First Read

FIA Global Signing
Party

Representatives from FIA affiliates sign official documents to merge into a single organization.

Photo Credit: John Rizzo

Congratulations FIA, and Other Bits & Pieces from FIA Expo 2015
JLN Staff

Congratulations are in order, on a couple of fronts. First, upon the signing yesterday that officially merges FIA Americas, FIA Europe (the former FOA) and FIA Asia. Check out the above photo to see some of the people who made it happen – Paul Davies, FIA Asia Chairman; Steve Sparke, FIA Europe Chairman; Walt Lukken, FIA President and CEO; Gerald Corcoran, FIA Chairman; Michael Dawley, FIA Global Chairman; Bill Herder, FIA Asia President; and Simon Puleston Jones, FIA Europe CEO.

Congratulations also to the FIA for once again putting together an awesome showcase of the best our industry has to offer. Hosting and coordinating an event of this magnitude is quite a challenge, and many pieces must fall into place, yet time and time again the FIA delivers. The FIA tried something new this year with the Innovation Hall, a great idea but one that got mixed reviews. Giving those startups a platform to showcase their technology is forward looking. Yet, logistically, it’s still difficult to get attendees to walk down to that hall. Some attendees suggested that FIA just use the two main halls in the future. Perhaps more innovation is needed there.

Now for a few panel highlights:

  • One ongoing theme at the conference was that the regulations in the U.S. and Europe are causing massive headaches for many in the derivatives industry. In the options space, the rules are putting tremendous pressure on the ability of market makers to provide liquidity. Market makers are now required to put up more capital, making it prohibitive for new entrants to the business and leading to consolidation and to firms dropping out of the business. Panelists at a session discussing the impact of regulatory changes on options said they felt that the regulators had not taken into account the specific nature of listed options, including the multiple strikes and complex trades such as straddles and strangles. Massimo Georgini, head of business development at Borsa Italiana, said the new rules from the European regulator ESMA were making it almost impossible to execute straddles and strangles on a screen. Stephen Brodsky, the CEO of the prop firm Spot Trading, said there is now a true disconnect in the risk of a position relative to the funding. Also, the trend toward volume in the top 100 names has gotten more concentrated over the past five years.
  • In China, too, trading is suffering from regulatory restrictions put into place after the recent stock market crash there, including a ban on short selling and a moratorium on IPOs. In a panel on China’s response to the recent market downturn, participants suggested the restrictions might be lifted in the next three or four months but said there was complete uncertainty over that timing.
  • Patrick Hickey, head of market structure at Optiver, started off his introductions to the options exchange leader panel with an illustrative graph showing the ever waning attention span of Expo-ers as the conference progressed. Are three nights and two days too much for our brains?

Perhaps it was that subtle nudge to keep things interesting which prompted the panel to spend an extended amount of time using the proliferation of different styles of jeans as an analogy to the ever-expanding number of strikes in the options world. Basically, there are too many types of jeans — boot cut, acid washed, skinny, et al. — for people to choose from. What if an investor/fashionista simply wants to trade/buy straight leg Levi’s?

The discussion fluctuated, as participants pointed out that different occasions may require different attire, and that over time maybe an investor’s appetite dictates altering the size of jeans one needs to purchase. Something that was not mentioned in the analogy, was the possibility that there might just be too many vendors offering jeans to the market. That is a problem exacerbated by a “keeping up with Joneses” factor where the moment one exchange sees the other hawking new denim overalls, that vendor feels pushed to offer the product as well. The irony, of course, was that in a room full of industry insiders and leaders, there wasn’t a pair of jeans to be seen.

Another innovation for next year perhaps? FIA jean day on Thursday.

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Deflation Risks May Warrant Radical New Central-Bank Thinking, the IMF’s Chief Economist Says
By IAN TALLEY – WSJ
The Bank of Japan and other central banks around the world may need to try radical new easy-money policies to stave off the rising specter of deflation and revive sickly economic prospects, the International Monetary Fund’s new chief economist warns.
on.wsj.com/1S2cyQD

***** I fear deflation more than inflation. I also fear bubbles, but that has to do with a childhood experience featuring “Bubbles” the clown.

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Overstock has $10 million of gold and silver stored at an off-site facility to pay employees in case there’s a financial crisis
Myles Udland – Business Insider
Overstock is ready for a real crisis. A report in the Financial Times on Thursday highlighted the online retailer’s roughly $10 million of gold and silver — that is, physical gold and silver — it owns in case there’s another crisis and the company needs to make payroll.
read.bi/1MMLs1Z

***** Overstock is a hoarder? Who knew?

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Human Cost Rises as Old Bridges, Dams and Roads Go Unrepaired
By RON NIXON – WSJ
A routine trip to run errands almost cost Katherine Dean her life. In February, just as Ms. Dean, of suburban Maryland, drove underneath a bridge on the Capital Beltway, a large chunk of concrete fell from the structure, crushing the hood of her car and smashing the windshield.
nyti.ms/1RBhEDz

***** The easiest thing for those in power to do is to ignore the long term needs and focus on the short term needs. Stupid.

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Lead Stories

Algo traders, regulators and the age of the ‘Wall Street’ second
Robin Wigglesworth – FT
Don Henley sang that “in a New York minute, everything can change”. On Wall Street, a second is all it takes these days.
on.ft.com/1OsYAJF

SEC charges Scottish trader for Twitter fraud
Patrick McGee – FT
Scottish trader who allegedly used Twitter to cause price swings in two companies in a bid to profit from the moves.
on.ft.com/1NgTbj6

Goldman Sachs attempts to woo junior bankers with swift promotions
Laura Noonan – FT
Goldman Sachs is promising junior investment bankers faster promotions, more diverse experiences and less menial work as part of Wall Street’s latest attempt to lure new talent in the face of tough competition. The bank unveiled a series of new initiatives to staff on Thursday afternoon, after nine months of senior management soul-searching. The process included interviews with hundreds of junior bankers to find out what would make them more likely to stay at Goldman rather than decamp to hedge funds, asset managers and tech groups.
on.ft.com/1QiVHdS

**JK – “I’m ready, promotion. I’m ready, promotion.” – Spongebob

CME Group seeks legal views on first U.S. spoofing conviction
BY TOM POLANSEK
CME Group Inc will consult lawyers on why a jury this week convicted a high-frequency trader in the first U.S. prosecution of the manipulative strategy called spoofing, Executive Chairman Terry Duffy said on Thursday.
reut.rs/1NwOmqt

Singapore looking into potential spoofing in derivatives markets
THE BUSINESS TIMES
Singapore’s stock exchange is evaluating possible incidents of spoofing in its flourishing derivatives market, following complaints over the dishonest trading practice.
bit.ly/1Hg2WRR

SEC Chair White Criticizes Bipartisan Bill Easing Investment Rules
By YUKA HAYASHI and ANDREW ACKERMAN – WSJ
Securities and Exchange Commission Chairman Mary Jo White criticized bipartisan legislation that would ease rules governing a specialty investment product that has become increasingly popular as an alternative to more regulated high-risk loans.
on.wsj.com/1Ot0f1Q

Futures exchanges back the blockchain
By Tim Cave – Financial News
Blockchain has the potential to be “transformative” for the exchange industry, the chief executives of some of the world’s largest exchange operators told delegates attending the industry’s annual gathering in Chicago.
bit.ly/1RBgEiB

Regulation awareness and next-gen analytics key to Bloomberg Tradebook
The Trade News
Providing regulatory support to clients and next generation analytics technology are key priorities for Bloomberg Tradebook, it has said.
bit.ly/1HwwANp

High-Speed Trading Firm Virtu Tops Wall Street Views; Boost of volatility and trading volume in August led to big profit for the high-frequency trading firm
By BRADLEY HOPE – WSJ
A boost of volatility and trading volume in August led to big profits for high-frequency trading firm Virtu Financial Inc. in the third quarter. But its share price fell sharply over what analysts described as investor fears about the company’s ability to expand elsewhere.
on.wsj.com/1MCEC90

Regulatory

Germany Stands Firm on Taxes in Cash-and-Stock Acquisitions
WSJ
The German government has reiterated its tough stance on capital-gains taxes in cash-and-stock takeover offers, a Deutsche Boerse AG unit said on its website Wednesday. The move is set to complicate deal-making in Europe’s largest economy, including the combination of the country’s two largest residential-real-estate firms, Vonovia SE and Deutsche Wohnen AG , in a $14 billion deal.
on.wsj.com/1HfWCd7

CFTC Staff Publishes Responses to Frequently Asked Questions Regarding Commission Forms CPO-PQR and CTA-PR
CFTC
The FAQs address issues ranging from Form CPO-PQR and Form CTA-PR filing mechanics and filing deadlines to technical questions regarding asset reporting classification. DSIO staff intends to update the FAQs on an as needed basis to clarify issues for the broadest set of filers.
1.usa.gov/1Stnnfk

Traders warn on electronic trading rules
Futures & Options World
Some of the world’s top trading firms have warned about the imposition of overly tough rules aimed at clearing up the complex business of electronic trading. Speaking at the FIA Expo 2015 in Chicago on Thursday, Greg Wood, director, algorithmic execution, listed derivatives and foreign exchange at Deutsche Bank, said: “A lot of these controls are tools and tools are only as good as there implementation and their usage.”
bit.ly/1HfWLx5

Ex-CFPB Bigwig Talks Regulating Fintech Innovators
American Banker
Raj Date, former deputy director of the Consumer Financial Protection Bureau, has some advice for regulators in dealing with innovative financial technology startups: engage in dialogues, be assertive early, and be flexible.
bit.ly/1HfYjHi

Thomson Reuters Announces 11th Annual Compliance Awards Winners
MarketWatch
Thomson Reuters today announced the winners of its 11th Annual Compliance Awards. The winners were presented with their trophies at The Grosvenor House Hotel in Mayfair, London on November 5th, 2015. Over 300 guests attended Thursday evening’s event including leading compliance professionals and friends from related industries.
on.mktw.net/1QiVirQ

Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
SEC

    • CBOE: Notice of Filing of a Proposed Rule Change to List and Trade Options that Overlie a Reduced Value of the FTSE China 50 Index (Release No. 34-76354; File No. SR-CBOE-2015-099; November 4, 2015); see also Exhibit 3, Exhibit 5
    • CBOE: Notice of Filing of a Proposed Rule Change to List and Trade Options that Overlie a Reduced Value of the FTSE 00 Index (Release No. 34-76353; File No. SR-CBOE-2015-100; November 4, 2015); see also Exhibit 3, Exhibit 5
    • CBOE: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Fees Schedule (Release No. 34-76352; File No. SR-CBOE-2015-093; November 4, 2015); see also Exhibit 5
    • CBOE: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Mini Options (Release No. 34-76341; File No. SR-CBOE-2015-098; November 4, 2015); see also Exhibit 5
    • CHX: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Adopt Business and Disaster Recovery Plans Testing Requirements for Certain Participants in Connection with Regulation Systems Compliance and Integrity (Release No. 34-76351; File No. SR-CHX-2015-09; November 4, 2015); see also Exhibit 5
    • FINRA: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Mandatory Participation in Business Continuity and Disaster Recovery Testing under Regulation SCI (Release No. 34-76360; File No. SR-FINRA-2015-046); see also Exhibit 5
    • FINRA: Order Approving a Proposed Rule Change to Amend FINRA Rule 8312 (FINRA BrokerCheck Disclosure) to Reduce the Waiting Period for the Release of Information Reported on Form U5 (Release No. 34-76359; File No. SR-FINRA-2015-032)
    • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Modify Chapter XV, Entitled Options Pricing, at Section 2 Governing Pricing for NASDAQ Members (Release No. 34-76363; File No. SR-NASDAQ-2015-127); see also Exhibit 5
    • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Modify the LIST Routing Option (Release No. 34-76340; File No. SR-NASDAQ-2015-135; November 4, 2015); see also Exhibit 5
    • NSCC: Notice of Filing of Proposed Rule Change to Provide Mechanism for Sub-Account Settlement with Respect to the Alternative Investment Product Services (Release No. 34-76348; File No. SR-NSCC-2015-007; November 4, 2015); see also Exhibit 3, Exhibit 5
    • NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain Member Organizations to Participate in Business Continuity and Disaster Recovery Plans Testing in Connection with Regulation Systems Compliance and Integrity (Release No. 34-76346; File No. SR-NYSE-2015-50; November 4, 2015); see also Exhibit 5
    • NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 19 to Specify in Exchange Rules the Exchanges Use of Data Feeds from National Stock Exchange, Inc. for Order Handling and Execution, Order Routing, and Regulatory Compliance (Release No. 34-76339; File No. SR-NYSE-2015-51; November 4, 2015); see also Exhibit 5
    • NYSE Arca: Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change, as Modified by Amendments No. 1 and 3, Relating to Listing and Trading of Shares of the Guggenheim Total Return Bond ETF under NYSE Arca Equities Rule 8.600 (Release No. 34-76362; File No. SR-NYSEArca-2015-73)
    • NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring OTP Holders to Participate in Business Continuity and Disaster Recovery Plans Testing in Connection with Regulation Systems Compliance and Integrity (Release No. 34-76349; File No. SR-NYSEArca-2015-97; November 4, 2015); see also Exhibit 5
    • NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Specifying in Exchange Rules the Exchanges Use of Data Feeds from National Stock Exchange, Inc. for Order Handling and Execution, Order Routing, and Regulatory Compliance (Release No. 34-76347; File No. SR-NYSEArca-2015-98; November 4, 2015); see also Exhibit 5
    • NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain ETP Holders to Participate in Business Continuity and Disaster Recovery Plans Testing in Connection with Regulation Systems Compliance and Integrity (Release No. 34-76342; File No. SR-NYSEArca-2015-96; November 4, 2015); see also Exhibit 5
    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE MKT Rule 19 Equities to Specify in Exchange Rules the Exchanges Use of Data Feeds from National Stock Exchange, Inc. for Order Handling and Execution, Order Routing, and Regulatory Compliance (Release No. 34-76345; File No. SR-NYSEMKT-2015-84; November 4, 2015); see also Exhibit 5
    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Requiring Certain Member Organizations to Participate in Business Continuity and Disaster Recovery Plans Testing in Connection with Regulation Systems Compliance and Integrity (Release No. 34-76343; File No. SR-NYSEMKT-2015-82; November 4, 2015); see also Exhibit 5

jlne.ws/1eCTnOv

Exchanges & Trading Facilities

Changes of Designated Securities for Short Selling
HKEx
The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), announces that with effect from 13 November 2015 (Friday), 27 additional securities will be eligible for short selling and 72 existing designated securities will be removed from the list. The total number of designated securities for short selling will be 844 after the revision.
bit.ly/1QiVnvN

New Mexican Exchange To Use Nasdaq’s Trading Tech
Finance Magnates
Bolsa Institucional de Valores (BIVA) will use the popular X-stream Trading system, SMARTS surveillance.
bit.ly/1Hg0yKK

TMX Group third-quarter revenue rises on stronger dollar
Reuters
TMX Group Ltd, the operator of the Toronto Stock Exchange, posted a better-than-expected quarterly profit, as a strong U.S. dollar helped drive up the company’s revenue.
reut.rs/1SvlWgr

TMX Group Limited declares dividend of $0.40 per common shareA- A+ TME Group
The Board of Directors of TMX Group Limited declared a dividend of $0.40 on each common share outstanding, payable on December 4, 2015 to shareholders of record at the close of business on November 20, 2015.
bit.ly/1keQyra

TMX Group Limited Reports Results for the Third Quarter 2015A- A+ TMX Group
TMX Group Limited [TSX: X] (“TMX Group”) today announced results for the third quarter ended September 30, 2015.
bit.ly/1MnB7HK

TMX Group Equity Financing Statistics – October 2015A- A+ Print
TMX Group
TMX Group today announced its financing activity on Toronto Stock Exchange and TSX Venture Exchange for October 2015.
bit.ly/1QiWVG5

BATS Reports Record 26.0% European Equities Market Share in October
BATS
Successfully Launches New U.S. Options Market; Remains #1 for ETF Trading
bit.ly/1XUo44t

SGX welcomes Oxley Holdings’ retail bonds
SGX
Singapore Exchange (SGX) today welcomed the listing of Oxley Holdings Limited’s (Oxley Holdings) four-year retail bonds with a coupon rate of 5% per annum, payable semi-annually. The bonds are issued by Oxley Holding’s wholly-owned subsidiary, Oxley MTN Pte. Ltd, and guaranteed by Oxley Holdings. They are listed on the Mainboard under the stock code, “BJFZ”.
bit.ly/1L0TlcL

Hedge Funds & Managed Futures

Pimco Fallout Continues to Pressure Allianz; Bond-fund manager has weighed on the German company’s results for four consecutive quarters
By ULRIKE DAUER – WSJ
German insurer Allianz SE said Friday it was sticking with its full-year profit outlook despite continuing pressure on earnings from its Pacific Investment Management Co. business, known as Pimco.
on.wsj.com/1NgU8YO

Financial Advisers Continue to Warm to ETFs, Study Finds; Advisers surveyed show a willingness to adopt ETFs with shorter track records
By DAISY MAXEY – WSJ
Financial advisers are more open to using exchange-traded funds than they were just a few years ago, a new survey found.
on.wsj.com/1MMJJcW

Merrill Lynch Warns of Robot Apocalypse
By PAUL VIGNA – WSJ
If you’re looking for a hot investment idea, Bank of America Merrill Lynch has one word for you: robots. If you’re a cautious investor, the firm has two words for you: killer robots.
on.wsj.com/1HwwTrN

The Stock Market Humbles The Activist Hedge Funds
Nathan Vardi, FORBES STAFF
From Dell to Dupont, and Apple AAPL -1.67% to Microsoft MSFT +0.00%, in the last few years it seemed like no company was safe from activist investors. It didn’t matter how big the company or in what sector of the economy it operated, hedge fund activists were armed with enough money and Wall Street cred that in recent years they could steamroll companies into board seats, inversions, stock buybacks, mergers and CEO resignations.
onforb.es/1HwxiKN

Swap Spreads Have Fallen and They Can’t Get Up; Something strange is happening in the U.S. rates market.
Tracy Alloway – Bloomberg
Swap spreads – a proxy for credit spreads – have turned negative.
bloom.bg/1HwzEJq

A Money-Managing Robot Is About to Join BofA’s Thundering Herd
Hugh Son – Bloomberg
Bank said to plan 2016 rollout of automated financial service
Merrill Edge would mimic robo-advisers Betterment, Wealthfront
Bank of America Corp.’s “thundering herd” of Merrill Lynch financial advisers is about to be joined by a robot.
bloom.bg/1RBk3Ox

Banks & Brokers

Tullett Prebon May Purchase ICAP’s Voice-Broking Business
John Detrixhe – Bloomberg
About 1,450 voice brokers would transfer to Tullett under deal
Interdealer brokers are under pressure as banks reduce trading
Tullett Prebon Plc is in discussions to buy ICAP Plc’s voice-brokerage business, giving it the scale to reduce costs in a shrinking market.
bloom.bg/1OsY4eT

Jamie Dimon: Virtual Currency Will Be Stopped
by Stephen Gandel- Forbes
The JPMorgan CEO explains why he thinks the government will crack down on bitcoin and other virtual currencies before they get big.
for.tn/1l9rSRd

Morgan Stanley CEO James Gorman invited summer interns to stop by and chat — here’s what that’s like
Portia Crowe – Business Insider
“He smells bulls— from miles away.”
read.bi/1keTOD8

The 7 things Morgan Stanley looks for in new recruits
Portia Crowe – Business Insider
Morgan Stanley is one of the best-known names on Wall Street.
read.bi/1GOzXET

CREDIT SUISSE CEO: Here’s ‘what makes your career move’ on Wall Street
Portia Crowe – Business Insider
Credit Suisse CEO Brady Dougan has had a dynamic career on Wall Street, and in a recent interview with OneWire’s Skiddy von Stade, he gave some advice on how young people can do the same.
read.bi/1MCEWo8

Wall Street CEO: Young people forget what’s really important about the workplace
Portia Crowe – WSJ
Ben Carpenter, vice chairman of CRT Capital, former co-CEO of Greenwich Capital, and author of “The Bigs,” believes that happiness is the most important element of professional success – but it’s often overlooked by young people.
read.bi/1kytSSi

Clearing & Settlement

Futures exchanges back the blockchain
Financial News
Many in the financial sector believe the emerging technology could drastically simplify financial processes ranging from trade finance to clearing and settlement. Blockchain allows ownership of assets to be verified by a network of computers across the internet rather than a single, centralised authority. Its potential expands to the transfer not only of bitcoins, as at present, but of other assets such as shares or bonds without the need for clearing houses or settlement.
bit.ly/1HfVuGr

Regional central clearing will boost eastern Europe bourses-EBRD
Reuters
Small and low liquidity bourses in eastern Europe could attract foreign investors and boost volumes and liquidity at a lower cost if they sign up for regional clearing, the European Bank for Reconstruction and Development (EBRD) said.
reut.rs/1HfWlXq

Indexes & Products

U.S. crude overtakes Brent in S&P commodity index rebalance
Reuters
A widely watched commodity index is returning the U.S. crude benchmark to the top of its weightings table, just a year after allowing Europe’s Brent oil benchmark to dominate, the firm managing the index said on Thursday. The elevation of the U.S. West Texas Intermediate (WTI) crude benchmark within the 24-commodity S&P GSCI index comes amid higher liquidity for the contract, index manager S&P Dow Jones Indices said.
reut.rs/1HfXuyt

S&P DJI releases Canadian climate change indices
ETF Strategy
As the Paris 2015 Climate Conference approaches, the interest in investment strategies based around carbon-aware exchange-traded funds and indices has been on the rise. The latest Canadian index series from S&P Dow Jones Indices (S&P DJI), a leading financial market index provider, further evidences this shift in investor demand.
bit.ly/1HfXBd8

Invesco PowerShares Adds Two Low Beta Equal Weight Strategies to Smart Beta Lineup
CNN Money
Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced the launch of two new ETFs; the PowerShares Russell 1000 Low Beta Equal Weight Portfolio (USLB) and PowerShares FTSE International Low Beta Equal Weight Portfolio (IDLB).
cnnmon.ie/1HfXIWb

Which Stocks Will Gain From MSCI’s Semi-Annual Review? – Asia Stocks to Watch – Barrons.com
MSCI’s semi-annual review is a big deal. Over $9.5 trillion in assets follow the MSCI indexes and over $1.8 trillion are passive funds. So the stocks that are added or deleted can see big price swings. MSCI will announce the result of its semi-annual review in a week, on Thursday November 12. The changes will be made effective at close on Friday, November 30. So how do we front-run this?
on.barrons.com/1HfXPRA

Technology

Paypal Helps Launch Fintech Cluster in Vancouver
Payment Week
As financial technology incubators and accelerators pop up around the global, PayPal and the BC Technology Industry Association have announced a collaboration project to launch a fintech cluster in Vancouver, Canada. The cluster, like an accelerator or incubator, will serve as Vancouver’s first formalized fintech hub and provide local companies with guidance and access to an array of international exposure.
bit.ly/1HfYgeB

Growth Strategy – National fintech lobby group to be formed
Startup Smart
A new national fintech association will aim to put aside the traditional Melbourne versus Sydney rivalry to advance the thriving sector as a whole, Fintech Melbourne founder Andrew Lai says. Lai has been in talks with groups from Sydney and around Australia to establish the organisation.
bit.ly/1HfYwKL

How Bitcoin’s blockchain technology can build more businesses
Financial Review
The technology behind bitcoin has implications far beyond alternative currencies. Its ability to guarantee truth could revolutionise record-keeping.
bit.ly/1Hg16R2

Why More Banks Will Spin Off Internal Tech
American Banker
Some financial institutions are taking tech innovation so seriously that they’re turning it into a whole new business. Sure, plenty of banks are far behind on technology, let alone in a position to spin out technology they’ve developed. But for the already tech-savvy, two recent examples might be worth noting.
bit.ly/1Hg1bnN

Enforcement

SEC Charges: False Tweets Sent Two Stocks Reeling in Market Manipulation
SEC.gov
he Securities and Exchange Commission today filed securities fraud charges against a Scottish trader whose false tweets caused sharp drops in the stock prices of two companies and triggered a trading halt in one of them. According to the SEC’s complaint filed in federal court in the Northern District of California, James Alan Craig of Dunragit, Scotland, tweeted multiple false statements about the two companies on Twitter accounts that he deceptively created to look like the real Twitter accounts of well-known securities research firms.
1.usa.gov/1NvsZ8V

Ex-JPMorgan U.S. adviser pleads guilty to embezzling $22 million
By Nate Raymond – Reuters
A former JPMorgan Chase & Co investment adviser pleaded guilty on Thursday to stealing at least $22 million from client accounts, money his lawyer said was used to gamble on sporting events and trade in stock options.
reut.rs/1NwKJkh

Former Goldman Employee Pleads Guilty in Leak Case
By LIZ MOYER – NY Times
Highlighting the hazards of Wall Street’s revolving door with regulatory agencies, a former employee of Goldman Sachs pleaded guilty on Thursday for obtaining documents leaked to him by a former colleague at the Federal Reserve Bank of New York.
nyti.ms/1RBf5RY

Environmental & Energy

New York investigating Exxon over climate statements: source
Reuters
The New York attorney general has launched an investigation into whether Exxon Mobil Corp (XOM.N) misled the public and shareholders about the risks of climate change. Attorney General Eric Schneiderman subpoenaed the company on Wednesday evening, demanding extensive financial records, emails and other documents, a source familiar with the investigation said on Thursday.
reut.rs/1QiWage

More Oil Companies Could Join Exxon Mobil as Focus of Climate Investigations
By CLIFFORD KRAUSS – NY Times
The opening of an investigation of Exxon Mobil by the New York attorney general’s office into the company’s record on climate change may well spur legal inquiries into other oil companies, according to legal and climate experts, although successful prosecutions are far from assured.
nyti.ms/1PeI3co

Jury Delivers First U.S. Libor Manipulation Convictions; Jury finds traders manipulated benchmark interest rate for their own benefit
By CHRISTOPHER M. MATTHEWS – WSJ
The first U.S. jury to hear evidence about a sprawling scheme to manipulate a key benchmark interest rate convicted two former Rabobank traders Thursday.
on.wsj.com/1MnAHks

Germany sees VW scandal might lead to new clean options
Reuters
Volkswagen’s emissions cheating scandal could force German carmakers to come up with new and better ways to build more climate-friendly vehicles, a senior government official said on Wednesday.Germany sees VW scandal might lead to new clean options.
reut.rs/1LSBt7M

UK government axes plans for fracking in protected nature sites
By Adam Vaughan – The Guardian
The government has backed down on its plan to allow fracking in some of England’s most important nature sites.
bit.ly/1Hd0VWA

British Land’s £2bn plan for Canada Water
Judith Evans – FT
Plans for a £2bn redevelopment of a 46-acre site in Rotherhithe, south-east London, which will include flats and offices, have been announced by property developer British Land.
on.ft.com/1PeGxao

Asia-Pacific

China’s Stock-Market Bulls Are Back, But Where Are the Earnings?
Bloomberg Business
Hao Hong has seen this movie before, and it didn’t end well for China’s stock-market bulls. Five months after an equity boom built on weak corporate profits turned into a $5 trillion crash, a similar scenario is playing out in China today. The benchmark Shanghai Composite Index has surged 20 percent from its Aug. 26 low, despite third-quarter profits that trailed analyst estimates at 68 percent of companies in the index, the eighth straight quarter of disappointing results.
bloom.bg/1Hg2cvW

China Plans to Lift Moratorium on I.P.O.s by End of Year
The New York Times
China’s securities regulator plans to lift its moratorium on new stock market listings before the end of the year, the official news agency Xinhua said on Friday.
nyti.ms/1Hg2hQm

China takes strides toward opening bond market
FT.com
China’s recent stock market and foreign exchange developments have drawn the attention away from a major development in another part of the country’s capital markets: the further opening-up of the bond market to foreign investors.
on.ft.com/1Hg2wuR

Singapore can continue to play catalytic role in promoting yuan use: Heng Swee Keat, Economy
The Straits Times
Singapore can continue to play a catalytic role to promote the use of the yuan in South-east Asia and beyond. Its vibrant banking sector and capital markets, as well as strong asset and wealth management capabilities, have allowed it to support the internationalisation of the yuan, said Finance Minister Heng Swee Keat on Friday (Nov 6).
bit.ly/1Hg2Rxt

Frontier Markets

Sebi probe of Castex finds no evidence of manipulation
Business Standard
The Securities and Exchange Board of India (Sebi), which is probing unusual movements this year in the shares of Castex Technologies, said it hadn’t yet found any signs of wrongdoing.
bit.ly/1lasN3M

Fewer schemes good for investors; Despite pruning of schemes, the number continues to be large, confusing investors
Business Standard
You want to buy a large-cap equity scheme of a particular fund house. But, the fund house has three schemes in the same category. What can be the differentiating factors?
bit.ly/1Mg3ILD

Miscellaneous

News Corp., Time Inc. and Tribune All Report Flat or Falling Quarterly Revenue
By RAVI SOMAIYA – NY Times
When News Corporation, Time Inc. and Tribune Publishing were spun out of their respective corporate parents in recent years, it was said to be as much for the sake of the media companies themselves as for the bottom lines of the more lucrative businesses they left behind.
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Wikipedia’s Most Prolific Editor Reveals Why The Free Encyclopedia Is Stronger Than People Realize
Gus Lubin – Business Insider
People have made a big deal about the supposed decline of Wikipedia based on the fall in active editors on the English site from more than 51,000 in 2007 to 32,000 this year.
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159,889 Wall Streeters are crowding auditoriums and classrooms to take a grueling 6-hour test. If they pass, it could change their lives — but half will fail
Portia Crowe – Business Insider
BlackRock’s Larry Fink thinks Carl Icahn’s cash cow ‘can’t last’
Thousands of Wall Streeters will crowd gymnasiums and auditoriums around the world to write a grueling 6-hour exam on Saturday. Their odds of passing are less than 50%. The three levels of the Chartered Financial Analyst exam are administered once a year in 174 countries around the world (Level I is offered twice a year). This Saturday, 159,889 people are registered to take the test.
read.bi/1MCF0nZ

After a near-death experience, a Bank of America VP started the charity that Wall Street is talking about
Portia Crowe – Business Insider
One minute Noah Cooper was jogging on the treadmill in his apartment complex’s gym, the next he was passed out with an arrhythmia — a condition causing his heart to beat irregularly — while a neighbor performed CPR.
read.bi/1NgXXNz

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