HKEx May Have Reached Its Peak; Crypto Could Be Lifeline for CHX; Hundreds of European stocks barred from dark pools

Mar 8, 2018

First Read

Statement on Potentially Unlawful Online Platforms for Trading Digital Assets
Divisions of Enforcement and Trading and Markets
Online trading platforms have become a popular way investors can buy and sell digital assets, including coins and tokens offered and sold in so-called Initial Coin Offerings (“ICOs”). The platforms often claim to give investors the ability to quickly buy and sell digital assets. A number of these platforms provide a mechanism for trading assets that meet the definition of a “security” under the federal securities laws. If a platform offers trading of digital assets that are securities and operates as an “exchange,” as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration

****More on the action yesterday: Bloomberg – Bitcoin Dives After SEC Says Crypto Platforms Must Be Registered; Reuters – U.S. regulator urges registration of cryptocurrency exchanges; ThinkAdvisor – SEC: Digital Assets Trading Platforms Must Register


Hits & Takes
JLN Staff

Next week at FIA Boca, John J. Lothian & Company, Inc. will be making an announcement about a new project. In the meantime, today we announce Jim Falvey has been named a contributing editor to John Lothian News and a managing director of JJLCO. We had previously named Chuck Mackie as a contributing editor to JLN. Chuck will also have a business role in the new endeavor to be announced next week.~JJL

Nasdaq‘s Fintech Trends 2018 report identifies seven areas key to capital markets moving forward: the cloud, machine intelligence, blockchain, cybersecurity, quantum computing, pari-mutuel technology and behavioral science. Did you know the Hong Kong Jockey Club (cited in the study) uses a pari-mutuel system to offer more types of bets? Did you know that Longitude is the distributor of that system? And that Tom Ascher was the CEO of that ISE company when it negotiated that partnership?~SD

SGX‘s total derivatives volume was 18.1 million in February, up 45 percent year-on-year. It’s FTSE China A50 Index Futures remained the most active contract with volume of 7.1 million, up 53 percent from a year earlier.~JK

In a study regarding the banking potential of Amazon, Bain surveyed US consumers about tech companies they’d trust with their money. After big banks the order from most trustworthy to least was PayPal, Amazon, Apple, Google, Microsoft, Facebook and Snapchat. To which Bane from Batman says to big banks, “Do you feel in charge?”~SD

Futures for Kids 9th Annual Quiz Night is on Wednesday, April 18 in London at The Minster Exchange, Minster Court from 6 PM to 10:30 PM. For details, contact

Hehmeyer has launched a new Hehmeyer Trading + Investments Blog~JJL


Nasdaq Commits to Further Empower Women in the Workplace
Nasdaq has enhanced its commitment to equal opportunity for women by signing the CEO Statement of Support for the Women’s Empowerment Principles (WEP). This United Nations initiative covers seven broad areas of engagement, committing signatories to action on human rights, nondiscrimination, health and safety, education, public reporting, and other principles related to gender dynamics. The signing coincides with International Women’s Day (March 8).

**** A great way to mark and celebrate International Women’s Day.~JJL


5 Questions with Adam White of Coinbase’s GDAX, the U.S.’s Largest Digital Currency Exchange
Mike Unetich – Trading Technologies Blog
As we hope you have now heard, Trading Technologies has launched connectivity to an important new asset class, spot cryptocurrencies! We thought it would be fun to catch up with Adam White, Vice President and General Manager of GDAX, to get his perspective on the GDAX exchange, partnering with TT and the crypto market.

****Jim Kharouf had a Q&A with Unetich earlier – here’s that story. Now Unetich has a Q&A with White. I can’t find a story of White interviewing someone, so the chain ends here.~SD


Bond Guru Bill Gross to Sell $42.2 Million Stamp Collection
Katya Kazakina and John Gittelsohn – Bloomberg
Bill Gross gained fame as the bond king. Now he rules the market for collectible stamps. His $42 million collection of U.S. postage is so comprehensive that when the first part of it comes up for auction in September, the entire field of philately will feel the effect.

****Mention famous stamps and philatelists and I inevitably end up wanting to rewatch “Charade.” Not that you need an excuse for that 1963 Hepburn/Grant classic.~SD


The Next Frontier In Exchange Trading Systems (part 2 of 4)
Hirander Misra, CEO of GMEX Group and Chairman of GMEX Technologies
Being a financial exchange services provider has rarely been as hard or competitive as it is today. As the business models for exchanges continue to evolve, the technological requirements to run an exchange – be it established or a new entrant – are shifting as well. Modern exchanges need to meet a variety of requirements to service clients, from providing low latency and agile platforms to offering flexibility with regards to language, trading methods, and data models covering a wide variety of asset classes. The days of operating a simple equity exchange, solely in English, with little concern for operational costs, are over, and consequently simply embracing the traditional exchange technology model is no longer the obvious way forward.


Wednesday’s Top Three
Yesterday’s top read piece from Technology Review If you’re so smart, why aren’t you rich? Turns out it’s just chance, piqued the most interest. Second went to Reuters’ story, LJM sued by its broker Wells Fargo over missed payments. Third went to Sarah Rudolph’s recap piece Bitcoin and Blockchain: A WILD Opportunity. That finally edged Bloomberg’s Ken Griffin’s Citadel Dismisses 21 People out of the top three. (But today’s newsletter has another Citadel firing story, so…)


MarketsWiki Stats
121,584,323 pages viewed; 23,031 pages; 212,000 edits
MarketsWiki Statistics

Lead Stories

Hong Kong Exchange May Have Reached Its Peak; The stock market operator faces a growing threat from mainland Chinese rivals
Jacky Wong – WSJ
What next for Hong Kong? The city’s future as one of Asia’s pre-eminent financial centers has felt ever more precarious in recent years, as rival mainland Chinese markets in Shanghai and Shenzhen have expanded and opened up to foreign investors. Still, one proxy for confidence in the city is buoyant: Shares in Hong Kong Exchanges and Clearing, the city’s stock exchange operator, have been on a tear, rising 48% in the past 12 months.

Crypto Strategy Could Be a Lifeline for a Sleepy Chicago Market
Nick Baker and Annie Massa – Bloomberg
Now that the Chicago Stock Exchange’s push to reinvent itself as a conduit to China was rejected, it’s free to consider an audacious backup plan: trading cryptocurrencies.
Companies involved with digital currencies were among aspiring suitors that approached the exchange over the past two years, expressing interest in a merger or takeover if the China deal failed, according to two people familiar with the matter, who asked not to be identified discussing a private situation.

****Link not available at time of publication.

Hundreds of European stocks barred from dark pools
Philip Stafford – Financial Times
Shares of hundreds of European companies will be temporarily barred from private trading venues known as dark pools, as new rules designed to increase transparency in trading finally come into effect.
The London market was hardest hit, as widely expected, according to the data published late on Wednesday by European regulators.

****SD: Bloomberg here

Investing More in Women Will Help Traders Sleep Better at Night
Eric Lam – Bloomberg
Investing in companies that have more women in leadership roles can help lower the volatility of your portfolio, according to Bank of America Corp.

Ken Griffin’s Citadel cuts 45 people as gutting of Aptigon stock unit deepens
Katherine Burton and Katia Porzecanski, Bloomberg via Chicago Tribune
The doors at Citadel have been swinging fast and furiously.
Ken Griffin’s giant hedge fund has pushed out 45 people from its Aptigon Capital stock unit, or about a third of its staff, in one of the biggest shakeups at the hedge fund in recent years, according to people familiar with the matter. Griffin has been concerned about the direction of the unit, which has failed to make money since last year, the people said.

Crypto exchange Binance faced ‘large scale’ theft attempt; Incident came on same day SEC issued warning on crypto exchanges
Adam Samson – FT
One of the world’s biggest digital currencies exchanges says it has thwarted a bold, “large-scale” attempt by cyber crooks to steal traders’ cryptocurrency.

**** Forbes here; TechCrunch here and Yahoo here.

Fearless Girl’s First Year Helped Reshape Corporate Boardrooms
Emily Chasan, Jeff Green
State Street to target boards in Japan, Canada this year; Asset manager’s campaign reached more than 780 companies
In the year since State Street’s Fearless Girl statue started her showdown with Wall Street’s Charging Bull, the $2.6 trillion asset manager has faced a confrontation of its own in corporate boardrooms: pressing firms to add more women to their boards.

****Reuters – Investor State Street uses financial clout to get more women to the top

Stock Markets Are Scary. Suddenly, It’s a Good Time to be a Trader.
Landon Thomas Jr. – NY Times
Inflation scares. Trade wars. Rising interest rates. Suddenly, it is a scary time to be an investor ó but a great time to be a trader. After nearly a decade of calmly climbing stock markets, a period during which algorithms and index-tracking funds reigned supreme, newly volatile markets and the return of a little bit of fear have given new life to an old Wall Street creature: the swaggering risk-taker.

U.S. fund manager Breakwave to launch first ETF for shipping futures
Jonathan Saul, Maiya Keidan – Reuters
U.S.-based fund manager Breakwave Advisors is launching the first exchange-traded fund (ETF) focusing on freight futures, reflecting growing investor interest in shipping as it emerges from a near-decade long crisis, a regulatory filing showed.

OpenFin to foster connectivity across capital markets desktops
OpenFinA newly formed group of major finance industry players announced today that they have joined an OpenFin-led initiative to bring universal connectivity and standards to all of the financial industry’s desktop applications.

Iosco consults on recommendations to help trading venues manage extreme volatility
The Board of the International Organization of Securities Commissions (IOSCO) is seeking feedback on its proposed recommendations to assist trading venues and regulatory authorities in the implementation of mechanisms to manage extreme volatility.

Exchanges, OTC and Clearing

Japan suspends trade on 2 cryptocurrency exchanges; Regulator sanctions 7 operators after finding loose compliance and poor training
Robin Harding – FT
Japan’s Financial Services Agency has ordered two cryptocurrency exchanges ó Bitstation and FSHO ó to stop doing business for a month. Five others, including Coincheck, were instructed to improve internal controls and report back to the regulator.

****WSJ here and CNN here

Overview of the Hong Kong Trade Repository
Chris Barnes – Clarus Financial Technology
Hong Kong started interim trade reporting in August 2013, with Legislative vetted rules implemented on 10 July 2015. Unlike other jurisdictions in Asia, HKMA built the trade reporting solution themselves. The Hong Kong Trade Repository (HKTR) was built by their subsidiary Hong Kong Interbank Clearing Limited (HKICL). HKICL also built/manages Hong Kong’s payment infrastructure on behalf of HKMA.

Cboe gets green light for benchmark administrator position in Europe; Market participants can use the exchange group’s benchmarks within the EU BMR regulatory framework.
Hayley McDowell – The Trade
Cboe Global Markets has gained regulatory approval to act as a benchmark administrator under EU regulation.

BlackRock expands Open Trading partnership with MarketAxess; BlackRock will use MarketAxess for Asian credit trading after signing up to Open Trading for US and European credit trading.
Hayley McDowell – The Trade
BlackRock has expanded its partnership with MarketAxess and will use the Open Trading platform for Asian credit markets.

Roadmap for collateral: Collateral fee adaptations and incentives to strengthen CCP risk management
Effective 3 April 2018, the following measures of Eurex Clearing will come into effect:

SGX reports market statistics for February 2018
Securities daily average value (SDAV) highest since May 2013.
Total Derivatives volume was 18.1 million, unchanged month-on-month (m-o-m) and up 45% year-on-year (y-o-y).

National Stock Exchange ‘hopeful’ of going public in FY19
India’s National Stock Exchange said on Thursday it was hopeful of going public in the next financial year beginning April and that it was committed to expeditiously resolving regulatory issues that have delayed its initial public offering.

Sebi has returned NSE consent plea citing pending investigation: Sources
Samie Modak – Business Standard
The National Stock Exchange (NSE) will have to re-file not just the initial public offer (IPO) document but also the consent plea for settling the co-location issue with market regulator Securities and Exchange Board of India (Sebi).

Sebi’s P-note derivative ban fails to dent Indian futures market volumes
Pavan Burugula – Business Standard
It has been six months since market regulator Securities and Exchange Board of India’s (Sebi’s) diktat of not allowing participatory notes (p-notes) to take unhedged positions in Indian derivative markets took effect. Contrary to industry concerns at the time the decision was taken, however, the volumes in Indian futures market have only increased since August 2017.

JPX Monthly Headlines – February 2018
JPX group companies undertake various initiatives and disseminate information with the aim of providing the most attractive markets to all users.

Euronext announces annual review of the AEX, AMX and AScX

Adjustment in the Scale 30 index; Daldrup & Sohne AG replaces Ringmetall AG on 19 March 2018
Deutsche Boerse

HKEX Presents Stock Connect Awards To Honour Market Participants
Awards recognise market participants’ contributions to Stock Connect in 2017; Shenzhen Connect included for first time
Hong Kong Exchanges and Clearing Limited (HKEX) today (Thursday) presented its Stock Connect Awards for 2017 to recognise major brokerages for their achievements last year in the city’s landmark stock trading linkages with the Shanghai and Shenzhen stock exchanges.


GTCR hands fintech firm Dash off to Flexpoint Ford
Lynne Marek – Crain’s Chicago Business
Private-equity firms don’t do business with each other very often, but today Chicago heavyweight GTCR is doing a fintech deal with a local peer, Flexpoint Ford.
GTCR said in a statement that it’s selling New York-based Dash Financial Technologies to that company’s co-founders, Peter Maragos and David Karat, who in turn partnered with Flexpoint to make the purchase. A Dash spokesman declined to say what size ownership stake Flexpoint is buying or how much it paid.

EU proposes crowdfunding ‘passports’ in boost for fintech
Huw Jones – Reuters
The European Commission has proposed crowdfunding “passports” for the European Union in a draft law that forms part of efforts to boost growth in the financial technology sector.

Exchange Data International Launches Short Interest Feed
Exchange Data International (EDI), a provider of global security corporate actions, pricing and reference data, announced today the release of its Short Interest service.

SWIFT Claims ‘Huge’ Progress on DLT Bank Pilot
Nikhilesh De – CoinDesk
Interbank messaging platform SWIFT has published the results of a long-running distributed ledger proof-of-concept project.

19 of the top ex-bankers in fintech
Dan Butcher – efinancialcareers
It’s becoming more common for bankers to quit the traditional financial services in favor of financial technology, either co-founding a startup or landing at an established fintech firm. Some crash and burn and come crawling back to banking with their tail between their legs, but many have found great success in the fintech space.

Amazon could become the third-biggest US bank if it wants to: Bain study
Thomas Franck – CNBC
Bain writes that Amazon’s banking services could grow to more than 70 million U.S. consumer relationships over roughly five years, rivaling Wells Fargo. Amazon could evade more than $250,000,000 in credit card interchange fees every year if it finds a bank willing to partner.
The Bain report finds one-quarter of those using voice assistants like Amazon’s Alexa would consider using them for everyday banking.

Comcast Makes First Big Bet on a Multi-Blockchain Future
Michael del Castillo – CoinDesk
Comcast is banking on a world with multiple blockchains.
Revealed exclusively to CoinDesk, the venture arm of the telecommunications giant is leading a $3.3 million seed investment in Blockdaemon, a New York City-based startup that creates enterprise software for interacting with a wide range of blockchains.

Qarnot unveils a cryptocurrency heater for your home
Romain Dillet – Techcrunch
Qarnot unveiled a new computing heater specifically made for cryptocurrency mining. You’ve read that right, the QC1 is a heater for your home that features a passive computer inside. And this computer is optimized for mining.


Trump to Sign Tariffs on Thursday but Some Countries Could Escape Them
Ana Swanson – NY Times
President Trump is expected to formally sign off on stiff and sweeping tariffs on steel and aluminum imports at noon on Thursday, according to people familiar with the deliberations, capitalizing on the pending departure of his top economic adviser, Gary D. Cohn, who was the plan’s primary opponent.

****SD: Reuters – White House opens door to tariff exclusions for some countries

Oil and corn tout dueling studies on future of U.S. biofuel program
Ayenat Mersie – Reuters
Big oil and big corn are touting opposing studies released this week on proposed biofuels policy reforms under consideration by the Trump administration, part of an ongoing clash between the two sides over the future of the program.

EU Tells Trump to Brace for Retaliation Over Metal Tariffs
Jonathan Stearns – Bloomberg
The European Union mounted a last-ditch push to stop U.S. President Donald Trump from triggering tariffs on foreign steel and aluminum, vowing a “firm” response and warning of widespread damage from a trans-Atlantic trade war.

‘Death by China’ economist ascendant as Trump pushes tariffs, hits China
David Chance, Roberta Rampton – Reuters
An economist who believes that Chinese goods are literally poisoning Americans, advocates ending Washington’s “One China” policy and says trade deals have weakened the United States economically with the connivance of U.S. business has emerged as the big winner from renewed turmoil in the White House.

Gary Cohn Quitting Trump Administration May Not Be a Huge Change
Daniel Moss – Bloomberg
Chill out, everyone. We don’t know whether this adviser actually kept the administration out of trouble, or whether his successor will.

Cohn Is Out, and the Verdict Is In: The Nationalists Are Back; The former Goldman Sachs executive brought “a sane voice to a very chaotic cabinet.” In the end, it wasn’t enough.
Joshua Green – Bloomberg
When the Dow Jones industrial average closed at a record high on Jan. 26, it looked like the reigning wisdom about Donald Trump and his presidency might be all wrong: Trump had sold himself to voters as a fire-breathing nationalist eager to rip up trade deals, stick it to Wall Street, and impose Steve Bannon-style protectionism.

***** Also see Bloomberg’s “Gary Cohn’s Exit Isn’t the End of Western Civilization”.~JJL

Gary Cohn is the latest Goldman Sachs alum to ill-serve America
Jeffrey Sachs – CNN
Most observers today, including myself, bemoan the reason that Gary Cohn is leaving the Trump White House. The President’s top economic adviser lost the trade policy battle with Trump and the protectionists around him, as the President insists he will impose tariffs on steel and aluminum — and stock markets are falling as a result.

Tax Law Doesn’t Pay for Itself, Harvard Economists Find; Study estimates net cost of $1.2 trillion to the Treasury over a decade
Richard Rubin – WSJ
The recent changes to the U.S. tax law will increase economic growth modestly but not fast enough to pay for themselves, according to a new estimate from a pair of economists from different sides of the political spectrum.

Congress Has Another Faulty Bank-Reform Bill; Lighter regulation plus too little capital equals bad news.
Editorial Board – Bloomberg
Congress is about to revisit the financial protections put in place after the 2008 crisis. Some would call what’s proposed a gutting of the Dodd-Frank reforms. It’s hardly that, but it’s troubling nonetheless.

Big Bank Custody Fight; A Senate bill includes a sneaky reduction in capital rules.
Editorial Board – WSJ
The Senate is debating a bill that would relax Dodd-Frank’s chokehold on small banks, but a couple of provisions that ease capital and liquidity standards for the giants will make the financial system more vulnerable in a panic.


CFTC Talks to the Chamber of Digital Commerce
Brad Rosen – Jim Hamilton’s World of Securities Regulation
Chamber of Digital Commerce President Perianne Boring and General Counsel Davine Kim recently took part in a riveting conversation about the chamber and its activities in an episode of the CFTC Talks podcast. The talk centered on the chamber’s mission, the market problem it seeks to address, and where digital assets and Blockchain based technologies might be heading. The interview was moderated by podcast host Andrew Busch, the CFTC’s chief market intelligence officer.

Crypto bull John McAfee says SEC is striking out ‘in panic’ at digital currencies
Mike Murphy – MarketWatch
SEC had earlier warned of risk some crypto exchanges pose to investors
John McAfee speaks at a blockchain conference in Hong Kong in 2017.
Cybersecurity tycoon-turned-cryptocurrency bull John McAfee lashed out at the Securities and Exchange Commission on Wednesday night, claiming that the agency is running scared of digital currencies.

Lawyer’s ‘Get-Rich’ Scheme Starts Like B Movie, Ends With Prison
Jef Feeley – Bloomberg
DOJ lawyer gets 30 months over pilfered whistle-blower cases; Prosecutor says Werkin’s scheme motivated by ‘money and greed’
A job at a prestigious law firm with a salary of almost half a million dollars didn’t stop Jeffrey Wertkin from wearing a wig to carry out a criminal scheme that his defense attorney said was like a scene out of a “B grade action movie.”

ASIC takes civil action against Antares Energy and a director
ASIC has commenced civil penalty proceedings in the Federal Court of Australia against Antares Energy Limited (‘Antares’) and one of its directors, former CEO and Chairman James Cruickshank (‘Cruickshank’) regarding Antares’ announcements made in September 2015 about the proposed sale of its oil and gas interests in the Permian Basin of Texas in the United States of America.

Working together for stronger financial capability
ASIC has released the National Financial Literacy Strategy Annual Highlights Report 2016-17. The Report paints a national picture of financial literacy programs and initiatives delivered by a wide range of organisations across the government, education, industry and community sectors in support of the National Financial Literacy Strategy, led and coordinated by ASIC. The scale of work continues to grow with over 70 organisations supporting or contributing to initiatives aligned with the National Strategy.

EU Agencies Joint declaration on sexual harassment
On International Women’s Day, the heads of EU agencies, including ESMA, commit to zero tolerance on sexual harassment in a joint statement.

MiFID II: ESMA publishes double volume cap data
The European Securities and Markets Authority (ESMA) has published today trading volumes and calculations regarding the double volume cap (DVC) under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

FINRA’s Cloud Strategy Shone amid Recent Volatility
Steve Randich – FINRA
Early last month, when U.S. markets experienced their most turbulent week in years, a record-setting 99 billion electronic messages coursed through FINRA’s regulatory platform in a single day to cap a week of record volume. We handled the unprecedented volume seamlessly, thanks to FINRA’s pioneering cloud strategy.

FINRA Updates Designation Criteria to Require Firms Reporting U.S. Treasury Securities to TRACE to Participate in FINRA’s Business Continuity/Disaster Recovery Testing
As required by Regulation Systems Compliance and Integrity (Regulation SCI), FINRA, in 2015, adopted Rule 4380 requiring member firm participation in business continuity and disaster recovery (BC/DR) testing. The rule authorizes FINRA to designate firms that must participate in FINRA’s annual BC/DR test based on established standards, which FINRA published in Regulatory Notice 15-43. Since FINRA published Notice 15-43, it began collecting transaction reports for U.S. Treasury securities. This Notice updates the criteria in Notice 15-43 to include criteria for designating firms that report a significant volume of transactions in U.S. Treasury securities to TRACE for mandatory BC/DR testing participation.

AgCon2018 Agenda Announced Today
AgCon2018, the upcoming joint conference of the Commodity Futures Trading Commission (CFTC) and the Center for Risk Management Education and Research (CRMER) at Kansas State University (KSU), will explore a range of current questions and topics facing the agricultural futures markets.

Written Testimony of Chairman J. Christopher Giancarlo before the U.S. House Committee on Appropriations Subcommittee on Agriculture, Rural Development and Related Agencies, Washington, D.C.
Thank you, Chairman Aderholt, Ranking Member Bishop and Members of the Subcommittee for the opportunity to testify before you today on the Commodity Futures Trading Commission (Commission or CFTC) FY 2019 Budget Request.

Investing and Trading

Massive Block Trades Recorded in ETFs Before Stocks Plunged
Carolina Wilson – Bloomberg
Almost $4 billion in block trades of exchange-traded funds were recorded Tuesday, encompassing strategies from sector funds to popular international bets, according to Josh Lukeman, head of ETF market making for the Americas at Credit Suisse Group AG.

U.S. investors wanting out of gun stocks find it’s not so easy
David Randall, Laila Kearney – Reuters
In the three weeks since America’s deadliest high school took the lives of 17 students and teachers, companies such as Delta Air Lines Inc and Dick’s Sporting Goods Inc have cut ties with gun-rights groups or restricted sales of weapons.

Spotify Picks Citadel Securities to Handle NYSE Debut
Alexander Osipovich – WSJ
Spotify Technology SA has chosen electronic-trading firm Citadel Securities LLC to oversee its unusual debut at the New York Stock Exchange, people familiar with the situation said.
The music-streaming company settled on Citadel Securities as its designated market maker in recent days, the people said. Such DMM firms, also called specialists, help ensure the orderly trading of NYSE-listed stocks. Their role is especially important during key moments such as initial public offerings.

Investors Flock to BlackRock’s Tech ETF — in Europe, That Is
Yakob Peterseil – Bloomberg
European investors are making some big bets on U.S. technology.

Getting Robbed May Save These Crypto Traders $262 Million
By Yuji Nakamura – Bloomberg
For victims of the $500 million heist at Japanese cryptocurrency exchange Coincheck Inc., getting robbed may have been a blessing in disguise.

JPMorgan Co-President Sees Possible 40% Correction in Equity Markets
By Gavin Finch, Francine Lacqua – Bloomberg
Banker’s comments come as investors fret about rising rates; He says there will be a markets correction ‘at some point’
Pinto says he sees the possibility of a “deep correction” of between 20 and 40 percent.
JPMorgan Chase & Co. executive Daniel Pinto warned equity markets could fall as much as 40 percent in the next two to three years.

Rolls-Royce Makes Gold Out of Base Metals; By some measures, 2017’s performance was far less impressive than it first appears.
By Chris Bryant – Bloomberg
If you’re a customer of Rolls-Royce Plc, there’s a fair bet you got a call toward the end of last year, politely asking you to pay your bill.

Even women who can handle money are reluctant investors; I challenge the finance industry to launch an ad campaign placed with sanitary protection brands
Claer Barrett – FT
I am the female editor of the FT’s personal finance section. The majority of my readers are male. The majority of people I meet in the investment, financial advisory and asset management industries are also male.


Morgan Stanley CEO says steel, aluminum tariffs ‘bad idea’
Morgan Stanley’s top executive said on Wednesday that potential tariffs on steel and aluminum that President Donald Trump is to expected to formally sign off on later this week are a “bad idea.”

Anne Boden, the steelworker’s daughter who started her own bank
Sarah Dickins – BBC
The daughter of a steelworker and a department store worker from Bonymaen in Swansea, Anne Boden had a fairly ordinary Welsh childhood. Now she’s part of a revolution in the financial world – and has set up her own online bank.


Africa’s banks lag behind on innovation in financial services
John Aglionby – Financial Times
African central banks are stifling development by failing to keep up with financial services innovation, according to the head of a UN economic agency and industry executives.

Banks Reject Fears That Sweden May Run Out of Cash
Niklas Magnusson and Hanna Hoikkala – Bloomberg
Sweden’s biggest banks say warnings that the country might be running dangerously low on cash are overblown.

Iran’s Oil Boom Hasn’t Showed Up; Many international companies are hesitant to invest as the Trump administration threatens to reimpose sanctions
Benoit Faucon – WSJ
Iran’s oil-and-gas industry was supposed to take off after the nuclear deal. Instead, one of the world’s largest energy sectors is languishing.

Japan cracks down on cryptocurrency exchanges after massive hack
Rishi Iyengar – CNN
Japan has forced two cryptocurrency exchanges to halt trading as it cracks down on an industry that was shaken recently by a $530 million cyber heist.

Why Blockchain Is Booming In Liechtenstein, The Sixth Smallest Country In The World
Oliver Smith – Forbes
It may be smaller than Brooklyn, but Liechtenstein is working on something pretty big.
With a population of 40,000 and only a single hospital, Liechtenstein is smaller than small, but a low tax rate over the years has made it a hub for financial services – part of the reason it’s now home to more registered businesses than citizens.

Britain’s CO2 Emissions Have Fallen to Levels Last Seen in 1890
Yale Environment 260
Driven by a rapid decline in coal use, the United Kingdom’s greenhouse gas emissions fell to 388 million tons of CO2 in 2017 ó a level last seen in 1890, when the country’s population was nearly half the size it is now, according to an analysis of energy use figures by Carbon Brief.

China promises ‘justified and necessary response’ if trade war breaks out
Victor Reklaitis – MarketWatch
Chinese officials are joining the worldwide outcry over the latest shift in U.S. trade policy.

London is top for financial services talent say global investors
Jasper Jolly – City AM
The capital is the best city for business in Europe, the poll finds
The vast majority of big global investors believe London has the best talent pool for financial services in Europe, according to a survey to be published today.


Hammond to reveal impact of Brexit bill on UK public finances; Decades of annual payments to be listed when chancellor presents Spring Statement
Chris Giles – FT
Decades of payments from Britain to Brussels will be spelt out for the first time when Philip Hammond presents his Spring Statement next Tuesday.

UK should not favor financial services in Brexit: Labour Party
Britain should not favor financial services over other sectors of the economy as it negotiates its future trading relationship with the European Union after Brexit, Labour Party finance spokesman John McDonnell said on Thursday.


Deloitte Pays U.K. Women 43% Less Than Men
David Heller – Bloomberg
Firm’s revised gender pay figures approach gap seen at banks; Lawmakers slammed firms that excluded partners from data
Deloitte’s U.K. division said its female staff are paid 43.2 percent less on average than male employees — one of the wider gender gaps reported so far, but also one that included the high-earning partners that similarly structured firms have been excluding from their data.

International Women’s Day 2018: Why this year’s event is more important than ever
Caitlin Morrison – City AM
There is more work to do, but the City is already changing for women
International Women’s Day never passes without fevered debate around whether it is really necessary, but this year there are more arguments than usual in favour of dedicating a day to women.

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CME to permanently close most trading pits

CME to permanently close most trading pits

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

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