John Lothian: LSE’s Assault on Europe’s Futures Giants Leaves the Shadows; Forecasters predict El Niño will deliver changes to winter weather across the US; Hundreds of bank branches are disappearing

Oct 16, 2015

First Read

Opportunities Abound
Jim Kharouf, JLN

The MarketsWiki Education World of Opportunity London event wrapped up Thursday with a great group of speakers who covered everything from indexes to fintech start-ups to market surveillance to the hottest new topic, blockchain technology.

The message to our guests – students, interns and young professionals – was clear. There truly are great opportunities. We thank our speakers for their time and our generous sponsors such as our premier global sponsor, CME Group, and also Nasdaq for hosting this year’s London event. That wraps up our 2015 education events and gives us momentum and lots of great content for our education site, MarketsWiki Education, in the coming weeks.

And more opportunities for this industry abound, especially with the news that the London Stock Exchange is launching its new derivatives market, CurveGlobal to challenge established bond markets.

John Lothian and the team will be back on Monday. Jim Kharouf is off to Doha, Qatar for the World Federation of Exchanges annual meeting.


Your Halloween Ape Suit in Queens Is Taxed Like a Tuxedo
Todd Shields – Bloomberg
These are busy times for Rubie’s Costume Co. in Queens, where its glass-plated storefront in the shadow of an elevated train track does a brisk business distributing gorilla suits, princess gowns and Jedi lightsabers ahead of Halloween.

****SD: The real question is what would happen if you wanted to go as a gorilla in a tuxedo for Halloween?


How billionaires survive the apocalypse
Madeline Stone – Business Insider
The world is a scary place, and there are lots of things that could go wrong at any minute.
Luckily, Robert Vicino has a plan for the impending end of the world.
As founder and CEO of Vivos, he plans to build a network of high-end, underground bunkers for those who can afford to pay for their assured safety.
And just how much is he asking?
For a spot in a standard bunker, Vicino says, you’ll be set back about $35,000.

****SD: For $35k, they better be getting the finest canned goods.


Aussies get behind proposal to change currency to dollarydoos
The slump in the price of key export commodities has dragged down economic growth and taken the Australian dollar with it. Thanks to Hawke and Keating’s reforms the daily fluctuations in the dollar are now largely beyond government control but there is one shot in the locker a brave government can take to lift the struggling Aussie.
An online petition that has gained over 5000 signatures calls on the leaders of Australia’s major parties to get behind a proposal to rename the currency “Dollarydoos”.

****SD: Uhhh, how about they dollary-don’t do that.


New York Wine Auctions Make Splashy Return With Château Margaux Cellar Sale
Elin McCoy – Bloomberg
Last week, I was happily swooning over a glass of the plummy, violet-scented 1982 Château Margaux at a preview tasting at Sotheby’s in Manhattan. On Saturday, that vintage will be one of the star offerings at an auction devoted exclusively to bottles direct from the cellars of this first growth Bordeaux château. The 239 lots span vintages 1900 to 2012.

****SD: From the moment I read ‘plummy, violet-scented,’ all I have wanted to do is watch “Frasier.” And how does something smell purplish?


Keynes’ 15 Hour Work Week Is Here Right Now
Keynes wrote a lovely little essay, Economic Prospects for our Grandchildren, in which he airily forecast that in a century’s time (he wrote in 1930) we would all be working 15 hour weeks. For we would have, essentially, conquered the economic problem of scarcity. Every month or two someone new pops up to complain about this. Well, Keynes said we’d only be working 15 hours soon enough so why are we all still working 40 hours a week? Are we being oppressed by capitalism or something, gouged by the plutocrats? Why don’t we all just take the pedal off the metal and enjoy ourselves more?

***JB: The Swedish city of Gothenburg has been running an experiment for a six hour work day for about two years now and reportedly the results are promising


Fridays a Friend or Foe of Investors?
MoneyBeat – WSJ
Fridays are no friend of the stock market.
This year, Fridays, along with Tuesdays, have been the worst performing weekdays on average for the S&P 500, according to Bespoke Investment Group.

***JB: Six hour work day (see story above) and now we can make a case for staying home on Tuesdays and Fridays? I like this trend.


What’s different about Curve?
William Mitting – Futures & Options World
The history of the derivatives markets is an annual of failed exchange launches.
Whether rival products or new exchange launches, it is notoriously hard to shift liquidity from an incumbent and it is into this litany of failure that the London Stock Exchange will launch its new rates platform.
Following FOW’s exclusive story yesterday that six global banks had signed up to support the London Stock Exchange’s new interest rates exchange, an official statement from the exchange this morning has revealed more details.


‘My grandmother poisoned me with ham’ and other sick day excuses
Chicago Tribune
Calling in sick — even though you’re not — has become increasingly popular, according to a new survey.
Despite feeling fine, 38 percent of employees have called in sick to work in the past year, up from 28 percent a year ago, CareerBuilder found in its annual survey of sick day excuses.

***JB: I think my boss has a list of excuses we’ve all tried on him but I bet being poisoned by grandma with ham hasn’t been tried yet.


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Lead Stories

LSE’s Assault on Europe’s Futures Giants Leaves the Shadows
John Detrixhe – Bloomberg
London Stock Exchange Group Plc for the first time confirmed that it will start a futures exchange to compete with the entrenched derivatives markets owned by its rivals Deutsche Boerse AG and Intercontinental Exchange Inc.

Forecasters predict El Niño will deliver changes to winter weather across the US
The Guardian
El Niño this winter will leave a big, wet but not necessarily snowy footprint on much of the United States, including parched California, forecasters said Thursday.
The National Oceanic Atmospheric Administration issued its winter forecast and “the driver of this winter’s outlook is El Niño”, said Mike Halpert, deputy director of NOAA’s climate prediction center.

Hundreds of bank branches are disappearing
Jonathan Marino – Business Insider
Wall Street’s biggest banks have been shutting down branches since the financial crisis.
The reason: They can do so without it having any real impact on the amount of business they pick up.

Trump warns of a stock market bubble. Is he right?
Matt Egan -CNN Money
Donald Trump has an urgent warning for Americans: The stock market is in the midst of a bubble.
The billionaire businessman told The Hill this week he’s concerned people are “being forced into an inflated stock market and at some point they’ll get wiped out.”

High speed trading becomes US election issue
Has a US presidential candidate ever focused on equity market microstructure before?
Financial Times
Hillary Clinton, seeking the Democratic nomination, has announced she wants to impose a tax on high-frequency trading because it has “unnecessarily burdened our markets and enabled unfair and abusive trading strategies that often capitalise on a ‘two-tiered’ market structure with obsolete rules”.

Goldman: Sached
Financial Times
Nobody, apparently, ever got fired for hiring Goldman Sachs. But should anyone be fired for owning it? The bank’s shares have done badly. Over the past five years they have produced a total shareholder return of 28 per cent. That might not seem too bad, but the other four big Wall Street banks have produced an average return of 49 per cent in the period. The KBW banks index (which includes lots of smaller banks) has returned 72 per cent. If you wanted to play the US economic recovery by owning a bank, Goldman would not have been the one to own.

In the Heart of the Texas Oil Patch, It’s Gas That’s Taking Off
Harry Weber – Bloomberg
The oiliest county in Texas has seen its new natural gas production capacity more than double as drillers home in on their most profitable acreage.

Apple opens up stock awards to all employees—even hourly retail workers
Jena McGregor – The Washington Post
The vast majority of Apple’s employees—even its retail workers—are about to get something most hourly paid workers don’t: restricted stock awards in the company.

Wall Street bonuses likely to plunge as trading revenue drops
Olivia Oran – Reuters
Wall Street bankers and traders are likely to get smaller bonuses for 2015 as trading revenue plunges.

Stronger Economy Cited as U.S. Reports Lowest Budget Deficit of Obama’s Tenure
NY Times
The federal budget deficit fell this year to its lowest level since President Obama took office, his administration reported Thursday, a change propelled by an increase in tax receipts amid a strengthening economy.

City Insider: Barclays bags a bargain
Financial Times
Jes Staley has yet to be approved by regulators as Barclays’ next boss. But if he is, the bank will have to be patient to get their man. Assuming a Bank of England rubber stamp soonish, some had expected that the former JPMorgan high-flyer might be able to start before the end of the year.

Blackstone Posts Loss as Market Volatility Weighed on Investments
Dealbook – NY Times
The Blackstone Group on Thursday reported a loss for the third quarter as volatile markets took a toll on the private equity giant’s many investment stakes in companies and real estate holdings.
Economic net income, the firm’s core profitability measure, showed a loss of $416 million in contrast to a profit of $758 million a year earlier.

For Citigroup, Good Enough Can Be Enough
John Carney – WSJ
While Citigroup still has some distance to travel before it wins over investor confidence, at least it is moving in the right direction.


Congress proposing take more from savers
Rodney Johnson – Business Insider
It’s no secret that America’s highways and bridges are a sham and the overall transportation system is in desperate need of funding.
What is troubling is Congress’ latest solution.

British Banks May Need to Keep Billions More on Hand Under New Rules
Dealbook – NY Times
British banks may be forced to increase the capital they keep on hand by as much as $5 billion to comply with new rules intended to protect their British retail banking businesses in a financial crisis, the Bank of England said on Thursday.

UK regulator holds firm on bank segregation plan
Financial News
A UK regulator on Thursday held firm on a law to force banks to segregate their retail and investment banking operations, setting the stage for more painful restructuring at British lenders.

How the U.K’s Version of Glass-Steagall Will Hit Big Banks
U.K. regulators just drove another big nail into the universal-banking coffin.
Rules proposed on Thursday to split retail and investment banking will in effect end any benefits that once existed in having both under the same roof.

CFTC’s Market Risk Advisory Committee to Meet on November 2, 2015
The U.S. Commodity Futures Trading Commission’s (CFTC) Market Risk Advisory Committee (MRAC) will hold a public meeting on November 2, 2015 at CFTC’s headquarters in Washington, D.C.

SIFMA AMG Calls For Permanent CFTC Relief For Package Transactions
Press Release
SIFMA’s Asset Management Group today released the following statement from Laura Martin, managing director and associate general counsel, after the U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (Division) announced a further extension of no-action relief from swap execution facility (SEF) trading requirements for certain swaps executed as part of a package transaction:

Bank of Internet Denies Accusation That It Defied Regulators
Dealbook – NY Times
Bank of Internet USA, one of the nation’s top-performing banks, fiercely criticized a lawsuit filed by a former employee that said the bank had not been forthcoming with its regulators.

UK Financial Conduct Authority Statement Following Press Reports On The Senior Managers’ And Certification Regime
Press Release
Following reports in the press about HM Treasury’s intention to extend and make changes to the Senior Managers’ and Certification Regime, Tracey McDermott, acting chief executive of the FCA, said:
“Extending the senior managers’ and certification regime is an important step in embedding a culture of personal responsibility throughout the financial services industry.

Nevada Says It Will Treat Daily Fantasy Sports Sites as Gambling
Joe Drape – NY Times
Nevada regulators ruled on Thursday that playing daily fantasy sports should be considered gambling, not a game of skill, and ordered websites like DraftKings and FanDuel to stop operating immediately in the state until the companies and their employees receive state gambling licenses.

FINRA Releases Revised 4210 Margin Rule Proposal
The National Law Review
The reproposed amendments to Rule 4210 attempt to address commenters’ concerns that the original proposed rule would impact business activity in the TBA market.

JWG Redefine MiFID II Implementation Training
Press Release
JWG, the financial services regulation think tank, are offering a ground-breaking new face-to-face training course on 3 November 2015 in London. Ground-breaking, because it is supported by the complete library of MiFID II documentation now loaded in RegDelta.

Exchanges & Trading Facilities

LSE aims to secure place in interest rate futures market
Financial Times
The London Stock Exchange Group is to launch an aggressive push into the European futures markets dominated by Deutsche Börse and Intercontinental Exchange with a £30m, bank-backed venture.

LSE confirms rates push with new futures exchange
James Rundle – Financial News
The London Stock Exchange Group has announced that it will launch a new derivatives venue, known as CurveGlobal, along with a consortium of banks and a US exchange, in the second quarter of 2016.

CME set to unveil plan for Treasury future
Alice Attwood – Futures & Options World
he Chicago Mercantile Exchange (CME) is set to announce its highly-anticipated plans for a potential new Treasury futures contract on Sunday October 18, drawing a line under months of development and consultation with the market.

Nasdaq lays out future as ‘true source’ of data in wfic speech
Nasdaq president Adena Friedman set out the exchange’s plans to be a hub for market data and analytics, during a speech on the evolving nature of investing at industry association FISD’s World Financial Information Conference, held last week in New Orleans.

Deutsche Börse Group
Press Release
Today Deutsche Börse completed the acquisition of 360T, following the approval of relevant antitrust authorities and the German Federal Financial Supervisory Authority (BaFin). The trading platform remains under the regulatory supervision of BaFin and operates under the existing management team. Moreover, 360T’s CEO Carlo Kölzer will join Deutsche Börse’s Group Management Committee.

Bursa Malaysia Moves To Boost Disclosure And Corporate Governance Framework
Press Release
Bursa Malaysia Securities Berhad (“Bursa Malaysia” or “the Exchange”) today invited public feedback on the proposed amendments to the Listing Requirements aimed to boost its disclosure and corporate governance framework, as well as the post listing obligations for mineral, oil and gas listed issuers.

Hedge Funds & Managed Futures

Walmart ‘chilling’ financial engineering
Wolf Richter – Business Insider
Wal-Mart had a bad-hair day. Its shares plunged $6.71, the largest single-day cliff-dive in its illustrious history. They ended the day down 10%, at $60.02, a number first kissed in 2001. Shares are 34% off their peak in January. So it wasn’t just today.
But Wal-Mart didn’t do anything that special at its annual investor meeting today. It announced big “capital investments,” (we’ll get to the quotation marks in a moment), a crummy outlook, and a huge share buyback program. All of which it has done many times before. Only this time, the outlook is even worse, but the promised share buybacks are even larger.

JPMorgan Chase Earnings: Missed Numbers Don’t Tell the Whole Story
Matthew Frankel – The Motley Fool
JPMorgan Chase (NYSE:JPM) kicked off earnings season for the financial sector by missing on both the top and bottom line, and revenue was down in most of JPMorgan’s business segments. However, there were some reasons to be positive going forward. Here’s the story behind the numbers in JPMorgan’s third quarter earnings report.

Canada’s active fund managers are missing their benchmarks
Clare O’Hara – The Globe and Mail
Canadian active fund managers are falling flat this year when it comes to beating their benchmark for investors.
Fluctuating conditions in the equity market proved to be difficult for active managers to overcome this year, with just 39.62 per cent of actively managed Canadian equity funds outperforming the S&P/TSX Composite over a one-year period (ending June 30, 2015), according to the mid-year 2015 SPIVA Canada Scorecard released Thursday.

Hedge funds having worst year since 2011
Jeff Cox – CNBC
For hedge funds, 2015 has been a year of good news and bad news.
First the good: Amid all the market volatility, the $3 trillion hedge fund industry has outperformed the lackluster 3 percent drop the S&P 500 has turned in.

Goldman CFO on Bond-Trading Rebound: That May Take a While
Michael J Moore – Bloomberg
Harvey Schwartz found himself in a familiar position Thursday on Goldman Sachs Group Inc.’s earnings conference call with analysts: preaching patience on fixed-income.
“You won’t really see the outcome of all the steps we’ve taken until you see a pickup in client activity and the competitive environment continue to shift,” said Schwartz, the firm’s 51-year-old chief financial officer. “That may take a while.”

Japan Fund on $10 Billion Quest to Discover the Next Elon Musk
Shigeru Sato and Takashi Amano – Bloomberg
Toshiyuki Shiga is on a $10 billion quest to discover Japan’s top entrepreneurs, who can start companies as globally competitive as Tesla Motors Co. and Apple Inc.
The former chief operating officer of Nissan Motor Co. described the search as an urgent mission for Innovation Network Corp. of Japan, the state-backed investment fund he took over as chairman in June.

Ask Investors Whether Obamacare Is Working
Matthew A. Winkler – Bloomberg
Since the Patient Protection and Affordable Care Act took effect two years ago in the rockiest of rollouts, American health-care companies outperformed every industry in the U.S. Taken together, they are the best collection of stocks among worldwide peers.

Update: Man Group shares rise 4% despite FUM fall
Investment Week
Man Group’s GLG saw funds under management (FUM) fall by $2.3bn during the third quarter, but the discretionary division’s losses were offset by positive performance in the group’s AHL quant strategies.

Banks & Brokers

Putin Allies Said to Be Behind Scrutinized Deutsche Bank Trades
Irina Reznik, Keri Geiger, Jake Rudnitsky and Gregory White – Bloomberg
Several close associates of Russian President Vladimir Putin may have benefited from Deutsche Bank AG trades that are now coming under the glare of U.S. prosecutors, according to people familiar with the matter.

Trading Hits Goldman Sachs Hardest
Financial News
Goldman delivered a disappointing earnings report that reminded investors how dependent it is on buying and selling stocks, bonds and commodities like oil—and how heavily those trading businesses rely on hedge funds and other professional money managers whose jitters about the global economy can make or break results.

UBS Poaches Merrill Broker Managing $425 Million – Street Moves
A Merrill Lynch adviser to ultrawealthy clients has decamped for rival UBS Group AG’s U.S. wealth-management arm.

Victoria Woodhull: First female broker
Business Insider
The story of the first women to work on Wall Street has everything.
It is a rags to riches story of two sisters who made it from a small rural town in Ohio to the Big City, with spiritualism, scandal and a presidential run included.

Charles Schwab profit up 17 pct in third quarter
Jed Horowitz – Reuters
Charles Schwab Corp, the discount brokerage pioneer that is expanding into fee-based advisory accounts, said on Thursday that third-quarter profit jumped 17 percent on higher trading commissions and interest revenue.

Clearing & Settlement

LCH.Clearnet Enhances SwapClear Compression Offering
Press Release
LCH.Clearnet Ltd, the global clearing house, today announced it has extended SwapClear’s blended-rate compression offering to enable members and their clients to compress Forward Rate Agreements (FRAs). The first blended-rate compression run for FRAs saw $1.9 trillion eliminated. This latest enhancement to SwapClear’s compression offering has the potential to reduce notional outstanding of FRAs in SwapClear by up to 50% and number of trades outstanding by up to 70%. As of October 2015, SwapClear has over $66 trillion notional outstanding in FRAs.

Clearstream’s September 2015 Volumes Incur Consecutive Monthly Decline
Jeff Patterson – Finance Magnates
Clearstream, a provider of post-trade services for financial services participants, has just released its financial metrics for the month ending September 2015 across each of its four streams of global business, according to a Clearstream statement.

Trading infrastructure for China-Hong Kong Bond Connect can be in place in six months, says ASIFMA
South China Morning Post
Discussions for a China-Hong Kong Bond Connect scheme have resurfaced, even taking priority over the Shenzhen-Hong Kong Stock Scheme as global regulators descended on Hong Kong to discuss cross-border policy measures and macro-prudential risks over the past week.

Indexes & Products

The VIX Index: The Stock Market’s Crystal Ball?
The Motley Fool
Wouldn’t investing in the stock market be easier — and a lot more lucrative — if, before we invested, we knew what the market was going to do in the coming months? That seems a laughable proposition, yet there is an indicator out there that many people look at for clues about the market’s upcoming performance: the VIX index.

European ETF Boom Leads To Record Inflows
Tom Lydon – ETF Trends
Exchange traded funds are not just gaining wider acceptance in the U.S. The investment vehicle is making headway across many global markets.

Currency Indexes: Dollar Volatility and New Survey Highlight New Partial Currency Hedged Index Tools, Supporting Advisor Interest in Currency Hedged Indexes
Since the US dollar value relative to major foreign currencies, as reflected by the US Dollar Index, hit a multi-year high of 100.39 in March, driven in part by anticipation of a move in US interest rates, it has fluctuated as the FOMC has weighed market input but has not yet taken decisive action.

The Sector-Neutral Value ETF
Most value funds tend to overweight certain sectors such as financial services and energy, and underweight others, like technology. Investors who prefer to avoid large sector bets against the market might consider iShares MSCI USA Value Factor (VLUE). It tracks an index that targets the cheapest stocks in each sector (representing around 30% of the market) and sets its sector weightings equal to the broad market-cap-weighted MSCI USA Index’s. Stocks are weighted according to both their market-capitalization and the strength of their value characteristics, rescaled to maintain sector neutrality. This approach allows the fund to maintain a deeper value tilt than many of its market-cap-weighted value index peers, despite having greater exposure to traditional growth industries. It charges a competitive 0.15% expense ratio and is one of the more compelling options for exposure to large-value stocks.

How Can The Markets Best Adapt To The Rapid Growth Of ETFs, SEC Commissioner Luis A. Aguilar, Oct. 15, 2015
Press Release
Thank you and good morning. I want to extend a warm welcome to the members of the Investor Advisory Committee (“IAC”). I look forward to your discussions today. I appreciate the important work that you do and, in turn, how this work facilitates the SEC’s efforts to fulfill its core mission. I also want to welcome the audience, whether you are participating in person or remotely.


Trade Talk: Order-Cross Prevention on TT: Come and Get It
Trading Technologies
Not long ago, we published the blog post All Washed Up: Putting an End to Self Trading. We’ve since officially released our order-cross prevention functionality on TT, which provides users with the option to transfer a position when two opposing orders within the same group match on price.
We’re excited to make this feature available to our users, and we’re already working on enhancements. For example, within a few weeks, we’ll provide the ability to match exchange spreads and synthetically generate the spread and leg fills for each account.

Dell-EMC deal latest sign old guard of IT world left behind
Richard Waters – Financial Times
Silicon Valley wit Scott McNealy once described the union of Hewlett-Packard and Compaq as “two garbage trucks colliding”.
Mr McNealy’s own company, Sun Microsystems, went to the great landfill in the sky long ago, courtesy of acquirer Oracle, which has dispatched any number of faded tech names. But his words sprang to mind this week as the squeal of brakes and crunch of metal was once again heard across the tech landscape.

Crime soars 107% as cyber offences included for the first time – as it happened
The Telegraph
For the first time, Office for National Statistics figures now include fraud and cyber offences – here was our live coverage of the release and the reactions

Thomson Reuters Integrates Analytics Suite From OTAS Technologies
Finance Magnates
OTAS Technologies, a multi-asset analytics and solutions provider for the financial services industry, has extended its market intelligence and analytics suite to Thomson Reuters Eikon, according to a Thomson Reuters statement.

Tech Incubator Y Combinator Takes New Tack With Venture Capital Fund
Over the past decade, tech-startup incubator Y Combinator has invested in and cultivated hundreds of fledgling companies, including highfliers like Airbnb Inc. and Dropbox Inc.

Sibos 2015: Summary of conference
Financial News
The potential for technology and new business models to disrupt finance was itself a disruptive force at the 2015 Sibos, the annual megaconference hosted by bank payments network Swift.

Global Liquidity Partners Goes Head-to-Head with the HFTs
Traders News
If a buttonwood tree has grown in Mahwah, then low latency trading is taking root at the Jersey Shore.
As sales trading has moved away from the concrete canyons of New York City and Chicago, smaller and targeted broker-dealers and technology-based trading firms have sprouted up in myriad places, like Red Bank, New Jersey, a tony and chic town where Global Liquidity Partners calls home. Set amid trendy clothing boutiques, upper scale restaurants, a rich nightlife, and high-frequency trading firm Tradeworx, GLP keeps a discreet presence in a second floor office building that appears from the outside to be just another three story brickface. But once inside, trading technology and prowess ooze from the server closets and seasoned staff.

The Future Of Investing
Neil Howe – Forbes
To the dismay of traditional brokerage firms, Silicon Valley robo-advising startups are now handling $6.7 billion in assets—up from almost nothing a couple of years ago. These blows to the investment industry old guard have been coming for decades: In the 1970s and ’80s, it was the passive investment model popularized by Boomers and Generation Xers—which was followed by the exchange-traded funds (ETFs) and online brokerages that rose to prominence in the ’90s. Now it’s robo-advisors. These waves of generational change haveupended the retail investment industry, threatening the profitability of brokerages unless they can revamp their offerings—or their identities—entirely.

Markit Launches New KY3P Risk Management Platform Backed By Three Bulge Brokers
John D’Antona – Traders News
So what do Barclays, HSBC and Morgan Stanley have in common these days?
The three firms have partnered together to help design the latest third party risk management service available from Markit. Market announced the launch of its Know Your Third Party (KY3P) service hosted by Dell Cloud Services on Tuesday.

Samsung Electronics Collaborates With Thomson Reuters To Explore Joint Opportunities In B2B Business
Press Release
Samsung Electronics Co., Ltd., has announced its collaboration with Thomson Reuters, the world’s leading intelligent information provider for businesses and professionals, as an enterprise solution partner.

Swift CEO: Cyber security more pressing issue than fintech
Financial News
Cyber security is a “major issue” and should be viewed as more of a pressing challenge for banks than disruption from fintech even though some new technologies such as blockchain are here to stay, according to Gottfried Leibbrandt, the chief executive of payments network Swift.


CFTC’s Division of Market Oversight Extends Conditional Time-Limited No-Action Relief to Australian-Based Trading Platform Yieldbroker Pty Limited
The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) today announced it has issued a no-action letter extending conditional time-limited relief for Australian-based trading platform Yieldbroker Pty Limited (Yieldbroker).

Former UBS executive to pay insider trading fine in Singapore
Financial News
Singapore’s central bank said Wednesday it had taken a civil-penalty action against a top executive working at UBS Group’s Indonesia office for insider trading.

Founder of Galleon Group Is Sued by Younger Brother
NY Times
Raj Rajaratnam, who is serving 11 years in prison for insider trading, and his hedge fund, the Galleon Group, have been sued by his younger brother for $13.5 million, a sum the brother says he is owed in unpaid commissions and legal costs.

Environmental & Energy

Which countries are doing the most to stop dangerous global warming?
The Guardian
In November, nearly 200 countries meet in Paris for UN talks to agree a new climate deal. Find out below how their pledges – known as Intended Nationally Determined Contributions or INDCs in UN jargon – compare in our in-depth analysis of 14 key countries and blocs

For Pickens, Wind Claim May Be Last Power Play
T. Boone Pickens made billions drilling for oil and gas and squaring off in bare-knuckled corporate takeover bouts.
Stories from Our Advertisers
Now the 87-year-old tycoon is embroiled in what may be the last big battle of his career. Only this one is aimed thousands of miles north of his Texas home. And it is over wind power.

David Cameron calls high-level talks on energy crunch
Financial Times
Downing Street has called a top-level meeting next week to discuss the UK’s growing energy supply crunch, the Financial Times has learned, as new figures lay bare how close the gap is between supply and demand.


Alibaba offers to buy all of ‘China’s YouTube’
Alibaba Group Holding Ltd (BABA.N) offered to buy all of the shares of Youku Tudou Inc (YOKU.N) that it does not already own in a deal that would value the Chinese video streaming company at about $5.2 billion.
Alibaba already owns 18.3 percent of Youku Tudou – sometimes nicknamed China’s YouTube – having bought into the company in May 2014 as part of its push into online video. It intends to take the company private.

China’s Latest ‘Bad Bank’ Deposits Little Value
It’s not much of an initial public offering when the public isn’t much involved.
Such is the case with “bad bank” China Huarong Asset Management, the latest debt cleanup vehicle to market itself to international investors with a Hong Kong IPO. Of the $2.2 to $2.9 billion slated to be raised, two-thirds has already been taken up by so called cornerstone investors—most of whom are Chinese state-controlled or state-reliant companies.

This Comic Book Robot Cat Predicted Abenomics
Yuji Nakamura and Nao Sano – Bloomberg
An all-out attack on deflation, radical steps to boost the birthrate and a list of ways to rouse the economy ranging from welcoming foreign tourists to legalizing casinos.

Chinese Stock Investors Regain Risk Appetite
Chao Deng – WSJ
China shares logged two consecutive weeks of gains for the first time since August, as investors ramp up borrowing to buy stocks and expectations build for more government stimulus.

China’s Economy May Be Even Bigger Than You Think
Malcolm Scott – Bloomberg
With China set to announce its third-quarter gross domestic product report on Monday, skepticism over its economic data is arising anew.
Recall that Bill Gross has described China as “the mystery meat of emerging-market countries.” Premier Li Keqiang, before taking that post, said he didn’t rely on official statistics. He preferred things like rail freight and electricity use to gauge activity.

Is Xi’s Economy More Distorted Than Mao’s? Goldman’s Ha Says Yes
China’s economy has more imbalances today than it did when Mao Zedong’s Great Leap Forward campaign contributed to a crash half a century ago, according to Goldman Sachs Group Inc.’s Ha Jiming.

Crackdown On Stock Market Reporting Shakes China’s Financial Journalists – And Presents A Threat To The World’s Markets
Duncan Hewitt – International Business Times
The story that got Wang Xiaolu arrested appears to have checked out on the facts. In July, as shares on China’s stock markets plunged, sowing global panic, the veteran financial writer reported that the authorities were considering pulling back from propping up share prices.

Frontier Markets

Indian Bonds Attract Investors Despite Emerging-Market Jitters
When India opened a window this week to allow foreign investors to buy about $2.5 billion worth of its government bonds, investors lapped up most of the offer in just two days.

Frontier Markets: Jamaica – It’s Not Just About The Rum
When one thinks of the Caribbean island of Jamaica, the first things that come to my mind are sand, fun, alcoholic coconut drinks, and jerk sauce. But there is another side to Jamaica. One that most, and I certainly did, overlook. They have a serious economy with a serious financial market; in fact, according to they have one of the fastest growing economies in the world and the stock market has returned a stunning 27% in 2015.

Opportunities In Crisis: Why Emerging Markets Still Make Great Investments
Seeking Alpha
Current trends indicate this is a “fragile” state for emerging markets.
However, this current concern about these markets is actually an opportunity to invest in opportunities and stronger prospects.
This article details what some of those stronger prospects are and provides a rationale for these more “stable” markets.
Financial markets are facing seemingly endless challenges this year. Record slumps in China’s economy, a Brazilian recession, and South Africa’s anemic economic performance suggest that now is the time for caution.

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