Glitch resets multiple Nasdaq tech stocks to same price; The Nasdaq glitch explained; Ex-Glencore traders aim to cut out middlemen with online concentrate platform

Jul 5, 2017

First Read

Time to Sign Up for New York MarketsWiki Education Series
By John J. Lothian

We are in the home stretch prior to the MarketsWiki Education World of Opportunity series in New York. It is time to sign up your interns or spread the word one last time as we are less than a week to go. Your sharing this information and act of kindness can have a big impact on the next generation to join our industry and markets.

We have a great line-up of speakers for New York and I can confirm we have added JJ Kinahan of TD Ameritrade and John Palmer of CBOE to the list of speakers.

Greg Doud, the head of the Commodity Markets Council, who has been nominated for a trade negotiation job in the Trump administration, has confirmed he will be available to speak at our event.

We are glad to offer complimentary attendee tickets to students who are not working in the industry this summer.

Word of the series has spread far and wide. We are greatly appreciative of all the people who have helped promote the series in New York and Chicago. We are also appreciative of all our sponsors. We have added OCC and TD Ameritrade as sponsors in Chicago.

Help us make one last push to get young people to sign up for this event. It is one of the best things you can do this summer for those interested in our industry. You can register HERE

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Metals Trading Has a Paper Fraud Problem
By Mark Burton – Bloomberg
Natixis, ANZ suits over nonexistent nickel shows industry flaw; No standard for verifying stockpiles stored around the world
For all the high-tech wizardry of modern financial markets, there’s one corner of the commodity world that still depends almost entirely on printed paper — making it an easy target for crooks.
/goo.gl/Sb2eWQ

***** There is a case to be made for some disruptive solution to this problem that may or may not include blockchain.

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Today’s interconnected systems magnify simple human errors at frightening speed and scale
John Detrixhe – Quartz
A glitch in after-hours trading yesterday caused some Nasdaq-listed prices to go haywire: some stocks jumped more than 3,000%, with Microsoft very briefly worth nearly $1 trillion. The episode highlights how today’s complex, interconnected digital systems can magnify seemingly small mistakes, impacting people around the world.
/goo.gl/ULyQWs

***** John Detrixhe has not skipped a beat with quality reporting since he left Bloomberg and joined Quartz. Here is a free-agent signing that has worked out.

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Free-press groups warn of violence against media; Citing Trump’s tweets and extreme political rhetoric, watchdogs groups begin documenting threats against U.S. media.
By HADAS GOLD – Politico
Long accustomed to chronicling threats against the media in other countries, free press organizations are turning their attention to extreme rhetoric and threatened violence against reporters at home as President Donald Trump and his allies ramp up their attacks on the mainstream media.
/goo.gl/CsMrVv

****** In 2016, there were 48 journalists killed for doing their jobs; 18 of them were covering politics. These statistics are from the Committee to Protect Journalists. There are more that were killed where the motive could not be confirmed.

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Dodd-Frank showdown in the Windy City
By Brad Rosen, J.D. – Jim Hamilton’s Blog
The opponents of Title VII of the Dodd-Frank legislation, those reforms that brought sweeping changes to the derivatives and swaps industry, came out with guns a-blazing at the recent John Lothian News/FOW conference in downtown Chicago. Over 200 participants representing CTAs, hedge funds, proprietary trading firms, and other trading industry players attended the event, exploring a wide range of regulatory and technology issues facing the trading community during the course of the day.
/goo.gl/b157ar

***** Coverage of the FOW-JLN Trading Chicago event from Brad Rosen.

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‘Aristocrat of wheat’ soars in price as US drought worsens; Grain favoured for bagels and pizza crust has been hit by High Plains weather
Gregory Meyer in New York – FT
The price of a wheat prized for baking bread has soared on the back of a worsening drought in the US High Plains, attracting record trading volumes and hedge fund activity in an otherwise sleepy corner of the commodities markets.
/goo.gl/ryCj22

***** MGEX on a tear.

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Monday’s Top Three
Monday’s top read story was the New York Times piece, Independent Press Is Under Siege as Freedom Rings. Second was one of the top stories from the prior issue, Crain’s story on DV Trading, CFTC slaps Chicago trading firm with $5 million fine. Third went to Bloomberg’s The Big Board’s ‘Icky’ Attack on Short-Sellers

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MarketsWiki Stats
103,842,268 pages viewed; 22,587 pages; 206,852 edits
MarketsWiki Statistics

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Lead Stories

Glitch resets multiple Nasdaq tech stocks to same price; Amazon, Microsoft and Apple among equities converging at $123.47 after data error
Robin Wigglesworth in New York and Jennifer Hughes and Hudson Lockett in Hong Kong – FT
A data glitch briefly made online games group Zynga more valuable than Goldman Sachs when prices of a host of Nasdaq-listed stocks including Amazon, Apple and Microsoft were reset to exactly $123.47.
/goo.gl/DYDQ4o

The Nasdaq glitch explained
FT
FT Trading Room editor Philip Stafford explains how test data sent out by US exchanges at the end of each day happened to be used as live figures.
/goo.gl/DMCmdj

Ex-Glencore traders aim to cut out middlemen with online concentrate platform
Eric Onstad -Reuters
A group of former traders from commodity house Glencore are set to launch an online platform on Wednesday that allows mining companies and smelters to cut out the middlemen and save cash on deals for concentrates.
Open Mineral already has commitments from several major parties to use the online marketplace and plans to start actual trades once it gains a critical mass of members, probably in August or September, said Chief Executive Boris Eykher.
jlne.ws/2tIJlb4

Trading Technologies appeals legal decision in patent infringement case against Interactive Brokers, TradeStation
Financefeeds.com
Trading Technologies had sued a number of companies, including Interactive Brokers and TradeStation, over an alleged infringement of the patent, which describes “a user interface for an electronic trading system that allows a remote trader to view trends for an item, which assists the trader to anticipate demand for an item”. The patent covers a method of operation used by a computer for displaying transactional information and facilitating trading in a system where orders comprise a bid type or an offer type.
jlne.ws/2tIsZzo

Global Regulators Claim Partial Victory in Tidying the Financial System; Shadow banking risks at the heart of the financial crisis no longer menace global financial stability, says BOE’s Carney
By Jason Douglas – WSJ
Global financial regulators on Monday declared a partial victory in cleaning up some of the murkier corners of the financial system.
/goo.gl/QMxGQx

OCC chief Donohue latest to warn over Basel rules
Luke Jeffs – FOW
The head of US derivatives clearing firm OCC has become the latest to add his voice to the growing chorus of opposition to the Basel Committee’s proposed capital charges, arguing they will impact liquidity which could jeopardise the integrity of the market.
/goo.gl/v6R1LZ

Eurex opens up new hedging instruments
Deutsche Börse
Europe’s largest derivatives exchange has reached another important milestone. After the introduction of futures and options on the sought-after MSCI EAFE Index, which represents developed markets in Europe, Australasia and Far East, Eurex is now the only exchange offering options and futures on all major MSCI barometers. And with the launch of futures on the EURO STOXX 50 Corporate Bond Index, it is the first market infrastructure to offer listed products for the European corporate bond segment.
jlne.ws/2tpawVG

OCC Cleared Contract Volume Up Two Percent in June
OCC
OCC, the world’s largest equity derivatives clearing organization, announced today that cleared contract volume in June reached 387,597,223 contracts, a two percent increase from the June 2016 volume of 378,908,938 contracts. OCC’s year-to-date average daily cleared contract volume was also up two percent from 2016 with 17,174,603 contracts. Cleared futures volume was up 16 percent in June with 13,194,530 contracts, and securities lending CCP activity was up 27 percent over June 2016 with 1,142,708 new loan transactions.
/goo.gl/CbhhHc

Leaving the Single Market would be an act of economic self-harm
Alison McGovern – City AM
Britain should stop before irreversible economic damage is done
Ed Balls’ memoirs have a regular refrain. He quotes Ken Clarke as having said that “good economics is good politics.”
/goo.gl/jvpjVj

Hedge Fund Man Group Said to Shut Quant Incubator After a Year
By Nishant Kumar – Bloomberg
Five money managers said to depart firm following closure; Quant trade unit was set up to develop new money-making ideas
Man Group Plc has shut a quantitative trading unit after deciding to focus on other strategies, according to a person with knowledge of the matter.
/goo.gl/qNtSR9

Hamilton, the EU and the Upside to Shared Debt
By Komal Sri-Kumar – Bloomberg
I suggested in a recent article that better coordination of policies by member nations would attract investments to the euro zone. Specifically, if recently elected President Emmanuel Macron could make reforms to the tax system and the labor market, France would be on the same page as Germany, the region’s largest economy. In turn, such measures would reduce risks for investors and increase economies of scale for producers, who would find equally business-friendly policies in the two neighboring countries.
/goo.gl/tcByCZ

Asset Managers Unlikely Winners as FCA Targets Consultants
By Sarah Jones – Bloomberg
Report seeks to boost competition in $9 trillion U.K. industry; Pension consultants and platforms may bear heaviest burden
Asset managers including Schroders Plc and Jupiter Fund Management Plc are getting off lightly in a regulatory overhaul of Britain’s 7 trillion-pound ($9 trillion) industry, analysts say.
/goo.gl/stjE9L

Why Traders Are Worrying About Low Volatility
By Garfield Clinton Reynolds – Bloomberg
Stock markets are a sea of green, punctuated by frothy highs as markets roll past shocks such as U.K. elections, North Korean missiles, Persian Gulf confrontations and tweet-storms from U.S. President Donald Trump. Normally, all that good market news would seem simply good, right? But a growing chorus of strategists, investors and even policy makers is fretting that there should be more downs to go along with those ups. They’re worried that what’s called volatility in the markets is too low — and that the low readings in market measures known as fear gauges could foreshadow a giant disturbance down the road.
/goo.gl/D65ES7

Saba Capital, Famed for ‘London Whale’ Bet, to Shut London Office: Sources
By REUTERS via NY Times
New York-based Saba Capital Management, famed for its winning bet against the JPMorgan Chase trader known as the ‘London Whale’, is closing its office in London’s Mayfair district, two sources close to the situation told Reuters.
/goo.gl/HoZ7Qc

FCA being shut out of Brexit talks with EU counterparts; Andrew Bailey says regulator is excluded from discussions on future UK-EU relationship
Caroline Binham, Financial Regulation Correspondent – FT
The UK’s financial watchdog has already been shut out from certain Brexit-related discussions with its European counterparts.
/goo.gl/dXdEdX

Exchanges, OTC and Clearing

CME Group Reached Average Daily Volume of 16.5 Million Contracts in Second-Quarter 2017, up 7
CME
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that second-quarter 2017 average daily volume (ADV) reached 16.5 million contracts, up 7 percent from second-quarter 2016.
jlne.ws/2tIfYpe

ICE pushes further into European energy trading
Philip Stafford – FT
Intercontinental Exchange, the US exchanges operator, is preparing to push further into European energy trading after purchasing the 21 per cent it does not own in Endex, a Dutch energy exchange, from Gasunie.
/goo.gl/GLF5Av

Cash market turnover of Deutsche Börse reached 127.4 billion euros in June
Deutsche Börse
At the cash markets of Deutsche Börse, a total of EUR 127.4 billion was implemented in June (June 2016: EUR 134.9 billion). EUR 116.9 billion was attributable to Xetra (June 2016: EUR 123.9 billion) and EUR 3.7 billion to Börse Frankfurt (June 2016: EUR 4.2 billion). At the Tradegate Exchange, sales in June amounted to around 6.9 billion euros (June 2016: 6.8 billion euros).
jlne.ws/2toFhKG

Xetra Gold achieves a new record of gold stocks at 167.55 tonnes; Growth of 50 tonnes since the beginning of the year / Europe’s largest gold securities with physical deposit
Deutsche Börse
The gold holdings of the Xetra-Gold bearer bond reached a new all-time high of 167.55 tonnes on 30 June. At the start of the year, the figure was still 117.59 tonnes. Investments are increased whenever investors buy Xetra-Gold shares via the exchange. For each share certificate, exactly one gram of gold is deposited in the central office for German securities in Frankfurt.
jlne.ws/2tp7xwz

Bats Europe’s block trading platform sees record month; Large-in-scale trading platform saw a record of more than EUR2 billion in notional value traded in June this year.
By Hayley McDowell – The Trade
Bats Europe’s LIS block trading platform has seen more than EUR2 billion in notional value traded in June, a record for the exchange operator.
/goo.gl/4odrDB

NEX launches automated netting settlement service; Service launched for over-the-counter FX trades, with plans to expand into all asset classes.
By Hayley McDowell – The Trade
NEX Group’s Optimisation business has launched an automated settlement netting service for over-the-counter FX trades.
/goo.gl/Xw32KE

Xetra trading platform has been running with new trading technology T7 since today
Deutsche Börse
Xetra trading platform has been running with new trading technology T7 since today
The trading technology T7 of Deutsche Börse Group has been used in Xetra trading on the Frankfurt Stock Exchange since today. In this way, the systems in Xetra trading and the derivatives market Eurex were unified. T7 technology is currently being used by the Eurex Exchange, the European Energy Exchange (EEX) and the Bombay Stock Exchange (BSE). The Vienna Stock Exchange and the Dublin Stock Exchange will soon switch their systems to the T7 technology.
jlne.ws/2toIJVp

Mistrade ranges for options strategies: Adjustment of rule for determination of mistrade ranges
Eurex
The rule for determination of the mistrade range for options strategies under Number 2.8.5 of the Conditions for Trading at Eurex Deutschland and Eurex Zürich will be adjusted with effect from 10 July 2017.
/goo.gl/XAPuDj

EURO STOXX 50® Index Total Return Futures (TESX): Extension of maturities and amendments to Enhanced Designated Market-Making obligations
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG took the following decisions effective 10 July 2017:
/goo.gl/42QCEx

Bond index derivatives: Introduction of futures on the EURO STOXX 50® Corporate Bond Index
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG (collectively: the Eurex Exchanges) took the following decision effective 19 September 2017:
/goo.gl/1Dvoo1

VSTOXX® derivatives: Extension of trading hours in VSTOXX® futures and reduction of exercise fee in options on VSTOXX® futures
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG have decided to extend the trading hours in VSTOXX® futures (FVS). From 1 August 2017, trading in VSTOXX® futures will start at 08:00 CET.
/goo.gl/iyH1CQ

Euro-BONO-Futures: Prolongation of Market-Making Scheme
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG have decided to extend the Designated Market-Making scheme with modified quote parameters for Euro-BONO Futures (FBON) until 31 December 2017.
/goo.gl/jcdQyL

HfG photo funding award of the Deutsche Börse Photography Foundation to Annika Grabold
Deutsche Börse Photography Foundation
Together with the Hochschule für Gestaltung Offenbach (HfG), the Deutsche Börse Photography Foundation awarded the HfG Fotoförderpreis 2017 to Annika Grabold on June 30th. Since 2010, the prize has been awarded to students of the Hochschule für Gestaltung who are involved in photography with their photography. He is endowed with 2,500 euros. The award took place during the annual HfG tour in Offenbach.
jlne.ws/2tpbGkp

ASX GROUP MONTHLY ACTIVITY REPORT – JUNE 2017
ASX
Attached is a copy of the ASX Group Monthly Activity Report for June 2017.
jlne.ws/2tpdA4m

Bond Connect Successfully Launched
HKEX
An event was held at the Exhibition Hall of Hong Kong Exchanges and Clearing Limited (HKEX) today (Monday) to celebrate the successful launch of Bond Connect, a mutual bond market access programme between Hong Kong SAR and Mainland China with Northbound trading link initially and Southbound trading link to be added later.
/goo.gl/YGAvfM

Intercontinental Exchange Acquires Remaining Stake in ICE Endex from N.V. Nederlandse Gasunie
ICE
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Endex is now a fully owned subsidiary of ICE, following the acquisition of the remaining 20% stake of ICE Endex shares from N.V. Nederlandse Gasunie. The transaction terms were not disclosed and are immaterial to financial results.
/goo.gl/0A0ZjF

RUSSIA’S POLYUS RAISES $879M IN ITS RETURN TO LONDON
London Stock Exchange Group
London Stock Exchange today welcomes the return of Polyus, Russia’s largest gold producer, to its Main Market. The company raised $879 million (including the overallotment option) through a 9 per cent equity offering of global depositary receipts to international investors, valuing the company at $8.9 billion. Polyus is the largest Russian IPO globally to date in 2017, reinforcing London Stock Exchange’s status as a leading global financial centre. The company has also raised $2.05 billion in debt capital in London over the last decade, and most recently, raised $800 million through a Eurobond placement on London’s Main Market.
/goo.gl/2wkMSD

SGX announces changes to the Listings Advisory Committee
SGX
Singapore Exchange (SGX) is pleased to announce the re-designation of Professor Hans Tjio as the Deputy Chairman of the Listings Advisory Committee (“LAC”) and the appointment of Mr Goh Kian Hwee as a member of the LAC with effect from 5 July 2017. The appointments are made in consultation with the Monetary Authority of Singapore.
/goo.gl/VZu4JP

SGX first in Asia to list Daily Leverage Certificates
SGX
Singapore Exchange (SGX) will commence trading of Daily Leverage Certificates (DLCs) on Asian indices starting from 17 July 2017.
/goo.gl/GmLnRz

CCP margin backtests can hide flaws, research finds; In richer test, ‘filtered’ VAR beats five other measures
Alexander Campbell – Risk.net
Backtesting of the models used to determine clearing house margin requirements needs to change its focus if margin is to do its job, two risk researchers at Singapore Exchange have argued. They claim current tests focus too heavily on breaches – the number of times losses exceed margin.

Euronext announces volumes for June 2017
Euronext
Euronext, the leading pan-European exchange in the Eurozone, today announced trading volumes for June 2017.
/goo.gl/XXNZLf

BSE to revise transaction charges on equity segment from 1 August; BSE has introduced a new slab-based structure for levy of transaction fees for securities traded under group A, B and other non-exclusive scrips.
Livemint
Top stock exchange BSE has decided to revise the transaction charges for trading in equities, with lower volumes attracting higher fees, from 1 August. The exchange has introduced a new slab-based structure for levy of transaction fees for securities traded under group A, B and other non-exclusive scrips.
/goo.gl/FznwPz

Fintech

BlackRock Opens Tel Aviv Office to Tap Israel’s Technology Edge
By Yaacov Benmeleh – Bloomberg
Nation’s tech prowess was ‘important factor’ in opening office; Israel leads world in number of small tech firms per capita
BlackRock Inc. opened its first office in Israel, tapping into the country’s well of engineers and programmers to help improve the firm’s global platform in a changing asset-management industry.
/goo.gl/N1ryFp

Cloud computing: a blueprint for market infrastructures
By Mark Wetjen, Head of Global Public Policy at the DTCC via FOW
Cloud computing has reached a pivotal point and market infrastructures are evaluating opportunities to expand the use of the cloud more broadly across external services and applications where most appropriate. This is because many cloud operations have reached new levels of robustness and sophistication, which many large corporates are unable to achieve with respect to performance, security, cost and scale.
/goo.gl/7tk6Sa

How regulation and market priorities drive fintech focus globally
Sviatoslav Rosov – City AM
The interest in fintech worldwide shows no signs of abating, as illustrated by the strong attendance at each stop on our recent CFA Institute speaker tour throughout Central and Eastern Europe and the Middle East. But even more interesting is the regional variation in what ‘fintech’ means to local entrepreneurs. Talking to investors, company founders, and stakeholders in the Czech Republic, Poland, Slovenia, Romania, Ukraine, Russia, Abu Dhabi, Saudi Arabia, Bahrain, and Qatar, I learned that local conditions, such as regulatory and/or local market priorities, have a huge impact on what is relevant when talking fintech.
/goo.gl/HzQHwc

JPMorgan and Vantiv make takeover approaches for Worldpay; Strong rise in digital transactions prompts unsolicited offers for payment processor
Emma Dunkley, Martin Arnold and Arash Massoudi in London – FT
Worldpay has become the latest target for US companies aiming to take advantage of weakened sterling as the UK payments processor said on Tuesday it had received separate takeover approaches from JPMorgan Chase and Vantiv, a US-focused rival.
/goo.gl/VS2M3U

Politics

Germany Is Addicted to Russian Gas
By Weixin Zha and Anna Shiryaevskaya – Bloomberg
New pipeline would cut costs of shipping gas to western Europe; Hearing on local objections scheduled for later this month
Hidden by pine forests near the deserted site of what was once East Germany’s biggest nuclear reactor, two shiny pipelines emerge from the Baltic Sea to mark the spot where Chancellor Angela Merkel is trying to secure the country’s energy future.
/goo.gl/uiTqUy

Washington is rougher than Wall Street: Scaramucci
By Mark Moore – NY Post
Anthony Scaramucci, the Donald Trump associate who was the subject of a retracted CNN report and now is has a post in the administration, says Washington is a lot rougher than Wall Street.
/goo.gl/Agiycz

Regulation

Top Brokerage Regulator Earns $1 Million; Finra chief’s compensation reflects work for first full year on the job
By Dave Michaels – WSJ
Wall Street’s frontline regulator of stock brokerages will earn $1 million for his first full year on the job, which could put him on track to earn less than its last chief executive.
/goo.gl/F9SPNT

European Supervisory Authorities publish Q&A on the Key Information Document (KID)
ESMA
Today, the European Supervisory Authorities (ESAs) published the first set of Questions and Answers (Q&A) related to the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs) laid down in the European Commission Delegated Regulation (EU) 2017/653. This Q&A document aims at promoting common supervisory approaches and practices in the implementation of the KID.
/goo.gl/ypg95u

ESMA provides interim transparency calculations for MiFID II
ESMA
The European Securities and Markets Authority (ESMA) has issued today an opinion with interim transparency calculations for non-equity instruments in relation to the implementation of the Markets in Financial Instruments Directive/Markets in Financial Instruments Regulation (MiFID II).
/goo.gl/zsVFgq

ESMA sees continued decline in number of prospectus approvals
ESMA
The European Securities and Markets Authority (ESMA), in its annual report on prospectus activity, has found that the number of prospectus approvals across the European Economic Area (EEA) fell by around 8.5% from 2015 to 2016, continuing the overall decreasing trend seen since the start of the financial crisis.
/goo.gl/LgZAmS

Podcast: June 2017 Monthly Recap
FINRA
Revisit the latest FINRA Notices, compliance resources, and news from June 2017.
/goo.gl/BQvT3u

UK compliance managers predict MiFID II exemption post-Brexit; Survey finds a quarter of compliance and IT managers believe Brexit will make their firm exempt from MiFID II.
By Hayley McDowell – The Trade
A group of compliance and IT managers have said they believe once the UK leaves the EU, their organisation will be exempt from MiFID II.
/goo.gl/QYN7Ui

Final MiFID II unbundling rules leave no excuse for delay; Research providers and industry participants agree the final rules on unbundling provide enough clarification for firms to meet the deadline.
By Hayley McDowell – The Trade
The FCA’s recently published final MiFID II rules for commission payments have provided enough clarity that firms should be able to meet the January 2018 deadline, research experts have agreed.
/goo.gl/kf1Gk4

Rogue FBI informant wants case against him tossed
By Kevin Dugan – NY Post
Guy Gentile wants the Securities and Exchange Commission off his back. The former FBI informant gone rogue, citing a recent Supreme Court decision that drew a strict five-year statute of limitations on disgorgements, has asked a New Jersey federal court judge to dismiss the SEC’s $17 million civil fraud case against him.
/goo.gl/sKbfZT

ASIC remakes ‘sunsetting’ class orders relating to registered schemes
ASIC
ASIC has remade four class orders relating to registered managed investment schemes, which were due to expire (‘sunset’) in 2017 and 2018.
/goo.gl/w5app2

ASIC acts to improve transparency of super websites
ASIC
ASIC has intervened in relation to 21 superannuation trustees, representing 15 per cent of the trustee population, to improve ‘Transparency Information’ (TI) on their super fund websites.
/goo.gl/csjJbU

SEC Inspecting How Hedge Funds Dole Out Hot IPO Shares Among Clients; Letters sent to numerous hedge funds seeking information
By Dave Michaels – WSJ
U.S. regulators are examining whether hedge-fund managers have allocated shares of attractive new companies to some accounts over others, a tactic that could violate the legal duties they owe to their investors, according to a person familiar with the matter.
/goo.gl/Q8Ukw1

Investing and Trading

FTSE 100 history: how the index has changed over 33 years
David Brett – City AM
The FTSE 100 index has just seen one of its quarterly changes with security firm G4S and real estate investment trust Segro promoted to the top 100.
/goo.gl/jbjX6g

Amundi to integrate Pioneer with US business as merger is sealed; First announced in December, the merger has created a EUR1.3 trillion asset management powerhouse.
By Hayley McDowell – The Trade
Amundi has confirmed plans to combine Pioneer Investment Management with its US business Amundi Smith Breeden, as the proposed merger finally closes.
/goo.gl/p4Fje6

Bear Market for Oil Caused by ‘Fake News,’ Says Raymond James
By Luke Kawa – Bloomberg
“Headlines have been misleading, or outright wrong”: analysts; U.S. crude inventory draws have actually been “massive”
Analysts at Raymond James invoked one of U.S. President Donald Trump’s favorite phrases to explain oil’s descent into a bear market — and bolster their case for why crude can rise to as much as $65 a barrel.
/goo.gl/96axSU

‘Mega funds’ raise risk for investors, says Oaktree founder; Private equity inflows driven by disillusionment with other types of investments
Javier Espinoza and Miles Johnson
The weight of money raised in recent multibillion-dollar private equity “mega funds” has made it difficult for buyout groups to generate returns without taking on more risk, according to Howard Marks, founder of Oaktree Capital.
/goo.gl/YXjAPA

Institutions

Citi taps JP Morgan for EMEA exotic equities trading head; Robert Smolen joins Citi from JP Morgan where he headed up the index correlation and hybrid trading books.
By Hayley McDowell – The Trade
Citi has hired a former equity exotics and hybrids trading director from JP Morgan to head up its exotic equity derivative trading for EMEA, according to an internal memo.
/goo.gl/hmzzPi

JP Morgan AM merges global and European equities teams; JP Morgan Asset Management combines equities teams for global $120 billion AuM group.
By Hayley McDowell – The Trade
JP Morgan Asset Management has merged its global and European equities teams to form a new global trading team, according to an internal memo.

Monte Paschi to Reduce 5,500 Jobs, Assets in Rescue Plan
By Sonia Sirletti – Bloomberg
Bank targets net income of 1.2 billion euros from 2021; Italian Treasury will own 70% of Paschi when process complete
Italian lender Banca Monte dei Paschi di Siena SpA laid out a five-year restructuring plan that includes cutting thousands of jobs and selling assets as part of an agreement with the European Union that lets the bank receive 5.4 billion euros ($6.1 billion) in state aid.
/goo.gl/S3SyiS

HSBC Said to Approach Peter Hancock as Possible Outside CEO
By Stephen Morris and Sonali Basak – Bloomberg
Ex-AIG chief, JPMorgan veteran contacted by board for top job; Chairman Tucker held talks with internal candidates last month
HSBC Holdings Plc has approached Peter Hancock, the former boss of American International Group Inc., to be its next chief executive officer as incoming Chairman Mark Tucker considers internal and external candidates to lead Europe’s largest bank, a person familiar with the matter said.
/goo.gl/1ugzdb

Deutsche Bank Employee Morale Said to Steady After 3-Year Drop
By Steven Arons – Bloomberg
First time in three years survey results didn’t deteriorate; Half of staff “proud” to work for bank, person familiar says
Morale among Deutsche Bank AG employees is showing signs of steadying after declining for three consecutive years, according to a person familiar with the company’s survey.
/goo.gl/XnhrmN

Wall Street banks take on summer school: Investing 101 for rich kids
By Elizabeth Dilts – Reuters
“Time for a prenup?” is not a typical title for a summer school course, but it was one of the most popular at an event Morgan Stanley (MS.N) held last week for the millennial-generation children of its richest clients.
/goo.gl/U21qXB

Former Barclays Executives to Plead Not Guilty in Fraud Case
By Suzi Ring – Bloomberg
Former CEO Varley, three others appear at London court hearing; Men charged with bank over 2008 crisis fundraising with Qatar
Four former Barclays Plc executives, including the bank’s ex-chief executive officer, told a London court that they will plead not guilty to charges that they conspired to commit fraud over a 2008 fundraising with Qatar.
/goo.gl/JLBGv7

Regions

U.K. Needs Europe More Than Ever to Look After Its Natural Gas
By Kelly Gilblom – Bloomberg
Britain forecast to export record gas volume to Belgium today; Flows have been higher than normal after closure of Rough
The U.K. is becoming more dependent than ever on the European Union to look after its natural gas, even as it negotiates its exit from the bloc
/goo.gl/X6iyVg

LSE’s Rathi Sees Opportunities in Chinese Fixed Income
Bloomberg
Nikhil Rathi, chief executive officer at London Stock Exchange PLC, discusses the technology used by the exchanges, the opportunities he’s seeing in China and how they’re trying to bring the Chinese and London markets closer together. He speaks on “Bloomberg Markets: Asia.”
/goo.gl/Pq26b9

China to Hold High-Level Meeting Aimed at Streamlining Financial Regulation; National Finance Work Conference likely to elevate role of central bank in coordinating regulatory moves
By Lingling Wei – Bloomberg
China’s leadership is set to convene a long-delayed policy meeting late next week to streamline financial regulation, according to people with knowledge of the matter, as curbing risks becomes a priority for Beijing in a year of political transition.
/goo.gl/V919WX

Hedge Funds Flock to Europe, Thinking Worst Is Over; Bets on equities in Italy, France and Spain have given some global hedge funds 20% returns this year
By Laurence Fletcher and Gregory Zuckerman – WSJ
After the presidential election last year, many hedge-fund managers called the U.S. a great moneymaking opportunity. It turns out Europe is the place to be.
/goo.gl/iHt9b8

Six takeaways from the FT’s Americas commodities summit; Argentina’s agricultural boom, its midterm elections and China lead discussion
Neil Hume, Emiko Terazono and Benedict Mander – FT
Last week the Financial Times hosted its first Americas commodities summit in Buenos Aires, Argentina. At the event, some of the most powerful commodity traders and executives active in the region debated the outlook for the industry. Based on conversations at the summit and panel discussions, here are the main themes that emerged.
/goo.gl/gA2UN7

Gas Traders Face LNG Bidding Battle to Fill U.K. Winter Gaps
By Anna Shiryaevskaya – Bloomberg
U.K. may seek more pipeline gas if LNG market is short: MET; Southern France, Spain, Turkey lured LNG cargoes last winter
Just as Britain’s need for liquefied natural gas may be at its most critical this winter, tankers may still berth elsewhere as traders face off against buyers from Asia to Turkey.
/goo.gl/5cNpS5

Singed by Lehman purchase, Nomura tries expansion again; Has the investment bank learnt lessons from its star-crossed acquisition?
Laura Noonan in London and Leo Lewis in Tokyo – FT
When the axe fell on Nomura’s European cash equities business one April morning last year, it was as swift as it was brutal. More than 500 men and women from the division turned up at the bank’s offices expecting a normal day. Instead they were sacked and told to clear their desks, their BlackBerrys immediately disabled.
/goo.gl/oYmvHe

Brexit

U.K. Drops Brexit Bravado as Hammond Appeals to Business
By Flavia Krause-Jackson and Svenja O’Donnell – Bloomberg
Chancellor of Exchequer speaks Monday to U.K. business leaders; FT reports City of London delegation is headed to Brussels
Theresa May’s government has changed its tune on Brexit, striking a more sober and realistic tone weeks after her disastrous election. Gone is the bluster that had prompted European Union allies to chide the U.K. for wanting to have its cake and eat it, too.
/goo.gl/JRqKLy

Theresa May braced for a fall as Brexit tests loom; Facing cabinet indiscipline and a divided party, European leaders wonder if the PM will survive long enough to negotiate the UK’s exit
George Parker – FT
On the morning of Friday June 9, Theresa May walked through the black door of Downing Street and into an empty shell. Where once there was power, wielded through control and fear, there was impotence. Overnight, Mrs May’s attempt to win an electoral mandate to negotiate Brexit on her own terms had been eviscerated.
/goo.gl/WrKFuH

Small businesses are likely to be hit hardest by Brexit disruption
SIMON LEWIS – Telegraph
Europe has 23m small and medium-sized enterprises. They are the backbone of the European economy, accounting for 99pc of all companies in the EU and 67pc of employment. That amounts to approximately 58pc of gross value added in the non-financial economy.
/goo.gl/ot1ynG

Financial centres after Brexit: a bonanza for Europe?
FT Transact via Youtube
As the process of Brexit continues, the UK’s neighbours are eyeing up the business they can take from London, and the City’s banking sector is the real prize. Patrick Jenkins, finance editor, talks us through which cities stand to gain – and why they may even be outside Europe.
/goo.gl/AozuNb

Brexit Winner Frankfurt Gets Another Shot at Finance Stardom
By Steven Arons and Gavin Finch – Bloomberg
Germany’s banking center emerges as main alternative to London; ‘It’s a bit boring, a bit dull. But then, so are many bankers’
And the Brexit winner is … Frankfurt? Could it really be? The city on the banks of the river Main had ambitions for decades to establish itself on a global map. It wanted to become West Germany’s new capital after World War II, only to lose out to provincial Bonn. After the introduction of the euro, it tried to rival London as Europe’s financial center, but never made it into the same league.
/goo.gl/JXvwyv

Miscellaneous

War or Recession Might Be Needed to Break Low-Vol, Goldman Says
By Will Davies – Bloomberg
Markets have been stuck in ‘low volatility regime’ for a year
Recent pickup unlikely to be sustainable without large shock
It’ll take more than central bank tightening to shake volatility from its yearlong slumber, according to Goldman Sachs Group Inc. A large shock such as recession or war is usually required.
/goo.gl/LTMHjQ

How a Former Wall Streeter Got Religion
Institutional Investor
jlne.ws/2sFj3Hj

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