First Read

Balancing Act
Doug Ashburn – JLN

Back in 2009, in the aftermath of the financial crisis, the G-20’s finance ministers met in Pittsburgh to agree on a set of principles to guide new regulations on clearing, execution and capital standards. These principles eventually led to Dodd-Frank, EMIR, Basel III and the rest of the regulations still being implemented and fought over. While a consensus was reached in Pittsburgh, trying to balance global interests with local regulations, and trying to balance safety and liquidity, has proven to be much more difficult to achieve than initially hoped.

Today and tomorrow, all of the U.S. financial regulators, and a host of participants, bank heads, academics and market structure experts are gathering at the Federal Reserve Bank of New York in what could well become the “Pittsburgh Moment” for fixed income market structure.

Over the next two days, these deep thinkers will look at the recent Joint Staff Report on last October’s Treasury flash crash, the role of market makers and high frequency trading in the current market structure, and what steps can and should be taken to improve market structure. Let us hope that, whatever principles are agreed to from this week’s conference, the regulators lead with the need for striking the right balance, and let the regulations flow from there.

Click here to see the conference announcement and here to see the agenda

One area of concern, which was specifically addressed in the Joint Staff Report, is whether the high rate of trade cancellations and self-matching in the futures markets during the Treasury flash crash will receive the blame for the heightened volatility. If so, will self-match prevention become mandatory at the exchange level, or will we see a shift toward a tool at the ISV level, such as TT’s new Position Transfer mechanism, which prevents self-trades from reaching the exchange level by essentially creating a “synthetic fill” that matches the buy and sell orders and sends them directly to the back office? (For more on this issue, take a look at a recent post on TT’s Trade Talk blog.)

Last night, before jumping on a plane to join the party at the New York Fed, CFTC Chairman Tim Massad delivered an address at the World Federation of Exchanges Annual Meeting in Doha, Qatar. Massad discussed self-match prevention and a host of other areas where technological innovation has solved a problem, but, in the process, opened up new challenges. These new challenges will be addressed with, you guessed it, technological innovation.

Read the text of Massad’s speech, then stayed tuned to hear more on the market technology issue from our own Jim Kharouf, who is moderating a panel today at the WFE meeting titled “Exchanges and Technology: Balancing Innovation and Disruption.” They will touch on today’s market structure challenges, but also address the next generation of innovation and disruption, such as cybersecurity and blockchain.

Balancing innovation and disruption – that is the real trick, isn’t it?

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2015 Conference on High Frequency and Algorithmic Trading

JohnLothianNews.com

When: Monday, November 2, 2015, 8 am to 6 pm

Where: Illinois Institute of Technology, Stuart School of Business – Downtown Campus
565 West Adams Street
Chicago, IL 60661

The IIT’s Stuart School of Business is hosting a conference on HFT and algorithmic trading on November 2, one day before the Fall 2015 STAC Summit, and two days before the start of the FIA Futures and Options Expo, both in Chicago. The IIT event will feature keynote speaker Craig M. Lewis of Vanderbilt University’s Owen School of Management as well as James Overdahl, former chief economist at both the SEC and the CFTC, along with a range of academic and industry experts.

Watch the video »

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Our Campaign to Fight Cancer
CME Group
CME Group is pleased to announce our inaugural campaign to raise awareness and funding for men’s and women’s health.

Beginning in October, CME Group will partner with Bright Pink and Cancer Research UK to support the early prevention and detection of breast and ovarian cancer. In November, we will join with The Movember Foundation to improve the lives of men affected by prostate cancer, testicular cancer and mental health problems.

To kick off the campaign, we have donated $50,000 to both Bright Pink and Movember, as well as $10,000 to Cancer Research UK, for a total donation of $110,000. We hope that you will join in the effort by supporting our corporate fundraising campaign or by creating your personal fundraising appeal.

Click here to watch a short video and learn how to get involved

***** I am going to grow a bright pink beard during November. I am also going to support these charities with a donation. How about you?

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Mini-DAX – Maximum opportunity
Eurex
The results of an extensive consultation with the market show that our clients want a smaller DAX Futures. An additional factor is that a lot of CFD users have indicated that they want to change to DAX Futures, but that the large contract size of the currently available DAX Futures has prevented them from doing so. Approximately three quarters of all CFDs traded in Germany are based on the DAX. To address this situation, Eurex Exchange will offer Mini-DAX Futures in parallel to our popular DAX Futures. Mini-DAX Futures have a significantly lower contract value of only EUR 5 and are tradable as of 28 October.
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***** Welcome to 1998.

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IRD and CDS Weekly Analysis: week ending October 16, 2015
ISDA.org
For interest rate derivatives, Overall interest rate notionals decreased 3%, while trade counts increased 13%, 2015 year-to-date vs. 2014 year-to-date. For CDS, both overall CDS notionals and trade counts were down 14% and 3% respectively.
jlne.ws/1Pu9lv6

***DA: A slice-and-dice of the numbers – volume vs. last year, cleared vs. non-cleared, on-SEF vs. off-SEF.

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WILD Symposium Explores Opportunities and Challenges in a Changed Industry
Sarah Rudolph – JLN
The Women In Listed Derivatives (WILD) annual symposium last week at the Chicago Federal Reserve Bank addressed a pressing question and one that men face as well. Now that floor trading is mostly gone and that route into the business closed, what can young women do to get into the industry and what can the veteran professionals do to help them?
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***** A terrific piece of commentary from our own Sarah Rudolph.

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A Bloomberg Run? Drums Are Beating
Andrew Ross Sorkin – NY Times
Over the past several months, Michael R. Bloomberg has fielded the same phone call over and over again from his Wall Street friends: Why don’t you run for president?
jlne.ws/1PDAafH

****** Run Michael, Run!!!

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Kapil Rathi, BATS – Start Your Career with Confidence
JohnLothianNews.com

“What are your opportunities? You’re starting with a clean slate. You haven’t done anything wrong to anyone — yet. Nobody hates you day one. I call it the honeymoon period.”

If you’re starting a new job, have your house in order, literally. In this MarketsWiki Education video, Kapil Rathi, vice president of options business strategy with BATS, focused on the all-important moments at the very beginning of a new job or career. While confidence is key in nearly all endeavors, there are some simple steps that, if executed properly, put people in a position to succeed before even completing day one.

Watch the video at MarketsWikiEducation.com »
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Lead Stories

Why US regulators target spoofing
Michael Mackenzie and Philip Stafford – FT
Dubious trading practices are once more back in the spotlight after the main US derivatives regulator this week accused a Chicago-based proprietary trading firm 3Red Trading and its co-founder of “spoofing” markets from commodities to stock index futures. Among the accusations, according to a complaint filed by the US Commodity Futures Trading Commission on Monday, is the claim that 3Red and its co-founder, Igor Oystacher, engaged in deceptive trading at least 288 times in Chicago Mercantile Exchange’s Comex copper market in December 2011 and at least 285 times in the E-mini S&P 500 futures market on various dates in 2013 and 2014.
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C.F.T.C. Accuses Chicago Trader of ‘Spoofing’
By LIZ MOYER – NY Times
The trading tactic known as “spoofing” is again under scrutiny, with the Commodity Futures Trading Commission accusing a Chicago-based trader of a “pattern of manipulative and deceptive spoofing” for three years from December 2011 to January 2014 in various futures contracts.
jlne.ws/1LANso4

***DA: Also see the FT story, “CFTC accuses 3Red Trading of ‘spoofing’ markets,” HERE

High-Frequency Firms Align With Regulators on Bond Transparency
Bloomberg
High-frequency traders and U.S. regulators may make strange bedfellows, yet both are calling for more light to shine on trading in the $12.9 trillion Treasuries market.
Since the market’s harrowing swing on Oct. 15, 2014, officials from the Federal Reserve to the Treasury Department have said the world’s fastest traders may have exacerbated such volatility. These firms counter that their market-making helped contain the events of that day, when yields plunged by a near-record amount and then rebounded to complete the biggest round-trip in a quarter century. Both sides agree that they want more data about a market in which a growing share of transactions is happening behind closed doors.
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The Man Accused of Spoofing Some of the World’s Biggest Futures Exchanges
Matthew Leising – Bloomberg
Accused by CFTC of creating `appearance of false market depth’
Chicago futures trader racked up spoofing fines of $660,000
Before he gained notoriety, Igor Oystacher was known as 990.
That was the identification code assigned to the firm where he worked in 2004, when the head trader at Chicago-based Kingstree Trading LLC noticed something he’d never seen before in the Standard & Poor’s 500 futures market. He watched again and again as 990 ran over everyone in what he called an unprecedented display of market manipulation. The head trader alerted an executive at the firm to the practice, according to both men, who asked not to be identified by name for fear of reprisal.
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Why Morgan Stanley Can’t Trade Its Way Out of Trouble; Profits fell much more than revenue in latest quarter at the bank
By JOHN CARNEY, WSJH
The best traders are nimble. That’s often not possible for a bank’s trading business as a whole as Morgan Stanley showed Monday.
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Mis-selling fears hamper funds’ fintech revolution; Asset managers keen to connect with ‘millennials’; But fear access via phone app could lead to mis-selling scandal; ‘Robo-advice’ still needs some human oversight
By Sinead Cruise and Simon Jessop, Reuters
British fund firms are falling behind in the so-called ‘fintech’ revolution, fearing that a boom in investment via phone apps could spawn the next financial mis-selling scandal.
jlne.ws/1LAOW1x

Limits on speculators’ grain positions ‘simply too high’
Agrimoney
A former Chicago Board of Trade director, and floor trader, urged smaller limits on the derivatives positions that can be held by grain speculators, cautioning over volatility caused by hedge fund deals. Ann Berg, who has also advised the US-based National Grain Trade Council and the UN’s Food and Agriculture Organization, said that the positions that speculators were allowed to take on grains were “simply too large”.
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How a blizzard of paperwork paralyzed Wall Street in the 1960s
Alice Gomstyn, The Alert Investor via Business Insider
In the late 1960s, an unusual crisis struck Wall Street. The foe? Paper.
jlne.ws/1ZTlBsJ

Ex-Rabobank trader says submitted ‘crazy’ Libor numbers to help traders
BY NATE RAYMOND
A former Rabobank trader testified on Monday that despite misgivings he routinely made interest rate submissions used to calculate the benchmark known as Libor that he considered to be “crazy” and “obscene.”
jlne.ws/1LANCf7

Regulatory

Demystifying MiFID II Pre-Trade Transparency for Non-Equities
Miranda Morad – MarketAxess Research Blog
Following the release of ESMA’s technical standards for MiFID II on 28th of September 2015, the industry breathed a universal sigh of relief on the presumption that pre-trade transparency for non-equities has been defined according to the Instrument by Instrument Approach (IBIA). Yet, that’s not the full picture of the final ESMA mandate.
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Keynote Address of Chairman Timothy Massad before the World Federation of Exchanges Annual Meeting
CFTC
Today I would like to talk about some of the issues on our agenda at the CFTC – but I would like to do it in the context of a general challenge with which I know you are quite familiar. And that is: how do we deal with market evolution and innovation? This is something everyone who runs – or regulates – an exchange must consider.
Regulators, particularly in larger markets, are often playing “catch up” to the forces of innovation. We must often look backward and address the causes of past failures or problems. However, we also must be looking ahead. And we must recognize that what we do as regulators – in response to a market failure or otherwise – can change market structure even further.
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The trouble with financial bubbles
Howard Davies, The Guardian
It is said central banks should not try to head off a bubble, just clean up the mess. Now the cost is so high, and the cleanup so long, maybe we should change tactics
Very soon after the magnitude of the 2008 financial crisis became clear, a lively debate began about whether central banks and regulators could – and should – have done more to head it off. The traditional view, notably shared by the former US Federal Reserve chairman, Alan Greenspan, is that any attempt to prick financial bubbles in advance is doomed to failure. The most central banks can do is clean up the mess.
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Exchanges & Trading Facilities

NYSE Readies for Another Hurricane Sandy With Electronic Trading
Annie Massa – Bloomberg
Stocks would trade electronically if humans cannot reach floor
Sandy shut the U.S. equity market for two days in 2012
The New York Stock Exchange, the last U.S. stock market with a physical trading floor, wants approval to trade some equities electronically at the start of the day.
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CME Group to raise transaction fees in January
Reuters
The CME Group Inc plans to raise transaction fees on a host of products starting Jan. 1, 2016, pending regulatory approval, the exchange said on Monday.
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TOCOM Participates in FIA Expo 2015
TOCOM
TOCOM participates in FIA’s 31st Annual Futures & Options Expo (FIA Expo 2015), which is to take place from November 3 to November 5, 2015 at the Hilton Chicago in Chicago, the United States.
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Turquoise celebrates 1st year of operation of Turquoise Block Discovery™
London Stock Exchange Group
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LSE group chief operating officer to join State Street
By Tim Cave, Financial News
The London Stock Exchange’s chief operating officer and chief information officer has resigned and is set to join State Street, in what would be the second departure from the UK exchange group’s senior executive team this year.
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Hedge Funds & Managed Futures

Why economists aren’t wealthy
By Amy Farber – weforum.org
You might think that, given the extreme levels of wealth that exist today, the richest economist would be someone who was still alive. But you’d be wrong.
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For Hedge Funds, a Can’t-Miss Trade Goes Bust; ‘Hot money’ gets burned after hedge-fund and private-equity managers are caught in crude oil’s fall
By ROB COPELAND, WSJ
The trade that was supposed to carry the year is ruining it instead. Hedge-fund and private-equity managers over the past year began piling into debt issued by troubled energy companies, hoping to profit off a reversal of oil’s slide. They raised billions of dollars for the effort, in many cases telling backers it was a once-in-a-generation chance to pounce. But crude has continued to fall, slamming the companies and many large investors who thought they had bought in near the bottom.
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Record number of private equity firms being born in 2015
By Ayesha Javed – Financial News
Private equity firms are being created at a record rate, with the number set up so far in 2015 already surpassing the record set in 2007.
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Eric Schmidt explains how Alphabet will emulate Berkshire Hathaway and Warren Buffett
Quartz
When Google announced it was dramatically changing its structure to form a conglomerate called Alphabet, many thought immediately of Warren Buffett’s long-lived and hugely profitable Berkshire Hathaway.
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Opinion:T Don’t think a 1987-like stock market crash couldn’t happen again
By Mark Hulbert, MarketWatch
Today is the 28th anniversary of 1987’s Black Monday, a reminder that large declines are a feature of equity markets
here’s a 1-in-26,238 chance the U.S. stock market over the next 24 hours will plummet as much as it did on Black Monday, the day of the 1987 crash, whose 28th anniversary we “celebrate” today.
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One of the causes of the financial crisis is finally being tackled
The Telegraph
The collapse in the price of energy and other commodities has seen current account surpluses slashed
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Fund manager pay needs tougher regulation
Patrick Jenkins – FT
Sector needs to reform excessive remuneration and offer value to investors
Even by the standards of the glitziest investment bankers, the pay packages handed out to some asset managers are exorbitant nowadays.
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Banks & Brokers

RISING STARS OF TRADING AND EXECUTION 2015: 21 – 25
The Trade News
Over the summer, The TRADE has been gathering nominations to compile a list of the 40 individuals under the age of 40 that are most likely to enjoy notable career advancement in the coming years.
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Morgan Stanley’s trading rout sets grim tone for fourth quarter
BY RICHA NAIDU AND OLIVIA ORAN, Reuters
Morgan Stanley (MS.N) on Monday warned that there was little hope for a quick turnaround in its key trading business given the persistence of global growth concerns that helped pummel the bank’s third quarter earnings.
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Morgan Stanley, Valeant Could Use an Investor Like Oprah Winfrey –
By WSJ STAFF
Were Morgan Stanley ‘s earnings so bad that James Gorman’s job is in danger? Are Valeant Pharmaceuticals critics finally being proved correct? And did Oprah Winfrey make the easiest $50 mil ever?
jlne.ws/1MB25aF

Deutsche Bank Mistakenly Transfers $6 Billion to Client’s Account; Communication mixup results in overpayment; transaction quickly reversed
By JENNY STRASBURG and CHIARA ALBANESE – WSJ
Deutsche Bank AG erroneously transferred $6 billion to a hedge-fund client’s custody account in June after a junior foreign-exchange trader misunderstood instructions calling for a much smaller payment, according to a person familiar with the matter.
jlne.ws/1MRthXh

Deutsche Bank, Credit Suisse Set to Scale Back Global Ambitions
Nicholas Comfort – Bloomberg
Regulation, interest rates, economy curbing profitability
U.S. firms are grabbing greater share of investment bank fees
Europe’s last global banks are caving in to pressure from regulators and preparing to tell investors just how much their aspirations will shrink.
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Clearing & Settlement

Nodal Exchange Announces Successful Transition to Nodal Clear
Business Wire
Nodal Exchange, LLC announced today the successful migration of 100% of the positions in Nodal Exchange contracts from the previous clearing house, LCH.Clearnet Limited, to Nodal Clear, LLC, the new clearing house subsidiary of Nodal Exchange. Nodal Clear now serves as the central counterparty for all Nodal Exchange transactions.
Twelve clearing members were involved in the transition today, which moved approximately 340 million megawatt hours of futures positions with a notional value of over $12 billion on each side (over $24 billion total) to Nodal Clear.
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OpenGamma, CloudMargin Partner on Portal for OTC Derivatives Clearing Mandate
WatersTechnology
Open-source risk management and analytics provider OpenGamma has partnered with cloud-based collateral management solution CloudMargin to mitigate risk arising from central clearing obligations in over the counter (OTC) derivatives.
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New EU rules may mean Trafigura clears commodity derivatives elsewhere
Reuters
European Union plans to impose position limits on commodity trading firms could mean Trafigura takes its clearing business outside the region, Christophe Salmon, the company’s chief financial officer said on Monday. The European Securities and Markets Authority (ESMA) last month announced rules to flesh out the Markets in Financial Instruments Directive II (MiFID II) law that comes into force in January 2017.
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Citadel Securities Becomes First Non-Bank Member of LCH.Clearnet’s SwapClear
MarketWatch
Citadel Securities, a leading global market-maker across the equities, futures, options, treasuries, FX and swaps markets, today announced that Citadel Securities (Europe) Limited has become the first non-bank clearing member of LCH.Clearnet’s SwapClear, an interest rate derivatives clearing service.
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Indexes & Products

Two new pan Arab smart beta indices launched by S&P Dow Jones Indices
CPI Financial
S&P Dow Jones Indices (S&P DJI) announced today the launch of two new smart beta indices catered to the Middle East and North Africa (MENA) market, the S&P Pan Arab High Dividend Low Volatility Index and the S&P Pan Arab Composite Shari’ah Dividend Index, expanding its leading family of smart beta indices.
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S&P 500 checked by weaker commodity shares
Sydney Morning Herald
The S&P 500 is rebounding from its worst quarter in four years, even as investor sentiment swings between concern over China’s slowdown and optimism that the Federal Reserve is in no hurry to raise interest rates. The probability of a US rate increase this year has diminished to 39 per cent, from 64 per cent before the Fed’s September meeting, with March the first month for which traders price in at least even odds of a rate boost.
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Demand soars for ethical investment as Ecotricity issues latest mini bond
BusinessGreen
Ecotricity is offering investors six per cent return on a new four-year mini bond that will finance investment in renewable energy, as a new survey reveals more than half of British investors want their money to have a positive impact. The independent energy supplier is looking to raise up to £25m to help finance six new wind and solar energy projects that are already in the initial stages of construction in the UK.
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Keep Calm China A-Share Investors
ETF.com
A number of significant developments have taken place in recent years in relation to China’s liberalization of its capital markets. The magnitude of some of the key changes, such as the expansion of the Renminbi Qualified Foreign Institutional Investor Scheme (RQFII), and the introduction of the Shanghai-Hong Kong Stock Connect programme, have been unprecedented. They have also exceeded the expectations of many investors.
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Home Prices Are Rising Faster Than You Think
S&P Dow Jones Indices
Prices of existing single family homes, as measured by the S&P/Case-Shiller National Home Price index, are rising is single digit terms. However, the price changes that matter – the real or inflation adjusted changes – may be higher than many suspect. Backing out inflation, as shown in the chart, gives real increases averaging 6.3% annually in 2012-20015. The compares to real increases of 6.8% annually during 1998-2005, the peak years of the housing boom. With two percent wage increases and one percent inflation, a real increase of 6% or more can make a difference. These numbers may offer one explanation for the recent popularity of apartments and renting.
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Technology

Smartphones put power to deal currencies into retail traders’ hands
BY JEMIMA KELLY, Reuters
Once the preserve of big international banks, smartphones are putting the power to deal currencies into the hands of a new cohort of traders, who can make a fortune — or lose their shirt — on the bus to work.
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Thomson Reuters to sell BoardLink to Diligent Corp
BY LIANA B. BAKER
Information and data provider Thomson Reuters Corp has agreed to sell BoardLink, a digital meeting portal for directors of corporate boards, to Diligent Corp for $10 million, Diligent Chief Financial Officer Michael Stanton said on Monday.
jlne.ws/1jyqkj7

The 6 Major Groups That Rule Fintech’s Future
Dataconomy
With McKinsey projecting fintechs to take as much as 60% of banks’ retail profits in the future, it’s not surprising that the financial industry is scrambling to retain customers every way it can. However, traditional financial institutions still expect consumers to come to them: fintech’s great strength is to adapt to consumers.
jlne.ws/1GnCchY

Fintech poses ‘long-term and dangerous’ threat to golden goose of Canadian banks, analysts warn
Financial Post
Canada’s banks may be pitching their big push into technology as a growth platform, but in reality it is just a way — and a costly one at that — to try to preserve their “golden goose” of dominance in personal and commercial banking, according to a new report from analysts at National Bank Financial.
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Enforcement

Two UBS Advisory Firms Settle Charges Arising From Failure to Disclose Change in Investment Strategy
SEC.gov
The Securities and Exchange Commission today announced that two UBS advisory firms have agreed to settle charges arising from their roles in failing to disclose a change in investment strategy by UBS Willow Fund LLC, a closed-end fund they advised. UBS Willow Management LLC and UBS Fund Advisor LLC agreed to pay a total of approximately $17.5 million, more than $13 million of which will be returned to harmed investors.
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CFTC Charges Chicago Trader Igor B. Oystacher & His Proprietary Trading Company, 3 Red Trading LLC, with Spoofing and Employment of a Manipulative and Deceptive Device
CFTC
The U.S. Commodity Futures Trading Commission (CFTC) today filed a civil Complaint in the U.S. District Court for the Northern District of Illinois, charging Igor B. Oystacher and his proprietary trading company, 3 Red Trading LLC (3 Red), both of Chicago, Illinois, with spoofing and employment of a manipulative and deceptive device while trading futures on four different futures exchanges.
jlne.ws/1Xfm0DO

Former Head of Coastal Investment Advisors Settles Charges, Admits He Stole Money From Investors
SEC.gov
According to the SEC’s complaint filed in federal district court in Philadelphia, Donnelly took funds from elderly and unsophisticated investors and instead of investing it as promised, used it to pay for his own expenses, including rent, car payments, golf club membership dues, and his children’s private school tuition. Donnelly concealed his scheme by providing investors with false account statements, trade confirmations, and other bogus information that purportedly reflected their investment holdings and repeatedly told investors that their fictitious “investments” were performing well. The scheme ran from 2007 through August 2014.
jlne.ws/1MzqCgm

Corrupt Silk Road agent gets 78-month prison sentence
Finextra
Corrupt former DEA agent Carl Force has been sentenced to six-and-a-half years in jail after pleading guilty to a three-count charge of money laundering related to the theft of over $700,000 in digital currency during the Silk Road bust.
jlne.ws/1RTI5Vx

Credit Agricole to pay $787 mln to resolve U.S. sanctions probes -source
By Karen Freifeld, Reuters
France’s Credit Agricole SA has agreed to pay U.S. authorities $787 million to resolve accusations it illegally moved money through the U.S. financial system in violation of sanctions against Iran, Sudan, and other countries, according to a person familiar with the matter.
jlne.ws/1km9MuT

Barclays Agrees to Settle Mortgage Lawsuits for $325 Million
By CHAD BRAY, NY Times
The British bank Barclays said on Monday that it had agreed to pay $325 million to settle two lawsuits related to the sale of residential mortgage-backed securities in the United States.
jlne.ws/1ZTpLAS

US government reveals ‘damning’ evidence in Libor scandal
By Kevin Dugan, NY Post
This “Libor bitch” could get leashed. The US government unveiled its most damning evidence so far against two ex-Rabobank traders in Manhattan federal court on Monday, including chats, e-mails and recorded calls in which the bankers allegedly colluded to rig one of global finance’s most crucial benchmarks.
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Environmental & Energy

Leaders Unite In Calling For A Price On Carbon Ahead Of Paris Climate Talks
Mondovisione
For the first time, an unprecedented alliance of Heads of State, city and state leaders, with the support of heads of leading companies, have joined forces to urge countries and companies around the globe to put a price on carbon.
jlne.ws/1jRm7GW

Singapore Set to Suffer Indonesia’s Defaults as Well as Its Smog
Christopher Langner – Bloomberg
Investors prepare for first bond restructuring in six years
Trikomsel workout set to increase funding costs, S&P Says
Singapore’s bond market is bracing for the latest unfortunate export from Indonesia: debt defaults.
jlne.ws/1GQB2GF

White House Emphasizes Companies’ Commitment to Cutting Emissions
By GARDINER HARRIS, WSJ
The Obama administration announced Monday that 81 major companies have committed to large reductions in carbon emissions, part of a broad push by the White House to show progress ahead of international climate talks in Paris this year.
jlne.ws/1ZTmEZV

Global Warming’s Hurricane Tab in U.S.: $14 Billion and Counting
Alex Nussbaum – Bloomberg
Study says development alone can’t explain rising storm costs
Claims warming not tied to extreme events `no longer valid’
Climate change has added billions to the toll of hurricane strikes on the U.S., according to a study that challenges the prevailing scientific view that the rising cost is mainly because more buildings, towns and businesses are in the way.
jlne.ws/1GQBCnH

Obama gets climate change deal assist from Google, Coca-Cola and Walmart
The Guardian
President Obama met with executives at a roundtable at the White House on Monday, as part of his efforts to enlist corporate America in the push for an international climate change agreement
jlne.ws/1LI0h3m

Why Another Big Bank Is Jumping On The Anti-Coal Bandwagon
Huffington Post
Coal is bad for the planet… and it’s quickly becoming bad for business.
jlne.ws/1XfaJTZ

Asia-Pacific

Little-Known Beijing Stock Market Sees Surge of IPOs; Small companies turn to capital’s ‘third board’ for listings as initial offerings continued to be blocked in Shanghai and Shenzhen
By WEI GU, WSJ
A little-known stock market based in Beijing has become a magnet for companies looking to list their shares, as the gloom hovering over the country’s more famous trading hubs persists.
jlne.ws/1jRlgWE

Obama Administration Softens Criticism of China’s Currency Policy; Treasury Department report cites shift in global economic winds
By WILLIAM MAULDIN – WSJ
The Obama administration softened its criticism of Beijing’s currency policy, citing a shift in global economic winds as well as China’s moves to allow market forces a greater role in setting the value of the yuan.
jlne.ws/1GfOlFW

The Boom Is Back in China Stocks, Depending Where You Look
Fox Hu, Kyoungwha Kim – Bloomberg
Traders boost Shenzhen margin debt for seven straight days
The ChiNext Composite Index trades at 90 times profit
The boom is back, at least for one part of China’s stock market.
jlne.ws/1NR0dAI

China’s Selling Tons of U.S. Debt. Americans Couldn’t Care Less.
Daniel Kruger – Bloomberg
U.S. funds are buying record amounts at Treasury auctions
Surge in demand keeps funding costs low, raises doubt on rates
For all the dire warnings over China’s retreat from U.S. government debt, there’s one simple fact that is being overlooked: American demand is as robust as ever.
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Chinese Bond Investors Move Offshore; Beijing’s monetary easing has sent onshore yields to multiyear lows
By FIONA LAW and CAROL CHAN, WSJ
China’s booming domestic debt market is pushing investors to seek higher yields offshore, just as its banks start to expand yuan lending world-wide.
The shift comes as China’s central bank is selling its first yuan bond in London Tuesday as part of its effort to bolster offshore yuan trading.
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Frontier Markets

We cannot go back from high-frequency trades: Ashishkumar Chauhan; Interview with Managing director and chief executive, BSE
Ashley Coutinho & Jayshree Upadhyay – Business Standard
Ashishkumar Chauhan, managing director and chief executive of the BSE, talks on current issues for the exchange. An interview with Ashley Coutinho and Jayshree P Upadhyay. Excerpts:
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Defunct commexes face closure
Business Standard
Stock market regulator, Securities and Exchange Board of India, is working on the closure of regional commodity exchanges, where trading no longer takes place. The closure would be similar to that of stock exchanges.
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Iran’s stifled stock market sanctions relief
Asia Times
The Tehran stock exchange continued its post-nuclear deal descent with the benchmark index losing 10% in the nine months through September, as daily trading volume and the average company price-earnings ratio at 5 reached new lows. The major listed sectors including autos, petrochemicals, mining and banking are all in recession “bordering on crisis,” according to the Economy Ministry, which received $100 million in industry support from President Rouhani mainly for carmakers like Khodro, which previously thrived during a joint venture with France’s Renault.
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Uganda: URA’s Good Move
allAfrica.com
With global economic conditions expected to remain harsh, Uganda and her peers face tough challenges of sustaining growth, says World Bank African economic growth in 2015 is to slow down to 3.7% from 4.6% in 2014, reaching the lowest growth rate since 2009, according to a new World Bank report.
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FinMin officials to meet market players today; Said foreign investors and domestic market participants would raise
Business Standard
After withdrawing the minimum alternate tax on foreign portfolio investors (FPI), the finance ministry will interact with FPIs on Tuesday. On Wednesday, the ministry will meet domestic financial market participants. The meetings have been called by the department of economic affairs in the run-up to the pre-Budget consultations.
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Miscellaneous

The Trading Game
By Bloomberg
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Irwin Schiff, Fervent Opponent of Federal Income Taxes, Dies at 87
By DENNIS HEVESI, NHY Times
Irwin A. Schiff, who built a national following by arguing that income taxes are unconstitutional and spent more than 10 years in prison for evading them and for helping thousands of others to do the same, died on Friday at a hospital affiliated with a federal prison in Fort Worth. He was 87.
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