First Read

Good Morning
By John J. Lothian

Good morning! I say that with all earnestness.

Friday the world changed, or so it seemed. Brexit happened, markets fell and journalists went to work to cover this story from every conceivable angle. The newsletter below is an aggregation of that news. You will find only two stories on the LSE-Deutsche Boerse merger and the CME Group did something in Palm risk management. There are a few other non-Brexit stories, but they were hard to come by.

Lots of rich people lost money, but so did poor people; they just don’t have as good portfolio measurement tools to show them their balances. It was the $2.08 billion dollar loss in the global equity markets that garnered a headline below.

Our friends at the FIA have set up a Brexit page on their website here

Changing themes from global financial destruction to building for the future, please sign up your interns and newer employees for our MarketsWiki Education World of Opportunity series in Chicago and New York. Please help get the word out. A recommendation from an experienced colleague or supervisor goes a long way.

We have added the lineups of speakers for each session in Chicago to the event page

We are asking you to Tell The Story about our industry and help recruit the next generation of market participants and professionals. After Friday’s action, you should have no problem telling stories.

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World’s 400 Richest People Lose $127 Billion on Brexit: Chart
Bloomberg
The world’s 400 richest people lost $127.4 billion Friday as global equity markets reeled from the news that British voters elected to leave the European Union.
goo.gl/2bvybi

***** What is a few billion spread out amongst the 1%?

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European bank stocks set for worst two-day loss ever in post-Brexit fallout
Reuters
European bank stocks extended post-Brexit losses on Monday putting the sector on track for its worst 2-day drop ever.
goo.gl/20qYAo

****** What about when the South Sea Bubble broke?

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The financial industry fallout from Brexit is about to get a whole lot worse
Ben Wright – Telegraph
Please allow me to introduce you to Jonathan Hill. I don’t believe you’ve met. He is one of the faceless, unelected bureaucrats in Brussels that the British public rebelled against in the referendum vote on Thursday. Or rather he was until he resigned on Saturday.
goo.gl/fRtLjo

***** There will be another faceless bureaucrat soon enough.

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Jeffrey Tessler: Deutsche Boerse Exchange Reorganization Is Done, Now Onto The London Stock Exchange Deal
Jim Kharouf – John Lothian News

Jeffrey Tessler is a busy man these days as the person overseeing a recently restructured unit at Deutsche Boerse called “Customers, Products & Core Markets.” The new division rolls together Eurex, Eurex Clearing and Clearstream, the collateral management and settlement business.

Jeffrey Tessler

We had it separated, so by bringing it together and walking into a client, we can talk about what is most important to them,” said Tessler, at the FIA IDX conference in London. “Obviously, clearing is an important aspect of their business and also the collateral management and collateral efficiency, and collateral optimization. How do we bring it all together? “

With the new business model, Tessler said Deutsche Boerse is more aligned with customers trading across multiple asset classes on multiple markets. Given the European regulatory overhaul that now dictates new rules on everything from capital requirements to which products need to be exchange traded, cleared and reported, the move is aimed at addressing new efficient solutions for end users.

To read the rest of this story, go here

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Brexit has locked us millennials out of the union we voted for; Older Leavers are unlikely to need a continent’s worth of opportunity
Nicholas Barrett – FT
The Leave vote in last week’s EU referendum bequeaths a legacy that will still be under scrutiny long after David Cameron, Boris Johnson and Jean-Claude Juncker evaporate into the political science journals.
/goo.gl/zhZD0c

***** This has inspired real anger.

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MWE Chi
MWE NY

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Bob Ray Memorial Trophy On The Line
FFK
The annual Futures For Kids 4th of July Golf Day will be held at the Royal Blackheath Golf Club. Participants will vie for the chance to win the Bob Ray Memorial Trophy.
This year’s tournament lead Gold Plus sponsors are: Fidessa (live vpar scoring) and CurveGlobal (halfway house Champagne and refreshments buggy), with Gold sponsors: BAML (Beat The Pro) and Trading Technologies & Met Traders both (Nearest the Pin competitions).
Other sponsors of the event include: Argon Financial, Barclays, CBOE, Deutsche Bank, Faventus Consulting, LME, Sheffield Haworth, Societe Generale, and ION as well as partner support from Object Trading.
This sold out event raised around £20,000 for FFK charities in Europe, Africa and Asia. The continued support of FFK’s sponsors is hugely appreciated.

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Perdue Aims to Make Chickens Happier and More Comfortable
By STEPHANIE STROM – NY Times
Sunlight floods the floor at one end of the chicken house here at Ash-O-Ley Acres, and spry little Cornish game hens flap their wings and chase one another.
goo.gl/AaTUPM

***** Chickens can’t read, thus they were spared the Brexit news, so for them the sky is not falling.

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Algo Trading

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Friday’s Top Three
Let’s make it easy on ourselves here. Ninety percent of all clicks Friday were on Brexit stories. Rather than pick and choose three, we can safely say all of the top clicked stories can be found in our special Brexit section HERE. We will continue to update that page periodically which, at this point, means several times daily.

Lead Stories

Britain turns its back on Europe; Cameron quits and sterling plunges after roar of rage from alienated voters
by: George Parker, Michael Mackenzie and Ben Hall – FT
Britain swept away 50 years of foreign policy, turning its back on the EU, in a moment of extraordinary political upheaval that deposed its prime minister, sank its currency and reopened the possibility of Scottish independence.
/goo.gl/zz040V

Brexit Casts Dark Shadow on World’s Great Move to Openness
Enda Curran, Jeff Black, Craig Torres – Bloomberg
Spain vote, U.S.-led Pacific trade deal among next barometers; India central bank chief issues plea for keeping ‘open world’
Britain’s departure from the European Union dealt what may be the biggest blow yet to globalization, challenging a decades-long embrace of freer movement of goods, services and people.
goo.gl/CjDvof

‘Something very bad has happened’; How markets scrambled to keep up with Brexit shock
Dan McCrum in London and Jennifer Hughes in Hong Kong – FT
Investors were on Friday struggling to come to terms with one of their worst fears after one of the world’s largest economies and financial centres cut itself adrift from Europe and sent global markets into freefall.
/goo.gl/l7wNWn

Can Brexit be stopped? Anything is possible; Leaving the EU is harder than anyone thought, but so is defying the will of the people
Philip Stephens – FT
Four days after Brexit, is there any way back? A petition calling on MPs to overturn last week’s Brexit decision is up to 3.3m signatures and counting. Young people, three-quarters of whom voted to stay, have turned to social media to voice anger and dismay that their future has been decided by retired baby boomers. Former prime minister Tony Blair has suggested a second referendum is possible and, with financial markets shaky and Brussels already closing doors on Britain, buyer’s remorse may well spread. So could the nation change its mind? Is there any way back? Well, anything is possible, but, as things stand, one can make only two statements with confidence. And, no, they are not consistent.
/goo.gl/pI5uxc

The $100 Trillion Bond Market’s Got Bigger Concerns Than Brexit
Brian Chappatta – Bloomberg
HSBC’s Major says ultra-low rates, yields are here to stay; Demographics, debt overhang, income gap are structural issues
In some ways, it really didn’t matter to Steven Major whether the U.K. voted to stay or to leave.
goo.gl/QG6Kb9

Post-Brexit global equity loss of over $2 trillion worst ever: S&P
BY EDWARD KRUDY – Reuters
The $2.08 trillion wiped off global equity markets on Friday after Britain voted to leave the European Union was the biggest daily loss ever, trumping the Lehman Brothers bankruptcy during the 2008 financial crisis and the Black Monday stock market crash of 1987, according to Standard & Poor’s Dow Jones Indices.
goo.gl/3wMuvQ

Fed’s Yellen pulls out of ECB gathering in Portugal
Reuters
Federal Reserve Chair Janet Yellen is no longer due to speak at a global central bank summit starting on Monday, the second high-profile defection after the Bank of England’s governor pulled out following Britain’s vote to leave the European Union.
goo.gl/4NiEMR

When You Dial 911 and Wall Street Answers; Since the 2008 financial crisis, private equity firms have increasingly taken over public services like emergency care and firefighting, often with dire effects.
By DANIELLE IVORY, BEN PROTESS and KITTY BENNETT – NY Times
A Tennessee woman slipped into a coma and died after an ambulance company took so long to assemble a crew that one worker had time for a cigarette break.
goo.gl/0mUXbq

City of London has lost its voice with Brexit, says Lord Hill; Eurozone holds sway over rulemaking which UK financial services will have to follow
by: Alex Barker in Brussels – FT
The City of London should brace itself for an new era where its rule book reflects Franco-German interests unchecked by “the British voice”, according to Britain’s outgoing EU commissioner in charge of financial services.
/goo.gl/TjuZNN

Deutsche Bank CEO says London financial center will weaken but won’t die
Reuters
The chief executive of Deutsche Bank (DBKGn.DE) says London will not die as a financial center but it will become weaker after Britain voted to leave the European Union.
goo.gl/8C9xaA

We will make an orderly exit to ensure the City’s future; This is a process of divorce where things are best approached calmly, writes Chris Grayling
by: Chris Grayling – FT
In the aftermath of the referendum result and the prime minister’s resignation, there was bound to be shock and surprise. What matters now is that we get on with the task of delivering a proper response to the decision that the nation has taken.
/goo.gl/KODCP5

Post-Brexit: Blackmailing Central Banks Comes Next
Steven M. Sears – Barron’s
As global market’s tremble after Britain’s unexpected vote to exit the European Union, investors need to contemplate what will happen after Brexit. Thomas Peterffy, chairman of global trading firm Interactive Brokers (ticker: IBKR ), expects that EU nations will try to blackmail the European Central bank.
goo.gl/SdlbyG

***DA: Never let a crisis go to waste.

Britain’s EU commissioner, finance chief Hill, resigns
BY ALASTAIR MACDONALD – Reuters
The British member of the EU executive, Financial Services Commissioner Jonathan Hill, resigned on Saturday after having campaigned against Britain leaving the European Union.
goo.gl/998nnp

They Got It Wrong: Swarms of Global Chatterers Misread Brexit
Mark Niquette – Bloomberg
Those who predicted badly include the wealthy and well-read; A disbelief that independence would outweigh prosperity
A global cohort said before Thursday’s Brexit vote that Britain was unlikely to pull out of the European Union, the post-World War II international project that brought an unprecedented era of prosperity and peace. Yet some were led astray by the belief that free trade’s money and material goods outweighed nationalism and the tug of nostalgia.
goo.gl/HNkZDv

Brexit wagers set new record for non-sports bets; Big money was on ‘remain’ but more bettors picked ‘leave’
by: Paul McClean – FT
Wagering on the outcome of the Brexit referendum broke the record for non-sporting events, as punters put down £120m, and the unexpected outcome left some bookies celebrating six-figure profits while others nursed heavy losses.
/goo.gl/rSvN6I

Brexit

Law firms see short-term opportunity, long-term peril in Brexit
BY ANTHONY LIN – Reuters
As the reality of Britain’s vote to exit the European Union sank in on Friday, international law firms began sending out emails, warning actual and potential clients of issues that could arise due to “Brexit.” Some set up 24-hour hotlines to field queries.
goo.gl/MYHnIq

U.K. Must Leave EU as Soon as Possible, EU Foreign Ministers Say
Birgit Jennen, Fabio Benedetti Valentini – Bloomberg
German, French among foreign ministers at talks in Berlin; Scotland accelerates preparations for possible referendum
The European Union’s founding members increased pressure on the U.K. to leave the bloc as soon as possible following this week’s stunning referendum as Scotland accelerated plans to take another run at independence.
goo.gl/iOW4LY

‘Brexit’ in America: A Warning Shot Against Globalization
By NELSON D. SCHWARTZ and PATRICIA COHEN – NY Times
When the mills that birthed the industrial revolution in cities like Manchester and Birmingham still powered the British economy of the mid-20th century, Robert Stevenson was a frequent visitor to the Midlands.
goo.gl/vTT1tz

The single currency: eur-on your own; Worry more about the euro than the pound
Lex – FT
The pound lost 7 per cent against the dollar on Friday; the euro, less than 3 per cent. But the currency that is leaving may ultimately do better than the one that is to be left behind.
/goo.gl/gi0wO6

Britain faces up to waning influence on global stage; Cameron to address parliament; Osborne to reassure on economic stability
by: Alex Barker in Brussels and George Parker and Jim Pickard in London – FT
Britain is facing the stark reality of crumbling influence on the world stage after turmoil triggered by the vote to leave the EU plunged the UK into domestic political instability.
/goo.gl/dRu0Io

Dublin faces policy crisis over Irish implications of Brexit vote; Enda Kenny tries to reconcile loyalty to EU with special relationship to Britain
by: Vincent Boland in Dublin – FT
The Irish government was scrambling on Sunday to assess the implications of the UK’s decision to leave the EU as Dublin faced its biggest political and foreign policy crisis for generations.
/goo.gl/PBzg3g

Italy fears pressure on banks after Brexit; Rome weighs measures to prop up struggling banking sector
by: Rachel Sanderson in Milan – FT
Italy’s government is considering measures to prop up its struggling banking sector amid fears of renewed pressure following the UK’s vote to quit the EU, according to bankers and officials.
/goo.gl/UNLt3M

Britain is sailing into a storm with no one at the wheel
Economist
IT WAS a troubling exchange. On live television Faisal Islam, the political editor of SkyNews, was recounting a conversation with a pro-Brexit Conservative MP. “I said to him: ‘Where’s the plan? Can we see the Brexit plan now?’ [The MP replied:] ‘There is no plan. The Leave campaign don’t have a post-Brexit plan…Number 10 should have had a plan.'” The camera cut to Anna Botting, the anchor, horror chasing across her face. For a couple of seconds they were both silent, as the point sunk in. “Don’t know what to say to that, actually,” she replied, looking down at the desk. Then she cut to a commercial break.
goo.gl/ZJTqvl

I cannot stress too much that Britain is part of Europe – and always will be
BORIS JOHNSON – Telegraph
This EU referendum has been the most extraordinary political event of our lifetime. Never in our history have so many people been asked to decide a big question about the nation’s future. Never have so many thought so deeply, or wrestled so hard with their consciences, in an effort to come up with the right answer.
goo.gl/nadJiK

Brexit threatens London’s status as a markets hub: a Q&A
FT
London is the world centre of the complex plumbing of markets, but leaving the EU complicates that
/goo.gl/tQ2tiR

Regulatory

Britain’s EU commissioner, finance chief Hill, resigns
Reuters
The British member of the EU executive, Financial Services Commissioner Jonathan Hill, resigned on Saturday after having campaigned against Britain leaving the European Union. Following the referendum vote for Brexit on Thursday, few expected a Briton to retain oversight of the EU banking and finance market that will be a key battleground in negotiations between London and Brussels on dissolving British membership.
reut.rs/291RWwo

CFTC should reconsider plan to let electricity traders sue utilities, key lawmakers say
Neil Roland, MLex
An unusual coalition of senior congressmen from both parties urged US Commodity Futures Trading Commission Chairman Timothy Massad to reassess a proposal to allow futures traders to file fraud and manipulation lawsuits against electricity companies.
goo.gl/gn8SBk

?More banks, asset managers need to use LEIs on derivatives trades, authorities say
Neil Roland, MLex
Global and US authorities pushed this week for wider adoption of identification tags by banks and asset managers as their use of the tags on derivatives transactions continues to lag.
goo.gl/eJ1HYO

Exchanges & Trading Facilities

Brexit rattles regulators weighing LSE-Deutsche Boerse merger
BY JONATHAN GOULD AND ANDREAS KRÖNER – Reuters
German regulators contested plans for a merged Deutsche Boerse-London Stock Exchange to be based in London following Britain’s vote to leave the European Union, while one politician even said the deal was now as good as dead.
goo.gl/efvZGo

LSE-DB faces opposition over London HQ
Futures & Options World
The London Stock Exchange and Deutsche Boerse face a crucial week in their efforts to secure support for their planned merger amid growing pressure in Germany for the headquarters of the combined entity to be switched to Frankfurt from London following the Brexit vote. The worker’s council of Deutsche Boerse, which represents the interests of the German exchange’s employees, redoubled its calls on Friday for the headquarters of the merged Deutsche Boerse-LSE to be in Frankfurt rather than London as planned.
goo.gl/q6cymN

DGCX to treble single stock futures this year
Futures & Options World
The exchange in January added its first single stock futures contracts, its first equity futures contracts, which offer the ability to hedge key Indian and US stocks, including Facebook, Google, JP Morgan, Apple, Ifosys and Tata Motors. The plans for the expanded equity futures suite come as the Dubai exchange ramps up work on its energy business. As reported by FOW, on Friday DGCX will launch Indian crude oil quanto futures, the first step in its planned boost to the energy division.
goo.gl/ODY8g8

CME Group Expands Suite of Palm Risk Management Products
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of four new palm contracts to its suite of agricultural products, to begin trading on July 11, 2016, pending all relevant regulatory review periods.
goo.gl/nerZuC

CME Group says some Treasury, rate spreads unavailable
Reuters
In a sign of the strains that post-Brexit trading is putting on global exchanges, CME Group said on Friday that new user-defined spreads for Treasury and Fed funds options will be unavailable “for the remainder of the trading day.”
goo.gl/31ESPt

**** From Friday

HKEX to Revise Criteria for its Designated Securities Eligible for Short Selling
HKEx
Hong Kong Exchanges and Clearing Limited (HKEX) will revise the criteria for its designated securities eligible for short selling from 4 July 2016 to reflect the development of Hong Kong’s equity market.
goo.gl/oes4o5

Euro-Bono-Futures: new Market Making Scheme launched
Eurex
Eurex Exchange, the international derivatives marketplace of Deutsche Börse Group, is adjusting its market maker scheme for the Spanish Government 10Y Bond Future – the Euro-Bono-Futures contract (FBON), to further boost its value as a key hedging instrument.
goo.gl/Om0k1J

Politics

A prominent conservative columnist says he’s leaving the party because of Donald Trump
Pamela Engel – Business Insider
Conservative columnist George Will said Friday that he’s leaving the GOP over Donald Trump’s rise to becoming the party’s standard bearer.
goo.gl/dX7uyT

***** George Will spoke at FIA Expo a couple of years ago during lunch.

Republican ex-Treasury chief Paulson slams Trump, to vote for Clinton
Reuters
Henry Paulson, a Republican who was U.S. Treasury secretary during the 2008 financial meltdown, on Friday called a Donald Trump presidency “unthinkable” and said he will vote for Democrat Hillary Clinton.
goo.gl/rxpC0m

Donald Trump predicts breakup of EU; Would-be US president also says Europe will be unrecognisable within decade without strict migration controls
Nadia Khomami – The Guardian
Donald Trump has predicted the breakup of the European Union and warned Scotland against the risks of a second independence referendum.
/goo.gl/V54Ty3

Cracks deepen inside troubled marriage of Trump and Republican party
Alan Yuhas – The Guardian
Mitch McConnell declines to say if presumptive nominee is qualified; Despite drop in polls campaign manager insists team ‘is getting organized’; Dark days for GOP as Never Trump faction eyes one last end-around; Guardian journalists denied entry into Donald Trump UK event
Cracks in the awkward marriage between Donald Trump and Republican leaders grew wider on Sunday, as Senate stalwarts recoiled from their presumptive presidential nominee, his campaign moved in for a closer embrace, and the businessman fell freely in polls after a weekend romp in Scotland.
/goo.gl/dfhcPV

Hedge Funds & Managed Futures

Active Managers Start to Feel the Pain; The fund business braces for shrinking profits and assets.
Charles Stein – Bloomberg
Even after the shock of the financial crisis, managing other people’s money remained a pretty great business. While banks shed jobs, employment at the largest publicly traded asset managers rose about 20 percent from 2008 to 2015, according to data compiled by Bloomberg. Now top executives at some of the largest fund companies, including Larry Fink at BlackRock and Gregory Johnson at Franklin Resources, are warning that a reckoning is coming.
goo.gl/AFRCXj

What ‘Brexit’ Means for U.S. Investors; Britain’s vote to leave the European Union may have only a slight effect on U.S. economic growth, but it could shift investors’ focus on which stocks to buy
By JUSTIN LAHART – WSJ
U.S. traders were running from the “Brexit” on Friday. But while Britain’s vote to leave the European Union might affect the contours of the U.S. economy, it may have very little effect on how rapidly the economy grows.
goo.gl/mFyra0

Former Man Group chief executive joins RWC board; Peter Clarke becomes London-based investment manager’s first non-executive director
by: Madison Marriage
The former chief executive of Man Group, the world’s largest listed hedge fund company, has joined the board of RWC as part of the London-based investment manager’s efforts to boost its assets under management.
/goo.gl/IXETwD

‘Brexit’ Surprised Hedge Fund Managers Used to Picking Winners
By ALEXANDRA STEVENSON – NY Times
The billionaire hedge fund manager Leon Cooperman told an audience of Wall Street insiders on Wednesday that there was a 70 percent probability that Britain would stay inside the European Union. “I don’t worry about Brexit,” he added.
goo.gl/3gXQgF

Asset managers pick through Brexit wreckage; The damage to asset managers of Britain leaving the EU was immediate, says Chris Newlands
by: Chris Newlands – FT
“Wake me up when the result changes to one in which we voted to remain in the EU,” said one chief executive of a large fund management company, who stayed up the whole of Thursday night and watched the outcome of the UK referendum on EU membership through his fingers.
/goo.gl/kHvdok

European Markets Remain Pressured by ‘Brexit’
Central bank officials help stoke a modest rebound in Asian shares
By Riva Gold – WSJ
The aftershocks of the U.K.’s vote to leave the European Union continued to ripple through financial markets Monday, deepening a rout in European shares and sending the British pound to a three-decade low against the dollar even as policy makers rushed to reassure investors.
Futures markets pointed to a 0.5% opening loss for the S&P 500, after closing Friday at its lowest level since March 28. Changes in futures don’t necessarily reflect market moves after the opening bell.
goo.gl/z3C5k9

Banks & Brokers

TD Ameritrade, Fidelity problems rile social media users
BY AMY TENNERY – Reuters
Social media users flooded TD Ameritrade’s (AMTD.O) and Fidelity Investments’ Twitter feeds with irate messages on Friday, as customers struggled to access their online brokerage accounts.
goo.gl/aLRZnI

Banks begin moving some operations out of Britain; ECB official warns on loss of EU ‘passporting’ rights for UK financial services
by: Martin Arnold and Laura Noonan in London – FT
Banks have already begun to take action to shift operations out of the UK, but most of their staff will have to wait several months to find out how many thousands of them will be asked to move to fledgling financial hotspots like Paris, Dublin and Frankfurt.
/goo.gl/hXvr9n

JPMorgan post-Brexit plan hinges on tone of discourse in Europe
BY DAVID HENRY – Reuters
JPMorgan Chase & Co (JPM.N) is grappling with how much of its business can stay in Britain and a lot will depend on how well European Union and U.K. politicians appear to be getting along. It is still unclear whether JPMorgan, the largest U.S. bank, would need to hive off slivers or chunks of its UK operations after Britain voted Thursday to leave the EU, Daniel Pinto, who heads the bank’s global and investment banking operations, said in an interview.
goo.gl/LfHTyW

Banks Reduce Dark Pool Trading as Brexit Slams U.S. Markets
Annie Massa; John Detrixhe – Bloomberg
Deutsche Bank, Bank of America take measures to reduce volume; Morgan Stanley’s dark pool was offline in London this morning
Britain’s vote to leave the European Union kicked off a torrent of volume in markets around the world, prompting banks to cope with the fallout by reducing trading in their dark pools
goo.gl/Mvirrd

Banks prepare for another day of currency mayhem; Extra staff called in to man FX desks as investors digest a weekend of UK political instability
by: Katie Martin and Roger Blitz – FT
Banks have called in extra staff in case more currency market violence ensues when trading begins in Asia on Monday.
/goo.gl/dBfDC4

Passporting question looms large for banks in the UK; Financial groups explore whether there are other ways to preserve EU access
Inside Business
by: Patrick Jenkins – FT
Questions abounded over the weekend about the rights of EU passport holders to remain in Britain, now that the UK has voted for Brexit.
/goo.gl/czC2xD

Fund managers predict job moves to Dublin and Luxembourg
By Mark Cobley and Andrew Pearce – Financial News
Asset managers have renewed their warnings that some UK jobs will have to move to European fund centres such as Dublin and Luxembourg following the UK’s vote to leave the European Union.
goo.gl/wLrLGy

Clearing & Settlement

Clearing Could Be Early Test of London’s Power as Financial Hub
Bloomberg
A battle George Osborne won last year against the European Central Bank may have to be re-fought, showing one of the many ways U.K. leaders could be forced to defend London’s position as a leading financial center. In a rare British victory at the European Union’s general court, judges in March 2015 sided with Chancellor of the Exchequer Osborne by saying the central bank can’t dictate where euro-denominated trades are cleared. Osborne’s tussle with the ECB stands out because it’s turf that the euro area has clearly coveted before, and could now be up for grabs.
bloom.bg/28Vy9JD

How Finance Can Benefit From Smart Contracts
Deloitte CFO Insights
Blockchain-based smart contracts—self-executing code on a blockchain that automatically implements the terms of an agreement between parties—are a critical step forward, streamlining processes that are currently spread across multiple databases and ERP systems.
goo.gl/phc3gW

Reserve Bank of India to explore blockchain to curb use of paper currency
EconoTimes
H R Khan, Deputy Governor of Reserve Bank of India (RBI) on Friday suggested that the Indian central bank could set up a committee in order to study the use of blockchain technology to curtail the use of paper currency.
goo.gl/vzd1W6

Clearing houses raise margin calls on Brexit; UK decision to leave the EU is seeing Asian clearers demanding higher margins on some contracts.
Joe Parsons – The Trade
Clearing houses in Asia have increased the amount of margin traders must pledge for certain derivatives contracts in the wake of Britain’s vote to leave the EU.
goo.gl/mkig5T

London’s clearing hub status under threat
By Tim Cave – Financial News
London’s status as the major centre for clearing euro-denominated transactions is likely to come under threat after the UK voted to leave the European Union, according to practitioners and market experts.
goo.gl/wWMN7N

Indexes & Products

Russell reconstitution adds to U.S. market’s volume, volatility
Reuters
FTSE Russell reconfigured its indexes at the close in an annual event that triggered the highest trading volume for any session in almost five years and added to Friday’s high volatility in the U.S. share market.
goo.gl/oL9Vqa

VIX Index Jumps 49.3% on Friday, with Record Overnight Volume for VIX Futures
Matt Moran – VIX Views
The CBOE Volatility Index (VIX) rose 49.3% on June 24, after the results of the Brexit referendum were announced. The VIX Index is a key measure of market expectations of near-term volatility conveyed by S&P 500® stock index option prices.
goo.gl/9nL3xx

Brexit blows away MSCI’s last week gains
Daily News Egypt
MSCI Emerging Market Index lost all of the gains it achieved in the last week as a result of the historic referendum through which the Brits decided to exit the European Union.
goo.gl/uZQO4D

Investors in China are ready for MSCI Indexes – Smart Stock News
Smart Stock News
Maybe the third try will be lucky for the Chinese shares market.
Investors are hoping that the heads of MSCI World will include A-shares to their Index of the Emerging Markets. They tracked by 1.5 trillion American dollars at the global funds. It is the third meeting, since the 2013 year. And we all are waiting for the decision of the committee on Wednesday.
goo.gl/gYPmn2

Technology

Intel weighs sale of cyber security business; Chipmaker considers move as venture capital and private equity investors flock to sector
by: Hannah Kuchler in San Francisco and James Fontanella-Khan in New York – FT
Intel is looking at options for Intel Security, including potentially selling the antivirus software maker formerly known as McAfee which it bought for $7.7bn almost six years ago.
/goo.gl/9SMoQp

‘Brexit’ Could Disrupt Fintech Business; Move could affect regulation, movement of employees
By TELIS DEMOS – WSJ
The U.K. referendum result this past week could disrupt emerging digital payments rules and financial-technology upstarts.
goo.gl/gOjYfX

Mobile-friendly financial data platform takes on Bloomberg
By Catherine Curan – NY Post
Alap Shah wants to reinvent one of Wall Street’s favorite wheels.
Sentieo, the new firm founded by the 35-year-old former hedge fund analyst, is the latest upstart financial data platform seeking a slice of the lucrative financial information provider market long synonymous with Bloomberg’s famous terminals.
goo.gl/LLO10B

Enforcement

SEC Charges “Frack Master” With Running an $80 Million Oil and Gas Fraud
SEC.gov
The Securities and Exchange Commission today charged four companies and eight individuals in an $80 million oil and gas fraud orchestrated by a Dallas man who calls himself the “Frack Master” for his purported expertise in hydraulic fracturing.
1.usa.gov/28RFgmt

SEC Accuses Breitling Energy CEO, Others, of $80 Million Fraud
by Reuters
The “Frack Master” didn’t give investors the whole story.
The U.S. Securities and Exchange Commission on Friday charged Breitling Energy Corp, its chief executive and seven other people with defrauding investors out of around $80 million by misleading them about the value of oil and gas assets.
goo.gl/6SgnjN

Hong Kong’s Securities And Futures Commission Bans Liu King Yee For Life
MondoVisione
The Securities and Futures Commission (SFC) has banned Ms Liu King Yee, a former employee of Wing Lung Bank Limited (Wing Lung Bank), from re-entering the industry for life following her conviction by the High Court for fraud (Notes 1 & 2).
goo.gl/oV1ezP

Environmental & Energy

The World Is Nearing Peak Fossil Fuels (Especially The Developed World)
By Ben Schiller – co.Exist
Worldwide use of fossil fuels will peak in 2025. Solar will be the least expensive form of electricity by 2030.
goo.gl/etJWWq

China Signals Coal-Capacity Cut Equal to 7.5% of Output in 2015
Bloomberg News
China says it’s reining in coal production as the country tries to curb the pollution choking the nation’s cities and eliminate so-called “zombie” companies in the struggling industry.
goo.gl/pNhCfN

Tesla wants to be your renewable energy everything
By Heather Smith – Grist
Elon Musk — future Mars settler, founder of Tesla – stepped into the solar business earlier this week with Tesla Motor’s $2.5 billion bid to buy SolarCity, the top home solar company in America.
goo.gl/a8VIfB

Asia-Pacific

Chinese insurers run ‘Titanic’ risks for titanic returns
BY SUMEET CHATTERJEE – Reuters
Years of breakneck growth for China’s top insurers has been partly fueled by a splurge on risky investment products that could punch multi-billion-dollar holes in their balance sheets if the slowing economy triggers heavy debt defaults.
goo.gl/uXDiik

‘Brexit’ and China: Currency Calculus Just Got More Complicated; So far, Brexit hasn’t sparked panic in China, but that doesn’t mean it won’t have an impact
By ANJANI TRIVEDI – WSJ
On first blush, Chinese markets have gotten through the U.K.’s vote to leave the European Union relatively unscathed. But “Brexit” will eventually put Beijing to the test.
goo.gl/c9K7sJ

Markets Overreacting to Britain’s EU Vote, UBS China Head Says
Bloomberg
Global markets are “overreacting” to the British vote to exit the European Union, UBS Group AG’s China head Eugene Qian said, as he called on clients to stay focused on their long-term investment strategies.
bloom.bg/28VDoci

Singapore lures big investors with bond deals, robust infrastructure finance demand
Singapore Business Review
As institutional investors increasingly pivot to Asia in their endless quest for higher returns, Singapore is boosting its reputation as the region’s premiere financial centre by rolling out a wider diversity of investible products and risk management solutions.
goo.gl/Unx2fL

Frontier Markets

One Region Profiting From Brexit? Africa
Seeking Alpha
Despite crippling uncertainties, and beneath the veil of prevailing pessimism, many African countries may reap long-term economic and political benefits from Britain’s vote to leave the European Union.
goo.gl/Ti16I3

Sebi to diversify its surplus fund investment portfolio; Its income from investments rose to Rs 186.14 crore, from Rs 171.26 crore, as per Sebi’s latest annual accounts
Business Standard
Doing what it preaches, market regulator Sebi plans to diversify its own surplus fund investment portfolio by expanding its fixed deposit investments to all banks but public sector institutions will continue to get a preference.
goo.gl/kZJFgs

Global Challengers and Champions Defy Tough Times and Keep Growing
MarketWired
Despite the slowdown in macroeconomic growth, the drop in commodity and currency prices, the crash of equity markets, and the rise of geopolitical risks, the top companies from emerging markets are still rapidly expanding and globalizing. A new report by The Boston Consulting Group (BCG), Global Leaders, Challengers, and Champions: The Engines of Emerging Markets, highlights 100 such companies, the BCG global challengers.
mwne.ws/28VDQHD

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