t interested in the OCC’s fintech charter
Lea Nonninger – Business Insider
Dozens of technology and fintech companies, including Google and PayPal, have explored the option of applying for the Office of the Comptroller of the Currency (OCC)’s special-purpose national bank charter, according to sources familiar with the matter cited by the American Banker.
bit.ly/31Jka6o

As artificial intelligence and fintech come knocking, half of Asia-Pacific finance professionals fear for their jobs
Enoch Yiu – South China Morning Post
Half of finance professionals in Asia-Pacific believe their jobs will either disappear or change substantially over the next decade, with some of their work taken over by artificial intelligence and other technologies, according to a poll by CFA Institute.
bit.ly/31Kf2PI

Cryptocurrencies

How Facebook raced to build Libra coin; Social network quietly assembled a crypto team and courted partners for more than a year
Tim Bradshaw and Martin Coulter and Hannah Murphy – FT
Most people missed Mark Zuckerberg’s first hint that Facebook was preparing his boldest bet in years.
/on.ft.com/2ZBVNpv

Facebook’s Libra will not help the unbanked
Brendan Greeley
For the last century, new communications technologies — radio, television, VCRs, the internet — have all been initially sold as something that will help with education, and have actually been used for entertainment. Alphaville suggests a corollary for new financial technology: it’s initially sold as something that will help the unbanked, and it’s actually used to sell drugs (or to pay for people to smash eggs on themselves).
/on.ft.com/2Zt7RsU

Cryptocurrency enthusiasts hate, and love, Libra coin; Purists hope Facebook plan will push digital currencies into mainstream
Camilla Hodgson, Hannah Murphy and Martin Coulter – FT
Cryptocurrency purists said that Facebook’s plans to launch a new digital coin on Tuesday would not create a true cryptocurrency, though they held out hope that the effort might nonetheless bring digital money into the mainstream.
/on.ft.com/2ZBshQv

He Says He Invented Bitcoin and Is Suing Those Who Doubt Him
Olga Kharif – Bloomberg
At a convention on digital currency, rarely does an audience Q&A session include a question as incendiary as, “Why is this fraud allowed to speak at this conference?” But that’s how a discussion about Bitcoin ended up last year in Seoul.
/bloom.bg/2ZuOnV1

$200,000 in Bitcoin Seized in Dark Net Drug Probe
Daniel Kuhn – Coindesk
U.S. authorities seized more than $200,000 worth of bitcoin after alleged drug manufacturer and dealer met with undercover law enforcement officers to exchange the digital currency for cash at a hotel in Norwood, Massachusetts.
bit.ly/2XkX2M9

Politics

Farmers to receive compensation for environmental schemes; Government seeks to address longstanding grievance over delayed claims
Leila Abboud – FT
The UK government has said it will issue payments to thousands of farmers who are owed money for carrying out environmental projects on their lands.
/on.ft.com/2ZxI1nO

Trump Moves From Trade War Toward Currency War
Shawn Donnan, Rich Miller, and Katherine Greifeld – Bloomberg
President’s ECB tweets mark rare intervention by a U.S. leader; He’s backed off ‘strong dollar’ policy of his predecessors
President Donald Trump has already given the global economy trade wars. Now there are signs he may be gearing up for a currency war, too.
/bloom.bg/2Zt6Scc

Regulation

CFTC Charges Company and its Principal in $147 Million Fraudulent Bitcoin Trading Scheme
U.S. CFTC
The Commodity Futures Trading Commission (CFTC) announced the filing of a civil enforcement action (Complaint) in the U.S. District Court for the Southern District of New York against defendants Control-Finance Limited (Control-Finance), a purported Bitcoin trading and investment company, and its principal, Benjamin Reynolds (together, defendants), both of the United Kingdom. The Complaint charges the defendants with exploiting public enthusiasm for Bitcoin by fraudulently obtaining and misappropriating at least 22,858.822 Bitcoin—worth at least $147 million at the time—from more than 1,000 customers.
bit.ly/2XVSzg7

U.S. District Court for the Northern District of California Imposes Permanent Trading Ban against Defendant in CFTC False Statements and Solicitation Fraud Action; U.S. Court of Appeals for the Ninth Circuit Previously Affirmed Summary Judgment against Defendant
CFTC
The Commodity Futures Trading Commission (CFTC) today announced that the U.S. District Court for the Northern District of California (District Court) entered a Supplemental Order (Order) against defendant James D. Crombie (Crombie) permanently banning him from trading on CFTC-regulated markets for his own personal account and from having such trades made on his behalf.
bit.ly/2Xr4mG4

ASIC announces further add-on insurance refunds, bringing total to over $130 million
ASIC
ASIC is today announcing additional significant refund programs by insurers for the sale of add-on insurance by car dealers, and has now secured a further $14.7 million in remediation by six more insurers. This brings the total amount of compensation to consumers for the sale of car-yard add-on insurance with little or no value to over $130 million.
bit.ly/2ZBXp2x

Mifid II has demolished the opaque world of research incentives; New European regulations have provided greater certainty over best execution
Ben Jowett – FT
The results are in. The era in which research incentives drive trading order flow is categorically over. Publication of the aggregated data required under Europe’s Mifid II rules underlines a transformed asset and wealth management landscape that delivers a more transparent outcome for investors.
/on.ft.com/2ZvoYug

Facebook’s Libra currency draws instant response from regulators; G7 countries establish group to examine risk to financial system from ‘stable coins’
Caroline Binham and Chris Giles and David Keohane – FT
Facebook’s plans to launch a new global digital currency drew an immediate response from regulators on Tuesday, with the Group of Seven nations saying it would set up a high-level forum to examine the risks of such currencies to the financial system.
/on.ft.com/2ZwyUUf

ESMA publishes translations for Guidelines on non-significant benchmarks
ESMA
The European Securities and Markets Authority (ESMA) has issued today the official translations of its Guidelines on non-significant benchmarks under the Benchmarks Regulation.
bit.ly/2ZCPm5F

FINRA ADDS – Trade Journals Are Now Available
FINRA
FINRA has resolved the issue with ADDS, and the Trade Journals are now available.
bit.ly/2ZyOY7X

Wedbush to Pay More Than $8.1 Million for Improper Handling of ADRs
SEC
The Securities and Exchange Commission today announced that Wedbush Securities Inc. will pay more than $8.1 million to settle charges for improper handling of “pre-released” American Depositary Receipts (ADRs). This is the SEC’s 11th action against a bank or broker resulting from the SEC’s ongoing investigation into abusive ADR pre-release practices, which, thus far, has resulted in monetary settlements exceeding $422 million.
bit.ly/2Xkaz6R

SEC Adopts Amendments to Improve the Application of the Auditor Independence Rules to Loan Provision
SEC
The Securities and Exchange Commission adopted amendments to the auditor independence rules relating to the analysis that must be conducted to determine whether an auditor is independent when the auditor has a lending relationship with certain shareholders of an audit client.
bit.ly/2XkVkud

SEC Seeks Public Comment on Ways to Harmonize Private Securities Offering Exemptions
SEC
The Securities and Exchange Commission today requested public comment on ways to simplify, harmonize, and improve the exempt offering framework to expand investment opportunities while maintaining appropriate investor protections and to promote capital formation.
bit.ly/2XmPskg

FCA publishes its first annual report on the perimeter
UK FCA
The Financial Conduct Authority has today published its first annual perimeter report.
bit.ly/2Xkb4hf

Citizens Advice supercomplaint to the CMA – update
UK FCA
The Competition and Markets Authority (CMA) published its response (link is external) to the Citizens Advice supercomplaint on the loyalty penalty in December 2018, making several cross-cutting and market-specific recommendations in the mortgages, cash savings and home insurance markets. Today it has published an update (link is external) on progress against its recommendations.
bit.ly/2XibUuX

FCA announces further action on defined benefit transfers
UK FCA
The Financial Conduct Authority has today published the results of the data it has received from firms carrying out Defined Benefit (DB) transfers and set out the next steps in its supervisory work related to transfers.
bit.ly/2XqViks

Investing and Trading

Iron Ore Is on a Hot Roll
Jim Wiederhold – S&P Dow Jones Indexology Blog
The S&P GSCI Iron Ore has been on a tear this year, up 72.47% YTD as of June 13, 2019, breaking through the previous high from May 22, 2019. It had by far the best YTD performance out of any of the commodities indices in the S&P GSCI Series. This bullish performance during the first half of 2019 is a good example of how using commodities in a tactical way can boost returns for investors. The S&P GSCI Iron Ore was able to distance itself from other metals. For example, the S&P GSCI Industrial Metals was flat over the same period.
bit.ly/2XeL7jd

Institutions

Societe Generale signs Poseidon Principles promoting shipping industry decarbonisation
Societe Generale
Societe Generale announces it is one of the founding signatories to the Poseidon Principles in collaboration with the Global Maritime Forum, and in league with a significant number of the shipping industry’s leading banks.
bit.ly/2Xp7xOB

BNY Mellon’s Piers Murray leaving amid bond trader exodus
Kevin Dugan – NY Post
BNY Mellon’s former chief operating officer for its markets business, Piers Murray, is leaving the bank — barely a month after the bank canned a group of bond traders, The Post has learned.
/nyp.st/2ZAhxC5

Deutsche Bank’s Mark Hantho and John Eydenberg Poised to Leave; Departures would be most prominent from the bank’s U.S. operations this year
Jenny Strasburg – WSJ
Two of Deutsche Bank AG’s DB 3.81% top New York deal makers are poised to leave the embattled lender ahead of impending deep cuts to its Wall Street investment bank, according to people familiar with the matter.
/on.wsj.com/2ZrZOga

Vanguard trades blows in fund fee war with M&G; Cut-throat competition escalates in UK investment market
Chris Flood – FT
Vanguard has escalated the price war raging in Europe’s asset management market after firing a broadside that threatens the profits of rival UK-based fund managers.
/on.ft.com/2ZybtKg

Hargreaves Lansdown reveals Woodford fund concerns from 2017; Investment group tells clients of unease about rise in illiquid stocks in that portfolio
Kate Beioley – FT
Hargreaves Lansdown has opened a review into its actions relating to the suspension of investor Neil Woodford’s flagship fund and revealed that Mr Woodford had hidden two instances of a regulatory breach of unlisted stocks from the company.
/on.ft.com/2ZBHP7c

One-in-Four Hargreaves Lansdown Clients Exposed to Woodford Fund
Silla Brush – Bloomberg
A quarter of investors who use Hargreaves Lansdown Plc’s investment platform are exposed to Neil Woodford’s beleaguered flagship fund, which the money manager suspended this month.
/bloom.bg/2ZtcKCm

JPMorgan-owned hedge fund shuts large parts of its business; Highbridge shifts focus to corporate debt investing, telling investors they can redeem
Robin Wigglesworth, Lindsay Fortado and Laura Noonan – FT
JPMorgan-owned hedge fund Highbridge is shutting large parts of its business to focus on corporate debt investing, after a long spell of poor performance by its former flagship “multi-strategy” fund.
/on.ft.com/2XuxaxK

Regions

New York to Approve One of the World’s Most Ambitious Climate Plans; The state would pledge to eliminate net greenhouse gas emissions by 2050, with all its electricity coming from carbon-free sources.
Jesse McKinley and Brad Plumer – NY Times
New York lawmakers have agreed to pass a sweeping climate plan that calls for the state to all but eliminate its greenhouse gas emissions by 2050, envisioning an era when gas-guzzling cars, oil-burning heaters and furnaces would be phased out, and all of the state’s electricity would come from carbon-free sources.
/nyti.ms/2ZAg12R

Malaysia Central Bank Chief Guards Against Another 1MDB
Y-Sing Liau and Yudith Ho – Bloomberg
Malaysia’s central bank is strengthening safeguards to avoid a repeat of the 1MDB scandal, Governor Nor Shamsiah Mohd Yunus said in a wide-ranging interview.
/bloom.bg/2ZvodkU

UBS Can Ride Out the ‘Pig’ Controversy; The Swiss bank has a market-leading business managing Chinese money offshore, and many clients are locked into the relationship.
Nisha Gopalan – Bloomberg
Expect “Pig-gate” to blow over. UBS Group AG’s ultra-rich Chinese clients are unlikely to desert the Swiss bank for local rivals, whatever the level of outrage over language used by its chief economist in a research report last week.
/bloom.bg/2ZwBTvX

Brexit

How the Tory Rivals for PM Reckon They Can Fix Brexit
Alex Morales and Robert Hutton – Bloomberg
Favorite Johnson says the U.K. must prepare for a no-deal exit; All candidates but one want to renegotiate May’s Brexit accord
Five Conservatives are still in the running to succeed Theresa May as U.K. prime minister, with Boris Johnson the front-runner.
/bloom.bg/2ZwxYzd

Goldman, Citi Among Banks Postponing Assets Move as Brexit Looms
Stefania Spezzati , Steven Arons , and Luca Casiraghi – Bloomberg
ECB tells banks to stick to plans to move assets promptly; Lenders are arguing the U.K. is still part of European Union
Goldman Sachs Group Inc. and Standard Chartered Plc are among global firms postponing the transfer of several billion euros of capital outside the U.K. despite regulatory pressure to complete the move.
/bloom.bg/2Zwhya7

MPs renew calls for City feedback on life after Brexit; Deadlines for submissions to Treasury Committee’s Future of Financial Services inquiry has been extended because of Brexit delay
Emily Horton – Financial news
The UK parliament’s influential Treasury Committee has issued a fresh call to London to respond to its inquiry into the future of the City after Brexit.
bit.ly/2XoXJnM

Miscellaneous

Blackstone boss hands Oxford record £150m gift; Schwarzman’s donation highlights UK universities’ focus on philanthropists
Andrew Jack – FT
Stephen Schwarzman, one of America’s richest businessmen, has given Oxford university its largest single donation in modern history by providing it with £150m, it was announced on Wednesday.
/on.ft.com/2ZznbVe

Stephen Schwarzman Gives $188 Million to Oxford University
Heather Perlberg and Benjamin Stupples – Bloomberg
Stephen Schwarzman, head of Blackstone Group LP, has given 150 million pounds ($188 million) to the University of Oxford, the latest in a string of mega-donations to higher learning.
/bloom.bg/2ZwBvxv

Hedge Fund Chief Credits Colts Cornerback With Saving Son’s Life
Jasmine Teng – Bloomberg
“Good things happen to good people.” That’s how Drew Dickson, the founder of London-based hedge fund Albert Bridge Capital, described Indianapolis Colts cornerback Kenny Moore at the end of a deeply personal essay that took off on Twitter after he posted it Monday.
/bloom.bg/2Zz52H2

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