First Read

Bits & Pieces
By John J. Lothian

Our condolences to McGladrey partner John Hague on the passing of his wife, Carrie Pruchnik Hague. Mrs. Hague passed away over the weekend. Visitation details are here

Our friends at Phillip Capital are looking for a vice president of risk management. I can send you the job description if you are interested, just email me.

Kristen Wiberg is now a sales manager with Algomi, an information matching service for the fixed income market. She can be reached at kristen.wiberg@algomi.com

Advantage Futures quarterly magazine, InsideAdvantage is available here

Did I mention that it is Boy Scout popcorn sale time and that both my son Robby and daughter Katherine are selling? Yes, Katherine the Venture Crew member (as is Robby too) is selling Trails End popcorn to help finance her scouting activities. Email me if you are interested in supporting either one of these scouts and want to buy some popcorn.

Doug Ashburn will be at a pre-CTA Expo seminar today, co-hosting a session along with BarclayHedge president Sol Waksman on the effective use of media and databases in an emerging manager’s marketing plan.

Jim Kharouf and Patrick Lothian are in New York today for a video shoot for a client. They also plan to stop by the DTCC-Euroclear GlobalCollateral Conference for the Americas, taking place today.

Lastly, JLN Managing Editor Sarah Rudolph and I are headed to Geneva, Switzerland on Sunday for the Swiss Futures & Options Association’s Bürgenstock Conference. The JLN team will be producing this newsletter while we are away.

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John Edge, RRVIG – Timing is Everything
JohnLothianNews.com

“If you rang up a bank and said, ‘Look, I really understand blockchain, I understand bitcoin, I’ve been to these talks and I think it’s very interesting for OTC markets, because OTC markets don’t have a register of securities.’ There aren’t enough people doing this. There are more banks that want people and less people doing it.”

To John Edge, managing partner at RRVIG, the current technological climate represents a chance for young people to jump into financial markets if they can demonstrate mastery of digital innovations, specifically blockchain, “which no one understands in any sense.” As the industry decentralizes, the task for the emerging professional is finding the links between those new technologies and their applications in finance. One cannot be behind in the game if the game is just beginning.

Watch the video at MarketsWikiEducation.com »
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We’re All ‘Phools’: Nobel Laureates Have a New Critique of Capitalism; In addition to giving us what we really want, markets also systematically target our weak spots, book says
By GEORGE A. AKERLOF And ROBERT J. SHILLER, WSJ
The following is an excerpt from the new book “Phishing for Phools: The Economics of Manipulation and Deception” by Nobel laureates George A. Akerlof and Robert J. Shiller.
The world’s most powerful social and economic tool is the free global market. It enables the world’s adults to trade with one another. Worldwide, there are some 25 quintillion possible pairs of buyers and sellers. A quintillion is a big number, with 18 zeros. The selection that this huge amount of choice affords to both buyers and sellers makes us all better off.
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***** I am a phool and I like my phish fried. In fact, I love a good Phriday Phish Phry.

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Cruel corporate cultures will not thrive for long -experts say
BY PATRICIA REANEY, Reuters
Companies with a corporate culture that degrades employees, pits them against each other and encourages workers to toil more for less money may flourish in the short term but the results are unlikely to last for long, management experts warn.
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****** Ours is not a cruel corporate environment, but it is unusual in its use of puns.

***DA: Speaking of which, John, when you and Sarah head to Paris next week, do not jump into the river, for you may be ruled in Seine.

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Russian admits conspiring to hack Nasdaq; Authorities said breach resulted in more than $300 million in losses
By MARIA ARMENTAL, MarketWatch
A Russian man admitted to conspiring to hack Nasdaq Inc. and other companies, stealing more than 160 million credit and debit card numbers and other personal information in what the authorities have called the largest such scheme prosecuted in the U.S.
jlne.ws/1KpFAsv

****** This is one case where cruel and unusual punishment might be an option.

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All Smalls and Mediums: Richard Sandor Looks To Transform The Small and Mid-Tier Bank Sector (Part 2)
JohnLothianNews.com

Over the past 40 years, Richard Sandor has created some of the most successful products in financial markets, from interest rate futures to greenhouse gas derivatives. Now he’s shifted his attention to small and mid-sized banks with a new exchange platform that could transform the way in which those Main Street institutions lend, borrow and set interest rates for themselves. Sandor spoke with John Lothian News about his new venture, the American Financial Exchange, and the future for his latest marketplace.
View the full report in Sway »
*****This features a second part of our exclusive interview with Richard Sandor, as well as an expanded story on his new platform, the American Financial Exchange, all in a new layout format with additional stories attached.

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Euronext: Extraordinary General Meeting Convening Notice
Business Wire
The Agenda for the meeting is as follows:
1. Opening
2. Composition of the Managing Board
a. Appointment of Stéphane Boujnah as a member of the Managing Board (voting item 1)
3. Close
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***DA: Oh, I thought they were doing a tribute to Eisenhower. He was an extraordinary general.

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MarketsWiki Education London 2015
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Lead Stories

Asset Managers Team Up to Develop Standards for Dark Pools
By YUKA HAYASHI, WSJ
Financial regulators are ramping up efforts to police dark pools, rapidly growing private trading venues. While there was no significant regulatory action against any dark pool before 2011, this year has already seen three cases, including a tentative agreement reached with Credit Suisse Group AG this week.
jlne.ws/1QFCqS7

INTL FCStone president to step down
Reuters
INTL FCStone Inc’s president will give up his position next month and retire from the company at the end of next year, the futures broker said on Tuesday. Sean O’Connor, who has been FCStone’s chief executive officer since 2002, will replace Scott Branch as president on Oct. 1, according to a statement.
jlne.ws/1ivu84d

No Escape for China Hedge Funds Overwhelmed by Stocks Crash
Bloomberg News
Almost 1,300 funds closed in China’s $5 trillion stock plunge
Government restrictions make bear-market bets more difficult
It’s about to get even uglier for China’s hedge funds.
The newfangled industry, short on expertise and ways to protect itself from market declines, has seen almost 1,300 funds liquidate amid China’s $5 trillion stocks selloff, and a similar number may be at risk, according to Howbuy Investment Management Co. Now, a government crackdown on short selling and other hedging strategies have made prospering in a bear market difficult.
jlne.ws/1OvYgII

Goldman Warns Markets Unprepared for Fed as Treasuries Seesaw
Eshe Nelson, Wes Goodman, Bloomberg
`Are we in the eye of the storm right now?’: BMO’s Collins
Treasuries rebound after tumbling Tuesday amid Fed debate
Goldman Sachs Group Inc. says financial markets are vulnerable because nobody can agree on what the Federal Reserve will do. Treasuries whipped around amid the debate.
jlne.ws/1F2qoB9

China takes aim at automated trading in commodities futures; Exchanges asked to draft rules to regulate program trading; Draft centres on tighter rules; trader identity, server location; Sets limits for program trades; Moves follow slew of measures to check stock futures trading
By Ruby Lian and Polly Yam, Reuters
China is extending its control of onshore markets to commodities exchanges, spooked by signs that speculators have shifted from China’s volatile stock markets to commodities futures.
jlne.ws/1OXGoVc

China Investigates Citic Securities President for Insider Trading; Cheng Boming is the latest top executive to be embroiled in a government crackdown on ‘securities violations’
By JAMES T. AREDDY, WSJ
Chinese authorities on Tuesday stepped up pressure on the country’s largest and most globalized brokerage, Citic Securities Co., by announcing expansion of a probe into possible insider trading by senior executives at the firm, including its president.
jlne.ws/1KnyqF1

China probes top Citic Securities executives over insider trading
Gabriel Wildau in Shanghai, FT
The general manager and two other executives from Citic Securities, China’s largest investment bank, have been arrested as part of an insider trading probe, the latest casualties of the country’s ailing stock market.
jlne.ws/1KfX8Uk

Rules for ‘dark pool’ trading need strengthening: report
By Sarah N. Lynch, Reuters
U.S. regulators need to accelerate their efforts beef up the rules governing “dark pool” trading platforms to better protect investors from poor trade execution and conflicts of interest, according to a new report released Tuesday.
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European Bankers Can’t Catch a Break as Firings Keep Coming
Ambereen Choudhury, Nicholas Comfort – Bloomberg
Deutsche Bank, Barclays, Credit Suisse weigh reorganizations
Ten banks have shrunk staff at investment bank units by 31%
Seven years after the collapse of Lehman Brothers Holdings Inc., Europe’s largest banks are poised for more bloodletting.
jlne.ws/1NCG7d1

Swiss Lawmakers to Vote on New Rules for UBS, Credit Suisse; Banks may have to hold larger capital buffers, separate investment banking from other operations
By JOHN LETZING, WSJ
Swiss lawmakers may deliver a sharp reminder to the country’s biggest banks, UBS Group AG and Credit Suisse Group AG, that they remain under close scrutiny at home.
jlne.ws/1LxHlQP

Mark Cuban Latest Fight With SEC: In-House Judges
By JEAN EAGLESHAM, WSJ
Mark Cuban, the billionaire owner of the Dallas Mavericks and vocal critic of the Securities and Exchange Commission, has weighed into the escalating debate over the agency’s use of its in-house judges.
jlne.ws/1FfyM06

Symphony launches Wall Street network
Ben McLannahan in New York, FT
Symphony has pledged to make itself Wall Street’s indispensable social network, as the communications start-up backed by the world’s biggest investment banks announced deals with a trio of content providers.
jlne.ws/1Kg13As

Trade body calls for one year Mifid II delay
Futures & Options World
The Investment Association, a UK-based trade association, has hit out at the Mifid II pre-trade transparency provisions and called on European regulators to push back by a year the implementation of Mifid II. The trade association, which represents investment managers, on Tuesday said the Mifid II transparency provisions “could damage already-strained levels of liquidity in the bond markets, triggering higher transaction costs and higher borrowing costs for sovereigns and companies.”
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Regulatory

CFTC Announces Proposal to Amend the Definition of “Material Terms” for Purposes of Swap Portfolio Reconciliation
CFTC
Under the proposal, the Commission would amend the definition of “material terms” in Commission regulation 23.500(g) to specifically exclude certain data fields. If adopted, the proposed rule would supersede CFTC Staff Letter 13-31 issued June 26, 2013.
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***DA: Also see statements of Commisioner Chris Giancarlo and Chairman Tim Massad

FIA Europe circulates standard recommendations for ETD eTrading under MiFID II
FIA Europe
FIA Europe has circulated a set of MiFID II minimum standard recommendations for ETD eTrading to EU exchanges with the objective of encouraging them to implement some of the MiFID II microstructural requirements in a way that is consistent and most helpful to exchange members and their clients.
jlne.ws/1gqz1tk

BoE and OFR highlight why data reporting matters
Philip Stafford, FT.com
Of all the remedies for financial market stability laid out by global policymakers in 2009, one is already something of a failure: better transparency in the more exotic parts of OTC markets. Efforts to improve data reporting so far have been little short of a mess. It may have produced more statistics but even regulators in the US and Europe have admitted it is not always usable.
jlne.ws/1Lgv1Zl

Banks Rebuff Basel Interest-Rate Plan as Fed Increase Looms
Bloomberg Business
Global banks hit back at regulators’ “dangerous” plans to tackle interest-rate risk in loan books as markets brace for the U.S. Federal Reserve to raise borrowing costs as early as this week.
jlne.ws/1LgxiUh

World’s top 100 banks have met most new capital, liquidity rules early
Reuters
The world’s 100 biggest banks all meet the tougher capital requirements agreed during the financial crisis and are closer to complying with new liquidity rules, global regulators said on Tuesday. The Basel Committee on Banking Supervision said that if the new Basel III capital rules had been fully in force last December, all the top banks would have met minimum requirements.
jlne.ws/1Lgxcfo

FINRA Releases Guidance on Liquidity Risk Management Practices
FINRA
The Financial Industry Regulatory Authority (FINRA) announced that it has released Guidance on Liquidity Risk Management Practices, the results of a year-long review of firms’ contingency plans and processes related to managing liquidity needs in a stressed environment. Beginning in March 2014 and continuing into the first quarter of 2015, FINRA conducted a review of 43 firms’ plans and readiness for addressing liquidity during financial stress. This review amplifies the guidance provided in Regulatory Notice 10-57, Funding and Liquidity Risk Management Practices, by measuring how well firms are prepared for liquidity stress events.
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Proposed Rule Change to Merge FINRA Dispute Resolution, Inc. into and with FINRA Regulation, Inc.
FINRA
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to merge its dispute resolution subsidiary, FINRA Dispute Resolution, Inc. (“FINRA Dispute Resolution”) into and with its regulatory subsidiary, FINRA Regulation, Inc. (“FINRA Regulation”).
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Exchanges & Trading Facilities

London Metal Exchange plans to introduce position limits
Reuters, via Yahoo Finance UK
The London Metal Exchange (LME) plans to introduce limits on large positions for the first time to avoid market squeezes, initially on its new aluminium premium contract, it said on Tuesday. The use of position limits may be expanded to other contracts if upcoming legislation requires them, the exchange added in a statement.
jlne.ws/1LguSoG

EEX steps up competition with Nasdaq Commodities in the Nordics
Reuters
The European Energy Exchange (EEX) has opened an office in Oslo, Norway, the Germany-based exchange said on Tuesday, stepping up competition with Nasdaq Commodities for trading Nordic power contracts.
jlne.ws/1LguWVx

Oslo Børs: Nordea Expanding With New Exchange-Traded Products
MondoVisione
The range of exchange-traded products listed on Oslo Børs is expanding. Nordea is now listing 14 new bull and bear products to provide investors with exposure to the OBX Index and other foreign indices.
jlne.ws/1Oep4xQ

Tokyo Stock Exchange: Council Of Experts Concerning The Follow-Up Of Japan’s Stewardship Code And Japan’s Corporate Governance Code [The First Council]
MondoVisione
The Tokyo Stock Exchange (TSE) and the Financial Services Agency (FSA) have jointly established the Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code for the purpose of following up with the prevalence and adoption of Japan’s Stewardship Code and Japan’s Corporate Governance Code as well further improving corporate governance of all listed companies.
jlne.ws/1Ffundx

Automated Trader: “Eurex IOC Liquidity Indicator for Options can create huge potential”
Eurex
A new White Paper published by Mondo Visione reveals that “Deutsche Börse’s Eurex IOC Liquidity Indicator for Options”, which makes “invisible” cancelled IOC orders visible, can create huge potential for improved price discovery and provides interesting new trading signals. The White Paper explains the mechanics of the IOC Liquidity Indicator and shows how it can be used by traders and other market participants. The Eurex IOC Liquidity Indicator supports options traders at all levels, providing real-time analytics for the options market that go beyond the normally visible spectrum of information in the order book.
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Intercontinental Exchange CFO to Present at Barclays Global Financial Services Conference on September 18
MarketWatch
Intercontinental Exchange the leading global network of exchanges and clearing houses, announced today that Scott A. Hill, CFO, will speak at Barclays Global Financial Services Conference. The fireside chat will take place on Friday, September 18th at 8:15 a.m. ET. The presentation will be broadcast live over the Internet and can be accessed in the investor relations and media section of ICE’s website at www.theice.com.
jlne.ws/1LguQNR

Shenzhen Stock Exchange Holds A “Shenzhen Enterprises Day” Activity For Foreign Investors
MondoVisione
On September 10 2015, Shenzhen Stock Exchange (“SZSE”) and Goldman Sachs & Co jointly organized a “Shenzhen Enterprises Day” activity in Shenzhen. Over 60 domestic and foreign investment institutions from the U.S., the U.K., Australia, Norway, Singapore, India and Hong Kong and senior executives from 18 Shenzhen market listed companies communicated and carried out research in the activity. Liu Huiqing, vice general manager with SZSE participated in and addressed the meeting.
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Hedge Funds & Managed Futures

Glencore Raises $2.5 Billion in Share Issue —Energy Journal
By CHRISTOPHER HARDER, WSJ
Glencore PLC has raised about £1.63 billion ($2.5 billion) in a share placing to institutional investors as part of a debt-reduction plan, Alex MacDonald reports. The mining giant wants to cut net debt by a third to around $20 billion by the end of next year. So far, it has also scrapped its dividend, promised to cut spending, sell assets and temporarily shut down two unprofitable mines in Africa.
jlne.ws/1ivmTcs

Hedge Fund Bridgewater Defends Its ‘Risk-Parity’ Strategy; Firm led by investor Ray Dalio has had a rough summer and been the target of criticism
By ROB COPELAND And TIMOTHY W. MARTIN, WSJ
A marquee offering from the world’s biggest hedge-fund manager, Bridgewater Associates LP, had its worst month in two years in August, prompting the firm to defend its approach as a solid strategy in good markets and bad.
jlne.ws/1igPMbA

A Hedge Fund’s Tempur Tantrum; After Tempur Sealy faced off with H Partners, three directors at the mattress maker were out
By JAMES R. HAGERTY, WSJ
When he was chairman of Tempur Sealy International Inc., Andy McLane thought he had a good relationship with the mattress maker’s largest shareholder, H Partners Management LLC.
jlne.ws/1NwA2gK

Inside These Hedge Funds, a Smaller Hedge Fund Just for the Boss
Saijel Kishan, Margaret Collins, Bloomberg
Ackman’s personal investments include technology startups
Jones invested in geothermal company and African eco-tourism
Step inside Table Management, an obscure investment firm in New York, and something strange happens: you’re transported to the rarefied realm of Bill Ackman, the billionaire hedge fund manager.
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Banks & Brokers

Coquest Advisors launched to tap best in class trading managers
Coquest
Dallas-based Coquest Inc., one of the largest independent brokers in the U.S. derivatives markets, announced the launch of Coquest Advisors, an independent research and advisory firm that will provide due diligence on commodity trading advisors and hedge funds and target the most talented investment managers for its clients. The group will be headed up by Coquest Managing Director Maxwell Eagye, and Ryan Hart, Coquest Director of Research and Co-Portfolio Manager, who worked with Mr. Eagye at Altegris, will lead the team that performs the investment due diligence and portfolio management.
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Liquidnet launches algo rankings to support execution decisions
The Trade News
Liquidnet has developed a new way to support execution decisions with its Algo Ranking Model.
jlne.ws/1KRBsU5

Citigroup’s Asia Pacific head of futures leaves
Futures & Options World
Citigroup’s head of Asian futures Conor Cunningham has left the bank, marking the latest senior derivatives expert to exit one of the world’s top investment banks. Cunningham had been Citigroup’s managing director, head of Asia Pacific for futures, clearing and collateral based in Singapore for four years after joining that bank from JP Morgan where he was executive director, head of fixed income and European futures and options.
jlne.ws/1Lgv8nT

Goldman investment banking co-chair Cole to retire: memo
BY OLIVIA ORAN, Reuters
Goldman Sachs Group Inc’s investment banking division co-chair Christopher A. Cole will retire from the firm after 30 years, and will serve as a
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Jefferies Sued Over Culture That Made Women `Sex Objects’
Jeremy Hodges – Bloomberg
Ex-employee seeks more than $5.4 million in London lawsuit
Alleges colleague `hired’ women to attend client dinner
A former Jefferies Group saleswoman sued the investment bank for 3.5 million pounds ($5.4 million), saying male colleagues treated female co-workers as “sex objects” and fostered a “culture of discrimination” that led her to quit.
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Clearing & Settlement

Collaborating to conquer the OTC collateral challenge
GlobalCapital
For the OTC derivatives industry, joining forces is the only way to prepare for a rising tide of regulation. Only a combined industry initiative can drive the transformation in fluidity that will be needed when new regulations place collateral at the centre of every OTC derivatives trade. Unprecedented regulation is leading to unprecedented collaboration.
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EquiLend and Eurex Clearing to Cooperate in Securities Lending
MarketWatch
EquiLend, the securities finance trading and post-trade service provider, and Eurex Clearing, one of the world’s leading clearing houses and part of Deutsche Börse Group, agreed to connect EquiLend’s securities lending platform to Eurex Clearing’s Lending CCP service. The planned link, due to go live in March 2016, will allow EquiLend’s market participants to make use of their existing infrastructure to route transactions to Eurex Clearing’s Lending CCP for novation and downstream processing.
jlne.ws/1Lgv5IG

LCH to add compression to ForexClear
Futures & Options World
LCH.Clearnet’s ForexClear is working on plans to launch a compression service later this year, as it ramps up preparations ahead of launching FX options next year. The compression service will initially be for cleared non-deliverable-forwards (NDFs) and then for cleared foreign exchange options once the firm launches this service in 2016, subject to regulatory approval, said Gavin Wells, global head of LCH’s ForexClear.
jlne.ws/1LgvcUt

Online Payment Systems Technology in China—Trojan Horse or Forbidden Fruit?
Morgan Lewis – JDSupra
Powerful new computational technology pioneered in e-commerce presents Chinese regulators with potential concerns and solutions to the perennial problem of information, pricing, and settlement capacity.
jlne.ws/1Lgvfj4

Indexes & Products

SIX Swiss Exchange ETFs: 15 Years Of Growth
Mondovisione
SIX Swiss Exchange has been one of the first European exchanges to launch a segment for ETFs and is looking back on an unprecedented success story.
jlne.ws/1OvXwmY

MSCI acquires data aggregator Isignis
Finextra
MSCI Inc. (MSCI), a leading provider of research-based indexes and analytics, announced today that it has entered into a definitive agreement to acquire all of the assets of Insignis, Inc., a leading data collection and aggregation service for the financial industry.
jlne.ws/1LgvI4W

FTSE Russell puts A-share inclusion on hold
Asia Asset Management
Indices provider FTSE Russell has decided to hold off on including China A-shares in its global equity indices following its annual country classification review. According to a statement from the firm, A-shares, as expected, remain on the index provider’s watchlist as a contender for secondary emerging market status within its global benchmarks. The countries in the global benchmarks are classified into developed, advanced emerging, secondary emerging and frontier markets.
jlne.ws/1LgvHhq

Passive Works With Bond ETFs, Too
Benzinga
Recent data indicate 2015 is shaping to be another rough year for active managers of equity funds. As Benzinga noted last week, for the 12 months ended July 31, nearly two-thirds of active large-cap managers failed to beat their benchmark, according to S&P Dow Jones Indices. The good news (sort of) for active managers and the investors that stick with this methodology is that the 65.3 percent failure rate of large-cap managers for the year ended July 31 is better than five- and 10-year laggard rates of 81 percent and 80 percent, respectively.
jlne.ws/1LgvP0h

Consumer Credit Default Rates in Narrow Range in August 2015 According to the S&P/Experian Consumer Credit Default Indices
PRNewswire
Data through August 2015, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed small increases in numerous default rates. The composite rate was 0.96% in August, up four basis points from the previous month. The first mortgage default rate and the auto loan default rate also increased four basis points to 0.84% and 0.90%, respectively. The bank card default rate was the only rate to report a decrease in August at 2.71%, down eight basis points from the previous month.
jlne.ws/1LgvYAM

After China, India sees highest exodus by ETFs in August-September
The Economic Times
Exchange traded funds (ETFs) withdrew $1.17 billion (Rs 7,641 crore) from Indian equities between beginning of August and first week of September, according to data from Bloomberg.
jlne.ws/1LgvHxS

Technology

Bloomberg Vault Helps Firms Tackle Growing Issue of Data Fragmentation
Bloomberg L.P.
Bloomberg’s enterprise information management service, Bloomberg Vault announced today that it extended the capabilities of its File Analytics hybrid-cloud solution to help firms manage and secure corporate data stored in cloud-based information sharing services, such as Salesforce Files, Box, Microsoft SharePoint and Amazon Simple Storage Service (Amazon S3) from Amazon Web Services, as well as on-site file share systems.
jlne.ws/1UV75AR

Google launches donation-matching campaign to raise $11 million for refugees
BY YASMEEN ABUTALEB
Google Inc announced a donation-matching campaign that aims to raise $11 million for humanitarian organizations aiding the thousands of refugees that have overwhelmed European nations as they flee war-torn and impoverished countries.
jlne.ws/1gqtAL4

With ‘$Cashtags,’ Twitter plays greater campaign finance role
By Alana Wise and Ginger Gibson, Reuters
When Senator Bernie Sanders’ presidential election campaign took over earlier this year the Twitter and Facebook accounts he had used in his Senate election races, there was almost no-one following him.
jlne.ws/1igTe6f

How APIs are Changing the FinTech Narrative
Markets Media
Nowadays, when people look at innovation in the financial technology industry they tend to view it as a competition between big and small. You tend either to read the story of the giant firm dominating the tech space by pushing out smaller players, or the story of the small upstart taking on the big guys. However, both these narratives miss the fact that today’s reality in the fintech space is much more subtle and nuanced. There is a whole ecosystem for innovation in the industry where firms, both large and small, work together. It is an ecosystem that is responding to the deep needs of clients, financial professionals and developers alike – and it’s inherently open. This beating heart of fintech innovation is all powered by the Application Programming Interface (API).
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Enforcement

Disciplinary and Other FINRA Actions; Reported for September 2015
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).
jlne.ws/1OvVlQg

FINRA Sanctions 10 Former Global Arena Representatives as a Result of FINRA Crackdown on Broker Migration
FINRA
The Financial Industry Regulatory Authority (FINRA) announced today that as a result of a 2014 onsite exam, it found securities violations including various misleading sales pitches, customer account churning and other business misconduct at Global Arena Capital Corp. It has barred seven former registered representatives from the securities industry, suspended an eighth person whose bar will become effective in October, and barred two former branch managers from serving in a principal capacity. The actions are a result of FINRA’s continued focus on tracking groups of brokers that move from one risky firm to another. Seven of the 10 individuals had moved from HFP Capital Markets LLC—a problem firm that FINRA later expelled—to Global Arena Capital Corp. Global Arena opened a branch office in October 2013 to register a number of brokers who had been discharged by HFP. Like HFP, the branch office’s business model involved cold-calling customers, including seniors, to make solicited recommendations of securities.
jlne.ws/1UUAjKX

Jailed Libor trader has until end Sept to lodge final appeal request
BY KIRSTIN RIDLEY, Reuters
Tom Hayes, the first trader convicted by a jury of manipulating Libor benchmark interest rates, has until the end of September to lodge final grounds for appeal against his conviction and 14-year jail sentence, a London court clerk said on Tuesday.
jlne.ws/1KmEmJY

Environmental & Energy

Oil Traders Hire Tanks on Tiny Island to Profit From Global Glut
Naomi Christie, Javier Blas, Lucia Kassai – Bloomberg
Glencore hires storage tanks in St. Lucia to stow oil
Prices close to making floating storage financially viable
To see how oil traders are profiting from the longest-lasting glut in three decades, look at the tiny Caribbean island of St. Lucia.
jlne.ws/1OcYuoY

Biggest Companies `Obstructing’ Climate Policy, Report Finds
By Brian Eckhouse – Bloomberg News
Almost half of the world’s 100 largest companies, including Procter & Gamble Co. and Duke Energy Corp., are “obstructing climate change legislation,” according a study released Wednesday.
jlne.ws/1KRugHt

***LB: Also in this story “The study, released by the London-based non-profit group InfluenceMap, evaluated companies’ public statements and membership in trade groups, and said that corporations have a significant impact on policy that’s often hard to track.”

Norway to complete $1 billion payment to Brazil for protecting Amazon
Reuters
Norway will make a final $100-million payment to Brazil this year to complete a $1-billion project that rewards a slowdown in forest loss in the Amazon basin, Norway’s Environment Ministry said on Tuesday.
jlne.ws/1OvAgWf

Global climate change pledges will not be enough-U.N.
By Barbara Lewis – Reuters
National promises to cut emissions as part of preparations for a United Nations summit at the end of the year would cap global warming at the unacceptably high level of 3 degrees Celsius, the U.N.’s climate boss said on Tuesday.
jlne.ws/1KRrJNu

UK shale gas cash should pay for carbon capture projects – report
Reuters
Britain should use revenues from the shale gas industry to help fund the development of projects that capture carbon dioxide emissions and store them underground, a shale gas industry-funded task force said on Wednesday.
jlne.ws/1OvFK32

Asia-Pacific

China Bear James Chanos Roars After Years of Losses; Three of his hedge funds gained in August as China’s stock market plunged
By JULIET CHUNG, WSJ
James Chanos was too early when he first predicted a Chinese downturn years ago. Now, timing is on his side.
jlne.ws/1FMD7Tg

Euroclear Opens Path to China Domiciled Funds
Markets Media
International fund managers will find it easier to participate in an initiative for mutual recognition of funds between Mainland China and Hong Kong after Euroclear Bank opened an account with Hong Kong’s central securities depositary.
jlne.ws/1LgwIWP

Hong Kong facing capital outflows if US Fed raises interest rates, HKMA chief warns
South China Morning Post
Capital outflows may hit Hong Kong if the United States raises rates for the first time in a decade as the interest rate gap may prompt investors to move their Hong Kong dollar assets to the US dollar. “The US interest rate rise may lead to some capital outflow,” Hong Kong Monetary Authority chief Norman Chan Tak-lam told reporters ahead of the start of the two-day US Federal Reserve meeting on Wednesday.
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China eases limits on overseas debt
FT.com
Beijing has eased restrictions on Chinese companies seeking to raise funds overseas, after a record monthly decline in China’s foreign exchange reserves in August. The decision to loosen capital controls on inbound funds stands to boost capital inflows at a time when big domestic stock market losses and the slowing Chinese economy are heightening concerns about capital outflows.
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Frontier Markets

Dr. Mohammad Omran, EGX Chairman, Invited to Demonstrate The Egyptian Exchange’s (EGX) Experience In Promoting Companies
MondoVisione
Omran: EGX has provided funding for companies of about LE 20 billion since June 2013
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Central Asian Stock Exchange to launch in partnership with GMEX
Press Release
GMEX Group today announced that it has entered into a partnership agreement with the Central Asian Stock Exchange (CASE) based in the Republic of Tajikistan through its GMEX Technologies (GMEX Tech) subsidiary. Tajikistan is currently undergoing a significant period of change with a range of projects being supported by the European Bank for Reconstruction & Development (EBRD), The World Bank and the Asian Development Bank (ADB). Key priorities include the delivery of an improved banking sector to attract new investment. The introduction of a fully transparent and advanced technological exchange and clearing solution will support this process.
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Sebi seeks greater NBFC disclosure
Business Standard
Says exposure to top 20 borrowers will have to be disclosed ahead of public offer of debt securities
The Securities and Exchange Board of India (Sebi) has asked non-banking financial companies (NBFCs) to issue detailed disclosures while launching a public offer of debt securities to raise funds.
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Miscellaneous

Morton closing longtime Chicago salt facility
Mary Ellen Podmolik, Chicago Tribune
Morton Salt plans to close its longtime packaging and warehouse facility on North Elston Avenue next month, the company announced Tuesday.
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