Japanese financial regulator unveils shake-up for stock exchange; Old Stock Exchange Buildings Are Being Turned Into Swanky Hotels

Nov 29, 2019

First Read

Hits & Takes
By JLN Staff

Today’s MarketsWiki Education Open Outcry Traders History Project video is of Tony Saliba, one of the major players at the Cboe during his time on the trading floor. And he has not done badly since leaving there either.~JJL

In case you were wondering, the TSA says it’s OK to pack a whole cooked turkey in your carry-on luggage. More than two ounces of shampoo is still a no-no though. Happy Thanksgiving!~JB

Dark web criminals ‘offering Black Friday deals and discount codes’. Capitalism at its finest.~JB

Changpeng Zhao of Binance and Justin Sun, founder of TRON – two of the cryptocurrency world’s most influential CEOs – recently vowed over Twitter to contribute 100 bitcoins each (roughly $1.5 million) to an “Anti-FUD Fund” (FUD meaning “fear, uncertainty, doubt), which is supposedly a legal fund to use against journalists who report negative stories about firms and figures in the cryptocurrency space. This was in response to The Block reporting that Binance’s Shanghai office was closed after a “raid” by police, which they have since corrected, calling it a “visit” by authorities. Zhao said in response that Binance will be suing The Block. While the jury is still out in terms of how serious Sun and Zhao were, this is a precarious idea, especially in an age when stories that are critical of those in power can be decried as “fake news,” regardless of their factual content.~MR

John Detrixhe of Quartz has a commentary titled “Quartz Future of Finance: How Robinhood follows UK rules.~JJL

George Gero is posting to LinkedIn again. He must be feeling better.~JJL

The JLN Weekend Update, published on Saturday, will not include today’s newsletter in its statistics for the week as the JLN staff has the rest of the day off after publishing JLN today. Have a nice weekend. Enjoy the turkey sandwiches.~JJL

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Tony Saliba – Open Outcry Traders History Project
JohnLothianNews.com

Tony Saliba was interviewed by John Lothian News for the MarketsWiki Education Open Outcry Traders History Project.

Saliba is a trader, exchange member and financial industry technology and education executive who is the founder of Saliba Venture Management, LLC. Saliba has traded on the CBOE, CBOT, and CME and was the only options trader profiled in Jack Schwager’s book “Market Wizards,” about unusually profitable traders. He had a storied career as a trader on the floor of the CBOE and became a serial entrepreneur in the trading technology and education sectors of derivatives trading.

Watch the video »

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Fisher Investments’ assets climb despite controversy; Inflows and stock market gains outweigh client losses after founder’s lewd remarks
Jennifer Ablan – FT
The controversy over lewd and sexist remarks by billionaire asset manager Ken Fisher has not deterred some investors from putting more money with the firm that bears his name.
/on.ft.com/2DtvEAa

*****Not sure if it is a red flag, or my BS meter going off, but there is something fishy about this.~JJL

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Former Deutsche Bank Exec Connected to Trump Loans Dies by Suicide in Malibu; Thomas Bowers, who worked above Trump’s personal banker, was 55
Ian Spiegelman – LA Magazine
A former Deutsche Bank executive who reportedly signed off on some of the institution’s unorthodox loans to Donald Trump killed himself in his Malibu home on November 19. Thomas Bowers, the onetime head of Deutsche Bank’s American wealth-management division, where he oversaw Trump’s private banker, committed suicide by hanging, according to Los Angeles County Medical Examiner-Coroner’s office. Bowers was 55.
bit.ly/2Y4hpez

*****A tragedy with political intrigue.~JJL

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FCA worried about financially-illiterate old men refusing robo advice; 30% of consumers will reject any advice from an algorithm
Portfolio Adviser
The Financial Conduct Authority has raised concerns that financially illiterate, older men are most likely to refuse robo-advice even though this group has a high chance of sitting within the advice gap.
bit.ly/2XZFN15

***** Not sure if I am more offended by being called financially illiterate or old. Hey, look, more clickbait.~JJL

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CryptoMarketsWiki Coin of the Week: Monero (XMR)
Estonian exchange BitBay announced this week that it would be de-listing Monero (XMR), a cryptocurrency known for its strong privacy features. According to the exchange’s official notice on the matter, it is de-listing XMR because of concerns that users may be using it to launder money. This is the second time in two months that Monero has been de-listed from an exchange due to AML/CFT-related concerns.
bit.ly/2Dp9I9b

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Wednesday’s Top Three
Our most read story Wednesday was Business Insider’s Michael Bloomberg built a $54 billion company. For 2 decades, women who worked there have called it a toxic, sexually charged nightmare. Probably not good for Bloomberg’s campaign. Second was TMX’s press release TMX Group Provides Statement on Media Report Regarding CEO. Notable because press releases rarely make it to the top three. The TMX PR person deserves a raise. Third was from The Wall Street Journal, Georgia Governor, Trump Appear at Odds Over Senate Pick. That may seem odd in this newsletter but it is about a potential senate run by Kelly Loeffler, the CEO of Bakkt and wife of Intercontinental Exchange CEO Jeffrey Sprecher.

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MarketsWiki Stats
168,564,243 pages viewed; 23,987 pages; 222,561 edits
MarketsWiki Statistics

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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.Recently Updated Pages

Recently updated pages include
OKEx
Monero (XMR)
Justin Sun
Changpeng Zhao

CryptoMarketsWiki Stats

1,305 pages; 11,580 edits
CryptoMarketsWiki Statistics

Lead Stories

Japanese financial regulator unveils shake-up for stock exchange; FSA chief Toshihide Endo outlines plan to create Premium board to boost capital
Robin Harding and Leo Lewis – FT
Japanese equity markets are in line for their biggest shake-up in decades as part of plans to attract a fresh wave of capital by providing foreign investors with an index of liquid, well-governed stocks.
/on.ft.com/34xDmFm

Old Stock Exchange Buildings Are Being Turned Into Swanky Hotels; The advent of electronic trading has left old bastions of capitalism to find new lives—as museums, gyms, and high-end hotels.
Jennifer Parker – Bloomberg
Stock exchanges aren’t what they used to be. You can tell just by stepping onto the floor of the most powerful one in the world, on Wall Street in New York. At the start of the century, the New York Stock Exchange employed about 5,000 traders to execute all orders. Today, the only finance professionals who work in the landmarked space also do double duty as extras for bell-ringing ceremonies and programming on CNBC, which leases some of the space. In reality, most of the action of the NYSE, by far the world’s largest exchange measured by market value, happens at its data center across the Hudson River, in Mahwah, N.J. Data centers in New Jersey house the majority of U.S. stock trading activity today.
/bloom.bg/33wrmmb

Doubts grow over Hong Kong’s future as financial centre amid protests; ‘Business as usual’ mantra questioned as groups try to protect staff and Singapore and Tokyo circle
George Hammond and Leo Lewis and Don Weinland – FT
In mid-November, the chief executive of a prominent Hong Kong hedge fund rented an office across the border in Shenzhen. Two of his mainland Chinese staff had suffered abuse on their commute and felt unsafe. The new premises were a “panic room”.
/on.ft.com/2DuVST0

The VIX Is Low. That May Be Because of All the Volatility ETPs
Joanna Ossinger – Bloomberg
Exchange-traded products are taking up a bigger chunk of Cboe Volatility Index futures trading than they have in about seven years, and that could be depressing the gauge, according to Nomura Securities International Inc.
/bloom.bg/33xCVcS

Currency Traders Near End of a Dismal Decade
Anooja Debnath and Love Liman – Bloomberg
Strategists keep getting forecasts for krona direction wrong; Trading volumes dwindle as central bank proves tricky to gauge
It’s been a decade of disappointment for currency traders and nowhere has that been more evident than Sweden. Banks have been wrong for most of the past 10 years with their krona predictions as Sweden’s economy, often seen as a barometer for global trade, found itself battered by recessionary fears and tariff wars. The forecasters’ graveyard has led analysts to question the central bank’s credibility, left policy makers fuming about economic data and triggered a collapse in trading volumes.
/bloom.bg/34wOmmn

Stability has destabilised the macro hedge fund; Volatile markets may return but the industry has been forced to adapt
Robin Wigglesworth – FT
Last week, Louis Bacon decided to call it quits. After three decades at the top of the hedge fund industry, Mr Bacon’s decision to close Moore Capital Management to outside money is understandable, but nonetheless symbolic of how difficult “global macro” hedge funds like Moore have found the last decade.
/on.ft.com/2Oy2oyD

Hong Kong Stocks’ Sudden Tumble Catches Traders Off Guard
Cindy Wang – Bloomberg
Hang Seng Index falls 2%, with volume 36% higher than average; Traders cite China policy jitters, uncertainty over trade war
Friday’s sudden tumble in Hong Kong stocks spread to the onshore market, with selling accelerating amid nervousness over a lack of clear triggers for the slump.
/bloom.bg/2Lkobb9

China Financial Warning Signs Are Flashing Almost Everywhere
Bloomberg News
Defaults, weak banks threaten growth and financial stability; Wary of moral hazard, officials have been reluctant to step in
From rural bank runs to surging consumer indebtedness and an unprecedented bond restructuring, mounting signs of financial stress in China are putting the nation’s policy makers to the test.
/bloom.bg/2L6kl53

Crypto Goes Up and Down, But Is It Getting Anywhere?
Olga Kharif – Bloomberg
Bitcoin followers have seen this movie before: In the first half of 2019 Bitcoin soared again, more than tripling in value before sliding by more than 40%. What was new this year was that Bitcoin, the original cryptocurrency, had to share the spotlight more than ever before, as bankers, regulators and crypto’s true believers debated the merits of Facebook’s proposed Libra digital coin. As the dust settles, investors and regulators find themselves still grappling with the question first raised when Bitcoin broke into public consciousness six years ago: Are cryptocurrencies the future of money? And a new one: If so, what kind of coin will catch on?
/bloom.bg/2OzzUVj

Rising Stars of Trading and Execution 2019 photo gallery; Hosted at The Savoy, London, this year’s Rising Stars of Trading and Execution brought together some of the asset management community’s best and brightest young talent.
John Brazier – The Trade
Following an industry nomination process and extensive market research, The TRADE’s Rising Stars of Trading and Execution returned for its fifth year, recognising 20 of the most promising up-and-coming talents in buy-side trading.
bit.ly/34xGy3O

Swedish Broadcaster Alleges SEB Ties to Money Laundering, Magnitsky Affair; Swedish broadcaster SVT reported that about 194 clients at the Swedish lender are suspected of using the bank to launder money through Swedish and Baltic accounts
Dominic Chopping – WSJ
Swedish state broadcaster SVT said Wednesday that about 194 clients at Skandinaviska Enskilda Banken AB are suspected of using the bank to launder money through Swedish and Baltic accounts, with around 475 million Swedish kronor ($49.4 million) linked to the Magnitsky case.
/on.wsj.com/2DrcStb

Gold Is New Obsession for East Europe’s Nationalist Leaders
Andrea Dudik and Radoslav Tomek – Blomberg
Slovakia joins a host of countries seeking to repatriate gold; Serbia, Poland and Hungary have boosted their bullion reserves
Gold is all that nationalist leaders in Europe’s east can talk about these days. Just this week, Poland’s government touted its economic might after completing the repatriation of 100 tons of the metal. Over in Hungary, anti-immigrant Prime Minister Viktor Orban has been ramping up holdings of the safe-haven asset to boost the security of his reserves.
/bloom.bg/37OtAk2

Little-Known Crypto Exchange With Ties to a Shanghai Firm Halts Services, Says CEO ‘Missing’
Wolfie Zhao – Coindesk
An obscure cryptocurrency exchange named IDAX has said its “global CEO has gone missing” and asked customers to stop using its services.
bit.ly/2ryvZir

A New Central Bank Crypto Rival Could End ‘Evil’ Bitcoin
Billy Bambrough – Forbes
The threat of bitcoin and cryptocurrencies were mostly laughed off by central bankers before this year but social media giant Facebook’s libra project changed that.
bit.ly/33x46o6

Russia is Running Out of Storage Space for Sugar as Output Hits Record
Manisha Jha – Bloomberg
Producers are storing in open air or at independent warehouses; That’s raising costs at a time when low prices squeeze margins
Russia is producing so much sugar that it’s running out of storage space. Output has doubled in the past decade and is expected to climb 20% to a record this season thanks to favorable weather conditions. That’s forcing producers to store refined sugar outside factories in the open air — which damages quality — or in independent warehouses at an extra cost, according to Russia’s sugar manufacturers union.
/bloom.bg/2Y4iH9p

Never Mind Geography, Israel Eyes Membership of European Indexes
Alisa Odenheimer and Ivan Levingston – Bloomberg
Nation says its economy resembles Europe more than Middle East; Regulators see $2 billion flowing into stocks if bid succeeds
It may be nestled between Asia and Africa, but Israel is asking global investors to treat it as a European market. Six years after the nation’s bid to join the continent’s benchmarks failed, regulators are again targeting membership of gauges such as the MSCI Europe Index for stocks and FTSE Euro Corporate Bond Index. They’re reaching out to providers to understand what needs to be done to remove any obstacles, said Anat Guetta, the chair of the Israel Securities Authority.
/bloom.bg/34wTLdh

Nearly $50 Million of Ether Swiped From South Korean Cryptocurrency Exchange; Upbit says it has barred all cryptocurrency withdrawals and deposits at the exchange since the heist, a ban that could last at least two weeks
Eun-Young Jeong and Steven Russolillo – WSJ
Nearly $50 million was swiped from a South Korean cryptocurrency exchange, the industry’s latest setback as it struggles with problems still plaguing cryptocurrencies and the venues where investors trade them.
/on.wsj.com/2ORR8vQ

Exchanges, OTC and Clearing

Appointment of Statutory Auditor
JPX
Japan Exchange Group, Inc. (JPX) hereby announces that JPX has chosen a Statutory Auditor of JPX’s subsidiary Tokyo Commodity Exchange, Inc. (TOCOM), to be appointed on December 1, 2019, as follows.
bit.ly/33wOwcf

TSE Establishes the Study Group to review Minority Shareholder Protection and other Framework of Quasi-Controlled Listed Companies
JPX
Today, Tokyo Stock Exchange, Inc. (“TSE”) has established the “Study Group to review Minority Shareholder Protection of Quasi-Controlled Listed Companies.” The Study Group will discuss matters such as (a) how to manage shareholder conflict of interest, ie the interests of a quasi-controlling shareholder(s) who has substantial control based on the holdings of voting rights of listed companies (“Quasi-Controlling Shareholder”), and minority shareholders of listed companies controlled by such Quasi-Controlling Shareholder(s) (“Quasi-Controlled Listed Companies”) and (b) frameworks of minority shareholder protection. For further information please refer to the below link.
bit.ly/34wJC0b

SGX RegCo sharpens tools used to deal with market manipulation risk
SGX
Singapore Exchange Regulation (SGX RegCo) has sharpened the tools used to deal with manipulation risk in the stock market by restricting accounts involved in unusual activities in a stock and concurrently issuing a Trade with Caution alert on the same stock.
bit.ly/2Dum2oQ

ETF options: Introduction of a new Liquidity Provider scheme and discontinuation of previous schemes
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Frankfurt AG took the following decisions with effect from 1 January 2020:
bit.ly/2DuhVJq

Liquidity Provisioning: Annual prolongation of schemes, changes in the General Supplement and quotation parameters for equity options
Eurex
The Management Board of Eurex Deutschland and the Executive Boards of Eurex Frankfurt AG and Eurex Clearing AG took the following decisions:
bit.ly/2OtCHPw

HKEX Signs MOU with Shanghai Shipping Exchange
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is today (Thursday) pleased to announce it has signed a Memorandum of Understanding (MOU) with the Shanghai Shipping Exchange in Shanghai for mutual cooperation in financial and shipping markets, and to promote the international development of Mainland China’s shipping indices.
bit.ly/2rACDEQ

Canada’s TMX Group says it is looking into past conduct of CEO
Nichola Saminather – Reuters
TMX Group (X.TO) is looking into allegations about the past conduct of its chief executive officer, Lou Eccleston, the operator of the Toronto Stock Exchange said in a statement.
/reut.rs/2XYAOxk

STOXX Innovates Index Business By Launching Fund Managers Index
Mondovisione
Qontigo’s global index provider STOXX Ltd. has launched the iSTOXX Top Citywire Fund Managers Index. The index has been licensed to Credit Suisse as an underlying for both delta one and structured products.
bit.ly/2q1SPOS

EEX Supports NCG’s Market Making Scheme To Increase Liquidity On German Gas Futures – EEX To Offer A Complementary Incentive Scheme To The NCG Market Making Tender
Mondovisione
The European Energy Exchange (EEX) has welcomed the initiative of the German gas market area manager NetConnect Germany (NCG) to support derivatives trading on German natural gas markets by means of an incentive scheme. Promoting futures market liquidity will improve hedging opportunities for traders and increase attractiveness for long-term investments in Germany.
bit.ly/2OvV6Lw

BOX Exchange: December Fee Change
Mondovisione
Effective December 1, 2019, BOX Exchange LLC (“BOX” or the “Exchange”) is amending Section II.C of the BOX Fee Schedule (QOO Order Rebate) to remove the monthly rebate cap of $30,000 per month per Broker Dealer. BOX is not making any other changes to the QOO Order Rebate.
bit.ly/34wXg3p

Fintech

Fonetic acquired by mobile surveillance tech firm VoxSmart; VoxSmart’s acquisition of Fonetic signals a move towards consolidation in the surveillance technology space.
Hayley McDowell – The Trade
VoxSmart has acquired the trading business of voice processing, compliance and surveillance technology provider, Fonetic, marking the first major move towards consolidation in the trading surveillance space.
bit.ly/33v1erT

How investment analysts became data miners; Banks battle for audiences with new information sets, ‘charticles’ and podcasts
Robin Wigglesworth – FT
Dealmakers, traders and globe-trotting executives are the public face of the modern investment bank, but for many clients in fund management, the key point of contact is with banks’ less glamorous ranks of analysts.
/on.ft.com/2XYkSv0

Zuckerberg’s Discussions on Future Featured Mostly White Men
Kurt Wagner – Bloomberg
Facebook Inc. Chief Executive Officer Mark Zuckerberg completed his 2019 “personal challenge” on Monday, his version of a New Year’s resolution. This year he pledged to “host a series of public discussions about the future of technology in society — the opportunities, the challenges, the hopes, and the anxieties.”
/bloom.bg/33vctk5

Startup Robinhood Withdraws Its Application to Become a Bank
Julie Verhage – Bloomberg
Robinhood Markets Inc. is pulling its application for a banking charter just months after starting the process, underscoring the challenges for startups trying to take on the highly regulated world of finance.
/bloom.bg/2DtBr92

Cryptocurrencies

Cryptocurrency crime surges, losses hit $4.4 billion by end-September: CipherTrace report
Gertrude Chavez-Dreyfuss – Reuters
Cryptocurrency theft has surged in 2019 compared with last year, with more money flowing through digital exchanges and criminals looking to carry out bigger heists, according to a report from blockchain forensics company CipherTrace obtained by Reuters.
/reut.rs/2Dth8Zd

Crypto Needs Journalists More Than It Wants to Admit
David Z. Morris – Fortune
I’ve been writing about blockchain and cryptocurrency for more than half a decade now, and one of the most consistent and unfortunate things about the community is its irrational hostility to journalists. That was on display yet again this week in a bizarre spat between two of the most important companies in crypto: giant Malta-based crypto exchange Binance, and crypto-focused trade publication The Block. The saga began when The Block reported that a Binance office in Shanghai had been “raided” by Chinese authorities, then shut down. Binance not only denied that they had been “raided,” but said that they had no office in Shanghai. Binance founder and CEO Changpeng Zhao (best known as simply ‘CZ’) even went Full Trump, declaring The Block to be “fake news” and threatening to sue.
bit.ly/37HPe9z

Even Privacy-Focused Cryptocurrency Can Spill Your Secrets
Gregory Barber – Wired
In the Harry Potter universe, there’s a handy spell for when you need to stop someone from spilling your secret plans or shit-talking during a duel. It’s called Mimblewimble, otherwise known as the tongue-tying curse. It’s also the name of a privacy technology designed for cryptocurrencies—because, well, somebody’s gotta keep crypto weird.
bit.ly/37JjeC3

LSEG adds first crypto trading venue to partner platform; LSEG partner platform will provide AAX with access to the exchange group’s institutional client network.
Hayley McDowell – The Trade
Cryptocurrency exchange AAX has become the first digital asset trading venue to join the London Stock Exchange Group’s (LSEG) partner platform.
bit.ly/2DuWzeN

Utility Settlement Coin: A project the banks can get behind; The Utility Settlement Coin initiative will tokenise fiat currencies on an Ethereum-based blockchain addressing the ‘cash on a ledger’ problem and potentially transforming the post-trade process, and, most importantly, banks are throwing their money behind it.
Jon Watkins – The Trade
The ‘U’ in USC may stand for utility, but it has been the word ‘unique’ that has been thrown around far more than the official component of the acronym when describing this new highly-touted, blockchain-driven payments initiative.
bit.ly/2OuL0KU

China: Crypto Exchange IDAX Locks up Cold Wallet as CEO ‘Goes Missing’
William Suberg – Cointelegraph
Chinese cryptocurrency exchange IDAX has suspended deposits and withdrawals after its CEO allegedly disappeared. In a blog post on Nov. 29, IDAX, which earlier this week warned it was seeing a run on withdrawals, said the whereabouts of Lei Guorong were currently unknown. “Since we have announced the announcement on November 24, IDAX Global CEO have gone missing with unknown cause and IDAX Global staffs were out of touch with IDAX Global CEO,” it reads.
bit.ly/2qW0P4r

Nearly $50 Million of Ether Swiped From South Korean Cryptocurrency Exchange
Eun-Young Jeong and Steven Russolillo – WSJ (blog)
Nearly $50 million was swiped from a South Korean cryptocurrency exchange, the industry’s latest setback as it struggles with problems still plaguing cryptocurrencies and the venues where investors trade them. Upbit, one of South Korea’s largest crypto exchanges, said 342,000 ether coins—worth roughly $49.2 million—were sent to an unidentified crypto wallet Wednesday afternoon. The company revealed the wallet address where the coins were sent and said it reported the incident to South Korean authorities who are investigating the matter.
/on.wsj.com/2ORR8vQ

German Banks Allowed to Sell and Custody Crypto Assets From 2020: Report
Daniel Palmer – Coindesk
From next year, banks in Germany will be allowed to offer the sale and storage of cryptocurrencies under new legislation.
bit.ly/2rAHVQI

Poloniex acquires TRON-based DEX to offer decentralized trading
Yilun Cheng – The Block Crypto
Cryptocurrency exchange Poloniex has acquired TRXMarket, a decentralized exchange (DEX) built on the TRON blockchain. Poloniex, the exchange whose recent spinoff from Circle was partially financed by TRON founder Justin Sun, announced the acquisition on Wednesday in a blog post. All of TRXMarket’s platform functions will remain the same under the new name Poloni DEX and Poloniex users can directly access the decentralized trading services through the exchange’s official website.
bit.ly/2OXJlwu

Bakkt’s monthly bitcoin futures hit all-time-high of $37M
Steven Zheng – The Block Crypto
Bitcoin futures market Bakkt just logged the largest single-day volumes for its physically-settled monthly bitcoin future contract. Volumes hit ~$37.45 million on Wednesday, passing its previous high of ~$19.96 million on November 22. The total volume of Bakkt’s monthly bitcoin futures now stands at $269.64 million (33,036BTC) since the market launched on Sept. 23. The average volume has been ~$5.62 million (688.25 BTC) a day over the last 48 trading days.
bit.ly/2DuZHHL

If you’re investing in Bitcoin, watch out for scams like these
Alan Oscroft – Yahoo Finance
One of the biggest advantages touted by cryptocurrency enthusiasts is that Bitcoin and its peers aren’t under the control of snooping authorities, with nobody able to trace what you’re doing with your money or to interfere. But I keep reading of people who’ve lost money in crypto scams, and they often complain that the authorities aren’t helping chase up the crime to get their money back. Well, come on, they can’t have it both ways!
/yhoo.it/2Y8pYVX

Politics

‘Magic money tree’ offers sour fruit for bondholders; Beware the impact of spending pledges from across the UK’s political spectrum=
Karen Ward – FT
The “magic money tree” is in full bloom. This image has been commonly used by Conservative politicians in the UK to describe how their Labour rivals would fund fiscal policies. But now the major parties are falling over each other to announce generous spending packages, for the National Health Service, schools, the police and infrastructure projects.
/on.ft.com/2Y0vvNT

Competition Is Dying, and Taking Capitalism With It; We need a revolution to cast off monopolies and restore entrepreneurial freedom. First of two excerpts from “The Myth of Capitalism.”
Jonathan Tepper – Bloomberg
On April 9, 2017, police officers from Chicago’s O’Hare Airport removed Dr. David Dao from United Express Flight 3411. The flight was overbooked, but he refused to give up his seat. He had patients to treat the next day.
/bloom.bg/33sqqzj

The Case for Higher Taxes at the Very Top; The wealthiest 400 Americans have the lowest rates.
Noah Smith – Bloomberg
The New York Times recently released a dramatic infographic showing how much less progressive U.S. tax system have become since 1950. When the animation starts, most taxpayers are paying about 20% of their income in taxes, but the top 1% is paying almost 30%, while the country’s 400 highest earners are paying 70%. During the next 68 years, most brackets see their tax rate rise, while the richest 400 see their rate fall relentlessly. When the animation finishes, the top 400 individuals are paying just over 20% – lower than any other bracket.
/bloom.bg/2OwFGXx

Regulation

NFA Board appoints Michael Otten as new Vice President, OTC Derivatives and promotes Nancy Bohanon to Vice President, Human Resources
NFA
NFA’s Board of Directors approved the appointments of Michael Otten as Vice President, OTC Derivatives and Nancy Bohanon as Vice President, Human Resources at its November 21, 2019 meeting.
bit.ly/33vQSb5

FCA consults on how to extend the Senior Managers Regime to benchmark administrators
UK FCA
The Financial Conduct Authority (FCA) has today published a consultation on how to apply the Senior Managers Regime (SMR) to benchmark administrators.
bit.ly/2OytENa

ESMA publishes 2019 CRA Market Share calculation in the EU
ESMA
The European Securities and Markets Authority (ESMA) has published its annual market share calculation for European Union (EU) registered credit rating agencies (CRAs) for 2019.
bit.ly/2Dqguvu

ESMA Chair Maijoor speech at EFRAG conference on IFRS and regulation
ESMA
ESMA Chair Steven Maijoor delivered a keynote speech today at the EFRAG Conference on IFRS and regulation in Brussels. He stressed that:
bit.ly/34wWFPb

ESMA sees continued high market risk amid deteriorating economic fundamentals
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities regulator, today publishes its latest risk dashboard for the European Union’s securities markets, covering the third quarter of 2019.
bit.ly/2rEia1G

SEC Halts Penny Stock Scheme Targeting Seniors
SEC
The Securities and Exchange Commission today announced that it has filed an emergency action and obtained an asset freeze against the operators of a South Florida-based investment scheme that defrauded over 100 retail investors, many of whom are seniors. Two of the defendants charged were previously barred by the Commission from acting as brokers and offering penny stocks to investors.
bit.ly/33CwfdC

ASIC releases updated RG 97 on fees and cost disclosure
ASIC
ASIC today released updated guidance on fees and cost disclosure for issuers of superannuation and managed investment products.
bit.ly/34shStr

ASIC and APRA issue updated MoU
ASIC
The Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA) have committed to strengthen engagement, deepen cooperation and improve information sharing.
bit.ly/33xLioJ

Google must stop mini-bond scheme marketing, warns UK regulator
Financial-world.org
Late on Tuesday, the 26th of November 2019, British financial watchdog raised an alarming bell over mischievous usage of Alphabet Inc.-owned search engine giant, Google LLC.’s online marketing platform by a number of mini-bond schemes, saying illegal marketing of such schemes could raise potential legal concerns and could lead to a potential lose of savings for small-scale investors, after the British regulators had imposed a stiffer regulation in a bid to prevent mass-marketing of mini-bonds.
bit.ly/2OuTGRu

OMC Markets
UK FCA
We believe this firm has been providing financial services or products in the UK without our authorisation. Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers.
bit.ly/2Y053UP

Securities Commission Malaysia Releases Updated List Of Shariah-Compliant Securities By Shariah Advisory Council
Mondovisione
The Securities Commission Malaysia (SC) today released an updated list of Shariah- compliant securities approved by its Shariah Advisory Council (SAC).
bit.ly/2rCpAma

Investing and Trading

Louis Dreyfus launches cost-cutting drive; Agricultural commodities trader battling tough market conditions
Neil Hume – FT
Louis Dreyfus Company, the agricultural commodities trader, has launched a cost-cutting drive as it battles tough market conditions.
/on.ft.com/2XXORmZ

An Oil Giant Plans for Climate Change; Shell is test-driving a number of eco-friendly business models before deciding which one to buy into=
Rochelle Toplensky – WSJ
Royal Dutch Shell RDS.B -0.19% knows that climate change means business change, but isn’t sure how. Like a savvy car buyer, it is testing out a few eco-friendly models before it chooses one.
/on.wsj.com/2OxtsOh

Dutch trading firm IMC to pull out of European equities and ETFs; Move is the latest sign that companies are reviewing their equity-trading operations amid low levels of market volatility
Samuel Agini – Financial News
Dutch market maker IMC has decided to close its cash equities and exchange traded funds trading business in Europe, according to people familiar with the matter.
bit.ly/2OyLsrH

Yield-Curve Control Is a Bond Trader’s Nightmare; Fed Governor Brainard makes a case for capping Treasury yields in a zero-rate policy environment, a move that’s roiled the market for Japanese debt.
Brian Chappatta – Bloomberg
“Brainard — wow.” That was how Russ Certo, managing director of rates at Brean Capital, summarized remarks this week from Federal Reserve Governor Lael Brainard. Ian Lyngen at BMO Capital Markets called her comments “remarkable.” I had the same feeling.
/bloom.bg/2XX2Ppj

Bold Bets That Gold Could Triple to $4,000 Trade in New York
Yvonne Yue Li – Bloomberg
The gold options market saw $1.75 million in block trades betting the precious metal could almost triple in more than a year, surpassing the record. Around noon in New York Wednesday, 5,000 lots of a gold option giving the holder the right to buy the precious metal at $4,000 an ounce in June 2021 changed hands. The bets were sold at $3.50 an ounce.
/bloom.bg/2Dvch9L

Institutions

RBS launches Bó as rival to digital bank start-ups; Established lender spends £100m developing response to rapid growth of challengers
Nicholas Megaw – FT
Royal Bank of Scotland has opened its new digital bank Bó after almost two years of preparations in an effort to compete with start-ups such as Monzo and Starling.
/on.ft.com/2Dtq8NT

GAM’s head of investments to quit Swiss asset manager; Matthew Beesley was once regarded as contender for top job
Jennifer Thompson – FT
GAM’s head of investments is to leave the Swiss asset manager, capping a year of board changes as the group moves on from a crisis involving its bond funds and a star fund manager.
/on.ft.com/2XYkWLg

UBS Joins Credit Suisse in Focus on Lowest Ranks of Wealthy
Marion Halftermeyer – Bloomberg
UBS to move more clients into lowest private banking bracket; Wealth managers streamline basic wealth services to cut costs
UBS Group AG plans to offer scaled-back services to a broader group of wealthy clients, joining Credit Suisse Group AG in changing how it targets the lowest ranks of the rich.
/bloom.bg/2DpbKX4

Morgan Stanley dismisses traders linked to concealment of multimillion-dollar loss: Bloomberg
Reuters
Morgan Stanley (MS.N) has fired or placed on leave at least four traders over alleged mismarking of securities that concealed losses of between $100 million and $140 million, Bloomberg reported on Thursday citing people familiar with the matter.
/reut.rs/34AFbBe

Man GLG launches sustainable growth fund under Powe and Nordbäck; Man GLG RI Global Sustainable Growth
Mike Sheen – InvestmentWeek
Man GLG has launched a global sustainable growth fund targeting companies that build a competitive advantage and “increase shareholder value” as a result of embracing sustainability.
bit.ly/33BSTTr

Barclays joins rivals with cuts to CEO pension perks
Sinead Cruise – Reuters
Barclays (BARC.L) is planning to cut the 396,000 pounds ($508,068) pension allowance it pays Chief Executive Jes Staley by around half, echoing moves by rivals who have pledged to rein in executive pension perks following a campaign by investors.
/reut.rs/2OvNBEl

Swiss Press Ahead With Tighter Capital Rules for Top Banks
Catherine Bosley – Bloomberg
UBS, Credit Suisse may have to set aside an extra $24 billion; Rule change takes effect Jan. 1, banks have 5 years to comply
Switzerland is pressing ahead with revised capital standards for its biggest banks, with rules that are expected to force UBS Group AG and Credit Suisse Group AG to set aside an additional 24 billion Swiss francs ($24 billion) in reserves.
/bloom.bg/2ryDWUP

Regions

Asian energy companies overpaying on LNG contracts, Platts warns; Link to oil price in long-term deals can leave utility companies out of pocket
Harry Dempsey – FT
Asian utilities buying liquefied natural gas under rigid long-term contracts linked to oil prices risk paying an average of $20bn more each year up to 2022 than if they bought the superchilled fuel directly in the market.
/on.ft.com/2XV9qk2

Eurozone at risk of Japan-style stagnation, Fitch warns; Rating agency says Greece, Italy and Portugal most likely to follow deflationary path
Tommy Stubbington – FT
The eurozone economy is at risk of “Japanification”, a cycle of low growth and spiralling debt levels that could trigger a series of government bond downgrades, Fitch Ratings has warned.
/on.ft.com/2XVTUV5

Karvy one of three Indian brokers restricted after probe; Authorities reach preliminary findings that brokers misused clients’ assets
Benjamin Parkin- FT
Indian authorities have clamped down on a trio of brokerages after allegations of wrongdoing, feeding investor anxiety about the health of the country’s financial sector.
/on.ft.com/2DrfreC

Germany Eyes Tough Rules on Foreign Investment Amid China Worry
Birgit Jennen – Bloomberg
Chancellor Angela Merkel’s government plans to tighten restrictions on foreign takeovers amid growing concerns China is scooping up Germany’s technology jewels.
/bloom.bg/34yRNJb

China’s Hog Herds Plunge More Than 40%, But Worst May Be Over
Bloomberg News – Bloomberg
The number of hogs in China, the world’s top producer and consumer of pork, plunged more than 40% in October from a year earlier because of African swine fever, but there are signs that the pace of decline is slowing, according to government data published Friday.
/bloom.bg/2Ow2OFt

Norway appoints c.bank board members to boost wealth fund oversight
Reuters
Norway appointed a string of new central bank board members on Friday in a long-planned bid to boost the oversight of its sovereign wealth fund, the world’s largest of its kind with assets of $1.1 trillion.
/reut.rs/34zRspQ

Polish banks take fright at ruling on Swiss franc mortgages; A court ruling on a particular case potentially raises the stakes for lenders
James Shotter – Ft
Poland’s banking stocks and currency tumbled on Thursday after the country’s top court issued an unfavourable ruling in a closely watched and potentially expensive dispute over foreign-exchange mortgages.
/on.ft.com/33yuyNY

Top Court Exposes Polish Banks to Nightmare FX-Loan Scenario
Maciej Martewicz and Konrad Krasuski – Bloomberg
Pioneer ruling hints banks may need to convert loans at a loss; Client-friendly verdict may serve as guidance for lower courts
Poland’s Supreme Court sent the zloty and bank stocks tumbling as its first official verdict in a case over a foreign-currency mortgage stoked concern the local banking sector is exposed to the most-feared scenario in the $31 billion dispute.
/bloom.bg/33uPci7

These Are Europe’s Best and Worst Countries for Financial Well-Being
Niklas Magnusson and Hanna Hoikkala – Bloomberg
Germany and Austria topped a ranking of financial wellbeing in Europe, with Greece and Lithuania taking the bottom spots.
/bloom.bg/34z6Keb

With foothold in Hong Kong’s stock market, Alibaba sets itself lifespan goal of 102 years; Alibaba is committed to making Hong Kong the hub for its strategy after hot reception to IPO, chairman and CEO Daniel Zhang says
Enoch Yiu – South China Morning Post
Alibaba Group Holding, returning to Hong Kong’s stock market this week after a five-year wait, considers the city a cornerstone of its strategy to globalise and prosper across three centuries, according to its chairman.
bit.ly/2XWbCYz

Brexit

Island Stories: Britain and Its History in the Age of Brexit
David Reynolds debunks the myths of war, empire and British exceptionalism
Jan Rüger – FT
The price of victory”, Jean Monnet declared in 1975, was “the illusion that you could maintain what you had, without change.” The French economist, one of the founding fathers of the European project, saw in the reluctance to come to terms with the past a key explanation of why the British had such difficulties with European integration. Unlike most of their neighbours on the mainland, they had not been invaded or occupied in modern times. As a result, Monnet explained in the year in which a large majority was to confirm per referendum Britain’s entry into the European Community, the British “felt no need to exorcise history”.
/on.ft.com/33xECqK

National Australia Bank plans to set up unit in Paris ahead of Brexit
Reuters
National Australia Bank (NAB.AX) said on Friday it plans to set up a unit in Paris that would offer wholesale banking and investment services to much of Europe.
/reut.rs/2Y2IoHA

US prefers no-deal Brexit according to documents obtained by Labour
Frances Perraudin – The Guardian
The US expressed a preference for a no-deal Brexit in meetings with UK officials, the Labour party has said. Jeremy Corbyn reveals dossier ‘proving NHS up for sale’ Read more Speaking at a press conference on Wednesday, the Labour leader said that official documents from preparatory trade meetings between the UK and US revealed that the future of the NHS was at risk. The Conservative party accused Corbyn of indulging in conspiracy theories, with Boris Johnson giving “a cast-iron” guarantee that the NHS would not be on the table in post-Brexit trade talks.
bit.ly/37HAAPI

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