First Read

From The Top
By John J. Lothian

The FIA thinks they are going to find a replacement for Mary Ann Burns. OK, they have to, so below you will find the job listing for the position they are seeking to fill, SVP Global Industry Operations & Technology. I am sure there are lots of qualified candidates in this readership.

Our Brexit section continues to grow. There is an editorial from the Financial Times saying the UK should stay in the EU, a message from the chairman of Deutsche Bank that this is a bad idea ( to leave) and finally a story from quoting Lord Jacob Rothschild saying an exit would be ‘damaging and disorderly.’

There is a feature piece from Bloomberg about our good friend Gary Gensler about how he was not such a good friend to this industry.

It turns out that avocado shortages in New Zealand can spark criminal activity. I wonder if this happened in California if they would have called the CHIPS to come break it up.

Leo Melamed has a new interview out from Sugihara’s Stand.

Patrick Thornton-Smith of Duco has taken out his pen again to write about his musings on IDX and something called FinTech.

Don’t forget to sign up your interns and newer employees for our MarketsWiki Education World of Opportunity Series in Chicago (July 12, 14 & 15) and New York (July 19 at Nasdaq Marketsite). We forgot to mention one of our speakers for Chicago yesterday, Rob D’Arco of Rival Systems. Rob is among some of the technology company stars we have in this year’s series. You can find the whole lineup for Chicago and signup information here

Lastly, today is the 100th anniversary of the Boy Scouts of America being chartered by Congress. It was a bit of regulatory monopolistic maneuvering made BSA the scouting organization in the U.S.

Have a great day!

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FIA seeks SVP, Global Industry Operations & Technology
FIA
FIA is currently seeking to fill the position of Senior Vice President of Global Industry Operations & Technology. The SVP of Global Industry Operations & Technology will be a member of FIA’s Global Management Team and will help lead the strategic direction of FIA. This role will identify and manage member and industry operational, execution and market structure issues. The successful candidate will have in-depth knowledge of the global futures/cleared swaps industry with a focus on operations, technology and business aspects of execution and clearing.
/goo.gl/4LUpzz

****** See my interview about Mary Ann Burns leaving the FIA. It is a great job, but takes a special person to fill it.

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Brexit Would Be ‘Disaster,’ Deutsche Bank’s Chairman Says
Greg Farrell – Bloomberg
Paul Achleitner comments on U.K. vote in Wednesday speech; Also lamented growing strains of populism in U.S., Europe
Deutsche Bank AG Chairman Paul Achleitner has become the latest global banking leader to warn about the potential fallout if U.K. voters decide to leave the European Union.
goo.gl/SSZPh3

****** A self inflicted disaster is a special kind of disaster.

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Clinton’s Progressive Beacon Is a Former Goldman Sachs Banker and Bob Rubin Protégé
Jennifer Epstein – Bloomberg
Over tea at Hillary Clinton’s Washington home in late 2014, Elizabeth Warren warned her host that when it comes to Wall Street, what mattered most was the people Clinton surrounded herself with. Months later, as Clinton launched her presidential campaign, Gary Gensler, who had been a Goldman Sachs banker before he became a senior policy aide and Bob Rubin protégé during the deregulatory years of Bill Clinton’s Treasury Department, came on board, in part to serve as a driving force behind her economic-policy shop. Remarkably, Warren would be one of his strongest supporters.
goo.gl/2xqjuf

****** Are the Bloomberg headline writers making a joke about the shine coming from Gary Genslers head? I resent that as a fellow shiny headed person.

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Preqin: CTAs Gaining Assets as Investors Increase Allocations
FINalternatives
Hedge fund investors are increasingly turning to CTAs over the past several quarters, according to a new special report from industry data provider Preqin. The number of institutional investors actively investing in CTAs reached a record 1,067 in 2015, up from 1,017 in 2014, according to Preqin.
bit.ly/1XXu5jT

****** Time to fire up the CTA.

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Interview of Leo Melamed by Soundcloud, The Sun Also Rises –
Sugihara’s Stand
/goo.gl/XRzHZC

****** You can never tell a great story too many times.

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Avocado shortage fuels crime wave in New Zealand; Thieves capitalise on booming black market for the fruit amid soaring demand
by Eleanor Ainge Roy in Dunedin – The Guardian
Surging local and international demand for avocados is fuelling a crime wave in New Zealand.
/goo.gl/DUVR04

****** Nothing good can come from this, especially because we are short of avocados.

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Fintech, 1872 and the B-word
Patrick Thornton-Smith – Chief Marketing Officer-Duco
I recently attended the FIA’s IDX conference in London and it was notable how many of the panel sessions centred on one particular topic. The kick-off panel for example, traditionally a big audience draw, consisted of a number of CEOs from the world’s largest exchanges and CCP’s. The moderator’s opening question was not about regulation, nor the geopolitical economic outlook. It wasn’t about underlying global macro trends, mergers, takeovers, trading volumes or the pressures of cost control across the global derivatives community. No, it was about fintech, and the subject took up the majority of the session.
/goo.gl/7HTQ53

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Algo Trading

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Here’s Why The Boy Scouts of America Received Federal Recognition 100 Years Ago
Liz Ronk, Emma Ockerman – Time
It would seem that during any quintessentially American moment—just a sample of which are seen in these photos from scouting’s early days—there was a Boy Scout dutifully standing by. Presidential Inaugurations? A handful of Scouts have volunteered at every one since 1913. Or how about actually becoming President? The first scout leader President was Franklin D. Roosevelt, and America’s first actual Scout president was John F. Kennedy. Check and check. That’s just the Scout’s way.
goo.gl/fzD8HI

***** The last paragraph of the the story talks about the future of scouting, including the STEM Scouts program, something I am big supporter of.

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Top Three Stories for Wednesday
Our top story Wednesday was the Business Insider story A rule has been broken on Wall Street, and ‘any banker with a brain’ is now looking for an exit discussing how banks aren’t paying staff what they once did. The second most read story was not so much a story but rather a picture of the driving range setup on the CBOT former trading floor. In third place is the New York Times story Regulator’s Plan to Rein In Trading Risks Raises Concerns

Lead Stories

Nasdaq rattles ICE’s cage in gasoil futures
Financial Times
One day this week almost 30 per cent of the volume in gasoil futures, a diesel benchmark, was transacted on Nasdaq’s NFX exchange. A year ago the percentage was zero, as NFX only opened last July.
on.ft.com/1Q7Oks2

Investors Pass Dealers in Europe Bond Trading, MarketAxess Says
Katie Linsell – Bloomberg
More bond trading is being done without banks in Europe, according to MarketAxess Holdings Inc., a fixed-income platform operator.
goo.gl/6YLr7C

Aquis Exchange examines potential stock market listing; UK trading venue in discussions with shareholders as it puts final touches to fundraising
by: Philip Stafford – FT
Aquis Exchange is examining a stock market flotation as the UK trading venue finalises with shareholders its plans for the next stage of its growth.
/goo.gl/Y0PkDo

Europe’s Largest Banks Hit Record Lows as Brexit Concerns Spread
Jan-Henrik Foerster, Roxana Zega – Bloomberg
Credit Suisse, Deutsche Bank both at record lows, data shows; British surveys suggest voters favor Britain leave the EU
Europe’s largest banks slumped, with Deutsche Bank AG and Credit Suisse Group AG hitting fresh record lows, reflecting investors’ concern in European economic prospects after the Federal Reserve scaled back its interest-rate outlook, citing a potential Brexit among risks.
goo.gl/FTRKpk

2014 Was the Hottest Year on Record
By Tom Randall and Blacki Migliozzi – Bloomberg
Deny this. The animation below shows the Earth’s warming climate, recorded in monthly measurements from land and sea over 135 years. Temperatures are displayed in degrees above or below the 20th-century average. Thirteen of the 14 hottest years are in the 21st century.
goo.gl/IwqSmv

Five hurdles that can still scupper the LSE merger (and stop its French boss pocketing a £14m payday)
By JAMES BURTON FOR THE DAILY MAIL
There have been months of clandestine meetings, multi-million-pound fees for advisors and a public relations blitz.
goo.gl/ZSfACh

The Market Scoffs at Fed Dot Plot
By JOHN CARNEY – WSJ
The Fed funds futures market is not buying the Federal Reserve’s near term rate forecast.
goo.gl/dYZDJQ

Rogue trader Jérôme Kerviel in court over SocGen damages
Michael Stothard in Paris – FT
Rogue trader Jérôme Kerviel, fresh from a victory last week in an unfair dismissal case against Société Générale, returned to court on Wednesday to decide how much he should have to pay the French bank in damages.
/goo.gl/hRWA2y

Millennials force wealth managers to up their game; ‘Gamification’ tactics used to lure the next generation of younger clients
by: Aime Williams – FT
Wealth managers have a problem — but video games developers may have the solution.
/goo.gl/jsZs4U

New Hedge Fund Gets the Michael Milken Touch
By GREGORY ZUCKERMAN – WSJ
Executives who until recently ran the former junk-bond king’s family investment office are beginning to seek outside investors
A newly minted hedge fund has a rare selling point: the Michael Milken stamp of approval.
goo.gl/S5ZY5o

Citi’s forex executives holidayed as staff prepared for Brexit; Five senior staff drove sports cars in France as others worked late
by: Katie Martin in London – FT
Foreign exchange traders at Citigroup, the world’s biggest currencies-dealing bank, are pulling out the stops to prepare for next week’s UK referendum on EU membership and its potentially cataclysmic impact on sterling.
/goo.gl/shpk4W

For One Breed of Wall Street Bankers, Business Is Booming Again
Jodi Xu Klein – Bloomberg
‘Firms are dying for experienced people. You need to act fast’; Energy companies made up 80% of bankruptcy cases last year
The job market is grim on Wall Street. Trading desks are shrinking, hiring is flat, even incentive pay is taking a hit. Except in one little corner of the financial world, where managers can’t read resumes fast enough.
goo.gl/5VBG15

Brexit

Britain should vote to stay in the EU; Historic plebiscite with far-reaching consequences for the continent
FT
In seven days, the British will decide. The referendum on EU membership marks an historic moment. At stake is Britain’s often troubled relationship with Europe, but also the coherence of the west. A vote to withdraw would be irrevocable, a grievous blow to the post-1945 liberal world order. David Cameron’s referendum gamble has proved to be a futile attempt to heal divisions in the ruling Conservative party. The campaign has split the country. Emotions have trumped facts. Born-again populists rail against the establishment. “People in this country have had enough of experts,” declares Michael Gove, a leading Brexiter, justice secretary (and former education secretary).
/goo.gl/1MBU1b

The UK in Europe: a visual guide to Brexit; What you need to know ahead of Britain’s historic EU vote
FT
/goo.gl/gKcksq

Paris and Frankfurt jostle for London’s mantle
James Shotter in Frankfurt – FT
The jostling for London’s bankers has begun. Last week, Paris’s financial elite made the first move, hosting a conference at which they promised to “roll out the red carpet” for City bankers in the event of Brexit. While Frankfurt has yet to follow suit, local officials are confident that if the UK does vote to leave the EU, they can lure its financiers to the city on the banks of the Main.
/goo.gl/LNXbLO

Brexit Countdown: 7 days to go; ‘Baron Farage of Brexit’ and fall of the Habsburgs — or not
by: Henry Mance
Lord Farage?
The Leave campaign owes a lot to Nigel Farage, the man who pretty much forced David Cameron to have a referendum, and whose language on immigration and sovereignty is now at the core of the debate.
/goo.gl/v5TZy7

Prepping For An All-Nighter: London Bankers Anticipate Volatility On Brexit Night
Manikandan Raman – Benzinga
The world’s biggest banks are planning on pulling an all-nighter June 23 – 24 as they are expected to draft in senior traders to work after Britain’s EU membership referendum, the long-awaited “Brexit” vote. According to a Reuters report, Wednesday into Thursday is “set to be among the most volatile 24 hours for markets in a quarter of a century.”
goo.gl/bpVXSP

‘We’ve Got One Shot’: Warnings Unheeded in Brexit’s Northern Heartland; Voters in one of the first places to declare in Britain’s upcoming EU referendum worry about immigration and sovereignty.
Alex Morales – Bloomberg
When Nissan Motor Co. threw England’s northeast an economic lifeline and started producing cars in Sunderland in 1986, the Japanese carmaker was drawn by a pool of cheap, skilled and available workers with access to European Union markets.
goo.gl/EjnAU7

Brexit or Not, Some Big Traders See Few Reasons to Buy the Hype
Anchalee Worrachate, Marianna Duarte De Aragao – Bloomberg
U.K. referendum not ‘systemic’ issue, says Pimco’s Balls; On the other hand, Fiorini sees event as ‘unhedgeable’ risk
A constellation of global movers and shakers has warned Britons not to vote to leave the European Union. Economically, politically and diplomatically, the island kingdom will be weaker on its own, luminaries such as Barack Obama, Angela Merkel, Mario Draghi and David Cameron have said.
goo.gl/ltejNK

U.K. Campaigns Lay Out Post-Brexit Visions in Dominance Push
Robert Hutton, Matthew Campbell, Svenja O’Donnell – Bloomberg
U.K. chancellor warns of dire economic consequences of Brexit; polls show eroding support for staying in EU in final days
The campaigns for and against keeping the U.K. in the European Union laid out opposing visions of life outside the bloc as dueling ahead of next week’s referendum enters its final stretch.
goo.gl/LrxEHR

Lord Rothschild: Brexit would be ‘damaging and disorderly’
www.investmentweek.co.uk
Writing in a comment piece for the The Times, Lord Rothschild, said readers should not “risk the wellbeing of our country”and European countries are “better off together”.
goo.gl/p8yRT4

Brexit: Why Jitters Are Spreading Beyond U.K.’s Shores; Europe hasn’t really taken seriously the possibility that the U.K. might vote to leave—until now
By RICHARD BARLEY – WSJ
Leaving a partner is painful. But so is being left. Belatedly, markets are wondering what a U.K. exit from the European Union might mean for Europe. There is little room for complacency.
goo.gl/gbXyQG

Regulatory

Europe’s Securitization Bankers Say They’re Stifled by New Rules; Post-financial crisis regulation means that the region’s securitization market remains a shred of what it once was.
Alastair Marsh – Bloomberg
Two decades ago, Europe’s asset-backed securities (ABS) market was in its infancy. It has not aged gracefully.
goo.gl/xiliuH

Proposed Rule Change to Extend the Implementation of FINRA Rule 4240 (Margin Requirements for Credit Default Swaps)
FINRA
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend FINRA Rule 4240 (Margin Requirements for Credit Default Swaps) to extend to July 18, 2017 the implementation of FINRA Rule 4240. FINRA Rule 4240 implements an interim pilot program with respect to margin requirements for certain transactions in credit default swaps that are security-based swaps.
goo.gl/j7pncP

ESMA PUBLISHES ANNUAL REPORT 2015
ESMA
The European Securities and Markets Authority (ESMA) has published today its Annual Report for 2015, which describes the key accomplishments by ESMA in 2015.
/goo.gl/I2lAQX

Giancarlo: CFTC should consider delaying derivatives margin rule after EU action
MLex FS Core
The US Commodity Futures Trading Commission should think about postponing implementation of margin rules for uncleared swaps now that the EU has done the same, Commissioner Christopher Giancarlo said.
goo.gl/FiQ8lb

?US Treasury-led FSOC being audited on clearinghouse designation practices
MLex FS Core
Federal watchdogs are auditing the risk council of top US financial regulators to determine if it is improving its practices for designating derivative clearinghouses and other financial plumbing as potential economic threats, MLex has learned. The audit, formally begun last week, is following up on a 2013 review of the US Treasury Department-led Financial Stability Oversight Council’s designations of financial market utilities. That earlier review issued five recommendations, including that FSOC decide how to proceed on designation of foreign-based utilities.
goo.gl/obCI9d

Exchanges & Trading Facilities

MCX to strengthen agri-space presence with 4-5 new contracts; To launch castor seed and black pepper soon; proposals on various stages of approval
Business Sandard
Strengthening its footprints in agri-space, the Multi Commodity Exchange of India (MCX) plans to introduce four-five new contracts in near future. According to exchange sources, MCX plans to introduce castor seed, the contract which was suspended from trading early this year from its rival platform National Commodity & Derivatives Exchange (NCDEX), and black pepper very soon. MCX has already applied with Sebi for their approval. Other such contracts are in various stages of introduction.
goo.gl/M30raA

Tokyo Stock Exchange Imposes Disciplinary Action Against Credit Suisse Securities (Japan) Limited
MondoVisione
Tokyo Stock Exchange, Inc. (hereinafter “TSE”) has taken disciplinary action (imposition of a JPY 60 million fine) against Credit Suisse Securities (Japan) Limited (hereinafter “the Company”) pursuant to the provisions of Rule 34, Paragraph 1 of the Trading Participant Regulations.
goo.gl/NOKIfw

Technology

DTCC Blockchain Video Series
DTCC
While the current financial market infrastructure provides safe, seamless and efficient processing, it has certain limitations that can be modernized by distributed ledgers. In the first of a new three-part video series from The Depository Trust & Clearing Corporation (DTCC), Bob Garrison, DTCC Chief Information Officer, explains that understanding the technological complexities of the financial services industry is crucial to determining how distributed ledger technology can be integrated into the current post-trade fabric.
goo.gl/pqu4XZ

DTCC Blockchain Video Series, Part 2: Collaboration is the Way Forward
DTCC
In the second of a three-part video series from The Depository Trust & Clearing Corporation (DTCC), Murray Pozmanter, Managing Director, DTCC Head of Clearing Agency Services and Global Operations and Client Services, explains how DTCC is collaborating with industry participants on proof of concepts and experiments to identify opportunities for leveraging distributed ledgers to enhance the current clearing and settlement processing platform. He emphasizes the importance of consensus among firms to reduce the risk of creating countless new siloes based on different standards.
bit.ly/1WNVAM2

Thomson Reuters teams up with tech firm for derivatives platform
The Trade
Horizon Software describes the platform as a “one-stop-shop” for trading derivatives in China, allowing securities houses in China to trade ETF options locally and globally.
bit.ly/1Q7No7c

Robert Somogyi on “Blockchain – the opportunities”
Eurex
Robert Somogyi, Director Clearstream Strategic Initiatives, thinks that this new technology is interesting, and does present some great solutions to current problems. In his opinion Blockchain could present a more robust, efficient and cheaper system for the management of securities operations than what is in use presently. Read the whole article on LinkedIn.
goo.gl/8wgjN8

Politics

Republican Lawmaker’s Plan Details Curbs on Bank Regulators; House Financial Services Committee chairman’s bill to include initiatives to kill core parts of Dodd-Frank
By DONNA BORAK – WSJ
A plan by a top Republican lawmaker overseeing Wall Street banks would impose new strings and constraints on regulators.
goo.gl/vPuq43

Hedge Funds & Managed Futures

Yellen Says Forces Holding Down Rates May Be Long Lasting
Rich Miller – Bloomberg
Fed chief discusses the ‘new normal’ that’s holding rates down; U.S. central bank scales back pace of projected rate rises
Federal Reserve Chair Janet Yellen seems to be coming around to what her one-time rival, Lawrence Summers, has been arguing for a while: Some of the forces holding down interest rates may be long-lasting and secular.
goo.gl/ltFACh

Mortgages Get Metaphorical as the Securitization Industry Takes Aim at New Rules; Europe’s ABS industry is developing a new language to explain its discontents with rules governing the notes.
Alastair Marsh – Bloomberg
With their ‘waterfall payments’, ‘credit enhancements’ and ‘X notes,’ asset-backed securities (ABS) can be complicated.
goo.gl/qjTUUM

Robot or human: which is the best wealth manager?; Can online services cope with a bear market, ask critics
by: Aime Williams – FT
The robots are certainly here to stay as far as the wealth management industry is concerned, but should you use one instead of a human?
/goo.gl/1CePpL

Banks & Brokers

MarketAxess Brings Dark-Pool Features to Corporate Bond Trading
John Detrixhe – Bloomberg
MarketAxess Holdings Inc. is bringing some of the attributes of equity dark pools to the world of corporate bond trading as more technology firms vie for a piece of company debt market.
goo.gl/ySCaym

Shuttered Geneva Offices Show Impact of Lost Banking Secrecy
By Giles Broom – Bloomberg
Empty, rundown offices are eyesores in city’s finance quarter; Local banks are acquiring business from exiting foreign firms
Three years after Lloyds Banking Group Plc sold its private bank in Geneva, the only signs of life at the now-empty building are piles of cigarette butts and nutshells lying on its dirty window ledges.
goo.gl/cFxMLA

Kerviel Plays Covert Recording in Bid to Unravel SocGen Case
Gaspard Sebag – Bloomberg
‘Societe Generale knew,’ senior prosecutor says in recording; Damages trial focuses on responsibility of Kerviel, SocGen
Convicted rogue trader Jerome Kerviel got to play French judges a covert recording he hopes will unravel years of claims that he was solely responsible for Societe Generale SA’s 4.9 billion-euro ($5.5 billion) trading loss nearly a decade ago.
goo.gl/mvLq58

JP Morgan brings its investment bank to Instagram
By Lucy Burton – eFN
Investment bank and asset management arms to join photo-sharing site, as US bank brings Snapchat filters to the UK alongside new intern crop
goo.gl/VXOdgQ

Clearing & Settlement

Clearstream’s monthly report; Comprehensive offering for investments in China; Clearstream’s Chairman, Jeffrey Tessler, sets continued focus on Asia
Deutsche Boerse
Clearstream is currently working on several initiatives in order to support the opening of the Chinese capital markets. “China has been a crucial part of Deutsche Börse’s strategy for a long time now, and we have had a strong presence in Asia for many years”, said Clearstream Chairman and member of the Deutsche Börse Executive Board Jeffrey Tessler. “I think it’s clear that we’re currently in the midst of a rare convergence of both internal reform of the onshore Chinese market and international recognition of the importance of the RMB. From a domestic perspective, there’s been a flurry of progress in liberalisation reforms over the last twelve months. This has been mirrored by moves internationally to increase the global role of the RMB.”
goo.gl/kY9Chb

Indexes & Products

Vanke’s Prolonged Halt Highlights China Hurdles Joining MSCI
Bloomberg
Investors need more time to assess China’s pledge to stamp out arbitrary stock trading halts, MSCI Inc. says. China Vanke Co. is shaping up as a test case.
Vanke, whose mainland-listed shares have been suspended since Dec. 18 pending a reorganization, needs more time to resume trading. The company had earlier said that its trading halt will stay in place until no longer than June 18.
goo.gl/c31qFN

Why Saudi Arabia’s Libor-Like Rate Is in Focus Amid Surge: Q&A
Arif Sharif, Liam Vaughan – Bloomberg
Regulator told banks to stop lowballing rate, sources said; Rate jumps after banks said to get letter from regulator
During the 2008 global financial crisis, regulators discovered some banks had routinely manipulated their contributions to the London interbank offered rate to disguise their real cost of funding, affecting the value of trillions of dollars of loans and derivatives. The scandal resulted in more than $9 billion in fines. Fast forward eight years and benchmark interest-rate accuracy is again an issue, this time in Saudi Arabia, where the regulator is said to have told banks there to stop lowballing submissions. Here we examine the Saudi interbank offered rate, why it matters and what to expect.
goo.gl/k1fjb3

MSCI decides not to consider Saudi for emerging market status – Markets
Arabian Business.com
Saudi Arabia’s stock market led falls in the Gulf on Wednesday after MSCI decided not to consider the country for emerging market status.
In its annual classification review, MSCI praised market reforms announced by Saudi authorities but did not set a date for a review that could place the country in its emerging market index. It said that once implemented by mid-2017, the reforms would “bring the Saudi equity market closer” to inclusion.
goo.gl/SNU9mn

Enforcement

SEC accuses ex-portfolio manager Plaford of insider trading
Reuters
A former portfolio manager conducted insider trading ahead of federal regulatory announcements tied to the healthcare industry, and fraudulently inflated the value of securities he oversaw, a U.S. regulator said on Wednesday.
goo.gl/SG0enz

Monthly Disciplinary Actions June 2016
FINRA
FINRA has taken disciplinary actions against the following firms and individuals for violations of FINRA rules; federal securities laws, rules and regulations; and the rules of the Municipal Securities Rulemaking Board (MSRB).
goo.gl/Af76Pa

FCA charges five in £2.8m investment scheme scandal
DANIEL FLYNN – Investment Week
Involved 175 investors The FCA has charged five advisers over a ‘boiler room’ fraud, which saw 175 investors lose as much as £2.8m.
goo.gl/AcsG3a

FCA charge five in alleged investment fraud
UK FCA
The offences relate to the promotion and sale of shares in Atlantic Equity LLC (formerly known as Berkeley Brookes LLC), between July 2013 and March 2014, through a succession of four alleged ‘boiler room’ companies
goo.gl/nbwMu2

Environmental & Energy

Catholic orders take their lead from the pope and divest from fossil fuels
Michael Slezak – The Guardian
Four Australian Catholic organisations have announced they are completely divesting from coal, oil and gas in what they say is the first joint Catholic divestment anywhere in the world.
/goo.gl/bSkC6Z

Ford’s Crown Jewel, the F-150, Has a Big Problem
John Lippert – Bloomberg
Some SuperCabs fall short on emission, fuel-economy standards; Both requirements will be more stringent in nine years
Ford Motor Co. executives spared no expense in overhauling the crown jewel of their empire, the F-150. They gave the truck a new aluminum body, smaller turbocharged engines and a lighter and stronger steel frame — all with an eye to appease U.S. regulators demanding cleaner vehicles. The initiative took six years and cost Ford more than $1 billion.
goo.gl/BD02OP

OPEC Turmoil Could Turn IEA’s Balanced Market Into Shortfall
Javier Blas, Julian Lee, Grant Smith – Bloomberg
IEA’s 2017 outlook relies on 650,000 b/d more OPEC production; Stockpiles could start to shrink without supply boost
The world’s most prominent oil forecaster, the International Energy Agency, anticipates near-equilibrium between supply and demand in global crude markets next year. If OPEC members can’t resolve some massive output disruptions, that will turn into a significant shortfall.
goo.gl/B4N1W8

Asia-Pacific

China’s MSCI Index Denial a Boon for Singapore’s Plans
Bloomberg
What’s bad for China may be good for Singapore.
MSCI Inc.’s decision to make China wait for its stocks to be added to global indexes is poised to direct investors to the city-state, which is home to a futures contract linked to mainland shares. Fund managers have been choosing to do business at offshore centers that are already part of the global financial system, rather than moving money into China, RHB Securities says.
goo.gl/9eUFa7

MSCI brush-off for China shares spells more pain for Hong Kong brokers
Reuters
Hong Kong stock brokers’ year has gone from bad to worse after index provider MSCI decided not to add mainland Chinese shares to a benchmark indexed tracked by $1.5 trillion in global assets, dashing the hopes of a sector struggling with tumbling business.
goo.gl/nsLVxX

HSBC still upbeat on China despite MSCI snub
Global Custodian
MSCI’s decision not to include China’s equities in its global benchmark indexes has not dampened optimism surrounding the opening up of the mainland markets.
Investors and market infrastructure providers alike have spent three years anticipating the inclusion of China’s A-shares in the MSCI indices. Expectations were high this year after MSCI announced it was working closely with Chinese regulators.
goo.gl/2mmzhh

Global markets drop as Bank of Japan stands pat on stimulus
Chicago Tribune
Global stocks fell Thursday after the Bank of Japan kept its monetary policies unchanged and as investors turned their attention to next week’s “Brexit” vote on whether Britain should exit the European Union.
goo.gl/RK1HrD

Commodities: Noble’s House of woe; Asia commodity trader brought low by weak markets after questions over accounting practices
by: David Sheppard and Neil Hume
Richard Elman has always dreamt big. The British-born scrapyard dealer-turned-billionaire commodity trader and founder of Noble Group spent more than a decade riding the wave of China’s growth. In April 2011 he promised investors there was more to come.
/goo.gl/fRQpbw

Frontier Markets

Some Positive Indexing News For A Frontier Markets ETF
Yahoo Finance
After the close of U.S. markets Tuesday, index provider MSCI Inc (NYSE: MSCI) released its annual market classification. Most investors awaiting the MSCI news were focusing on the index provider’s decision on whether or not to include China A-shares in its emerging markets benchmarks, but there were other interesting moves.
goo.gl/vXm8ha

NSEL-FTIL hearing adjourned
The Hindu Business Line
The Bombay High Court on Wednesday adjourned hearing in the NSEL-FTIL merger case to June 23 even as it is yet to take a view on government’s recent plea seeking six weeks time to respond to FTIL’s challenge of final merger order.
goo.gl/9xtY40

From a big fish in a small pond to a small fish in a big pond
Dailytimes
From a big fish in a small pond to a small fish in a big pond
Pakistan has been re-classified to ’emerging markets’ category in the Morgan Stanley Capital International (MSCI). What does it mean and why is it noteworthy?
goo.gl/El4NRl

Miscellaneous

Billionaires back new shipping quant fund
FT.com
Google’s Eric Schmidt and a clutch of billionaires have backed a new quantitative hedge fund that mines global shipping data to track and trade international commodity flows, underscoring the burgeoning interest in new, technology driven approaches to investing as traditional hedge funds fall out of favour.
bit.ly/1XXsWJ7

Cognitive Decline: Biological, Psychological and Environmental Factors Influencing the Aging Brain
By Chris Morrison, PhD, ABPP – SIFMA
It might be easy to assume that financial exploitation and fraud are primarily perpetrated against cognitively compromised individuals – meaning individuals who suffer from conditions such as dementia or similar neurological disorders. However, this is not necessarily the case. The aging brain can be impacted by a variety of biological, psychological and environmental factors. These factors can make even a healthy and apparently normal functioning individual compromised when it comes to financial decision-making.

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