First Read

MarketsWiki Education Series in Chicago, Day Three
Sarah Rudolph and Spencer Doar – JLN

The speakers at the last day of our MarketsWiki World of Opportunity series in Chicago focused on the varied ways young professionals can grow once in the industry.

J.J. Kinahan, managing director at TD Ameritrade, said there is no place better to wake up in the morning than the financial industry. “You have to find a way to make your job fun,” he said. “And if you don’t, that’s nobody’s fault but your own.” He said that, as a boss, the employees he is hardest on are the ones that have the most potential. “I know they’re smart, so I have to press them a bit. A boss who makes you answer questions is one who believes in you.”

Lanre Sarumi, the CEO of RiskBone, said the Knight Capital loss of $441 million in “a matter of minutes” is a good reminder of how many opportunities are out there in the risk management field. Sarumi spent many years attempting to be a successful trader, because that was his dream job, but instead kept finding himself back in the IT department. Sometimes, others can see your talents better than you can.

Tayloe Draughon, the managing director of product design at Neurensic, talked about the applications for artificial intelligence and machine learning in the financial industry. All the new rules and regulations have created opportunities to design algorithms, for example, to prevent illegal “spoofing”.

Tracy Raben, senior vice president and chief human resources officer at the OCC, said the OCC is hiring and has about 80 open positions. They provide a comprehensive training and leadership development program, including a six month program about the options industry itself. As a SIFMU (systemically important financial market utility), the OCC’s failure would have a significant effect on the economy, so they take their jobs and values seriously.

Peter Nabicht is the president and COO of 12Sided Technology, a financial technology firm specializing in data capture and analytics. Early in his career, his trading firm took a large loss because of a “fat finger” error that happened to correspond perfectly with a huge move in the market. When called into the founder’s office, every person involved claimed responsibility for the error – the trader, the person in charge of the GUI, Nabicht himself. “I realized that ‘Not my job’ does not exist in this industry,” Nabicht said.

The event was hosted by Trading Technologies at their Tech Tap, where, after the presentations, interns mingled with the speakers, TT staff, and John Lothian News.

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MWE 2016

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Paying With Cash Hurts. That’s Also Why It Feels So Good.
Phyllis Korkki – NY Times
Paying with cash is painful — and that’s a good thing, according to new research. When people pay for items using cold, hard cash rather than by card or online, they feel more of a sting and therefore assign more value to the purchase, according to Avni M. Shah, an assistant marketing professor at the University of Toronto Scarborough. Her findings were born of personal experience: One day she forgot her debit card, so she paid for a latte with physical dollars — and felt her drink tasted better that day. Could her method of payment have been the reason?
goo.gl/lp5RtU

****JB: Free stuff feels even better.

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#TECH50 2016
Crain’s Chicago Business
The internet of things, Big Data, machine learning, the cloud and artificial intelligence: These are the areas attracting money and talent in Chicago. No surprise, then, that you’ll see they have a big impact on our latest Tech 50 list. Now in its sixth edition, Crain’s Tech 50 is your guide to the city’s sweeping technology ecosystem: founders, CEOs, technologists, risk takers, investors and up-and-comers whose names you should know. Keep in mind, each year’s roster is different by design. Like the tech community itself, our list keeps growing. To get the full picture, take a dive into our 230-person archive here.
/goo.gl/9CGvtF

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Press freedom threats in the US prompt writers to sign petition
The Guardian
Press freedom is essential to democracy. You cannot have one without the other. That is a statement of fact, not a boast. It follows that the activity specifically created to exercise press freedom – namely, journalism – has to be nurtured and protected. Yet in countries across the world, journalism is under persistent attack. In Iraq and Syria, journalists have long been unable to operate freely. Nor can they do so in the countries fighting a proxy war in that region, Iran and Saudi Arabia.
/goo.gl/hwvfOS

****JB: “Our liberty depends on the freedom of the press, and that cannot be limited without being lost.” ~Thomas Jefferson

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Sponsored Content

JPX-Osaka Exchange’s new derivatives trading system “New J-GATE” launched!

– Trading hours extended
From July 19, OSE market is open until 5:30am (JST), i.e. 3:30pm in Chicago, 4:30pm in NY, and 8:30pm in London. Also, its day session opens at 8:45am, 15 minutes earlier than before.

– New products debuted
In addition to OSE’s representative Nikkei 225 Futures/Options and TOPIX Futures, TSE Mothers Index Futures, TAIEX Futures, FTSE China 50 Index Futures, and JPX-Nikkei 400 Index Options were added in OSE’s product lineup.

– New functions are available
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Bridging the Week by Gary DeWaal: July 11-15 and July 18, 2016 (Spoofing; Physical Position Reporting; Administrative Proceedings; Blue Sheets; Reg AT; Order Handling Disclosure; Hedge Exemptions)
Gary DeWaal
Last week, Michael Coscia, the first individual prosecuted and convicted under the provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act that prohibits spoofing, was sentenced to three years in prison. Meanwhile, committee members and witnesses appearing before the House Committee on Agriculture’s hearing on the Commodity Futures Trading Commission proposed Regulation Automated Trading attacked the proposal’s requirements related to source code and registration while commentators also criticized in writing many aspects of the CFTC’s recently proposed amendments regarding non-enumerated hedge exemptions to its November 2013 position limits rules proposals. This was despite generally supporting the agency’s willingness to permit exchanges to grant such exemptions in the first instance.
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Friday’s Top Three
Our top story Friday saw a bold claim, Ex-Googler says he solved “the greatest challenge in fintech”. It will be interesting to see how that plays out. In a close second we have another take on fintech, J.P. Morgan’s Jamie Dimon: Fintech’s Got Nothing on Us. The folks in the first story might want to pitch their product to some other banks first. Rounding out the top three we see a fintech trifecta with a story about how Ari Pine runs prop shop TradeCo with his own algos, cutting-edge IT and quant school grads. It would be interesting to see Pine and Dimon discuss this.

Lead Stories

Coups Don’t Depress Economic Growth
Tyler Cowen – Bloomberg View
As the chaos in Turkey is starting to clear, investors are asking what the failed coup might mean for the country’s economic future. The news stories show many conflicting elements in play, and right now it is hard to make specific verifiable claims about what the country can expect. We can, however, turn to the broader historical record, and that suggests failed coup attempts against democratic governments don’t much lower subsequent rates of economic growth in those countries.
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Resilience Has Been Markets’ Answer to Terror Since 9/11 Attack
Aleksandra Gjorgievska and Sofia Horta E Costa – Bloomberg
European stocks pared losses and U.S. futures rebounded after a terror attack in France killed dozens of people, the latest display of market resilience in keeping with recent history. Over the past 15 years, financial-market reactions to terror have proven increasingly short-lived. At least 84 people died and many were injured when a driver plowed his truck into a late-night crowd in the coastal city of Nice on Bastille Day. The rampage, which ended after the driver was shot to death by the police, forced President Francois Hollande to call up military reserves and extend the state of emergency that he had intended to let lapse.
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Increased risk is the price you’ll pay – investing in the ‘lower for longer’ world
Ed Monk – The Telegraph
The three weeks since the vote to leave the European Union have flummoxed the most experienced of investors, with shares, bonds and other assets rising strongly. In the face of shocks, “risk assets” like shares are usually sold, with prices falling. But recent trading has seen surges in the value of many assets including shares, bonds and gold.
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Bridgewater, World’s Biggest Hedge Fund, Is Said to Be Slowing Hiring
Alexandra Stevenson and Matthew Goldstein – NY Times
After years of rapid internal growth, the world’s biggest hedge fund appears to be slowing down. The $154 billion hedge fund, Bridgewater Associates, run by the billionaire Ray Dalio, is known for hiring hundreds of people every year. Yet it is now telling recruitment firms to cancel interviews with prospective employees, according to three people briefed on the matter. http://goo.gl/iBabzA

Asset management: Actively failing
Stephen Foley – Financial Times
To an audience of financial advisers who had come to hear the hottest stock tips from the big stars of the fund management industry, it was a startling thing to say: “If somebody asked me to make the argument for active management, I would find it difficult given the statistics.” The speaker, Dennis Lynch, is stockpicking royalty. The son of the founder of Lynch & Mayer, a pioneering money manager from the 1970s, has his own $3.4bn mutual fund.
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Startup sexism: why won’t investors give women business loans?
Suzanne McGee – The Guardian
Five years after its creation, the Consumer Financial Protection Bureau (CFPB) is shifting its attention from its core areas of focus – mortgages, student loans and other products sold directly to individual consumers – to an issue that for many Americans is equally important but that so far has not been tackled head-on.
/goo.gl/ovBR6y

US exports gas to the Middle East
FT
For the US to sell gas to the energy-rich Middle East might seem like sending coal to Newcastle, but it has started to happen as the American shale revolution upends the global flows of resources. Two cargoes of US liquefied natural gas from Cheniere Energy’s Sabine Pass plant in Louisiana have been delivered to Kuwait and Dubai in recent months to meet the rapidly growing demand for energy.
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World Bank set to name Paul Romer as chief economist
Shawn Donnan – FT
The World Bank is set to appoint Paul Romer, a longtime advocate of the economic power of human capital and student of urbanisation, as its new chief economist, bringing arguably the highest-profile name to the role since Nobel winner Joseph Stiglitz.Mr Romer, a US economist who teaches at New York University, is expected to replace Kaushik Basu later this year.
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Building Permit Delays Choke U.S. Housing Supply, Study Shows
Chris Kirkham – WSJ
The supply of new housing in the U.S. isn’t keeping up with demand in part because of local delays in getting building permits approved, according to new research set to be released next week by real estate tracker Trulia.
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Some financial firms tackle diversity gap head-on, say they can’t afford not to
Chicago Tribune
Natasha Granholm was a student at Robert Morris College when she got an unlikely foot in the door at PricewaterhouseCoopers. The accounting giant, which didn’t typically recruit at Robert Morris, had asked the school for help finding candidates to fill copy room positions, and Granholm, a top accounting student, was encouraged to apply.
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ExxonMobil launches bidding war for InterOil in PNG gas push
Reuters
ExxonMobil Corp has made a bid worth at least $2.2 billion for InterOil Corp and its stake in a rich Papua New Guinea gasfield, winning the support of its target and topping an offer from Australia’s Oil Search Ltd.
goo.gl/IjvFBG

Brexit

Theresa May suggests Brexit delay as she says no Article 50 until Scotland gives go-ahead
Laura Hughes – The Telegraph
Theresa May has indicated that Brexit could be delayed as she said she will not trigger the formal process for leaving the EU until there is an agreed “UK approach” backed by Scotland.
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Draghi to ask governments to chip in to counter Brexit fallout
Francesco Canepa – Reuters
European Central Bank President Mario Draghi is likely to plead for governments to do more to boost the euro zone’s economy in the coming week as the fallout of Britain’s vote to leave the EU and weaker global growth threaten the bloc’s fragile recovery. Governments in China, Japan and Britain have already started easing their fiscal stance or hinted at plans to do so as sub-par global growth and inflation show that central banks’ ultra-easy monetary policy has run up against its limit.
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Brexit impact is going to be horrible, says leading City fund manager
Graham Ruddick – The Guardian
One of the leading money managers in the City of London has said the fallout from Britain’s vote to leave the EU will be “horrible” and that the Square Mile is still “slightly stunned” by the result.
/goo.gl/o3x1tc

The post-Brexit pain is yet to come for the emerging world
Steve Johnson – Financial Times
The impact of the Brexit vote on emerging markets is probably not at the forefront of many people’s minds, but given that the developing world accounts for 80 per cent of humanity, it is not an irrelevance. The initial market reaction has been driven by short-term considerations: a rise in risk aversion is bad for emerging market assets; looser developed world monetary policy, particularly in the US, is good.
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May’s Brexit policy causes fear in City
Financial News
Two years of uncertainty. Maybe more. That is what faces the tens of thousands of Europeans who have flocked to London over the past few decades to make a career in finance, their continued presence in the UK rendered uncertain by the Brexit vote. Last week’s political developments have been bad news on two fronts. Theresa May’s campaign to become Conservative leader was short, but she had time to make clear that no guarantee can be made on the status of European Union workers in the UK until there is a deal on British nationals living in the rest of the EU.
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Hedge funds prepare to lobby on Brexit rights
Aliya Ram – Financial Times
Hedge funds are building a “Brexit task force” to lobby politicians and inform the industry on the implications of the UK’s vote to leave the EU and prepare their businesses for the years ahead. The Alternative Investment Management Association, which represents the interests of hedge funds, told its members at a special meeting held this month that it will coordinate the industry’s efforts to push for consistent regulation and visa rights for EU employees. It also said executives should future-proof their businesses by setting up management companies and registering funds on the continent.
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Too soon to say when Article 50 will be triggered-UK defence minister
Reuters
Defence Secretary Michael Fallon said on Monday it was too early to say when Britain would trigger Article 50, the formal means of leaving the European Union, and how long it would take to develop its strategy for the divorce talks.
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Exchanges, OTC and Clearing

Singapore Exchange CEO apologises for technical glitch that angered traders
Business Standard
Singapore Exchange Chief Executive Officer Loh Boon Chye apologised for a technical malfunction that angered traders, promising to do better and saying the company will be accountable for Thursday’s five-hour halt that attracted a rebuke from the city-state’s central bank.
goo.gl/vybJ9k

SGX to transfer Regulation unit to subsidiary company with separate Board
Press Release
Singapore Exchange (SGX) will establish a separate subsidiary company (RegCo) to undertake all the front-line regulatory functions it currently performs. The move aims to further enhance the governance of SGX as a self-regulatory organisation (SRO) by making more explicit the segregation of its regulatory functions from its commercial and operating activities.
goo.gl/YvzoXr

CME readies 6 weekly FX option contracts for electronic trading
Mike Fox – LeapRate
CME Group (NASDAQ: CME) just announced that effective Sunday, August 7, 2016 for trade date Monday, August 8, 2016, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange will make available its six (6) existing FX weekly options contracts for trading on CME Globex and for submission for clearing through CME ClearPort (see table below.)
/goo.gl/bb6Wnb

LME says ring trading moves to emergency venue after offices shut
Reuters
The London Metal Exchange (LME) will move open outcry trading to its disaster recovery site in Chelmsford, east of London, on Monday and Tuesday because its offices have been closed due to a structural issue, the exchange said in a statement on Sunday.
goo.gl/OasLg0

Energy Exchange Istanbul in talks with Turkey’s neighbors to merge markets
Daily Sabah
Energy Exchange Istanbul (EXIST) General Manager Hüseyin Savas has said talks related to collaborating with energy markets in Turkey’s neighboring countries, in addition to European countries, and market mergers are still in progress.
goo.gl/m1CcoA

Politics

Art of the spin: Trump bankers question his portrayal of financial comeback
Emily Flitter – Reuters
Donald Trump, who often says he only likes winners, tells one grand tale of loss: In 1990, he nearly went bankrupt and was forced to ask dozens of banks to whom he owed money to change the terms on their loans and forgive some of his debts. It was, the real estate developer admits in his 1997 book “The Art of the Comeback,” the darkest period of his professional life. In his telling, it’s a story of redemption, of resilience, and proof of his exceptional negotiating skills and shrewd thinking.
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Majority of Voters Support Free Trade, Immigration: Poll
Mark Murray – CNBC
A majority of American voters support free trade, despite the rhetoric from the top 2016 presidential candidates, according to the new NBC News/Wall Street Journal poll. And a majority also believe that immigration helps the country more than it hurts it.
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Hammond to fight EU’s $1 trillion power grab
The Telegraph
New Chancellor Philip Hammond has branded EU efforts to poach a vital $1 trillion market from the UK as “disgraceful,” The Sunday Telegraph can reveal, setting the scene for an almighty row between the Treasury and Brussels.
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Trump VP Pick Raises Legal Questions for Some Wall Street Donors
Zachary Mider- Bloomberg
In choosing Mike Pence as his running mate, Donald Trump went with a champion of free markets who boosts the ticket’s appeal to the Republican donor class. But since Pence is the sitting Indiana governor, his selection may also raise complex legal questions for some Trump supporters who’ve managed money for the state, including the billionaires Wilbur Ross, Stephen Feinberg, and Tom Barrack.
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G.O.P. Arena Will Highlight Trump’s Media Blacklist
NY Times
When the Republican National Convention begins in Cleveland on Monday, The Washington Post will be there at Quicken Loans Arena. So will Politico, The Huffington Post and BuzzFeed. Ditto The Des Moines Register.
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Investing and Trading

The Coup Failed, But Erdogan’s Wrath Keeps Investors on Edge
Bloomberg
Fresh from an election victory that secured his party’s rule for four years, Prime Minister Ahmet Davutoglu in January assured investors in London that Turkey was a safe place for their cash. Four months later he was forced to resign and two months on from that, F-16 fighter jets bombed parliament in a coup attempt.
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Turkey’s failed coup unnerves foreign investors
Reuters
Turkey’s bungled military coup has shaken foreign investors and stoked fears about political stability that are expected to weigh on Turkish financial assets in days and weeks to come. On Friday night, a group of rebel soldiers using tanks, attack helicopters and fighter jets attempted to topple President Tayyip Erdogan, strafing parliament and intelligence headquarters in Ankara while seizing a bridge and surrounding the airport in Istanbul.
goo.gl/zb3YYd

Top Bond Funds Win by Harnessing Most Dangerous Part of Market
Bloomberg
In some ways, the managers of the Treasury market’s two best-performing mutual funds couldn’t take a more different approach. On one side is Josh Barrickman at Vanguard Group Inc., which has become the world’s largest mutual-fund manager by offering low-cost, passively managed investments. His $884 million Extended Duration Treasury Index Fund earned about 23 percent in the first half of this year. On the other is Lacy Hunt, who helps steer the $494 million Wasatch-Hoisington U.S. Treasury Fund, which returned around 18 percent. He’s favored longer-maturity Treasuries for more than two decades.
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A Barclays Chart Shows Just How Negative Bond Yields Have Become
Alastair Marsh – Bloomberg
Negative yields are spreading to more areas of the fixed-income market by the day. Data from Barclays Plc. highlight the staggering pace of change as this week Deutsche Bahn AG became the first non-financial company to sell negative-yielding bonds, and the German government auctioned 10-year debt with a sub-zero yield for the first time.
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Hedge funds open doors to allay fears of secrecy
Madison Marriage – Financial Times
Hedge fund companies plan to address investor concerns about the secretive nature of their businesses and poor performance by allowing clients to visit their offices more often. According to new research from Preqin, the data provider, 58 per cent of hedge fund managers plan to “open their offices for more client visits”, while 69 per cent intend to increase the level of transparency provided to investors.
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Refiners Seen Killing Market’s Golden Goose in Shift to Gasoline
Bill Lehane and Laura Blewitt – Bloomberg
Less than three months ago, gasoline was viewed as the bright spot for refiners in a glutted global oil market amid signs that demand was soaring in the U.S. and China. Times have changed.
goo.gl/Agp8YK

Junk-Rated Borrowers Reap Rewards in a World of Negative Yields
Claire Boston – Bloomberg
Investors are loading up on junk as they seek shelter from negative yields. Buyers put in orders of $4.5 billion for a $375 million bond sold this week by Valvoline Inc., allowing the oil-change store operator to lower the yield on the offering by as much as 0.5 percentage point. That locked in the lowest rate for a junk-rated borrower in more than a month. Mutual funds that buy speculative-grade notes received $4.35 billion of deposits this week, the biggest inflow in more than four months.
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Funds of Hedge Funds Shrink by 11% as Losses Spur Redemptions
Hema Parmar – Bloomberg
Funds of hedge funds lost more than $100 billion in 12 months because of outflows and poor performance, according to a new report. Clients pulled $50.3 billion over the four quarters through March, while managers posted $51.5 billion in investments losses, research firm eVestment said Friday after analyzing data from more than 2,500 funds. Assets in the sector shrank 11 percent to $841.6 billion, the lowest since June 2009.
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Huge premium on exchange-listed bonds makes sovereign gold bonds attractive
Business Standard
Unlike the past three sovereign gold bond issues, the response to the fourth instalment is expected to be higher as the market price benchmark for bonds is now available. The price of the first tranche of bonds, which was listed on stock exchanges this month, has been discovered — the bonds which were issued at Rs 2,684 per gramme in last November are trading at 9-10% premium to the prevailing market price of similar quality, which is 999 purity gold.
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Institutions

Italy’s broken banks – the spectre haunting Europe
Simon WIlson – MoneyWeek
A spectre is haunting Europe – the spectre of banking collapses in Italy, which could lead to renewed crisis in the eurozone, and a wider banking crisis affecting other countries with high exposure to Italian bank debt. Italy’s banks are in deep trouble, weighed down by EUR360bn of bad debt (“non-performing loans” in the jargon), equivalent to a fifth of Italy’s GDP (and about 18% of all the banks’ loans).
goo.gl/LG05O8

Goldman Seen Struggling to End Dive in Fixed-Income Market Share
Bloomberg
Goldman Sachs Group Inc.’s fixed-income traders were supposed to take back market share in the second quarter, halting years of declines. That now looks harder, after JPMorgan Chase & Co. and Citigroup Inc. blew past analysts’ estimates last week.
goo.gl/38dCyh

Bundesbank Proposes Reform of European Crisis Response Mechanism
Bloomberg
Germany’s Bundesbank proposed reforms to streamline Europe’s response to future fiscal crises. The central bank suggests turning the European Stability Mechanism into the region’s leading fiscal authority with competences encompassing those currently carried out by the European Commission and the European Central Bank. It also wants a change in the terms of new government-debt issues to allow easier restructuring and a maturity extension should the country enter an aid program.
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Show me how inflation is very low, Raghuram Rajan’s challenge to critics
Business Standard
Taking his critics head on, Reserve Bank of India (RBI) Governor Raghuram Rajan has challenged them to show how inflation is “very low” before accusing him of “being behind the curve” in his focus on containing price rise than on growth and debunked such criticism as mere ‘dialogues’. Rajan, who has often been seen as being critical of the government and its policies, also said there is “lot of frustration” about the pace of economic recovery, but attributed it to the two successive droughts, weak global economy and external shocks like Brexit.
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Goldman and Morgan to show investment bank pulse
Alistair Gray and Ben McLannahan – Financial Times
Expectations are mounting for Goldman Sachs and Morgan Stanley to rebound strongly from their first-quarter meltdown after two of their biggest rivals displayed signs of strength in trading and investment banking. Forecast-beating profits from JPMorgan Chase and Citigroup raised hopes that their competitors would also surpass lowered profit estimates with results this week. Adjusted net income at Goldman and Morgan Stanley was predicted to recover from the first three months of the year but to fall steeply on the same period in 2015 after analysts slashed estimates in the weeks ahead of the results.
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Monetary Policy Is Doing ‘Serious Damage,’ Folkerts-Laundau Says
Carolynn Look – Bloomberg
Loose central bank policies may not have only run their course, but are now causing harm, according to Deutsche Bank’s chief economist. “Monetary policy has reached its limits. In fact, now it’s at the point where it’s doing serious damage,” David Folkerts-Landau said in an interview with Bloomberg TV on Friday. “We have tried everything in the last six years via central bank policy to stimulate demand, and we haven’t succeeded.”
goo.gl/rhMQ30

Morgan Stanley revises down global growth forecast
Business Standard
Though world markets have Brexit vote outcome in their stride, leading global research houses remain worried about economic growth going ahead, with analysts at Morgan Stanley, too, revising down their forecast for FY17. In their recent report – Global macro summer outlook: Clouded by Politics and Policy Uncertainty – Chetan Ahya, managing director, Morgan Stanley Asia expects growth to firm to 3.2% in 2017, but has moved further below the consensus estimate of 3.6%.
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Fintech

When Yahoo Ruled the Valley: Stories of the Original ‘Surfers’
Vindu Goel – NY Times
Back in the mid-1990s, before Google even existed, the world’s best guides to the internet sat in Silicon Valley cubicles, visiting websites and carefully categorizing them by hand. They were called surfers, and they were a collection of mostly 20-somethings — including a yoga lover, an ex-banker, a divinity student, a recent college grad from Ohio hungry for adventure — all hired by a start-up called Yahoo to build a directory of the world’s most interesting websites.
goo.gl/oGvYUn

Cinnober chosen for major design study
Press Release
Cinnober has signed an agreement with a major international exchange group to conduct a comprehensive design study for utilizing Cinnober’s technology for real-time clearing for listed derivatives as well as a complete CSD system (Central Security Depository). The tender process has included a profound evaluation of the available global technology providers and Cinnober has now been uniquely selected to commence work while conducting a full design study that should be completed in December.
goo.gl/VkxYs4

Artificial Intelligence Swarms Silicon Valley on Wings and Wheels
John Markoff – NY Times
For more than a decade, Silicon Valley’s technology investors and entrepreneurs obsessed over social media and mobile apps that helped people do things like find new friends, fetch a ride home or crowdsource a review of a product or a movie. Now Silicon Valley has found its next shiny new thing. And it does not have a “Like” button. The new era in Silicon Valley centers on artificial intelligence and robots, a transformation that many believe will have a payoff on the scale of the personal computing industry or the commercial internet, two previous generations that spread computing globally.
goo.gl/7PTv3A

ADM Taps Screen to Control Contracts, Costs
WatersTechnology
Futures broker ADM Investor Services has signed a two year deal with Dutch market data inventory and usage monitoring platform vendor Screen InfoMatch to help manage the firm’s market data and IT contracts. Paul Weygang, head of IT at ADM, says that when he joined the broker 18 months ago, all contractual aspects of data management were managed using spreadsheets. “That was a big issue. There was no proper in-depth management… [of] contracts, and costs were at a very high level.”
goo.gl/c1H0sT

SoftBank agrees to buy Britain’s ARM Holdings for $31 billion: FT
Reuters
Japan’s SoftBank Group Corp has agreed to buy ARM Holdings PLC for 23.4 billion pounds ($31 billion), the Financial Times reported on Monday, citing two people familiar with the negotiations. ARM, which provides technology for the iPhone, is a major presence in mobile processing, with its processor and graphics technology used by Samsung, Huawei and Apple in their in-house designed microchips.
goo.gl/HB8Q3a

Horizon announces new Athens Exchange connectivity – Horizon Software
Press Release
Horizon Software (Horizon), the leading global technology provider for electronic trading and investment management, announced native connectivity to the Athens Exchange (ATHEX) for cash equities and derivatives. Horizon now provides more than 80 native gateways to exchanges and trading venues around the world.
/goo.gl/7Zb3Yg

Regulation

Hong Kong Said to Survey Brokerages on Dark Pool Compliance
Bloomberg
Hong Kong’s financial market regulator is querying brokerages and banks about their compliance with dark pool rules, according to people who have seen the questionnaire. The Securities and Futures Commission sent about 70 questions that aim to ensure the required procedures for trading, order facilitation and monitoring in dark pools are being followed, said the people, who declined to be identified because the survey isn’t public. The regulator called the survey a “check point” and gave two weeks to bankers and brokers to respond, the people said. The deadline is Tuesday.
goo.gl/g87qNr

Independent US oil producers seek limit on crude imports
Gregory Meyer – Financial Times
Months after the US energy industry triumphed in overturning an oil export ban, a group of independent producers wants to take policy one step further and curtail crude imports. The Panhandle Import Reduction Initiative has begun campaigning for quotas on all foreign suppliers excluding Canada and Mexico. Its founders, Texas and New Mexico oilmen, said Saudi Arabia is trying to crush their industry and it’s time to fight back.
goo.gl/3rcQHq

Derivatives industry pans CFTC’s revised position-limits plan
Neil Roland, MLex
The US Commodity Futures Trading Commission has failed to mollify industry critics with a recent modification of its position-limits proposal, casting doubt on Chairman Timothy Massad’s ability to finalize a rule by year-end. “We maintain that the overall proposal is ill-conceived as a matter of law and ill-advised as a matter of regulatory policy,” CME Group said.
goo.gl/c2rmyD

ED’s arrest of Jignesh Shah sparks fear of incarceration among other accused
By Ram Sahgal & Maulik Vyas, ET Bureau – The Economic Times
A total of 68 entities, including Shah, were named as accused in the ED chargesheet filed in March last year. They were to appear before the PMLA court on July 5.
MUMBAI: The Enforcement Directorate’s arrest of Jignesh Shah, founder of 63 moons — promoter of the scam hit National Spot Exchange (NSEL) — appears to have sparked fears of similar incarceration among the other accused in the case. Anjani Sinha, the disgraced MD & CEO of NSEL, did not respond to calls by ED to produce himself before the agency.
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EU derivatives margin rule on course to start by April 2017
John Rega, MLex
EU margin requirements for derivatives are on track to take effect in March or April next year, under the European Commission’s reworked plan after missing a globally agreed target of this September. In plans outlined to regulators, the EU executive detailed how it will introduce rules that it had been set back to the first half of next year.
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FCA publishes new data on interest rates and update on cash savings remedies
FCA
The FCA has today published the second set of data showing the lowest interest rates offered by 32 providers of easy access cash savings accounts and easy access cash ISAs. The data is part of the FCA’s ‘sunlight remedy’, which shines a light on firms’ strategies towards their long-standing customers. The data shows that some accounts pay as little as 0.01 per cent.
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Regions

Mainland capital to remain pillar of Hong Kong stock liquidity
Jennifer Li – South China Morning Post
Launch of Shenzhen-Hong Kong link, raised trading quota with Shanghai, also likely to push capital inflows higher
The liquidity of Hong Kong’s stock market will continue to be supported by strong capital inflows from mainland China in the second half of the year, according to analysts,
They expect Britain’s exit from the EU to trigger capital flows to other Asian emerging markets, too, but that is likely to go into Asian bonds rather than Hong Kong stocks.
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Ireland Hits Brexit Alarm in Biggest Foreign Crisis in 50 Years
Dara Doyle and Marc Champion – Bloomberg
The prime minister is under pressure, economists are slashing growth forecasts and companies are warning of Brexit’s dire consequences. London? No, Dublin.
The intertwining of trade and finance means no other country is feeling the fallout from the U.K.’s vote to leave the European Union more than Ireland. In the year the Irish marked the centenary of their uprising against British rule, the country remains at the mercy of the unfolding drama in its closest neighbor.
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Nigeria: Analysts Forecast Long Term Value in Nigerian Economy
By Goddy Egene – All Africa
Some financial analysts said at the weekend that the Nigerian economy has long term value for investors despite the current headwinds. In April the International Monetary Fund (IMF) trimmed its growth forecast for the Nigerian economy to 2.3 per cent citing foreign exchange (FX) related constraints and the lower commodity.
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Energy Exchange Istanbul in talks with Turkey’s neighbors to merge markets
Daily Sabah
Energy Exchange Istanbul (EXIST) General Manager Hüseyin Savas has said talks related to collaborating with energy markets in Turkey’s neighboring countries, in addition to European countries, and market mergers are still in progress.
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What should investors do after Turkey’s failed coup?
By Dimitra DeFotis, Barron’s
The Turkish government attempted to allay investor fear with a two-hour conference call Sunday, but army factions’ unsuccessful overthrow — dubbed #TurkeyCoupAttempt on social media — could have strong repercussions as the country’s fragile markets open.
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Miscellaneous

How couples stay married to the job and each other
Miranda Green – Financial Times
Summer party invitations can be delightful if yours is the name on the invitation. Work events are potentially fun and a valuable way to make or keep contacts. But spare a thought for your other half, relegated — at least for the length of an evening of small talk — to the status of a “plus one”.
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Eggs That Clear the Cages, but Maybe Not the Conscience
David Giles – NY Times
American hens produce more than 83 billion eggs a year. Most hens — more than 285 million in all — are housed in cages not much bigger than a shoe box. Stuck in one of these so-called battery cages, a hen might live her whole life without seeing the sunlight, let alone stretching her wings.
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