Investors and companies are losing faith in public markets

Aug 1, 2019

First Read

What is going on at LedgerX?
Thom Thompson – John Lothian News

LedgerX may have launched trading on the contract market platform designated by the CFTC in June as reported by the cryptocurrency press on July 31. According to details shared exclusively with CoinDesk, the online news service that broke the story around 9:00 a.m. Chicago time, LedgerX launched deliverable bitcoin futures on Wednesday, making it the first exchange ever to offer deliverable cryptocurrency futures contracts in the United States. CoinTelegraph and Bitcoinist carried similar stories later in the day.

LedgerX tweeted its futures launch and re-tweeted the exciting story from CoinDesk titled “Beating Bakkt, LedgerX Is First to Launch ‘Physical’ Futures in US” on Wednesday morning. The trouble with the story is that according to both the CFTC and LedgerX websites, LedgerX never certified any futures contracts with the CFTC. A futures market is required to certify all of its contracts before trading them.

To read the rest of this commentary, go here.

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Hits & Takes
JLN Staff

Jon Corzine, who was responsible for the MF Global bankruptcy and banned for life from the futures industry, has applied for SEC registration as an investment adviser. Douglas Bry, President of Augur Trading Company and Ernest Jaffarian, President and CEO of Efficient Capital Management, LLC have written a petition to the SEC strenuously opposing the request for registration.~JJL

If you would like to be included, please reply to this email with your signature/contact information or send the information to corzinepetition@gmail.com. You do not need to be a member of the NFA to add your name to the petition.~JJL

Bry and Jaffarian are CTA representatives on the board of the National Futures Association. While they serve as CTA elected representatives to the NFA Board, note that the views expressed in the petition are their own and not those of NFA.~JJL

The last Fed rate cut was a Bernanke move in December 2008, nearly 4,000 days ago. ~SD

The FIA Operations Americas Division had their annual day at the Chicago White Sox game, this one against the New York Mets. It was the best attended game event that I had been at, though I don’t make it every year. Nice job to the Operations Division leadership team, including President Maria Mancusi from ABN AMRO and Vice President Scott Andersen,
Head of Americas Futures Product Development at SG Americas Securities.~JJL

Here is a 40-Year look at the FTSE Russell 2000 Index.~JJL

And if you want to know why the FTSE Russell 2000 is the small cap index of choice, here is their FTSE Russell take on it.~JJL

CFTC Commissioner Dan M. Berkovitz said the CME, CFTC and National Cattlemen’s Beef Association have worked on several changes to the cattle futures contract in recent years “to help facilitate market-based improvements to price limits, delivery times, grading, and other requirements for CME-approved livestock yards.~JK

Roger Ver’s company, Bitcoin.com, has announced plans to launch a new cryptocurrency exchange on Monday, September 2. ~SR

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“FOMO” as a Motivator

MarketsWiki Education

Whether we like to admit it or not, the fear of missing out, or FOMO, does influence our behavior. FOMO is just as likely to lead to a bad trade as it is to a good career choice (or the other way around). In this video from MarketsWiki Education’s World of Opportunity event in Chicago, RSM Partner Todd Briggs talks about how this fear can both positively and negatively impact our lives.

Watch the video »

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What the Boy Scouts Look Like Today; U.S. youth group co-hosts international jamboree while facing bankruptcy
By Joseph De Avila – WSJ
Tens of thousands of scouts from more than 150 countries marched across a campsite here, chanting in their native languages. Some American boys and girls in red, white and blue neckerchiefs chimed in: “Everywhere we go, people want to know, who we are, and where we come from!”
/jlne.ws/2ZouK1e

***** With 45,000 Scouts from around the world in West Virginia, the venue became the second largest city in West Virginia. And I predict that there will be a bankruptcy soon.~JJL

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Forget the linen suit, for summer it’s all about seersucker; Like putting on a wearable air-conditioning unit — men should all be suckers for the pucker
Nicholas Foulkes – FT
The pucker of seersucker seems to be having a moment. The seersucker bomber jacket is becoming a staple (recent examples include the current JW?Anderson and Loewe collections). Last year saw the launch of Morville, a male swimwear brand predicated on what it calls the “power of the pucker”, billing itself as the “home of seersucker swim shorts”. And of course, as interpreter-in-chief of the great American wardrobe, you can always rely on Ralph Lauren to feature items in seersucker, including an amusing camo-seersucker baseball cap.
/jlne.ws/2GCH6eI

*****Let’s just say I was right about this.~JJL

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Wednesday’s Top Three
Our top story of the day was Bloomberg’s Wall Street’s Top Watchdog Seeks Help to Muzzle a Mystery Troll. Second was the CFTC announcement Chairman Tarbert Announces Key Executive Leadership Appointment. Third was Steve Grob’s blog post Refinitiv – What other choice does the London Stock Exchange really have?

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Lead Stories

Investors and companies are losing faith in public markets; Going private looks appealing to both firms and fund managers
The editorial board – FT
There are many reasons to be a public company, from the ease of raising capital, to the ability to compensate founders and employees with share options. But there is also an increasing number of reasons not to be. That truth is reflected in new statistics showing that between 2000 and 2018, the number of private equity-backed companies in the US rose from less than 2,000 to nearly 8,000. Publicly listed companies in this period, by contrast, fell from 7,000 to about 4,000, according to the Milken Institute.
/jlne.ws/2GGOPIE

Cboe nears deal to move to Post Office
Crain’s Chicago Business
The parent company of the Chicago Board Options Exchange is closing in on a deal to move its Loop headquarters to the redeveloped Old Main Post Office, adding to a leasing hot streak at the historic structure as it transforms into a modern office building. – Crain’s Chicago Business
Cboe Global Markets is negotiating a deal for about 175,000 square feet in the mammoth building at 433 W. Van Buren St., according to sources familiar with the discussions.
/jlne.ws/3341hvL

NYSE-owner ICE beats profit view on growth in transaction, data units
Reuters
Intercontinental Exchange Inc (ICE.N), which owns the New York Stock Exchange, on Thursday beat analysts’ estimates for quarterly profit, helped by growth across its transaction and clearing business and data services unit.
/jlne.ws/2Zp9Ejl

London Stock Exchange clinches acquisition of Refinitiv for $27bn; Combined group aims to rival US exchanges and Bloomberg’s financial data platform
Arash Massoudi – FT
The London Stock Exchange Group has agreed to buy data provider Refinitiv for $27bn, sealing a deal that will turn it into a global markets and information powerhouse to rival Michael Bloomberg’s financial data empire.
/jlne.ws/2GFKANA

From Jewelers to Traders to Technology Makers, Hong Kong Protests Sting; A worsening spiral of violence and demonstrations is denting growth, business sentiment and financial markets
By Steven Russolillo and Joanne Chiu – WSJ
Protests are denting Hong Kong’s economic growth, business sentiment and financial markets. A worsening spiral of violence and demonstrations marks the former British colony’s worst social and political crisis since it returned to Chinese rule in 1997. The controversial prospect of extraditions to mainland China, and the resulting unrest, have clouded Hong Kong’s status as a global financial center.
/jlne.ws/2ZqKwsg

Matching Up: Cboe and Turquoise Bring Competition to Europe’s Close
Tim Cave – TABB Forum
A fresh round of competition is coming to one of the most lucrative and rapidly growing areas of Europe’s equity markets: the closing auction.
While competition is well-established during continuous trading hours, closing auctions have remained the preserve of national exchanges such as the London Stock Exchange Group (LSEG), Deutsche Börse and Euronext. That could change if alternative closing order types introduced by Cboe Europe and Turquoise gain traction.
bit.ly/2K8mBsD

ADM profit plunges more than 40% on U.S. weather, trade war woes
P.J. Huffstutter – Reuters
U.S. grains merchant and food processor Archer Daniels Midland Co (ADM.N) on Thursday reported a 41.3% drop in second-quarter adjusted profit and missed Wall Street expectations, after being battered by the U.S.-China trade war and severe U.S. weather this spring that caused it significant supply-chain woes.
/jlne.ws/2ZkcIgx

London Stock Exchange Boss Marks First Year on the Job With $14.5 Billion Refinitiv Deal; European exchange operator agrees to acquire financial-information and terminal business Refinitiv from a Blackstone-led consortium
By Ben Dummett – WSJ
In the job a year to the day, London Stock Exchange Group PLC Chief Executive David Schwimmer has wasted little time putting his stamp on the European exchange operator.
/jlne.ws/2ZovseU

Fat Finger or Mistaken Identity? Hong Kong Stock Suffers Mystery Plunge
By Jeanny Yu – Bloomberg
Snack maker tumbles most in more than a year before climbing; Some 101,000 shares changed hands at HK$5.65 low in morning
A snack maker suddenly tumbled the most in more than a year in Hong Kong, with traders speculating someone may have mistakenly sold the stock.
/jlne.ws/2ZnuSOo

Revolut launches commission-free share trading; Digital bank takes on investment platforms in bid to ‘democratise’ investing
Nicholas Megaw – FT
Revolut has launched a commission-free stock trading service in a push to challenge major trading platforms such as Hargreaves Lansdown and differentiate itself from rival banking start-ups such as Monzo and Starling Bank.
/jlne.ws/2GCGc1O

No-Deal Brexit Risks $4.2 Billion Loss to British Legal Industry
By Peter Chapman – Bloomberg
Law society urges U.K. to reach deal to preserve EU rights; Leaving without pact could cost 10,000 legal jobs, group says
U.K. Prime Minister Boris Johnson got another warning of the potentially dire effects of a no-deal Brexit, this time from lawyers who said that crashing out of the European Union would put 10,000 legal jobs at risk and may cost the industry about 3.5 billion pounds ($4.2 billion).
/jlne.ws/2ZkxtbU

Barclays Cut 3,000 Jobs in Quarter Amid Challenging Business Conditions; Sustained decline in share price comes amid battle with activist investor
By Margot Patrick – WSJ
Barclays BCS -1.97% PLC said it cut 3,000 jobs in the second quarter and is planning to reduce costs further as net profit slid 19%, hurt by weaker business conditions.
/jlne.ws/2Zq6sDQ

American farmer: Trump ‘took away all of our markets’
Yahoo Finance
The White House recently announced that it would be providing an additional $16 billion in aid to American farmers affected by the trade war between the U.S. and China. – finance.yahoo.com
But the problem for American farmers has becomes bigger than something a bailout can fix.
/jlne.ws/336KQ1y

‘Last Man Standing’: An American Investor in Russia Takes a Fall; Michael Calvey remained a Kremlin cheerleader long after other fund managers left. Now he is facing prison.
By Alan Cullison and Thomas Grove – WSJ
One year after the West began sanctioning Russia for its 2014 invasion of Ukraine, prompting a retreat of foreign capital, U.S. fund manager Michael Calvey appeared at an annual investor conference in St. Petersburg to deliver a contrarian message.
/jlne.ws/2ZpoN41

Trade reporting: Why standards are imperative in mitigating cross-border fragmentation
By Mark Wetjen, Chairman of DTCC Deriv/SERV & former CTFC Commissioner via The Trade
I first joined the Commodity Futures Trading Commission (CFTC) in 2011, and since then, there has been enormous progress in creating transparency for derivatives markets. Regulators had considerably less visibility into this global marketplace during the crisis, and reporting has resulted in significant transparency improvements. However, there is still work to do, specifically around the standardisation of regulatory approaches. Cross-border fragmentation is a barrier to achieving the original goals of the reform effort, but fortunately, there are ways to overcome the obstacle.
/jlne.ws/2GDXP16

Exchanges, OTC and Clearing

LSE’s $27 Billion Refinitiv Deal Creates Trading Powerhouse
By Viren Vaghela – Bloomberg
London Stock Exchange Group Plc agreed to snap up Refinitiv in a $27 billion blockbuster deal, betting on a future dominated by data as the three-century-old exchange seeks to extend its global reach.
/jlne.ws/2ZqGdNC

LSE Still Needs to Prove Logic of Buying Refinitiv; Buying Refinitiv will increase London Stock Exchange’s earnings per share by more than 30%
By Stephen Wilmot – WSJ
Do investors like the London Stock Exchange’s $14.5 billion acquisition of Refinitiv—or do they just like leverage? LSE shares jumped another 6% Thursday morning after the company formally announced an all-share deal to buy the financial data provider for $27 billion including debt. They are now up 24% since LSE gave preliminary details over the weekend.
/jlne.ws/2ZomTRh

BME Post EUR63.4 Million Net Profit In The First Half
BME
The net result obtained by BME in the first half of 2019 totalled EUR63.4 million and in the second quarter it stood at EUR31.8 million, down 11.8% and 6.6% year on year and up 0.9% on the first quarter.
bit.ly/2yD7n8x

Euronext publishes Q2 results; Q2 2019 RESULTS DRIVEN BY DIVERSIFICATION INITIATIVES AND COST MANAGEMENT
Euronext
Euronext, the leading pan-European exchange in the Eurozone with 1,500 listed issuers, today announces its results for the second quarter of 2019.
/jlne.ws/2GGmjqR

Eurex Exchange Readiness Newsflash | Updates August 2019
Eurex
Dear Eurex Participant, With this newsflash, we would like to draw your attention to the upcoming publication, events and necessary actions for the ongoing initiatives:
/jlne.ws/2GGlT3B

Cash markets turnover of EUR 124.8 billion in July
Deutsche Börse
Deutsche Börse’s cash markets generated sales of EUR 124.8 billion in July (previous year: EUR 124.3 billion). Of this, EUR 112.1bn was attributable to Xetra (previous year: EUR 113.6bn), bringing the average Xetra daily turnover to EUR 4.9bn. 2.9 billion euros were transacted at the Frankfurt Stock Exchange (previous year: 2.9 billion euros) and 9.9 billion euros at the Tradegate Exchange (previous year: 7.8 billion euros).
/jlne.ws/2GEhMVO

The Deutsche Börse Buy-in Agent Service solves industry-wide challenges
Deutsche Börse
Deutsche Börse Group is taking another important step in its goal of providing the financial industry as well as the regulatory agenda with the best possible support. With the Deutsche Börse Buy-in Agent Service, the Group offers a solution to the challenge that the new regulatory framework of the Central Securities Depository Regulation (CSDR) will place on the entire industry.
/jlne.ws/2GCJp1m

Intercontinental Exchange Approves Third Quarter Dividend of $0.275 Per Share
ICE
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced today a $0.275 per share dividend for the third quarter of 2019. The cash dividend is payable on September 30, 2019 to stockholders of record as of September 16, 2019. The ex-dividend date is September 13, 2019.
/jlne.ws/2GGqJh9

Intercontinental Exchange Reports Second Quarter 2019
ICE
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listing services, today reported financial results for the second quarter of 2019. For the quarter ended June 30, 2019, consolidated net income attributable to ICE was $472 million on $1.3 billion of consolidated revenues, less transaction-based expenses. Second quarter GAAP diluted earnings per share (EPS) were $0.84. Adjusted net income attributable to ICE was $534 million in the second quarter and adjusted diluted EPS were $0.94. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS and free cash flow.
/jlne.ws/2ZlQbQA

London Stock Exchange Group Plc Interim Results For The 6 Months Ended 30 June 2019
London Stock Exchange Group
Unless otherwise stated, all figures below refer to continuing operations for the six months ended 30 June 2019 (H1 or H1 2019). Comparative figures are for continuing operations for the six months ended 30 June 2018 (H1 2018).
/jlne.ws/2ZpqePX

Appointment of Independent Directors and Establishment of Nomination/Remuneration Committees by TSE-Listed Companies
JPX
Tokyo Stock Exchange, Inc. has published “Appointment of Independent Directors and Establishment of Nomination/Remuneration Committees by TSE-Listed Companies”, based on corporate governance reports submitted by listed companies as of July 12, 2019.
/jlne.ws/2ZrdTuK

Russell US Indexes – 40 years of insights
FTSE Russell
The Russell US Indexes were created in 1984 by the Frank Russell Company (now part of FTSE Russell) with the goal of providing accurate representation of the investable US equity market. When initially introduced, the Russell indexes provided five years of simulated back-history so that a historical record would exist, enabling investors to use the indexes at launch without requiring a live track record to be accumulated. As a result, there are now 40 years of performance, characteristics and sector data available for the major indexes within the Russell US Index family as of year-end 2018.
/jlne.ws/33eCLrY

Fintech

Instinet hires ITG trading analytics head for senior research role; David Fellah will head up quantitative trading strategy research and execution consulting at Instinet, after just over a year at ITG.
By Hayley McDowell – The Trade
ITG’s former head of trading analytics has been hired by agency broker Instinet to lead its quantitative trading strategy research and execution consulting across Europe and Asia.
/jlne.ws/2Zox5ZV

How Fintech is Eating The World
Alex Lazarow – Forbes
In the early 2000s, people thought of technology as its own industry. There was healthcare, industrials, finance, and… technology. Technology was separate, unique and altogether foreign to the others. It was the domain of innovators that made operating systems like Microsoft and search engines like Google.
/jlne.ws/2Mti2ui

Council Post: Why Colorado Is An Attractive Location For Fintech Companies
Bethany Parker – Forbes
London. New York. San Francisco. For many entrepreneurs and startup founders, those are three global cities that are associated with a bustling fintech scene. While many flock to these cities to start a company or build a team with deep experience in financial services, they’re overlooking another region: Colorado.
/jlne.ws/2MxYzbY

Revolut launches Robinhood-style commission-free stock trading service
Ryan Browne – CNBC
British fintech firm Revolut is jumping into the online brokerage space with its own commission-free stock trading platform.
The company launched the service — which lets users buy or sell popular U.S. stocks from Apple to Beyond Meat at the tap of a button — on Thursday, looking to lure in millennials who normally shy away from investing.
/jlne.ws/2MAqo3p

Future FinTech Granted Exception by NASDAQ to Regain Compliance with NASDAQ Listing Rule
Yahoo Finance
Future FinTech Group Inc. (FTFT) (“Future FinTech”, “FTFT” or “the Company”), a financial technology company and integrated producer of fruit-related products, today announced that it received notification letter from NASDAQ Listing Qualifications Staff (“Staff”) stating that the Staff has determined to grant the Company an exception to enable the Company to regain compliance with the NASDAQ Listing Rule (the “Rule”).
/jlne.ws/2Mw6TJm

Cryptocurrencies

UK watchdog warns of perils of unregulated cryptocurrencies
Reuters
Britain’s markets watchdog said on Wednesday that bitcoin and other cryptocurrencies have no intrinsic value and offer consumers few protections, but added that such coins fall outside the scope of its powers.
/jlne.ws/3331YFE

Kraken to Enable Worldwide Fiat Funding Options
Coindesk
The regulated spot and futures crypto exchange Kraken announced a wire service through Etana Custody that will allow users to transact in U.S. dollars, euros, Canadian dollars, British pounds, and Japanese yen from anywhere in the world.
/jlne.ws/31aeIZo

Ripple Extends University Investment Program to Japan
Coindesk
Kyoto University and the University of Tokyo have joined Ripple’s University Blockchain Research Initiative (UBRI) per CoinDesk Japan. The 2018 program now boasts 33 participants including Princeton University, Carnegie Mellon, and the National University of Singapore, among others.
/jlne.ws/331ep4I

To succeed, Libra must prove itself in the Indian market; If Facebook is serious about the remittances market it needs to convince a wary New Delhi
Huw van Steenis – FT
As global policymakers try to divine Facebook’s true ambitions for its new digital currency, Libra, one thing is clear: payments are the battleground. Even if it does not succeed, Facebook has upped the stakes for its competitors just by entering the field.
/jlne.ws/2GHML3b

Crypto Tax Avoiders Face IRS Roulette: Fess Up or Try to Hide
By Lynnley Browning and Laura Davison – Bloomberg
Some taxpayers can update tax forms, pay fines to avoid audit; Biggest scofflaws may become IRS test for emerging crypto law
More than 10,000 cryptocurrency investors face a decision as they open letters from the Internal Revenue Service informing them that they may owe taxes on their digital holdings.
/jlne.ws/2ZohMR5

Bitcoin Has ‘No Intrinsic Value,’ As U.K. ‘Moves Towards’ Crypto Ban
Billy Bambrough – Forbes
Bitcoin and cryptocurrency regulation has been pushed into the limelight over recent weeks, thanks to social media giant Facebook’s high profile plans to launch its own potential rival to bitcoin sometime next year.
/jlne.ws/2MvTPnf

Crypto Market Risk Rises as Tether Migrates to More Blockchains
Olga Kharif – Bloomberg
One of the murkier corners of the cryptocurrency market is becoming even less transparent.
Tether, the controversial token that serves as a conduit for trading coins on many of the world’s largest crypto exchanges, is becoming the means for conducting transactions on a spate of new blockchains, the distributed digital ledgers that underpin the digital assets.
/jlne.ws/2MxqAk8

Watch Out Cryptocurrency Owners, The IRS Is On The Hunt
Robert Green and Great Speculations – Forbes
The massive tax bust of crypto owners has begun with the IRS mailing 10,000 letters to crypto account owners. These letters educate crypto account holders about the rules and tell taxpayers to review their tax reporting for crypto transactions to be sure they reported income correctly. If necessary, taxpayers should file amended tax returns and or late returns. These tax returns should be marked with the corresponding letter type (i.e., Letter 6173, 6174 or 6174-A) and mailed to a particular IRS address. In other words, these tax filings won’t be a needle in the haystack and the IRS will take a close look. Many audits may follow.
/jlne.ws/2MyiS9o

Huobi Partners With Global Digital Finance to Develop Crypto Standards
Adrian Zmudzinski – Cointelegraph
Cryptocurrency exchange Huobi announced that it partnered with industry membership body Global Digital Finance (GDF) to develop crypto standards in a press release shared with Cointelegraph on July 31.
/jlne.ws/2My2ZQ0

Council Post: New Options And Crypto Volatility: A Quick Primer On Stablecoins
Moe Adham – Forbes
With bitcoin breaking $10,000 again in recent weeks, public interest in cryptocurrency is picking back up. (Full disclosure: Author holds investments in bitcoin.) But one thing that keeps some people on edge about crypto is volatility. With all their price swings, cryptocurrencies are still seen by some investors as just too risky. Stablecoins offer a way to protect against this volatility.
/jlne.ws/2Msgukt

Quedex becomes first regulated crypto-centric futures and options exchange
Quedex
Quedex, a crypto-centric futures and options exchange based out of Gibraltar, today announced that it was granted a Distributed Ledger Technology (DLT) Providers licence for trading of cryptocurrency derivatives and for custody of cryptocurrencies by the Gibraltar Financial Services Commission (GFSC) making it the first regulated entity of its kind globally. The DLT licence follows a 15-month-long process in which Quedex, advised by PRT Lawyers, worked together with the Gibraltar authorities in order to meet all the conditions required.
/jlne.ws/334fB7p

Politics

Tom Barrack Snagged Saudi Money After Trump Transition Meetings
By Caleb Melby and Gillian Tan – Bloomberg
Colony’s leader met with Saudi while planning inauguration; Saudis invest in infrastructure fund, discuss Hollywood deal
Tom Barrack, the investor and longtime friend of President Donald Trump, was an early advocate of strengthening ties between the White House and Saudi Arabia. Now his firm, Colony Capital Inc., is doing business with the kingdom’s sovereign wealth fund.
/jlne.ws/2Zk3Rvj

Slow Progress in Trade Talks Is Partly a Result of China’s New Tactic to Wait
WSJ
Plodding progress in trade negotiations between the U.S. and China this week is partly the result of a new tactic from Beijing, which increasingly thinks waiting may produce a more-favorable agreement.
/jlne.ws/317fMNx

Ex-McConnell staffers lobbied on Russian-backed Kentucky project
Politico.com
Two former top staffers to Senate Majority Leader Mitch McConnell have lobbied Congress and the Treasury Department on the development of a new Kentucky aluminum mill backed by the Russian aluminum giant Rusal, according to a new lobbying disclosure.
/jlne.ws/333WMBb

Regulation

FBI Examining Possible Data Breaches Related to Capital One; Organizations such as Italian bank UniCredit and Michigan State University were named in purported list of files posted by alleged hacker
By Anuj Gangahar and Dana Mattioli – WSJ
The Federal Bureau of Investigation is examining whether the woman charged with stealing data on millions of Capital One Financial Corp. customers from an Amazon.com Inc. cloud service successfully hit other targets.
/jlne.ws/2ZsCrU4

ASIC update on compensation by institutions for poor financial advice
ASIC
Australia’s five largest banking and financial services institutions have paid a total of $119.7 million in compensation as at 30 June 2019 to customers who suffered loss or detriment because of non-compliant advice given by financial advisers.
/jlne.ws/2ZpCKyP

CFTC Charges Trader with Spoofing in Financial Futures Markets
CFTC
The U.S. Commodity Futures Trading Commission today issued an order filing and settling charges against Benjamin Cox, a trader and CFTC-registered floor broker based in Chicago, Illinois, for engaging in spoofing in the Chicago Mercantile Exchange (CME) E-mini S&P 500 and E-mini Nasdaq 100 futures markets.
/jlne.ws/2ZmO9Qd

Remarks of Commissioner Dan M. Berkovitz before the National Cattlemen’s Beef Association, Denver, Colorado
CFTC
I’m here to talk to you and other people who use our commodity markets and learn about what’s working and what isn’t. Only by talking with you and seeing your operations in person can I better understand how the futures markets can best serve America’s ranchers and farmers.
/jlne.ws/334c3Sy

CFTC expects resolution of issues with unregistered Forex broker JAFX in near future
FinanceFeeds
The parties are diligently working to resolve the remaining issues, and expect to agree upon a resolution in the near future, the US regulator says.
/jlne.ws/338qFAH

Investing and Trading

Your Net Worth Is Not Your Worth: Resources For Developing Traders
Forbes
If you have lost money in financial markets, if you are questioning your future and perhaps even your life, this article is for you.
/jlne.ws/317B5OT

Midwestern floods soak results at grain handler ADM
Gregory Meyer – FT
High water in the Mississippi river basin brought on by abnormal rainfall this spring contributed to disappointing quarterly earnings at Archer Daniels Midlands, the global crop trader and processor.
/jlne.ws/2GGVB12

Central banks make record $15.7bn gold purchases; Institutions diversify reserves away from the dollar in the first half as trade tensions simmer
Harry Dempsey – FT
Central banks purchased a record $15.7bn of gold in the first six months of the year in an effort to diversify their reserves away from the US dollar as global trade tensions continue to simmer.
/jlne.ws/2GG8ybk

Billionaire Chris Hohn Missed $200 Million LSE Payday After Share Sale
By Viren Vaghela and Tom Metcalf – Bloomberg
TCI’s Hohn had pushed to keep former CEO Rolet in the job; Hohn sold most stock in September before Refinitiv deal surge
The activist investor who waged a public battle with London Stock Exchange Group Plc over the fate of its former chief missed out on a bumper payday after dealmaking by Xavier Rolet’s successor sent the shares soaring.
/jlne.ws/2ZorzGH

Institutions

Deutsche Bank’s Cottrell to oversee securitized products trading
Reuters
Deutsche Bank’s Sebastien Cottrell has assumed responsibility for securitized products trading globally following the announced departure of John Hanisch, according to a source.
/jlne.ws/31awJGR

Woodford’s Proton Partners problem
Jamie Powell
Monday brought the news that stricken investment manager Neil Woodford might lose control of the Patient Capital Trust, a closed-end fund that aims to invest in small, high-growth British technology companies.
/jlne.ws/2GIO5TA

UBS plans to charge rich clients for Swiss cash deposits
Reuters
UBS Group will impose from November a negative interest rate of 0.75% on wealthy clients who deposit more than 2 million Swiss francs ($2.02 million) with its Swiss bank, it said on Wednesday, citing expectations for a long period of ultra-loose monetary policy.
/jlne.ws/319XWtq

SocGen Boosts Capital Strength as Oudea’s Revamp Takes Hold
By Dale Crofts – Bloomberg
Bank strengthens CET1 ratio to target of 12% ahead of schedule; French lender said to have hired McKinsey to advise on capital
Societe Generale SA Chief Executive Officer Frederic Oudea boosted the bank’s capital strength and outperformed most rivals in equities trading as the bank’s largest restructuring in years takes shape.
/jlne.ws/2Zzy0qo

Regions

Barbarians at Europe’s Gate Dangle 35% Gains for Shunned Stocks
By Ksenia Galouchko and Cecile Gutscher – Bloomberg
Lots of undervalued situations for PE to scoop up: Evermore; Cobham shareholders reap record one-day gain on Advent buyout
Europe may look dangerous to many investors but to private-equity firms and the arbitrage funds they feed, economic malaise and Brexit spell opportunity.
/jlne.ws/2ZnVY8j

Brexit

The Tories have become the Brexit party; Shedding its broad centre-right traditions, the party now represents English nationalism
Philip Stephens – FT
Britain’s Brexiters set a simple rule to fight the 2016 referendum. Disdain facts, disregard truth and appeal instead to visceral emotion. Cultural insecurities and grievances did indeed trump economics. Invited to strike a blow against metropolitan elites, to throw rocks at experts and to close the door on immigration, a small majority of those who voted backed Brexit.
/jlne.ws/2GGiqSD

Legal sector faces £3.5bn hit from no-deal Brexit, says Law Society; Disorderly exit could curb lawyers’ access to European market and imperil 10,000 jobs
Kate Beioley – FT
A no-deal Brexit would take a £3.5bn chunk out of the legal sector and put 10,000 jobs at risk, according to the professional body for solicitors, which has issued a plea that the UK negotiate vital rights for lawyers after departure from the EU.
/jlne.ws/2GGhZrD

Barclays CEO Jes Staley Gets a Brexit Lifeline; A painful rupture would give him good cover if he fails to meet his targets.
By Elisa Martinuzzi – Bloomberg
The growing threat of a hard Brexit has prompted many investors to steer clear of British banks. For Barclays Plc Chief Executive Officer Jes Staley, a rupture with the European Union could turn out to be a handy lifeline.
/jlne.ws/2Zs8NhU

FCA amends directions for electronic money issuers with regard to Brexit; Notifications to the FCA have to be made and received not later than the end of October 30, 2019.
Finance Feeds
The UK Financial Conduct Authority (FCA) has published amended directions to electronic money issuers with regard to Brexit.
/jlne.ws/2ZsFSKs

Miscellaneous

Former German Bank CEO Aims to Become YouTube Star at Age 65
By Stephan Kahl – Bloomberg
Herpolsheimer explains finance world from his home’s basement; He led regional lender Sparkasse Leverkusen for about 17 years
Some bankers try to reinvent themselves by turning into full-time winemakers, opening a restaurant or trading violins. Now, the 65-year-old former chief executive officer of a German regional lender is working hard to become a star on YouTube.
/jlne.ws/2ZpjNfT

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Get a FREE 90 day trial of John Lothian Newsletter First ReadHits & TakesJLN StaffThe SEC has published two educational videos meant to help people spot and avoid fraud. They are titled "The Too-Good-to-be-True Circus" and "Without a...

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