Tomorrowland: The New Wave Of Technology Is Here
By Jim Kharouf, JLN
This is where Silicon Valley innovation meets LaSalle Street, Wall Street and the City.
The FIA’s move to debut its Innovation Hall at this year’s FIA Expo, highlighting startups in the fintech space, is another indication of just how far fintech has come over the past several years.
In the wake of Dodd-Frank, European regulations and other structural changes in the industry, many in the industry wondered if existing or new firms would be able to create new technology to address such challenges, as well as come up with new innovations that will propel the industry forward.
In some cases, it’s well on its way. In others, it’s here. The FIA Expo’s Innovation Hall includes 20 firms that are addressing key parts of our industry, from trading to data to trade reconciliation to regulation and compliance.
Take Chicago-based Neurensic, which is using artificial intelligence to help firms adapt to changing regulations, spoofing activity and predictable threats to the firm. In other words, it is using the latest technology not only to tell firms about a trader’s bad activity, but also to predict the likelihood that a trader will violate regulations. On top of that, Neurensic is layering its technology so that FCMs can give dynamic pricing to its customers – charging risky customers more and other good actors less, and enabling the testing of such business models. The technology is designed to address two problems: the ever changing and complex world of regulation, which often just leads to adding more technology and more people to monitor customers or traders, and the issue of profitability in the FCM space – a major issue in recent years as compliance costs have skyrocketed and volumes have stalled.
Using artificial intelligence, machine learning, deep learning and other computer science breakthroughs can bring about change and incredible opportunity.
“We want the industry to survive and to prosper,” Neurensic CEO David Widerhorn said. “To do that, we’re going to need an infusion of technology that takes advantage of some of these data science techniques. I know that banks hate change and everyone wants to use the same system they used 20 years ago. But if we continue to grow, the cost of maintaining that technology is going to be 20 times the cost of buying a new system.”
That’s just one of the firms that can be visited this week at Expo. There are many more new technologies that may fundamentally change the structure of this industry today or tomorrow.
The Data Game: UnaVista’s Maryse Gordon Dissects the Data Challenges under Global Regulations
Chief among the post-financial crisis mandates is the building of a robust and standardized system of global data distribution and storage, but the task has proven to be more difficult than expected. Maryse Gordon of UnaVista, London Stock Exchange Group’s trade repository and approved reporting mechanism, outlines the challenges and solutions for data matching, validation reconciliation and reporting across multiple jurisdictions.
Watch the video »
Edge Financial Technologies launches industry’s first smart and holistic kill switch, named KillSwitchPlus
Edge Financial Technologies, Inc., the Chicago based technology consulting firm specializing in developing automated trading systems for the capital markets industry, today announced the release of the first Smart and Holistic Kill Switch in the industry, called KillSwitchPlus.
***DA: Have a look at the accompanying video, produced by John Lothian Productions.
How Changing Global Demographics Could Destroy One of the Most Popular Ideas in Portfolio Management
Portfolio managers who adhere to a method of asset allocation that has served them well for more than three decades may be in need of a wake-up call.
***** The boom is coming out of the Baby Boomers?
Quant hedge fund manager Man AHL launches coding prize worth GBP1 001 110 001 000 Hedgeweek
Man AHL, Man Group’s diversified quantitative investment manager, has launched the Man AHL Coder Prize, a coding competition for students aged 16 and over with a top prize of GBP5,000.
The first ever Man AHL Coder Prize will launch on 1 December, and is open to UK & Ireland residents in full-time education. Entrants will be tasked with writing code, using the Python programming language, to control a player for the classic game Hexplode. Python is a widely used programming language, which Man AHL utilises for its systematic models.
***** There are 10 kinds of people. Those who understand binary.
Kenneth Griffin Looks Back on Citadel’s 25 Years
By MICHAEL J. de la MERCED – NY Times
Twenty-five years ago, Kenneth C. Griffin got a break when, as a newly minted Harvard graduate, he drew backers to start a small investment firm in Chicago.
***** I want to know how Ken Griffin keeps track of all the keys to all the houses, apartments and condos he has recently bought. Does he have one of those janitor key rings he wears on his belt or what?
| SPIDERROCK continues to enhance its cloud-based trading platform, which now supports the electronic trading of US equities, options, futures and option on futures strategies. SPIDERROCK has long been a trusted technology provider to the systematic trading community transacting in equity/index options.
We are excited to bring our expertise to the futures market and allow traders to scale across products, systematize the implementation of their strategy, leverage our auto volatility surface fitting, and interact with the market intelligently with sophisticated order types based on market micro dynamics modelling. SPIDERROCK also launches SPIDERSTREAM, a low latency market data service providing scalability and content to institutional clients.
SPIDERSTREAM efficiently delivers live normalized equity and futures data feeds as well as specialized Greek and Volatility feeds via multicast channels. Users can also access the full set of normalized products via SQL queries from our live SQL servers hosted in NY4. Contact us to power your analytics, risk or trading applications.
‘If you can’t handle a bunch of CNBC moderators, I don’t think the Russians are going to be too worried!’ Obama takes to a Broadway stage to trash GOP presidential candidates
***** He has a point.
Rising deaths among white middle-aged Americans could exceed Aids toll in US
Alarming trend among less-educated 45- to 54-year-olds largely thought to be a result of more suicides and the misuse of drugs and alcohol
A sharp rise in death rates among white middle-aged Americans has claimed nearly as many lives in the past 15 years as the spread of Aids in the US, researchers have said.
***** At least I have that education thing going for me.
October’s migrant, refugee flow to Europe roughly matched whole of 2014
By Tom Miles and Marina Depetris – Reuters
he number of migrants and refugees entering Europe by sea last month was roughly the same as that for the whole of 2014, United Nations refugee agency UNHCR said on Monday.
***** That is the kind of statistic that gets your attention.
China promises to make currency yuan freely traded by 2020
China’s ruling Communist Party says it plans to make the country’s tightly controlled currency, the yuan, freely traded by 2020.
SGX establishes connectivity with CME Group co-location facility in Aurora, Illinois
Singapore Exchange (SGX) today announced that it will establish a presence in the CME Group co-location facility based in Aurora, Illinois, to provide direct connectivity for customers between the two facilities.
Morgan Stanley’s James Gorman Elected to New York Fed Board; Silver Lake co-founder Glenn Hutchins re-elected for three-year term
By KATY BURNE – WSJ
The Federal Reserve Bank of New York said James Gorman, chairman and chief executive of Morgan Stanley, has been elected to its board of directors, marking the first time in three years a board member comes from a large financial firm that could pose financial-system risk.
The evolution of electronic trading and regulatory reform
By Andrew Bernard, head of Asia at Tradeweb, in FOW
Policymakers’ response to the global economic crisis has been to adopt a series of reforms aimed at strengthening the financial system and shielding it from future shocks. As these rules come into force in different jurisdictions, the role of technology is proving vital in facilitating compliance and enabling firms to adapt effectively to new demands.
HKEx to Roll Out Three More London Metal Mini Futures on 14 December 2015
Hong Kong Exchanges and Clearing Limited (HKEx) will introduce London Nickel Mini Futures, London Tin Mini Futures and London Lead Mini Futures contracts for trading in its derivatives market on 14 December 2015.
Brazil’s BM&FBovespa, Cetip in preliminary tie-up talks
BM&FBovespa SA, Latin America’s largest bourse operator, is in preliminary talks with rival Cetip SA Mercados Organizados for a potential combination.
George Soros’s Firm Pulls $500 Million Investment With Bill Gross
George Soros’s firm has pulled its roughly $500 million investment with Bill Gross, less than a year after the billionaire investor gave the former bond king his stamp of approval, according to a person familiar with the matter and industry data.
Spoofing Defendant Rests Case in First Trial Over Market Tactic
The first trader to be tried on charges of spoofing rested his case Monday after telling jurors in Chicago federal court that commodities orders he placed “improved the market for everyone” and that he tried to promote trading activity.
Basel Committee to Stop Banks Gaming Risk Models
The Basel Committee on Banking Supervision will publish proposals to constrain internal risk modeling by banks by the end of the year, its chairman Stefan Ingves said on Monday. The move signals that international regulators remain intent on taking away the leeway that was given to large banks before the financial crisis to assess their own capital buffer needs.
How Do Wall Street Relationships Affect Execution Quality?
David Weisberger – Traders Magazine
At the time, I actually didn’t know – but I do now. “Dave, it’s always fun talking to you, because as smart as you are, you are sooo naive. Don’t you realize that the buy-side will never pay more for trading with computers than with actual traders, it doesn’t matter if they work better?”
Opinion: The Fed’s communication breakdown trips up investors; Each policy maker seems to have a different view of when economic data points will trigger interest-rate increases
By KENNETH ROGOFF – MarketWatch
Nothing describes the U.S. Federal Reserve’s current communication policy better than the old saying that a camel is a horse designed by committee.
Opinion: Why Ben Bernanke is ultimately a tragic figure; He was the best person to head the Fed, but he found himself outmatched by challenges
By BRADFORD DELONG – MarketWatch
It is difficult to read former U.S. Federal Reserve Chairman Ben Bernanke’s new memoir, “The Courage to Act,” as anything other than a tragedy. It is the story of a man who may have been the best-prepared person in the world for the job he was given, but who soon found himself outmatched by its challenges, quickly falling behind the curve and never quite managing to catch up.
Deutsche Boerse extends BSE data deal
Futures & Options World
Deutsche Boerse’s data business has extended its working agreement with BSE India to license three new BSE market data products in a bid to offer more granular trading information.
What Ralph Nader and Ben Carson don’t get about interest rates
by Timothy B. Lee – VOX
People on both the left and the right are arguing that the Federal Reserve is hurting savers by keeping interest rates low.
CFTC Advisory Committee Mulls FCM Portability
Keeping all the clients of a failed futures commission merchant connected to the derivatives market in a stressed environment will be a tall order and not everyone will wind up happy, according to members of the CFTC’s Market Risk Advisory Committee.
CFTC’s Division of Market Oversight Extends Time-Limited No-Action Relief for Swap Execution Facilities from Certain “Block Trade” Requirements
The U.S. Commodity Futures Trading Commission’s (Commission) Division of Market Oversight (Division) today extended time-limited no-action relief to Swap Execution Facilities (SEFs) from certain requirements in the definition of “block trade” in Commission regulation Section 43.2.
China Financial Crackdown Intensifies as Funds, Banks Targeted
China’s crackdown on its financial industry is intensifying as authorities investigate strategies blamed for exacerbating a $5 trillion stock-market rout.
Arbitration Everywhere, Stacking the Deck of Justice
By JESSICA SILVER-GREENBERG and ROBERT GEBELOFF – NY Times
On Page 5 of a credit card contract used by American Express, beneath an explainer on interest rates and late fees, past the details about annual membership, is a clause that most customers probably miss. If cardholders have a problem with their account, American Express explains, the company “may elect to resolve any claim by individual arbitration.”
FCA sounds alarm at rising credit card debt
Emma Dunkley – FT
The City watchdog has sounded the alarm about millions of people falling into problematic levels of credit card debt.
Credit card competition working fairly well but concern for customers in long-term debt
The Financial Conduct Authority (FCA) has published its interim report into the credit card market, including its early thinking into potential remedies. The FCA found that competition is working fairly well for most consumers.
Bank Inquiry is divided on who was to blame for crash; Some members of committee may refuse to sign off on the report when it is completed
Daniel McConnell – Indpendent
Major differences have emerged between members of the EUR5m Oireachtas Banking Inquiry over what they want their final report into the banking crash to say.
Crowdfunding is music to the ears for small businesses; With banks reluctant to help, entrepreneurs are turning to alternative forms of finance, reports Jon Card
Jon Card – The Guardian
When Dave Harper and Michael McKnight set up Pop Recs in June 2013, it was only meant to be open for a fortnight. The pop-up record store business, established in a disused tourist information office in Sunderland, was primarily a vehicle for promoting their band Frankie & the Heartstrings. But Harper says Pop Recs soon became a hub for young artists and creatives attracted to its coffee shop, workspaces and gigs. “The problem was, when we first opened, we were only going to be open for two weeks,” says Harper. “We weren’t looking at it with a long-term vision. The making money part was difficult. We were always treading water.”
The Self-Defeating, ‘Grand Delusion’ of Monetary Policy
By PAUL VIGNA – WSJ
Signs persist that the global economy isn’t well. In China, the official manufacturing PMI remained at 49.8, under the 50-line that delineates expansion and contraction. In the U.S., the ISM’s October manufacturing survey fell to 50.1, its lowest rate in two years.
Janet Yellen Turns Over Documents to House Panel Investigating 2012 Leak; Fed chief says documents related to an internal leak probe are being shared ‘on a confidential basis’
By KATE DAVIDSON – WSJ
Federal Reserve Chairwoman Janet Yellen has turned over documents to House investigators related to the continuing probe of a 2012 leak of sensitive Fed policy deliberations.
Exchanges & Trading Facilities
CME Group Volume Averaged 12.8 Million Contracts per Day in October 2015; Energy average daily volume rose 17 percent; October 2014 energy average daily volume highlights include 29 percent growth in natural gas futures, 47 percent growth in natural gas options and 14 percent growth in WTI futures
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that October 2015 volume averaged 12.8 million contracts per day, down 27 percent from an exceptionally strong October 2014 which included our highest daily trading volume on October 15 of 39.6 million contracts. Total volume during October 2015 was more than 282 million contracts, of which 86 percent was traded electronically. Average daily volume to date in 2015 is 14.1 million contracts, up 3 percent versus the same period in 2014, with year-over-year growth across four of six product lines. Open interest through October is 102 million contracts, up 8 percent from year-end 2014.
Xetra-Gold records new high in gold holdings; 60 ton mark exceeded for the first time
Deutsche Börse Commodities: The gold held in custody by Deutsche Börse Commodities for the purpose of physically backing the Xetra-Gold bond rose to a record high of 60.3 tons last Wednesday, an increase of more than ten tons since the beginning of the year alone. For each bond, exactly one gram of gold is deposited in the vaults. With a price of EUR33.94 (Xetra price on 29 October) per Xetra-Gold bond or one gram of gold, respectively, the current value of gold in custody is approximately EUR2 billion.
Peru bourse says to avoid MSCI downgrade to ‘frontier’ index
Peru’s stock exchange is optimistic it will avoid a downgrade by index provider MSCI Inc next year as at least two listed companies boost trading volume and start qualifying as “emerging market” securities, the bourse said on Monday.
CBOE Holdings Reports October 2015 Trading Volume
Total Volume of 98.8 Million Contracts; Down 5% From September, 39% From Record October 2014; ADV of 4.5 Million Contracts; Down 9% From September, 37% From Record October 2014
CBOE Holdings, Inc. (NASDAQ: CBOE) reported today that total trading volume in October for options contracts on Chicago Board Options Exchange® (CBOE®) and C2 Options Exchange (C2) and futures contracts on CBOE Futures Exchange (CFE®) was 98.8 million contracts, with an average daily volume (ADV) of 4.5 million contracts, decreases of 5 percent and 9 percent, respectively, from September 2015.
ICE world cotton contract debuts with few trades as merchants sit out
BY LUC COHEN – Reuters
IntercontinentalExchange Inc’s new world cotton contract <0#WCT:> debuted on Monday with just 21 contracts changing hands, giving merchants, mills and growers their first alternative to pricing on the U.S.-only century-old benchmark.
CBOE Futures Exchange Reports October 2015 Trading Volume
VIX Futures Up 2% Year to Date; VIX Futures ADV Down 28% from September 2015; 4 Million VIX Futures Contracts Traded
CBOE Futures Exchange, LLC (CFE®) today reported that October average daily volume (ADV) was down 28 percent from September 2015 and 44 percent from October 2014’s record-setting volume totals. However, on a year-to-date basis through October, volume was up 2 percent, compared with the same period last year.
BATS WELCOMES FIVE NEW iSHARES ETFs TO ITS U.S. MARKET
Company Continues to Expand Partnership with iShares; New ETFs Began Trading Today
BATS Global Markets (BATS), the #1 U.S. market for the trading of exchange-traded funds (ETFs), today welcomed five new iShares ETFs
from BlackRock, a global leader in ETFs, to the BATS ETF Marketplace.
NASDAQ OMX Nordic: Trading Statistics October 2015
Nasdaq (Nasdaq:NDAQ) today publishes monthly trade statistics for the Nordic and Baltic markets. Below follows a summary of the statistics for October 2015:
BME: The Spanish Stock Market Traded EUR824.2 Bn. To October, Up 16.3% Year On Year; The equity trading volume in October reached EUR79.7 billion; Trading volume in ETFs to October increased 34.5% to over EUR10.8 billion; The trading volume in the Warrants and Certificates market in the first ten months was up 39.4%; Trading volume in IBEX 35 Futures and IBEX Mini Futures to October were up 8,3% and 9,3%, respectively year on year; New issues on the Corporate Debt market in October were up 181,5%, at EUR8.1 billion, double the amount registered last year
The equity trading on the Spanish Stock Market in the first ten months of the year came in at EUR824.2 billion, up 16.3% higher than in the same period a year earlier. The trading volume in October was EUR79.7 billion, down 16.6% from October 2014, which marked a record high in terms of trading volume and number of trades due to the volatility at that time.
Eurex: Trading statistics October 2015; Eurex Exchange: ADV 5.3 million contracts/ISE: ADV 2.5 million contracts
Eurex: In October 2015, the international derivatives markets of Eurex, part of Deutsche Börse Group, recorded an average daily volume of 7.8 million contracts (October 2014: 9.9 million). Of those, 5.3 million were Eurex Exchange contracts (October 2014: 6.6 million), and 2.5 million contracts (October 2014: 3.3 million) were traded at the New York based International Securities Exchange (ISE). The volume traded on the spot and derivatives power markets of the European Energy Exchange (EEX) amounted to 270.1 terawatt hours (October 2014: 154.4 TWh). Eurex Repo recorded in all markets in October 2015 an average outstanding volume of 144.6 billion euros.
Mini Futures on VSTOXX®: Change of Market-Making scheme
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG decided effective 2 November 2015 to modify the Designated Market-Making scheme for Mini Futures on VSTOXX® (FVS).
Guests from Taiwan: The Securities Finance Institute visits Eschborn
Michael Hsih holding a lecture for our guests from TaiwanZoom
Michael Hsih holding a lecture for our guests from Taiwan
The SFI, a partner of the Eurex Training & Education Initiative, has been visiting Deutsche Börse Group in Eschborn in October to learn more about their German partners. The group of 36 joined two training sessions: The first was conducted by our Capital Markets Academy and included lectures on fixed income investment and portfolio management and the second gave a half-day introduction of Eurex, DBAG and Clearstream.
Boerse Stuttgart generates turnover in the region of EUR 6.4 billion in October; Growth in trading in equities and exchange-traded products // Year-on-year increase in trading levels overall
According to its order book statistics, Boerse Stuttgart generated turnover of around EUR 6.4 billion in October 2015. The trading volume was almost 9 percent higher than a year previously.
Hedge Funds & Managed Futures
Here’s How Much QE Helped Wall Street Steamroll Main Street
Simon Kennedy – Bloomberg
Bank of America says asset gains have outpaced wage growth
Markets haven’t priced in `quantitative failure,’ bank says
Wall Street is counting its winnings from seven years of easy money.
In a report sent to clients on Sunday, Bank of America Corp. strategists totted up the results of 606 global interest-rate cuts since the collapse of Lehman Brothers Holdings Inc. and the $12.4 trillion of central bank asset purchases following the rescue of Bear Stearns Cos.
Pretending to Be Rich
By Trent Hamm – The Simple Dollar
Recently, I had a great email exchange with a reader whom we’ll call “Tim” about the incoming financial struggles of his in-laws as they age. His mother- and father-in-law are in their early seventies and have virtually nothing put away for retirement. Before too long, they’re going to be unable to work and because his spouse is an only child, his in-laws are expecting that Tim’s family will take them in. On the other hand, Tim’s parents are in their early sixties and already retired and will almost assuredly never become a financial burden to Tim and his spouse and children.
The end of a two-term president is usually bad news for the stock market
Myles Udland – Business Insider
Barack Obama has 15 more months left in the White House.
UBS: We think this will go down as one of the longest US economic recoveries in history
Sam Ro – Business Insider
The economists at UBS are unfazed by the recessionary warning signs.
The Hamptons estate of a late hedge funder just sold for $27 million
Dennis Green – Business Insider
A Hamptons home that belonged to the same family for more than 30 years has finally sold after more than a year on the market, according to The Wall Street Journal.
SocGen Slams the Corporate ‘Cheating’ Season; The stock rally will fade once a game-filled earnings season ends, according to the bank.
Luke Kawa – Bloomberg
Andrew Lapthorne, global head of quantitative strategy at Société Générale, has a certain disdain for the game of “lower and beat” that companies play with the analyst community each quarter.
Paul Singer Says Aug. 24 Shows Stock, Bond Markets Are ‘Unsound’
Simone Foxman – Bloomberg
Elliott’s two main hedge funds up 2.4% and 2.8% in 2015
Singer sees opportunities in activist stocks, stressed credit
Paul Singer, the billionaire founder of $27 billion hedge fund firm Elliott Management, said stock and bond markets are structurally “unsound” as evidenced in recent market volatility.
An heir, a legacy and a windfall
Henry Foy – FT
Sebastian Kulczyk, son of Poland’s richest man, must decide how to reinvest his father’s fortune
On February 11 2014, Sebastian Kulczyk walked into his first board meeting as the new, 33-year-old, chief executive of the investment house built by his father, Poland’s richest man. He was nervous.
Banks & Brokers
The GOP Debate and the Futures Industry
Rick Tomsic – Tradovate
The same issues that are facing our country are facing our industry. If we are going to generate growth in the country and in the futures industry we need more incentives for firms, especially new ones, to build and grow. This is still America and we would like to think startups can rise from nothing and have the same hopes and opportunities that a 1920’s immigrant had. As an industry we should lead change to generate growth.
UBS Profit Nearly Tripled in Third Quarter on Tax Benefit
By CHAD BRAY – NY Times
The Swiss bank UBS said on Tuesday that profit nearly tripled in the third quarter as it booked a big tax benefit and recorded lower litigation and regulatory charges.
UBS waters down targets on tougher economy, capital rules
BY JOSHUA FRANKLIN – Reuters
UBS (UBSG.VX), Switzerland’s biggest bank, watered down some of its financial targets on Tuesday due to a tough economic backdrop and new Swiss capital rules, overshadowing a forecast-beating rise in third quarter net profit.
GOLDMAN SACHS ANNOUNCES $150 BILLION CLEAN ENERGY TARGET BY 2025 IN NEW ENVIRONMENTAL POLICY FRAMEWORK
The Goldman Sachs Group, Inc. (NYSE: GS) today announced that it will expand its clean energy target to $150 billion in financings and investments by 2025 as part of its updated Environmental Policy Framework. First established in November 2005, the new framework codifies the roadmap for continued environmental progress across each of Goldman Sachs’ businesses.
Standard Chartered to slash 15,000 jobs
In its quarterly earnings statement, also released Tuesday, Standard Chartered reported a loss of $139 million. The bank attributed its lackluster performance to depressed commodity prices and the economic slowdown in China.
Clearing & Settlement
Ex-LCH.Clearnet chief to lead OTC risk start-up
By Anna Irrera – Financial News
The former head of LCH.Clearnet has been appointed chief executive of a risk solutions start-up that has today launched a new platform aimed at improving transparency and efficiency in the market for non-cleared over-the-counter-derivatives. Roger Liddell, who was on the board of LCH.Clearnet from 2005 until 2011 and was the clearer’s group chief executive for five of those years, has been named chief executive of NetOTC with immediate effect, according to a statement from the young London-based risk technology company on November 3.
NetOTC Launches Bilateral Platform For Non-Cleared OTC Derivatives Ahead Of Schedule
NetOTC, a provider of innovative risk solutions, today announced the launch of NetOTC Bilateral, the end-to-end bilateral market infrastructure for the margining of non-cleared OTC derivatives.
Securities Lending Activity Up 12% in October and 15% Year-to-Date
OCC, the world’s largest equity derivatives clearing organization, announced today that cleared contract volume in October was 367,647,983 contracts, a 26 percent decrease from the October 2014 monthly volume of 499,598,951 contracts. Average daily volume at OCC is down 3 percent in 2015 with 16,840,156 contracts. OCC’s stock loan program reported strong volume numbers in October with year-to-date activity up 15 percent.
Collaboration and utilities – drivers of derivatives processing transformation
Financial Markets Consulting has released a report, “Collaboration and Utilities ¾ Drivers of Derivatives Processing Transformation,” that discusses the inefficiencies that continue to challenge post-trade processing in both exchange-traded and cleared over-the-counter (OTC) derivatives, along with potential solutions that address these key industry pain points. Commissioned by SunGard, the study underscores a clear desire among global clearing firms for industry-wide collaboration and utilities to eliminate redundant and inefficient processes, drive the standardization of data, and migrate to systems that are more modular, open and real time.
Westpac sees ‘blockchain’ as an opportunity not a threat: Hartzer
Sydney Morning Herald
Westpac Banking Corp chief executive Brian Hartzer describes innovative “blockchain” technology as an intriguing development that could reduce the bank’s payments infrastructure costs in the future.
Indexes & Products
Peru bourse says to avoid MSCI downgrade to ‘frontier’ index
Peru’s stock exchange is optimistic it will avoid a downgrade by index provider MSCI Inc next year as at least two listed companies boost trading volume and start qualifying as “emerging market” securities, the bourse said on Monday.
S&P Dow Jones Indices And MSCI Announce Further Revisions To The Global Industry Classification Standard (GICS®) Structure In 2016
S&P Dow Jones Indices, a leading provider of financial market indices, and MSCI Inc., a leading provider of investment decision support tools worldwide, announced today that as a result of their annual review of the Global Industry Classification Standard (GICS®) structure, a new sub-industry is being created and two sub-industries are being combined. The addition to the GICS structure is a sub-industry for Financial Exchanges & Data, carved out from the Specialized Finance sub-industry. The other change to the structure involves the combination of the Catalog Retail and Internet Retail sub-industries.
MSCI to add overseas Chinese stocks this month
Index giant MSCI is planning to add some overseas-listed Chinese shares to its emerging markets indexes this month, which should lead to billions of dollars pouring into these stocks from mutual funds and other investment companies.
S&P Dow Jones Indices Market Attributes: U.S. Sector Dashboard
Sectoral performance was strong, as all 10 sectors of the S&P 500® ended October in the black. Bucking the recent trend, both the Energy and Materials sectors performed well across all capitalization ranges.
CQG Launches Multi-Asset Trading Platform
CQG today unveiled a multi-asset trading platform, CQG One, that allows traders to easily manage their portfolios; view real-market prices on forex, futures, and exchange-listed equities; and trade them seamlessly through one interface on any computer or mobile device.
NetOTC appoints Roger Liddell as Chief Executive Officer
NetOTC, provider of innovative risk solutions, today announced that Roger Liddell has been appointed CEO with immediate effect. Founded in July 2011 as an independent company, NetOTC employs more than 50 staff based in London and New York. Since its inception, NetOTC’s sole focus has been the development of a new generation of risk management and mitigation solutions for the non-cleared OTC derivatives market.
***DA: The firm also announced the launch of its bilateral platform for non-cleared OTC derivatives.
OneMarketData Acquires Tick Data Inc.
OneMarketData, the founders of OneTick, a single solution for event stream processing and time series management of historical and real-time tick data, today announced the acquisition of Virginia-based Tick Data Inc., a trusted and leading provider of historical intraday exchange time series data, for an undisclosed sum. Tick Data Inc. will be a wholly owned subsidiary of OneMarketData and will continue to operate from their Virginia offices under the current management team.
Data from U.S. agency cyber breach not on black market – researcher
Data stolen in a massive breach of the U.S. Office of Personnel Management has not shown up on the black market, a sign that a foreign government launched the attack, a researcher with U.S. cybersecurity firm Fireeye Inc said on Monday.
Without Web Access, the First Bitcoin Convict Finds a Way to Reach Fans From Prison; Charlie Shrem uses the prison e-mail system and a man named Bitcoin Jesus to relay messages to his online followers.
Olga Kharif – Bloomberg
Charlie Shrem wouldn’t let prison stop him from chatting with his online fans. Even after becoming the first person ever convicted of a Bitcoin-related crime, Shrem continues to cultivate a following among Bitcoin loyalists, some of whom paint him as a sort of martyr for the digital currency.
Trade from virtually anywhere
Patrick Rooney via LinkedIn
Many years ago a friend of mine and I tossed around the idea of being able to trade from anywhere. The plan was to start trading in the morning, check positions while riding the gondola up to the top of the mountain in Breckenridge, Colorado, then close out from atop the mountain or pull off the trail and close out while enjoying a ski day.
Technology: Banks seek the key to blockchain
Jane Wild, Martin Arnold and Philip Stafford – FT
It doesn’t feel like a revolutionary moment. A member of a small team from the Swiss bank UBS, holed up on the 42nd floor of London’s Canary Wharf, taps a screen and a bond is sold by a company called ABC to an investor called XYZ. It is the type of transaction executed millions of times a day by banks globally but this dummy transfer is different. It was completed via an internal blockchain, the shared database technology that gained notoriety as the platform for the crypto currency bitcoin. Banks are now racing to harness the power of the blockchain technology, in a belief that it could cut up to $20bn off costs and transform the way the industry works.
How to Set Up Your TT Demo Account and Start Trading
Trading Technologies via YouTube
See how to set up your free TT demo account and try the next-gen TT platform, the go-anywhere trading platform designed for professional derivatives traders. The process takes just a few minutes and requires only an email address.
Goldman Sachs invests $35M into ‘hacker-security’ company
By Kevin Dugan – NY Post
Goldman Sachs to pay $50M fine over documents scandal
An investing arm of Goldman Sachs has made a $35 million first round investment in iboss Cybersecurity, an 11-year-old San Diego tech firm, The Post has learned.
Computer Voice Systems, Inc. (CVS) announced the latest addition to their Quick Suite Trading (QST) family of software products
Computer Voice Systems, Inc.
Computer Voice Systems, Inc. (CVS) announced the latest addition to their Quick Suite Trading (QST) family of software products and services for the futures trading industry. QBO™ (Quick Back Office) is the first real-time back office system developed with modern technology and infrastructure. It has been designed to provide futures commission merchants (FCMs) with real-time access to customer account activity and risk management. QBO can operate as a standalone back office system or as part of QST’s family of trading solutions that include native trading front-ends for Windows, OS X, iPhone/iPad, Android, Blackberry and browser.
NFA bars Stamford, Conn. commodity pool operator and commodity trading advisor Nord Capital Advisors from membership
National Futures Association (NFA) has permanently barred Nord Capital Advisors LLC (Nord Capital), an NFA Member commodity pool operator and commodity trading advisor located in Stamford, Conn. with a branch office in Moscow, Russia, and Yakov Shlyapochnik, an associated person and principal of Nord Capital, from membership. In addition, Nord Capital and Shlyapochnik are both barred from acting as principals of an NFA Member and must pay a $300,000 fine.
JPMorgan settles California debt collection charges
BY JONATHAN STEMPEL – Reuters
JPMorgan Chase & Co will pay $50 million to settle charges that it engaged in abusive credit card debt collection practices against tens of thousands of people in California, state Attorney General Kamala Harris said on Monday.
SEC says ex-Wells Fargo analyst tipped boyfriend to dental deal
BY NATE RAYMOND – Reuters
U.S. securities regulators on Monday accused a former Wells Fargo & Co analyst of engaging in an insider trading scheme that enabled her then-boyfriend to make over $220,000.
Margin trader Online Capital Markets fined for misleading ads
Michael Roddan – The Australian
The corporate watchdog has hit margin trading platform operator Online Capital Markets with a total of $30,600 in fines for false and misleading advertising.
Standard Chartered being investigated in Britain: CEO
Yahoo News UK
Britain’s financial watchdog has two open investigations into British bank Standard Chartered, the lender’s CEO said on Tuesday.
“We have two investigations with the FCA (Financial Conduct Authority) related to sanctions compliance and anti money laundering oversight,” chief executive Bill Winters said in a conference call.
Barclays in $94 million Euribor accord, other banks could follow
BY JONATHAN STEMPEL
Barclays Plc agreed to pay $94 million to settle U.S. antitrust litigation by investors that accused 11 banks of conspiring to manipulate the benchmark European Interbank Offered Rate (Euribor) and related derivatives.
Environmental & Energy
How Gas-Guzzling Americans Are Aiding the Call for More Biofuels
Mario Parker – Bloomberg
Obama administration may increase biofuel consumption targets
U.S. gasoline demand this year to reach highest since 2007
Americans are burning the most gasoline in eight years. And the nation’s ethanol suppliers wouldn’t have it any other way.
There’s a Hole in the Sun That’s Going to Make the Skies Dazzle
Brian K Sullivan – Bloomberg
The sun is going to spit charged particles our way on Tuesday
Aurora may be seen in parts of New York, U.K. and Asia
The sun’s about to spit charged particles our way. And that solar wind of protons and electrons will interact with the Earth’s magnetic field to light up the skies with a dazzling display of color through Wednesday.
World’s largest offshore wind farm to power nearly half a million homes; The project is expected to be complete in 2018 and will produce 660 megawatts of power using 87 different turbines. The company responsible will eventually provide electricity to 12.5 million Europeans.
By Patrick Torphy, CS Monitor
The largest offshore wind farm in the world will soon grace the Irish Sea.
Hong Kong, Singapore Rise in Global Finance Secrecy Rankings
Hong Kong and Singapore have increased their ranking for financial secrecy, with the Chinese territory rising to number two behind only Switzerland in a 2015 index of the world’s offshore havens compiled by the Tax Justice Network.
Forbes family sues Chinese investors over deal
James Fontanella-Khan in New York and Henry Mance in London – FT
The family behind Forbes magazine has sued the Chinese investors that acquired a majority stake in the US business publisher last year, alleging that they have refused to pay a substantial portion of the promised price.
Xi Says China Needs at Least 6.5% Growth in Next Five Years
China’s president signaled policy makers will accept slower growth, but not much slower, as details of a blueprint set to define his term as leader were released Tuesday. Annual growth should be no less than 6.5 percent in the next five years to realize the goal to double 2010 gross domestic product and per capita income by 2020, President Xi Jinping said Tuesday, according to the official Xinhua News Agency.
China detains high profile investor after stock market crash
Untethered from economic reality, Chinese stocks soared over the last year, with the Shanghai Composite Index rising 150 per cent in the year through mid-June. On June 12, the bubble burst: Shanghai stocks have since tumbled, though they remain about 40 per cent above where they were a year ago. Backtracking on a pledge to give market forces a greater say, the government tried to stop the free fall. It suspended trading in many companies, restricted the use of borrowed money for some trades and banned big investors from selling their stakes for six months.
After forex scam, we’re doing internal audit of branches: Animesh Chauhan; Interview with Managing director and chief executive officer, OBC
Dilasha Seth – Business Standard
Stepping up vigilance and checks, Oriental Bank of Commerce (OBC) is currently conducting an internal audit of its bank branches to monitor any sudden jumps and blips in transactions with an aim to avoid scams and frauds in the future. Animesh Chauhan, managing director and chief executive of the bank, tells Dilasha Seth after the announcement of second quarter results that he expects the bank’s bad debts to come down in coming quarters with improvement in the economy. Edited excerpts
Myanmar vies to retain investor allure as Golden Land glow fades
Foreign investment flows to Myanmar have tailed off since a mini-boom just before the military junta stood aside, as cooler relations with China, a tricky business environment and persistent sanctions drag on this new commercial frontier.
Can Singapore lead the Bitcoin evolution in Asia ?
In frontier and emerging markets, a simple mechanism linking Bitcoin to SMS transactions could open the space for telcos to explore opportunities in remittances, payments and other transactions.
The Decay of Twitter; The social network fundamentally changed in early 2014. And that’s causing big problems for the company.
ROBINSON MEYER – The Atlantic
On Tuesday, Twitter Inc. announced another dreary set of quarterly earnings. While the company beat investor expectations, it’s still running at a loss of $132 million after taxes. Its fourth-quarter projections seem low. Worst of all, its namesake product has essentially failed to add any active American users in 2015.
Henry Blodget’s big plans for Business Insider
Capital New York
Henry Blodget spent the past eight years transforming Business Insider from a scrappy three-man show into a new-media heavyweight that has come to represent the potential for journalism startups in the digital age.
Farmers Shift to Leases, Threatening to Swell Machinery Glut; Leasing out tractors, combines helps makers sustain demand but risks saturating used market
By BOB TITA – WSJ
Farmers increasingly are leasing tractors, combines and other equipment as grain prices continue to slump, helping prop up manufacturers’ sagging sales. But this shift raises the risk of further saturating the farm-machinery market.