Climbing For Kids
Miriam Condon has been training for the last six months for the “Three Peaks Challenge- threepeakschallenge.uk” to raise money for Futures for Kids. This coming Saturday, alongside her teammates from the futures industry, she will be climbing Ben Nevis, Scafell Pike and Snowdon, which are the three highest peaks in England, Wales and Scotland, all in under 24 hours. (Hopefully with some fast driving in between.)
Your support for this amazing feat and amazing cause would be much appreciated. Please donate whatever you can and help children globally. Miriam has already raised £724.73 toward her £1000 goal.
Miriam’s page can be found here
Bits & Pieces
By John J. Lothian
It was about this time last year that MarketsWiki went over the 50 million page view mark. We are now approaching 65 million page views. MarketsReformWiki has passed the 9.5 million page view mark.
In Chicago, we have added Derek Sammann of the CME Group and John Fennell of the OCC to the speaker list for our MarketsWiki Education World of Opportunity Summer Intern Education Series. We have lost Peter Nabicht, who had a conflict come up.
Please help us get the word out about our New York and Chicago education series. Any and all help is appreciated.
On Thursday, John J. Lothian & Company, Inc. will be having an off-site day to discuss our offerings, operations and plan for the year ahead. We will only be publishing this newsletter and JLN Environmental/Energy, not Financials or Options.
Dorothy Ferlanti, formerly of Fidessa, has a new job. She is now the owner of Pinot’s Palette Red Bank. We wish the best of luck to one our our favorite people
You may have heard about the Boy Scout who died at the Philmont Scout Reservation in New Mexico this week. He and three other scouts were swept away by a flash flood, but only one died. One of the first things a Tenderfoot to be scout is taught is where to pitch his tent, taking care to avoid water risks, trees and other risks. The moral is that risks can be managed, but never eliminated. My prayers for the scout’s family and friends and may the lesson be reinforced and not be lost on scouts, and traders. Be wary of sudden floods of liquidity.
New Energy: Nasdaq Prepping For Launch Of Nasdaq Futures
Nasdaq Futures was announced in March with a goal of shaking up the energy futures markets. Since then, Nasdaq’s team has been busy building infrastructure and signing up new members. The question is, will they challenge the likes of CME Group’s Nymex or the Intercontinental Exchange?
Hans-Ole Jochumsen said that Nasdaq Futures, or NFX, has the model to compete with established markets.
Watch the video »
ICE, CME and Where Exchanges Are Headed Next
by John Lippert, Bloomberg
How the exchange giants ICE and CME acquired their way to dominance, a drawn-out drama.
***** The only thing missing from these cartoons was Joe the Camel.
Why We All Love Rivalries
by Matthew S Levine, Bloomberg
A lot of the story of modern finance is that it keeps getting more boring. Finance looks like, and wants to be, a very rational activity. There’s a thing that you want to maximize—usually it’s money—and you go measure it and figure out how to maximize it. And the world being what it is, we keep getting better tools to measure and math to maximize. So the trend, as in much of modern life, is toward more science and less instinct.
***** Competition is the blood of life. Without its flow, we all just die.
Banks and exchanges turn to blockchain
Philip Stafford, FT
The blockchain — the technology that underpins bitcoin — has been called “the future for financial services infrastructure”. Now banks, clearing houses and exchanges are becoming increasingly excited at the prospect of blockchain fundamentally transforming their business models.
***** See our Special Report on this subject below.
John Lothian News Special Report: Unchained: How Blockchain And Bitcoin Are Going Mainstream
Please click on the Special Report image to see the full report, which includes a full feature story, videos from Hans-Ole Jochumsen on Nasdaq’s efforts in blockchain technology and Adam Honoré, CEO of the fintech consulting firm MarketsTech, as well as the best recent Top Stories on the topic.
A great start for our Weekly Options on Euro-Bund Futures
Only two months ago we promised you a more precise and cost effective tool for hedging your EUR rates exposure with our new Weekly Options on Euro-Bund futures. Volumes since the launch indicate that there is indeed strong interest in such a product.
***** Good timing.
MarketsWiki Page of the Day
MarketsWiki Recent Updates
Companies, Organizations and Groups
64,739,649 pages viewed, 8,224 articles, 192,729 edits
Fidessa unveils new low-latency DMA platform; Built on next-generation high-performance technology
Fidessa group plc (LSE: FDSA) today announced the launch of its new low-latency DMA platform that provides brokers with high-performance, scalable and consistent access to global equity and derivatives markets. Built on Fidessa’s latest next-generation technology and delivered as a managed service, the platform helps firms reduce cost and improve efficiency by outsourcing the commoditized aspects of their market access infrastructure.
CFTC Proposes Narrowing Wall Street’s Foreign Swaps Loophole
by Silla Brush, Bloomberg
The top U.S. derivatives regulator took a step toward preventing Wall Street banks from evading the Dodd-Frank Act and shifting some of their trading overseas.
Deutsche Börse and Irish Stock Exchange expand their partnership
Deutsche Börse: As of today, Deutsche Börse Market Data + Services is taking over the hosting of the Irish Stock Exchange’s new trading surveillance system. Deutsche Börse will host the hardware on its premises in Frankfurt and provide support services. The surveilla
Nasdaq’s Battle With Energy Market Giants Begins on July 24
Nasdaq OMX Group Inc. will soon start clashing with energy-trading giants CME Group Inc. and Intercontinental Exchange Inc. Nasdaq’s market for futures and options on oil, natural gas and U.S. power contracts will open on July 24, according to a letter to customers.
ESMA Agrees To Proposed Short-Selling Ban By Greek HCMC
The European Securities and Markets Authority (ESMA) has issued yesterday its official opinion agreeing to a seven-day emergency short selling prohibition proposed by the Hellenic Capital Market Commission (HMCM) under the Short Selling Regulation.
Object Trading to Provide Global Trading Infrastructure for TradingScreen Clients
Object Trading, the provider of a global, multi-asset trading infrastructure today announced that TradingScreen, the provider of liquidity, trading and investment technology via SaaS, has integrated with Object Trading’s global DMA service platform. The combination of two independent suppliers of award-winning trading solutions presents end clients with new opportunities for growth.
S.E.C. Learns the Hard Way How Judges Are Like Umpires
By PETER J. HENNING, NY Times
Chief Justice John G. Roberts Jr. said during his confirmation hearing that “judges are like umpires,” and as every baseball fan knows, each umpire has a different strike zone.
K.K.R. Settles Over ‘Broken Deal’ Expenses
By ALEXANDRA STEVENSON, NY Times
For years, private equity firms operated behind a curtain of mystery when it came to how they passed along expenses to investors. The Securities and Exchange Commission is now beginning to pull back the curtain and shine a light on those practices.
Greece’s future hangs on 72 words
Kerin Hope in Athens, FT
Giorgos Alavanos was asked on Monday during a coffee break with co-workers to explain the cumbersome 72-word question that Greeks must answer with a “yes” or “no” vote in next Sunday’s referendum.
Free Lunch: How Athens can make the most of capital controls
Martin Sandbu, FT
Managed well, bank restrictions can secure Greece’s place in the euro
Not a wonderful life. First, take a deep breath. Then relax. Capital controls are not the end for Greece. Managed wisely, they can be the beginning of something better – within the euro. On a difficult day for ordinary Greeks and their leaders, here are some important things to realise about capital controls.
Prosecutors launch Deutsche Libor probe
James Shotter, FT
Frankfurt prosecutors are examining the role played by individuals connected with Deutsche Bank’s involvement in the Libor rate-rigging scandal — potentially opening up a new front in the affair that has rocked Germany’s biggest bank. The investigation is the first step in a procedure that could lead to criminal charges.
CFTC boss Massad one year in
Futures & Options World
Timothy George Massad became one year ago the most powerful derivatives regulator on the planet and was pitched headlong into a regulatory maelstrom that had been building since the financial crisis of 2008. The new chairman of the Commodity Futures Trading Commission entered the fray at a crucial time in the regulatory reform of the US derivatives market.
CFTC Targets Swaps Loophole; Proposed rule tightens restrictions on overseas units of U.S. banks
By ANDREW ACKERMAN, WSJ
U.S. swaps regulators sought to close a legal loophole that allowed American banks to shift some of their business overseas to avoid tough U.S. rules.
U.S. swaps regulator CFTC to close cross-border loophole
By Douwe Miedema, Reuters
The U.S. derivatives market regulator on Monday proposed a rule for safety margins for uncleared swaps to close a loophole Wall Street banks have used to duck new trading provisions by shifting business abroad.
FINRA 2014 Year in Review and Annual Financial Report
In 2014, FINRA celebrated 75 years of regulating the U.S. securities markets. While our mission to protect investors and keep the markets fair has remained the same throughout the years, we continue to seek and embrace innovative methods that help us meet our mandate.
Proposed Rule Change Relating to Rule 4553 and Fees for Access to Alternative Trading System Volume Information Published on FINRA’s Website
Proposed Rule Change to Amend FINRA Rule 2210 (Communications with the Public) to Require Hyperlink to BrokerCheck on Member Websites
Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
ICEEU: Notice of Designation of Longer Period for Commission Action on Proposed Rule Change Relating to Finance Procedures to Add Clearstream Banking as a Triparty Collateral Service Provider (Release No. 34-75320; File No. SR-ICEEU-2015-009)
The Role of Chief Compliance Officers Must be Supported
by Commissioner Luis A. Aguilar, U.S. Securities and Exchange Commission
ESMA consults on regulatory technical standards under the CSD Regulation
This second Consultation Paper (CP) is limited to the provisions on buy-in of the draft RTS and is seeking input and quantitative elements from stakeholders on the different options presented in the paper. The Consultation is open until 6 August 2015.
Exchanges & Trading Facilities
Baltic Exchange ship futures platform examines move into commodities
Hellenic Shipping News Worldwide
Baltex, the Baltic’s digital shipping platform, was launched in 2011 as the first central electronic marketplace for freight forward agreements (FFAs), which allow investors to take positions on freight rates at a point in the future.
Since the beginning of this year, the previously loss making platform, has reached break even levels after Baltex became a venue for presenting block futures at the start of December.
Japan Post kicks off TSE listing process
Leo Lewis in Tokyo, FT
Japan Post has applied for approval to float on the Tokyo Stock Exchange, formally opening a process that could see Japan’s largest bank, its biggest insurance company and its top employer publicly listed before year-end.
Bourse de Montréal Market Holiday
Interest rate derivative trading will cease at 1:30 p.m. today, June 30, 2015. Furthermore, the Exchange’s offices and markets will be closed on July 1, 2015 (Canada Day).
Eight new exchange traded products issued by Boost ETP launched on Xetra
Xetra/Börse Frankfurt: Four new exchange traded commodities (ETCs) and four new exchange traded notes (ETNs) from issuer Boost ETP Plc have been tradable on Xetra and Börse Frankfurt since Tuesday.
Euronext Celebrates the New Business Combination of Greenyard Foods, Univeg and Euronext
Euronext today celebrated the business combination between Greenyard Foods, Univeg and Peatinvest to create a global leader in fruit and vegetables.
Report on Initial Public Offering Applications, Delisting and Suspensions (As at 30 June 2015)
SPRING Singapore and SGX Collaborate To Help SMEs Build Financial Management Capabilities for Resilience and Sustainable Growth
LONDON STOCK EXCHANGE WELCOMES SOPHOS
London Stock Exchange
London Stock Exchange today welcomes Sophos, the global provider of cloud-enabled and network security solutions to the Main Market, following the company’s £1 billion IPO. Raising total gross proceeds of £352 million, including $125 million gross primary proceeds, it is London’s largest ever software IPO and one of the largest tech IPOs ever in the UK.
Hedge Funds & Managed Futures
Blackstone and BlackRock Are Getting Into Each Other’s Business; Steve Schwarzman and Larry Fink, once partners, now vie for Wall Street dominance atop their wildly successful firms.
by Jason Kelly, Katherine Burton, Bloomberg
To understand how Steve Schwarzman and Larry Fink, one-time partners who had an ugly breakup two decades ago, today compete for attention among the most powerful people in business and finance, consider the events of a few days in mid-April.
Hedge-Fund Billionaire Julian Robertson Shrugs as World Churns
Julian Robertson stayed calm after Greeks lined up at ATMs to hoard cash, the longest bull market in China’s history tumbled to an end and Puerto Rico’s governor said the U.S. commonwealth couldn’t pay its debt. The billionaire even had reasons to smile.
John Paulson loses millions on Greece and Puerto Rico
Talk about a horrible way to start the week. A number of hedge funds that were already bracing for losses on Greek debt also found out late Sunday night that they would likely have to swallow big losses on investments in Puerto Rico as well. One of the biggest losers appears to be John Paulson.
Banks & Brokers
German watchdog says Deutsche Bank has catching up to do
Deutsche Bank (DBKGn.DE) has some “catching up” to do under its new leadership to ensure its systems and processes are up to the requirements of international financial rules, the head of Germany’s financial watchdog Bafin said.
Wanted: Bank Bosses to Rebuild Trust as Jain Exit Caps Shift
by Ambereen Choudhury, Macarena Munoz Montijano, Jeffrey Voegeli, Bloomberg
The departure of Anshu Jain and Brady Dougan this week from Deutsche Bank AG and Credit Suisse Group AG marks the passing of an era when trading profits paved the way to the top job at Europe’s largest banks.
Hector Sants appointed Julius Baer chairman
Anna Fedorova, Investment Week
Sir Hector Sants, former head of the Financial Services Authority (FSA), has been appointed new chairman of Julius Baer.
Barclays Names Former Dallas Fed President Richard Fisher as Adviser; Since leaving Fed, Fisher has joined boards of Pepsi, AT&T
By CASSANDRA JARAMILLO, WSJ
Barclays PLC on Monday named Richard Fisher, who recently retired from his post as head of the Federal Reserve Bank of Dallas, as senior adviser at the bank.
Clearing & Settlement
Statement Regarding Proposals to Shorten the Trade Settlement Cycle
by Commissioner Michael S. Piwowar and Commissioner Kara M. Stein
Recently, an industry-led committee of members across the securities industry issued a white paper outlining the timeline and actions required to move from a three-day (T+3) trade settlement cycle to a two-day (T+2) trade settlement cycle for securities transactions in the United States by the third quarter 2017. We applaud industry’s leadership in seeking changes to mitigate risks and improve capital efficiency.
EMIR Pensions Exemption
Article by Rosali Pretorius, Rebecca McKay and Tom Harkus, Dentons
Pension funds have been granted a further two-year exemption from central clearing requirements, but what difference does it make in practice?
Indexes & Products
New Amundi bond index ETF launched on Xetra
ETF tracks the performance of corporate bonds with a variable interest rate
Xetra/Börse Frankfurt: A new exchange-listed bond index fund issued by Amundi has been available in Deutsche Börse’s XTF segment since Tuesday. The ETF is tradable via Xetra and Börse Frankfurt.
Greek ETFs Plunge as Investors Fly Blind
by Lu Wang, Oliver Renick, Bloomberg
Exchange-traded funds tracking Greek equities, transformed into vehicles for pure speculation after the Athens Stock Exchange was closed, plunged the most since 2011 in the U.S. and were halted in Germany and France.
MSCI says China faces complex process to join index
An executive at index provider MSCI Inc. on Monday said Chinese regulators face a complex process to satisfy requirements for mainland shares to join one of its widely tracked indexes.
“You cannot underestimate the complexity of the process involved in making the necessary changes,” said Chris Ryan, MSCI’s MSCI, head of Asia-Pacific. The country’s securities regulator, the China Securities Regulatory Commission, “has to coordinate amongst nine or more government agencies,” he said.
Perseus Deploys Fastback Networks to Enable High Speed Connectivity in Obstructed Urban Areas
Fastback Networks today announced that Perseus, a leading global provider of managed services for high-precision, high-speed connectivity, has successfully deployed the Fastback Intelligent Backhaul Radio to extend fiber based services via wireless connectivity with full SLA support to a top financial services firm. The site location for the deployment is surrounded by fully obstructed Non-Line-of-Sight (NLOS) conditions in the restricted confines of lower Manhattan.
***DA: Darn. When I read the headline I thought there would be a new route from LaGuardia Airport to the Manhattan financial district.
Scila Announces Deal With Irish Stock Exchange (ISE) – To Provide State Of The Art Surveillance Technology
The Irish Stock Exchange (ISE), the Dublin-based exchange, has chosen to implement Scila Surveillance, provided by the leading independent Stockholm-based surveillance technology provider Scila. The ISE will deploy Scila Surveillance for the surveillance of their trading on its markets. Deutsche Börse will take over the hosting and support of the Scila surveillance infrastructure, which will be located in Frankfurt.
SEC Announces Cherry-Picking Charges Against Investment Manager
The SEC Enforcement Division alleges that Mark P. Welhouse purchased options in an omnibus or master account for Welhouse & Associates Inc. and delayed allocation of the purchases to either his or his clients’ accounts until later in the day after he saw whether or not the securities appreciated in value. Welhouse allegedly reaped $442,319 in ill-gotten gains by unfairly allocating options trades in an S&P 500 exchange-traded fund named SPY. His personal trades in these options had an average first-day positive return of 6.28 percent while his clients’ trades in these options had an average first-day loss of 5.05 percent.
SEC Charges KKR With Misallocating Broken Deal Expenses
The Securities and Exchange Commission today charged Kohlberg Kravis Roberts & Co. (KKR) with misallocating more than $17 million in so-called “broken deal” expenses to its flagship private equity funds in breach of its fiduciary duty.
NFA Case Summary; SCOTT ELLIOTT THOMPSON; FINAL ORDER GRANTING CONDITIONAL REGISTRATION:
On June 29, 2015, a Subcommittee of NFA’s Membership Committee issued a Final Order Granting Conditional Registration to Thompson. On the basis of the consent evidenced in Thompson’s Offer of Settlement, and without any adjudication on the merits, the Subcommittee found that Thompson is disqualified from registration under Section 8a(2)(D)(iv) of the Act and ordered that his AP registration be granted subject to conditions. The Final Order becomes effective on July 29, 2015.
Warning – AMF cautions about solicitations by Select Capital Ventures SA
The Autorité des marchés financiers (the “AMF”) is urging investors to be cautious when dealing with Select Capital Ventures SA and its so-called representatives, including Neil Reid. This company has purportedly contacted foreign investors to offer to redeem their shares of companies that are no longer listed for trading.
Suspicious Internet solicitation – AMF urges caution regarding Fabrice Mvondo
The Autorité des marchés financiers (the “AMF”) is warning Québec consumers about activities purportedly being carried out by Fabrice Mvondo through on-line advertisements in which he offers investments in derivatives.
Environmental & Energy
Supreme Court: EPA unreasonably interpreted the Clean Air Act
In a loss for the Obama administration, the Supreme Court ruled that the EPA unreasonably interpreted the Clean Air Act when it decided to set limits on the emissions of toxic pollutants from power plants without first considering the costs on the industry to do so.
100 Billion Reasons a Global Climate-Change Deal May Fall Apart
By Alex Nussbaum – Bloomberg News
The richest nations still haven’t convinced the rest of the world they’re willing to pay the tab to help curb climate change, diplomats warned at a United Nations conference Monday.
China’s carbon crunch
By Helen Briggs – BBC News
There are growing expectations that China will soon give details of its pledge to cut carbon emissions ahead of key UN climate talks at the end of the year in Paris.
Six states increasing gas taxes on July 1
By Keith Laing – The Hill
Six states are scheduled to increase their gas taxes on July 1 to help pay for transportation projects, according to the Citizens for Tax Justice and Institute on Taxation and Economic Policy (ITEP).
China’s Finance Industry Rallies Behind Stocks After Plunge
by Fox Hu, Kyoungwha Kim, Bloomberg
China’s financial industry joined the nation’s securities regulator in moving to shore up the nation’s $7.7 trillion stock market, spurring the biggest rally in more than six years.
A Shortage of Tools for Betting Against China; Even after the selloff, valuations of some China shares remain sky-high. So where are the short sellers?
By MIA LAMAR, WSJ
China’s roller-coaster stock market is increasingly open to the world’s investors—so long as they don’t want to bet against it.
Ten years on, ICAI probe into GTB auditors’ role still not complete; Action against auditors, last of the 276 recommendations of a JPC probing Ketan Parekh scam, still pending
Kumar Akash & N Sundaresha Subramanian, Business Standard
On December 19, 2002, the Joint Parliamentary Committee (JPC) on stock market scams and related matters, which was probing the so-called Ketan Parekh scam of 1999-2001, presented its report in Parliament with 276 recommendations.
Brazil ETF Leads Emerging-Market Outflows as Greece Adds to Woes
Brazil’s biggest exchange-traded fund sank to a four-week low on concern that a possible Greece exit from the euro would deepen the largest outflows among emerging markets this year.
Rising cocoa prices eat into chocolate bars
Emiko Terazono, FT
When Jean-Marc Anga stood before his peers last year, the head of the International Cocoa Organization had an ominous message for chocoholics.