First Read

MarketsWiki Education World of Opportunity Dates for 2016
JLN
Save the dates of July 12, 14 & 15 for the kickoff of the Chicago MarketsWiki Education World of Opportunity Summer Intern Series. We will be following up Chicago with a trip to New York on July 19, where we will host two sessions at the Nasdaq Marketsite.

Our events for Europe will be in Paris, Frankfurt and London this year. We are especially pleased to announce CME Group as our Global Premier Sponsor of the series for the next three years. With this enhanced partnership, we plan to offer even more to our participants – more networking opportunities, more giveaways, more fun.

Our Chicago events will be at the CME Auditorium on July 12 and 14. We will return to the offices of Trading Technologies on July 15 for the conclusion of the series and some social time at the TT Tap. Trading Technologies has also returned as a sponsor for 2016.

Don’t just save the dates; help spread the word to your human resources people, hiring managers, intern coordinators, academic partners, and any young folks you know who might be interested in a career in the financial markets. You can direct questions to me at johnlothian@johnlothian.com

We will be announcing other sponsors soon.

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OCC Lends a Hand: Stock Lending Business Growing With Clearing Services
Spencer Doar – JLN
When the Options Clearing Corporation changed its name to OCC in 2011, it reflected the clearinghouse’s growing suite of non-options services. One of those products is the clearing of securities lending transactions.

In 2015, 1.4 million transactions took place with OCC and the average daily loan value was more than $155 billion, up 16 percent from a year earlier. The program began in 1993, but only took flight in the last four years. It’s still just a fraction of the stock loan business, which gives OCC belief it can grow substantially from here.
goo.gl/BJiixf

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Escoffier leaves Societe Generale
Reuters
David Escoffier, deputy head of global markets at Societe Generale and CEO of Newedge, has decided to leave the company. Escoffier had been heavily responsible for building up the French bank’s equity derivatives capabilities in London.
goo.gl/m5fJgm

**JK: More big changes at SocGen.

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Citadel tops list of private U.S. trading venues: report
BY JOHN MCCRANK – Reuters
Citadel Securities, one of the top market makers in U.S. stocks and listed stock options, runs one of the largest stock trading venues in the country, according to a report released on Monday aimed at providing transparency into where stock trading occurs.
goo.gl/2F3w6W

***** Where does my order go?

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What Young Wall Streeters See in ‘American Psycho The Musical’
Amanda L Gordon – Bloomberg
Eleven Yale business school students spill out of a Broadway theater after a performance of “American Psycho The Musical.” They’ve just watched a 1980s investment banker sing and chop through a co-worker and homeless man and now they’re sorting out what the satire says about the real Wall Street, where some of them are looking for work.
goo.gl/FZhqRk

***** I love a musical with a happy ending and a lot of blood.

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Blacklisted Terrorism Financiers Still Active on Social Media; Some continue to raise money and attract followers despite being targeted by the Treasury Department, a new report says
By CHRISTOPHER S. STEWART and ROB BARRY – WSJ
Some terrorist financiers blacklisted by the U.S. government continue to raise money and attract followers on U.S.-based social media, a new report says.
goo.gl/qYiQty

****** You need three things to make a fire; fuel, heat and oxygen. You need three things to promote terrorism; a message, a medium and a pool of fools.

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Monday’s Top Three
John Lothian’s bio on retiring FIA COO Mary Ann Burns led all clicks in yesterday’s newsletter by a wide margin. If you missed it, click here. In second place is the FT article on Goldman Sachs’ move into the retail banking market after its acquisition of GE Capital, Goldman Sachs opens to the masses. Third prize goes to Goldman as well, but this one is not as friendly a piece, Why the S.E.C. Didn’t Hit Goldman Sachs Harder from the New Yorker.

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Bill Herder Goes for Bare-Legged Fundraising; Kilt Challenge Passed to Herder from Simon Puleston Jones
FIA
For the past few years, a figurehead from within the industry has braved going bare-legged in a kilt at the FIA IDX Gala Dinner in return for donations to Futures for Kids. Over the years, the Gala Dinner and the Kilt Challenge has raised over £1 million for Futures for Kids. FIA’s Head of Europe, Simon Puleston Jones raised nearly £5,000 at the 2015 IDX Gala and has passed on the sporran to FIA’s Head of Asia-Pacific Bill Herder for 2016. Could you please help Bill brave an evening in kilt and sporran, and support his goal of £10,000 in donations for Futures for Kids by adding this to your newsletter? More information on Bill’s Kilt Challenge can be found here
X~NOLINK
GMI-Blockchain Conference
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Lead Stories

Bangladesh Bank hackers compromised SWIFT software, warning issued
By Jim Finkle – Reuters
The attackers who stole $81 million from the Bangladesh central bank probably hacked into software from the SWIFT financial platform that is at the heart of the global financial system, said security researchers at British defense contractor BAE Systems.
/goo.gl/bo4IbY

Exclusive: SWIFT warns customers of multiple cyber fraud cases
BY JIM FINKLE – Reuters
SWIFT, the global financial network that banks use to transfer billions of dollars every day, warned its customers on Monday that it was aware of “a number of recent cyber incidents” where attackers had sent fraudulent messages over its system.
goo.gl/tAK8a4

CFTC Spoofing Witness Says He’s Oystacher Whistle-Blower
Janan Hanna – Bloomberg
CGTA Analytics ex-trader says firm spotted spoofing,lost money; 3Red’s Oystacher accused by CFTC of market manipulation
A former competitor told a federal judge considering whether to impose a trading ban on Igor Oystacher that he filed a whistle-blower complaint over market manipulation and stands to profit if the Commodity Futures Trading Commission wins its lawsuit against the alleged spoofer.
goo.gl/N18hOq

Europe overhauls market definitions
Philip Stafford – FT
Europe has moved a step closer to finalising an overhaul of its flagship markets legislation by publishing details on how it will define critical daily market hallmarks, including high-frequency trading, “reasonable” market data prices and foreign exchange swaps.
goo.gl/CTbH1G

Goldman Sachs Drops the Velvet Rope for Savers
By JUSTIN BAER – WSJ
Wall Street firm is offering savings accounts and certificates of deposit from the website of its banking arm
Goldman Sachs Group Inc., adviser to billionaires and the world’s largest companies, will now accept your couch-cushion money.
goo.gl/U1fphA

Gatecrashing the London Stock Exchange
Chris Hughes – Bloomberg Gadfly
The pressure is building on Intercontinental Exchange to try to break up the London Stock Exchange’s merger with Deutsche Boerse. Investors don’t see it that way.
goo.gl/dSzJXe

SEC Draws NYSE’s Fury With Idea a Millisecond Doesn’t Matter
Annie Massa – Bloomberg
Fans, critics of exchange application fight a new proposal; If adopted, delays under 1 millisecond would be called trivial
Maybe not, the U.S. Securities and Exchange Commission is saying. If a stock exchange intentionally delays orders by just one-thousandth of a second, it would be acceptable under an SEC proposal. The New York Stock Exchange and others oppose the change, saying a millisecond is anything but trivial.
goo.gl/ufsLJA

IEX asks for SEC exchange approval on merits of its application
Nicole Bullock in New York – FT
IEX, the upstart trading venue, on Monday urged regulators to give the green light to its application to become a fully-fledged exchange outside of a broader debate that its plan has sparked about stock trading rules.
goo.gl/T44Slf

China clamps down on commodities frenzy
Henry Sanderson, Neil Hume and David Sheppard – FT
China moved to clamp down on excessive speculation in commodities on Monday after weeks of frenzied trading boosted prices and ignited fears of another bubble in its domestic markets.
goo.gl/pXpz80

LME looking to tap Asian demand, chief says
Nikkei Asian Review
The London Metal Exchange aims to attract more market players in China, India and other parts of Asia, CEO Garry Jones told The Nikkei, amid intensified competition from rivals around the world.
goo.gl/5CPpXp

TABB Group Research Recognizes Network Effects and Buy-side Participation as Keys to Unlocking Liquidity in the Corporate Bond Market
Press Release
Liquidity in the U.S. corporate bond market is deteriorating and a paradigm shift is underway in credit trading and other fixed income businesses. This evolution was spurred by the increasing operational difficulties banks are having in their efforts to provision liquidity and transfer risk through traditional means. TABB Group’s research, “Unlocking Liquidity: Leveraging the Network Effect in OTC Bond Trading,” uncovers how this environment transformation may play out, taking into consideration the roles that banks, the buy-side and trading platforms will play.
goo.gl/zFfzmm

FIA releases SEF Tracker for March
FIA
Total trading volume on SEFs averaged $469.3 billion per day during the month of March, which was up 5.8% from the previous month but down 4.2% from March 2015. Both credit and FX trading volumes were up from a year ago, but a decline in FRA trading weighed down the overall volume.
/goo.gl/qW8P6T

High-frequency traders are dominating another huge market
Business Insider
High-speed traders now dominate the market for US government bonds, and it is freaking some people out.
goo.gl/coJ4Ii

The Euro’s Next Existential Crisis
By Mark Gilbert – Bloomberg View
The euro’s future still looks far from secure. The European Central Bank is defending its independence amid an attack on its negative interest-rate policies by Germany. European Commission President Jean-Claude Juncker admitted last week that “the European project has lost parts of its attractiveness.” Greece is still wrangling over the terms of its next bailout payment. And at the end of this week, a geeky decision in a corner of the bond market could send the bloc back into crisis mode.
goo.gl/jRS6ka

Regulatory

Small Firm Advisory Board
FINRA
The Small Firm Advisory Board (SFAB) is an advisory committee established by the NASD Board of Governors in 1998. The SFAB ensures that issues of particular interest and concern to small firms are effectively communicated to and considered by the FINRA Board of Governors. The SFAB reviews and comments on all new and amended FINRA rule proposals, and provides guidance to FINRA staff regarding the potential impact of proposed regulatory initiatives on FINRA’s small firms.
goo.gl/8RVl5g

US regulators to call for banks to have a year’s worth of liquidity
By Eamonn Sheridan, ForexLive Comment
The Wall Street Journal reports that new rules are being proposed so that large U.S. banks would have to prove they have enough cash to withstand severe market turmoil lasting as long as a year
goo.gl/83laa6

EU regulators agree on definition of HFT
By Tim Cave – Financial News
European regulators have settled on a definition of high-frequency trading as part of efforts to rewrite the rulebook for trading in the region.
goo.gl/jmRZYA

Europe approves second Mifid II delegated act
Futures & Options World
The European Commission has Monday adopted the second delegated act under Mifid II, releasing the Mifid Delegated Regulation which helps to clarify some of the core definitions and requirements under the sweeping regulatory package.
The second delegated act defines conduct of business rules for investment firms – set to be a key aspect of the rules – which details disclosure requirements for clients and potential clients on aspects such as investment services and financial instruments, client categorisation or costs and charges.
goo.gl/DKIQCQ

ESMA PUBLISHES RESPONSE TO COMMISSION GREEN PAPER ON RETAIL FINANCIAL SERVICES
ESMA
The European Securities and Markets Authority (ESMA) has today published its response to the European Commission’s Green Paper on Retail Financial Services (the ‘Green Paper’).
/goo.gl/g8UWEf

Exchanges & Trading Facilities

SGX ties up with China Construction Bank to draw more Chinese listings, Companies & Markets
www.businesstimes.com.sg
THE Singapore Exchange (SGX) has teamed up with a major Chinese bank to get more Chinese companies to tap capital markets in Singapore.
bit.ly/233f9hL

London Stock Exchange Group Plc: Clarification Statement
Mondovisione
In the course of an interview with the Financial Times last month on open access clearing in Europe, the CEO of London Stock Exchange Group (“LSEG”), Xavier Rolet, was asked to comment on the progressive changes in financial markets infrastructure and the increasing need for customers to access services on a global basis. In the context of a discussion during the interview about the desire of customers to reduce costs and the increasing trend of using Exchange Traded Funds instead of futures, a quotation was subsequently attributed to Mr. Rolet in an article published on 5 April which stated:
goo.gl/seqDFX

TABB Group Research Examines the Structural Consequences of Price Improvement Auctions in U.S. Options Markets
Press Release
TABB Group Research Examines the Structural Consequences of Price Improvement Auctions in U.S. Options Markets – Yahoo Finance
New TABB Group research, “Price Improvement Auctions: Segmenting U.S. Options Order Flow at the Expense of the Lit Market,” examines the impact of price improvement auctions in U.S. options markets and reviews the unique characteristics of market structure that support their evolution. According to TABB, the success of price improvement auctions has created a bifurcated trading environment with a growing proportion of the most attractive paper trading in auctions never reaching the displayed market.
goo.gl/oveOO3

NLX puts three seniors on redundancy risk
Futures & Options World
Global exchange group Nasdaq has put three key senior employees of its European rates exchange NLX at risk of redundancy, less than a week after the firm said CEO Charlotte Crosswell will step down next month. NLX’s Stuart Deel-Smith, senior managing director for market structure and product development, Darren Butler, director of business development and Toby Bryans, director of onboarding, have been put at risk of redundancy this week.
goo.gl/zoQ5wt

US Options Market Review: First Quarter 2016
TABB Group
The US Options Market Review examines market trends in US-listed options markets. The report provides detailed insight into volume trends across the index, ETF and single-stock sectors, examining trading in the most active symbols, by concentration and by type of account. The report also examines trading in weekly options, provides market quality metrics and examines trends in volatility. The US Options Market Review is available to all TABB Group Derivatives clients.
/goo.gl/nK5N14

BM&FBOVESPA Begins Trading 19 New Unsponsored Level I BDR Programs – Portfolio Now Has 104 Programs In Foreign Companies
Press Release
BM&FBOVESPA today began trading 19 new Unsponsored Level I BDR programs (BDR NP), issued by Deutsche Bank SA PN. BDRs are securities issued in Brazil by depository institutions and which have shares of foreign companies as underlying. They are traded on the cash market from 10:00 a.m.to 5:00 p.m., with round lots of 100 BDRs.
goo.gl/4a9BCp

Dark pools and the ‘misplaced pursuit of transparency’; As the saga that is Mifid II rumbles on, Hayley McDowell asks have regulators lost sight of the end goal – to protect investors?
By Hayley McDowell – The Trade
On the whole, traders believe that Mifid II rules on dark pools will hinder dark trading when they come into force on 3 January 2018.
goo.gl/krFq4t

NSE to challenge claims of unfair access at its venue
Santanu Chakraborty – Business Standard
The National Stock Exchange of India Ltd (NSE) will in the coming weeks submit a detailed report to its regulator to challenge claims that high-frequency traders gained unfair access at its venue, according to people with knowledge of the matter.
goo.gl/A7TrwM

Boursa Kuwait Officially Assumes Responsibility for Kuwait Stock Exchange
ZAWYA
Boursa Kuwait today announced that it has officially assumed responsibility for the management of the Kuwait Stock Exchange (KSE)’s operations. The hand-over follows the implementation of a detailed operational plan and strategic roadmap to ensure the smooth transition of stock market operations. The process has been developed in close collaboration with the Capital Markets Authority (CMA).
goo.gl/19y1lG

Bats Europe boosts board with buyside recruit
By Tim Cave – Financial News
Bats Europe, the region’s largest stock exchange by value of shares traded, has boosted the buyside contingent on its board by adding the global head of equity trading at JP Morgan Asset Management as a director.
goo.gl/SNuv4R

Reasons for derivatives market suspension on 25 April
MOEX
Some clients experienced problems connecting to the Derivatives Market via the Internet on 25 April 2016 at around 10.00 am MSK. Participants who use an Internet connection account for about 5% of Derivatives Market clients (other members use other ways to connect, such as leased lines). All clients were able to trade as they always have a backup terminal with connectivity via a leased line or VPN.
goo.gl/sChRoV

London Stock Exchange Group Plc Blocklisting Application
London Stock Exchange Group
Application has been made to the UKLA and the London Stock Exchange for a block listing totalling 2,000,000 ordinary shares of 6 79/86 pence each to trade on the London Stock Exchange and to be admitted to the Official List. The shares shall rank equally with the existing issued shares of London Stock Exchange Group plc.
goo.gl/D9P5h0

SGX welcomes Zhongrong International as Derivatives Trading Member
SGX
Singapore Exchange (SGX) is pleased to welcome Hong Kong-based Zhongrong International Futures Company Limited as the newest trading member in its derivatives market.
goo.gl/E8r81p

RECORD NUMBER OF COMPANIES JOIN ELITE – 46 COMPANIES WELCOMED TODAY
London Stock Exchange Group
16 new UK companies and 30 from Italy join ELITE today, as first UK cohort graduates; Brings total number of new ELITE companies in April to 73; Santander UK becomes an ELITE partner; More than 380 companies, 150 advisors, and 100 investors now part of growing ELITE community
London Stock Exchange Group today welcomes 46 companies to ELITE, its innovative support programme for inspiring growth businesses. 16 companies join the fifth cohort of the UK programme, and 30 join Italy’s ninth cohort.
goo.gl/9HSuQz

LONDON’S POSITION AS HOME OF RMB ISSUANCE CONFIRMED AS HUNGARY LISTS FIRST CHINESE CURRENCY BOND
London Stock Exchange Group
Becomes second non-Chinese issuer of sovereign RMB debt; 30th RMB bond on London Stock Exchange in 2016; Hungarian Government lists RMB denominated RMB1 billion bond in London; Cements London’s position as leading international listing venue for RMB debt issuance
London Stock Exchange today saw the second RMB denominated government bond of a non-Chinese issuer admitted to trading on its markets. The Hungarian Government mandated the Bank of China to arrange an RMB denominated three year sovereign bond of RMB 1 billion as part of a wider initiative to boost links and commerce between Hungary and China.
goo.gl/iJTjgS

Technology

Fidessa named Best Front Office Execution Platform
Press release
Wins Waters’ Sell-side Technology Award for second year running
Fidessa group plc (LSE: FDSA) today announced that it has been named Best Sell-side Front Office Execution Platform, for the second consecutive year, at the 2016 Sell-side Technology Awards hosted by Waters Magazine. These awards recognize the leading technologies and vendors in the sell-side financial technology arena.
goo.gl/2jLNxv

Stellar Trading Systems Establishes Connectivity with CBOE Futures Exchange
Link Broadens CFE’s Reach with European, Asian Traders
Press release
CBOE Futures Exchange, LLC today announced that Stellar Trading Systems, a multi-asset trading software and services specialist, has established connectivity with CFE as an approved independent software vendor.
The new link will provide traders using Stellar Trading Systems’ platform the ability to directly interface with CFE and gain access to the exchange’s suite of products, including futures on the CBOE Volatility Index.
goo.gl/vUdCWs

New Data on OTC Equity Trading Now Available, FINRA Announces; Additional Transparency Covers About 20% of All Trading in National Market System Equities
FINRA
The Financial Industry Regulatory Authority (FINRA) today announced that expanded data on over-the-counter (OTC) trading in equity securities is now live, extending FINRA’s trading-volume transparency to all of the OTC market.
goo.gl/rp9aBp

HKEX rolls out pre-trade risk management system for derivatives, includes “kill switch”
LeapRate
Hong Kong Exchanges and Clearing Limited (HKEX) today announced the successful launch of its Pre-Trade Risk Management (PTRM) system, a system that offers tools to help market participants in its derivatives market meet their needs for pre-trade controls while complementing their in-house risk controls.
/goo.gl/6tiLyY

Politics

Bring on a Third-Party Candidate; Establishment America deserves disruption, but not of the Sanders or Trump type. Here’s how to do it.
By JIM VANDEHEI – WSJ
I have spent the past two decades in the Washington, D.C., bubble—the heart of Establishment America—covering politics and building a company, Politico, focused solely on politics. But I’ve also spent a lot of time in my hometown of Oshkosh, Wis., and my adopted hometown of Lincoln, Maine, two blue-collar towns in the heart of Normal America.
goo.gl/GDkEHu

Hedge Funds & Managed Futures

180 Years of Market Drawdowns
by Ben Carlson – A Wealth of Common Sense
“We tend to be inadequate historians.” – Robert Frey
A couple weeks ago I covered a little discussed topic involving the the use of historical market data. Namely that you have to take market returns that go back to the turn of the 20th century with a grain of salt because of the fact that costs were much higher in those days so no one was really receiving those gross returns on a net basis.
goo.gl/A4Enfo

How Germany’s stock market gives a false impression that it beats Britain’s;
Laith Khalaf – Telegraph
A year ago the FTSE 100 stood at a record level of 7,103. Today the index is wallowing 10pc below that summit, with the long-awaited 7,000 mark looking like a flash in the pan.
goo.gl/j4QEDC

Fund star Sudhir Nanda warns of threat to human role in finance
Robin Wigglesworth in New York – FT
A rising fund manager star at T Rowe Price predicts that computers will become increasingly important in asset management, supplanting the industry’s traditional backbone of human stock pickers, economists and analysts.
goo.gl/1bQJPw

Hedge fund managers need to know when to admit defeat
Daniel Davies – FT
Look out for good ideas that have stopped working, writes Daniel Davies
The past six months have been a hard time for some high-profile hedge funds. Crispin Odey’s Swan Fund and Bill Ackman’s Pershing Square have made losses of sufficient magnitude to wipe out years of accrued profits. Other star funds, from Blackstone’s Senfina to Paulson & Co, have also seen the second quarter of this year turn into a bloodbath.
goo.gl/FI5rIW

Hedge-Fund Investor Aurora to Return $5.4 Billion to Clients
Nishant Kumar – Bloomberg
Hedge-fund investor Aurora Investment Management will return the $5.4 billion it oversees to clients over the coming months after a takeover of the firm collapsed, according to a letter to investors seen by Bloomberg News.
goo.gl/L91jH1

For Bill Gross, Besting Pimco Is the Best Revenge
By LANDON THOMAS Jr. – NY Times
Sitting in the conference room of his empty office suite, with its floor-to-ceiling wall of windows, William H. Gross cannot help noticing the sleek office tower that the bond giant Pimco moved into in early 2014.
goo.gl/Rt8oxn

Banks & Brokers

Former Newedge CEO to leave Soc Gen; Escoffier led the integration of Newedge with Societe Generale’s trading business.
By Joe Parsons – The Trade
David Escoffier, the former chief executive of futures brokerage Newedge and deputy head of global markets at Societe Generale, will step down.
goo.gl/1yh1DF

Talwar has big task as Goldman Sachs moves into online lending
Ben McLannahan in New York – FT
Harit Talwar has a big job on his hands.
Hired as a partner last year by Goldman Sachs in New York, he is spearheading a move into online lending, which is part of a broad effort by the Wall Street investment bank to open up new sources of revenue.
goo.gl/Jgwmea

Citigroup names Lam as China country head
Reuters
Citigroup (C.N) has named Christine Lam as its country head for China, replacing Andrew Au, who is retiring, the Wall Street bank said in a statement on Tuesday.
goo.gl/SDGGnB

HSBC Sued by Trader Fired for Sending Data to Yahoo E-Mail
Gaspard Sebag – Bloomberg
Ben Lazimy seeks $2.6 million from bank for unfair dismissal; Trader sent himself 1,400-page spreadsheet with client names
HSBC Holdings Plc was sued for unfair dismissal by an equity derivatives trader who was fired for sending client data to his personal Yahoo! Inc. e-mail address.
goo.gl/5KbjRF

Lloyd Blankfein blamed for Goldman Sachs’ ‘lost decade’
By Kevin Dugan – NY Post
Goldman Sachs admits misleading investors with risky mortgages
Has anybody seen Lloyd Blankfein? About 15 months after Goldman Sachs called for a break-up of its chief rival JPMorgan Chase, a prominent bank analyst has taken Blankfein’s bank to task, saying the chief executive has presided over a “lost decade,” piling money into money-losing operations and trailing the broader market.
goo.gl/LkyEKx

Why Banks Don’t Play It Safe, Even When It Costs Them
BY JAMES SUROWIECKI – New Yorker
Better late than never. That’s one way of looking at the proposed new restrictions on banker compensation that U.S. regulators released last week. The rules will require top earners at big financial institutions to wait four years to receive a substantial portion of their incentive-based pay, and will force companies to claw back bonuses from employees whose decisions turn out to be responsible for big losses. The new regulations, which were mandated by the 2010 Dodd-Frank financial-reform bill, were supposed to have been put in place soon after that legislation was passed, but it took five years for the six responsible agencies to put together a reasonable proposal. (And it will be months yet before the individual agencies approve the rules and put them into effect.)
goo.gl/gHq1aj

Clearing & Settlement

LCH.Clearnet hires ex-Goldman Sachs partner
Financial News
LCH.Clearnet, the London Stock Exchange-owned clearing house, has hired a former Goldman Sachs partner in a senior foreign exchange role and handed the head of SwapClear – its crown jewel – a big promotion.
goo.gl/N0TglF

DTCC survey: Asia economic slowdown and cyber risk top list of industry concerns
Automated Trader
An economic slowdown in Asia was listed by 22% of respondents of a recent survey conducted by The Depository Trust & Clearing Corporation (DTCC) as the biggest systemic risk to the broader economy – a dramatic change from just one year ago when only 1% of respondents ranked an economic downturn outside of the E.U./U.S. as the biggest risk.
goo.gl/uuzZrP

LCH Strengthens FX Operations With Two Senior Appointments
Finance Magnates
LCH, an international clearinghouse, has unveiled two senior executive additions to its SwapClear and ForexClear services operations, namely the appointments of Daniel Maguire and Paddy Boyle, according to an LCH statement.
goo.gl/UanCLe

LCH promotes Maguire to global head of rates and FX; Maguire will now oversee LCH’s global rates and FX derivatives businesses.
By Joe Parsons – The Trade
LCH has named Daniel Maguire as its new global head of rates and FX derivatives, with the clearing house continuing its global push in the interest rate swaps clearing market.
goo.gl/A3nfiq

DTCC and ISDA Bolster Their Boards via New Members
FTF News
The Depository Trust & Clearing Corp. (DTCC) reports that three new members, all senior executives at clearing agencies, have been elected to its board of directors.
goo.gl/eiBtWA

ESMA’s first stress test for EU CCPs looming
Securities Lending Times
The European Securities and Markets Authority (ESMA) will launch the first of its stress test exercises for EU central counterparties (CCPs) on 29 April.
ESMA, in cooperation with national competent authorities (NCAs) and the European Systemic Risk Board (ESRB), will test the resilience of European CCPs by exposing them to adverse market scenarios.
goo.gl/cm3b9R

Performance Bond Requirements: Agriculture and Energy Margins – Effective April 26
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below.
goo.gl/vGaALM

Indexes & Products

ISE ETF Ventures Recognized as “Most Proactive Exchange for ETF Options/Derivatives” at 12th Annual Global ETF Awards®
ISE
ISE ETF Ventures has received the award for “Most Proactive Exchange for ETF Options/Derivatives” at the 12th annual Global ETF Awards, marking the sixth consecutive year ISE ETF Ventures has earned the award in this category.
goo.gl/qoKLrM

Deutsche Börse receives ETF Awards in London and New York
Deutsche Börse Cash Market
Deutsche Börse was recognised as “Best European ETF Stock Exchange 2015” at the ETF.com Europe Awards in London.
goo.gl/bUuicN

Enforcement

FINRA Decision Bars James Van Doren for Unethical Conduct; Registered Representative Engaged in Money Laundering and Assisted Friend in Deceiving Creditors
FINRA
The Financial Industry Regulatory Authority (FINRA) announced today a decision barring James Van Doren from the securities industry for unethical conduct involving money laundering and a scheme to deceive a friend’s creditors and facilitate violations of law, including conspiracy to commit bankruptcy fraud. The ruling resolves charges brought by FINRA’s Department of Enforcement in October 2014 and in its amended complaint.
goo.gl/b84A41

FINRA’s April 2016 Quarterly Disciplinary Review
FINRA
In this podcast, we talk about some cases from FINRA’s April twenty-sixteen Quarterly Disciplinary Review. They highlight conduct that violates FINRA rules and may lead to disciplinary action.
goo.gl/QHEOam

Environmental & Energy

Saudi Aramco: The Oil Giant’s Known Unknowns; Saudi Aramco would be a must-own investment as the world’s largest listed company but its sale carries both risks and even negative implications for oil prices
By SPENCER JAKAB – WSJ
Saudi Arabian Oil Co.: A company that enriched its private investors for decades through what was called a “golden gimmick” beckons to foreign capital once again.
goo.gl/m2Tler

Asia-Pacific

Chinese companies look beyond Hong Kong market for funds
Nikkei Asian Review
Mainland Chinese companies that have relied on Hong Kong’s stock market to raise money are turning to overseas alternatives as the yuan gains international traction as well as taking a fresh look at domestic markets such as Shanghai and Shenzhen. Plans to link the Shanghai and London stock exchanges will be announced as early as September, the Hong Kong Economic Journal reported Monday, citing a source at a Chinese fund management company who quoted mainland authorities.
s.nikkei.com/26qZLAf

Hong Kong government urged to provide incentives to attract private capital into ‘silver hair market’
South China Morning Post
In 20 years’ time, nearly one in three Hong Kong residents will be aged 65 or older. Is that a risk or an opportunity?
Facing such a rapidly growing aged population, Legislative Council member Tony Tse Wai-chuen has urged the government to provide incentives to attract private capital into the market, in a move to ease the government’s burden as well as provide a higher standard of living for those able to afford it.
goo.gl/7fKFIH

Shanghai London Stock Link Ready
Portfolio Adviser
In the initial stage, no more than 10 Shanghai-listed A-shares with the largest market capitalisation will be listed on the London bourse by issuing global depositary receipts (GDRs), the Hong Kong Economic Journal reported on Monday, quoting unnamed Chinese fund managers as sources.
goo.gl/uw44C7

Malaysia’s troubled 1MDB fund defaults on bonds
Shanghai Daily
Troubled Malaysian state investment fund 1MDB says it has defaulted on $US1.75 billion ($2.27 billion) in bonds it issued after missing an interest payment, raising fears of financial-market fallout from the scandal-tainted company.
goo.gl/t2DJPQ

Singapore Bets on Rising Asia Middle Class to Spur Economy
Bloomberg
The rise of the Asian middle class will remain the dominant regional growth story for years to come, enough to help Singapore cope with headwinds from the global economy, a top official said.
bloom.bg/26r0e5i

Japan’s Central Bank Is Now Top 10 Owner of Country’s Stock Market
Newsmax
They may not realize it yet, but Japan Inc.’s executives are increasingly working for a shareholder unlike any other: the nation’s money-printing central bank. While the Bank of Japan’s name is nowhere to be found in regulatory filings on major stock investors, the monetary authority’s exchange-traded fund purchases have made it a top 10 shareholder in about 90 percent of the Nikkei 225 Stock Average, according to estimates compiled by Bloomberg from public data.
nws.mx/26r0gKC

Frontier Markets

Sebi tightens proprietary trading norms in commodity derivatives; Commodity exchanges ordered to amend provisions and bye-laws to launch proprietary trading in alignment with equity exchanges
Business Standard
Tightening norms in commodity derivatives trading further, the Securities and Exchange Board of India (Sebi) has asked exchanges to adopt proprietary trading practices similar to the one currently prevailing in securities markets.
goo.gl/z6rIvh

Miscellaneous

Sanford Weill and His Wife Donate $185 Million to U.C. San Francisco
By MICHAEL J. de la MERCED – NY Times
SAN FRANCISCO — Over the last four decades, Sanford I. Weill has been known for his huge donations to East Coast institutions, including his alma mater, Cornell University.
goo.gl/Q0aGmS

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