First Read

Bits & Pieces
By John J. Lothian

It is storming in Chicago today. Tomorrow, weathering permitting, Jim, Doug, Patrick and I head to New York for the Summer Intern Education Series at the New York Stock Exchange on Wall Street on Wednesday, July 15. There is still seating available, so sign up today.

In Chicago, we have limited seating for the last day’s event, and we have promised some of it to the CME as this year’s Global Premier Sponsor. Thus, if you want to hear Chicago Mayor Rahm Emanuel and CME Group CEO Phupinder Gill at Trading Technologies’ Chicago headquarters, you need to sign up ASAP. Also, you will not want to miss the craft beer at the Tech Tap after the event.

We have added a speaker to be named later from BATS, who have also agreed to be a sponsor of the Chicago series again this year. Last year the video of BATS’ Jeromee Johnson was one of our most watched. It was an impressive performance, speaking, engaging and presenting information, while holding a cup of Starbucks coffee.

We have six copies of the Series 3 Training Course from The IFM that we will be giving away during the New York and Chicago events, three at each. This has proved to be a very popular item at previous year’s events.

We will also be giving away other schwag at this year’s events. If you have some extra items in your company’ marketing closet you want to share with the interns, please contact me. T-shirts are always popular with the interns. Titleist Pro-V1 golf balls are also popular, but they usually end up in Doug’s briefcase.

The good news about the weather in Chicago is that in a week I will be at summer camp with my Boy Scout troop and the weather will be great the entire week, with only gentle rains in the middle of the night. Or so I hope.

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Eurozone Leaders Reach Unanimous Agreement on Greece; Deal requires Greek government’s near-total surrender to creditors’ demands
By GABRIELE STEINHAUSER, VIKTORIA DENDRINOU and MATTHEW DALTON, WSJ
Eurozone leaders said Monday morning that they would give Greece up to EUR86 billion ($96 billion) in fresh bailout loans as long as the government of Prime Minister Alexis Tsipras manages to implement a round of punishing austerity measures in the coming days.
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***** What is Greek for “Surrender or else!” The good news for Greece is that there is a new “Greek Kitchen” or GRK in the location where Cal’s Liquors was at the corner of Van Buren and Wells in Chicago. It is amusing that there is a Greek restaurant on the location of one of the greasiest spoons in Chicago. I think it is karma.

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Reg Roadmap: European Regulation Winding Its Way Forward
JohnLothianNews.com

The European regulatory overhaul has been long and winding as industry participants grapple with three major initiatives simultaneously: EMIR, MIFID II and Basel 3, just to name a few.

Even with the recent delay of MIFID II standards to September, regulatory experts say there is progress on some key areas, including an ongoing effort by US and EU regulators to find common ground on key sticking points, such as margin rule differences.
View the Special Report »
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China police find clues of illegal stock trading
Xinhua
An investigation team led by China’s Vice Minister of Public Security Meng Qingfeng has found clues that certain trade firms have suspectedly manipulated futures trading in the stock market.
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***DA: Another U.S. financial market construct co-opted by China – the scapegoating of futures whenever there is a market meltdown.

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Quad Group, consisting of Quad Capital Management, Quad Securities Holdings and Quad Advisors, has recently added several experienced futures traders to its growing team.
Quad Group
Jon Brudner, who heads up the futures trading desk at Quad Group announced the new hires:
John Curran, formerly of Caxton
Phillip Gershgorin, formerly of Hetco
Laura Hunt, formerly of Graham Capital and Goldman Sachs
Chris Kelly, former NYMEX trader
Steven Overbey, former NYMEX trader
Josh Roberts, formerly of Vermillion
Bruce Urquhart, formerly of Irving Refinery
“We are excited about the caliber of futures traders we have added,” said Peter Borish. Head Strategist at Quad Group. “Our payout structure is unparalleled which attracts experienced futures traders who are excited to grow with the Quad Group.”
jlne.ws/1CzRtKX

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Is the NYSE relevant anymore?
By Jonathon M. Trugman, NY Post
The New York Stock Exchange’s leadership proved the Big Board’s irrelevance Wednesday as it halted trading for nearly four hours and investors didn’t flinch.
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***** Tradeless floor found…..

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The Hassle of Inheriting a Brokerage Account; It can be more complicated than you might think. Here’s how to overcome the hurdles
By MATTHIAS RIEKER, WSJ
Inheriting silverware may be dull—but it could be simpler than inheriting a brokerage account.
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****** I think I could find a way to handle it.

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MarketsWiki Education Intern Series 2015
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The Chinese SEC, as in, Securities Execution Commission
The Streetwise Professor
Trying to staunch the bleeding in the stock market, China is unleashing the full power of a police state. A Securities Execution Commission, if you will:
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****** How do you spell “Plunge Protection Team” in Chinese?

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Bridging the Week by Gary DeWaal: July 6-10 and 13, 2015 (MF Global; John Corzine; Money Passes; REMIT; G-IBs)
Gary DeWaal, Katten Muchin Rosenman
Enforcement actions, private litigation and guidance regarding the criteria for regulatory investigations took center stage in developments impacting the financial services industry last week. In one disciplinary action brought by the Financial Industry Regulatory Authority, there were no fines – apparently in light of the “extraordinary cooperation” of the named broker-dealers. In the publication of “Enforcement Referral Criteria,” the UK Financial Conduct Authority provided insight into its deliberation process for commencing investigations for possible wrongdoing. As a result, the following matters are covered in this week’s edition of Bridging the Week:
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Banking regulators heighten financial market risk
Commissioners Michael Piwowar (SEC) and J. Christopher Giancarlo(CFTC) in Reuters
The 2008 financial crisis had a devastating impact on nearly all aspects of our economy but one, the regulatory machine. In the aftermath of the crisis, policymakers seeking a simple narrative for how these events transpired claimed that financial markets, and the participants overseen by the capital and derivatives markets regulators, were the primary cause of the financial crisis. This ill-informed assertion led to a misconceived solution: a massive increase in financial regulation.
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***DA: A regulatory mea culpa from two outspoken commissioners.

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Lead Stories

China’s Incendiary Market Is Fanned by Borrowers and Manipulation
By DAVID BARBOZA, NY Times
At the height of the frenzy for Chinese stocks, just about every company was a winner. An online gaming start-up was valued at $7 billion. Shares in a fireworks company that had moved into finance shot up 300 percent. A struggling property developer was transformed into a stock market darling, just by changing its name to suggest it was an Internet company. Then there was the case of Beijing Baofeng Technology, an online video company whose stock price soared 4,200 percent in the three months after it went public early this year. The company’s shares climbed by 10 percent — the maximum amount allowable under exchange rules — nearly every day for more than 30 days.
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***** Key quote from the article: “In China, the regulators aren’t neutral,” said Chen Zhiwu, a professor of finance at Yale University and an expert on China’s financial system. “The government’s stated intention this time was that they wanted to use the stock market boom to fuel innovation and start-ups. This isn’t how a market is supposed to work.”

China regulator orders brokerages to review trades following stock rout
BY GERRY SHIH, Reuters
China’s securities regulator instructed brokerages on Sunday to review trades and enforce rules that require the use of real names and national identification numbers, the latest move by the government aimed at stabilizing stock prices following a devastating market rout the past month.
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Flash Boys Welcome: World Exchanges Woo High-Frequency Traders
by Sam Mamudi, John Detrixhe, Benjamin Bain, Bloomberg
Hey there, flash boy. Exchanges around the world are avidly wooing high-frequency traders, those controversial speed demons of Wall Street. Despite the often explosive debate over this kind of trading in the U.S., bourses in Mexico, Turkey, South Africa and beyond are trying to lure HFT types to boost business.
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Regulators Tie High-Speed Trading to Treasury Volatility
by Ian Katz, Bloomberg
U.S. officials have concluded that high-frequency trading contributed to the Treasury market’s wild ride last October, a finding that will probably add to regulatory scrutiny of the industry.
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Concern About Trading of U.S. Treasurys Prompts Review by Regulators; Findings of study to be released Monday; investors cite rising difficulty in trading large blocks of debt
By KATY BURNE, WSJ
U.S. regulators have become increasingly concerned in recent months about unstable trading in the $12.6 trillion U.S. Treasury market, where investors turn for safe-haven securities and set interest rates that are a benchmark for much of the rest of the global financial system.
jlne.ws/1JdHiIG

Brevan Howard abandons Geneva and returns to London
Miles Johnson, Hedge Fund Correspondent, FT
Brevan Howard is moving some of its most senior traders back to London from Geneva, reversing a high-profile decision by the $27bn hedge fund to leave the UK and bucking concerns that the City’s status as Europe’s leading hub for the industry was under threat.
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China’s equity bust is good news for global markets
Trevor Greetham,
Liquidity-driven boom was always built on shaky ground
China’s stock market fell by more than a third over the past month, wiping off more than $3tn in value in what must rank as one of the most rapid destructions of wealth in history.
jlne.ws/1fClLT7

China’s Stock-Market Fear Is Everyone’s Worry; Government measures to stop a stock rout speak volumes about the country’s growth potential
By ALEX FRANGOS, WSJ
China’s leaders are clearly freaked out about the stock market. Global investors need to wonder how nervous they should be, too.
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How Future Bitcoin Can Prevent a Future Greece; The digital currency is at a turning point, evolving much more quickly than some observers realize
By CHRISTOPHER MIMS, WSJ
Bitcoin, the volatile digital currency, cannot help the Greeks of today. But it could mean a great deal to those caught up in currency crises to come.
jlne.ws/1M5MmFb

In Fiery Speeches, Francis Excoriates Global Capitalism
By JIM YARDLEY and BINYAMIN APPELBAUM, NY Times
His speeches can blend biblical fury with apocalyptic doom. Pope Francis does not just criticize the excesses of global capitalism. He compares them to the “dung of the devil.” He does not simply argue that systemic “greed for money” is a bad thing. He calls it a “subtle dictatorship” that “condemns and enslaves men and women.”
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The tricky business of currency hedging
John Plender, FT
It is a truism to say that today’s markets are more beholden to central bankers than ever before. It is also true that they are increasingly driven by outsize currency movements that reflect strikingly divergent monetary policy across the globe. In its latest annual report, the Bank for International Settlements shows that in the euro area a statistically significant relationship has emerged since 2014 between returns on the Euro Stoxx index and the euro/dollar exchange rate. Specifically, a 1 per cent depreciation of the euro has, on average, coincided with a rise in equity prices of around 0.8 per cent.
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Low tax and high fees consume Future Fund
Chris Newlands
When leaked documents describing the tax avoidance arrangements of 340 companies were published in November last year, one of the most surprising names to appear among the papers was the Future Fund, Australia’s sovereign wealth fund.
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When the power fails, New York carries on. London is in the dark
The Independent
It was the crisis that never happened. On Wednesday a technology glitch meant that the New York Stock Exchange (NYSE) went down for four hours. The news quickly flashed around the world, and even the President was briefed on the matter.
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Regulatory

Props back FIA’s planned ‘locals’ change
Futures & Options World
The EU’s Capital Requirement Regulation (CRR) over proprietary trading firms – one of the so-called “unintended consequences” of Mifid II – raised its ugly head last week, with the Futures Industry Association (FIA) issuing a position paper on the issue. The paper included proposed changes aimed at keeping prop firms outside the scope of the EU’s stringent capital rules, a scenario that could prove disastrous to European market liquidity.
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Financial regulator to be grilled over delay to HBOS report
Caroline Binham, Financial Regulation Correspondent, FT
The UK financial regulator is to be grilled at its annual meeting on the continued delay to its long-awaited report on the collapse of HBOS.
jlne.ws/1M1iIjh

SIFMA Calls for Financial Services Regulatory Coordination in TTIP Negotiations;SIFMA Calls for Financial Services Regulatory Coordination in TTIP Negotiations
SIFMA
Today, SIFMA sent a letter to United States Trade Representative Michael Froman and issued the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO in support of including a framework to discuss financial services regulation within Trans-Atlantic Trade and Investment Partnership (TTIP):
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Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
SEC

    • BATS: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc. (Release No. 34-75422; File No. SR-BATS-2015-52); see also Exhibit 5

 

    • BATS: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Market Data Section of its Fee Schedule (Release No. 34-75406; File No. SR-BATS-2015-48); see also Exhibit 5

 

    • BOX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend IM-3120-2 to Rule 3120 to Extend the Pilot Program that Eliminated the Position Limits for Options on SPDR S&P 500 ETF (Release No. 34-75410; File No. SR-BOX-2015-25); see also Exhibit 5 and Exhibit 3

 

    • BYX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Market Data Section of its Fee Schedule (Release No. 34-75407; File No. SR-BYX-2015-30); see also Exhibit 5
    • ICEEU: Notice of Filing of Proposed Rule Change Relating to Credit Default Swap Risk Policies (Release No. 34-75426; File No. SR-ICEEU-2015-010)
    • ISE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend the SPY Pilot Program (Release No. 34-75411; File No. SR-ISE-2015-22); see also Exhibit 5 and Exhibit 3
    • MIAX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Its Fee Schedule (Release No. 34-75408; File No. SR-MIAX-2015-45); see also Exhibit 5
    • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Relating to Non-Penny Pilot Options Fees (Release No. 34-75423; File No. SR-NASDAQ-2015-070); see also Exhibit 5
    • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to SPY Position Limits (Release No. 34-75413; File No. SR-NASDAQ-2015-072); see also Exhibit 5 and Exhibit 3

 

    • NASDAQ OMX BX: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to SPY Position Limits (Release No. 34-75412; File No. SR-BX-2015-039); see also Exhibit 5 and Exhibit 3

 

    • NASDAQ OMX BX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Exchange Rule 7018 (Release No. 34-75409; File No. SR-BX-2015-038); see also Exhibit 5

 

      NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .06 to Rule 6.8 to Extend the Pilot Program that Eliminated the Position Limits for Options on SPDR S&P 500 ETF (Release No. 34-75415; File No. SR-NYSEArca-2015-61); see also Exhibit 5 and Exhibit 3

 

    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .07 to Rule 904 to Extend the Pilot Program that Eliminated the Position Limits for Options on SPDR S&P 500 ETF (Release No. 34-75416; File No. SR-NYSEMKT-2015-49); see also Exhibit 5 and Exhibit 3

 

    • Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Adopt a Midpoint Peg Post-Only Order under Rule 3301A(b) (Release No. 34-75424; File No. SR-Phlx-2015-56); see also Exhibit 5

 

    • Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to SPY Position Limits (Release No. 34-75414; File No. SR-Phlx-2015-60); see also Exhibit 5 and Exhibit 3

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Exchanges & Trading Facilities

Bob Greifeld, Nasdaq: diversification’s dividend
Nicole Bullock, FT
Bob Greifeld, Nasdaq’s chief executive, may live in a world of bulls and bears, he told a class from New York University Stern School of Business at their recent graduation, but his passion is for turtles. He collects them.
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NYSE: This is why we halted floor trading
Fred Imbert, CNBC
A day after halting floor trading for nearly four hours amid a technical issue, the New York Stock Exchange issued a statement explaining what happened on Thursday. (Tweet This)
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HKFE Announces Revised Margins for Aluminum Corporation of China and CITIC Futures
HKEx
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HKFE Announces Revised Margins for Futures Contract
HKEx
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Investor Protection Does Not Always Benefit Investors – Rainer Riess, Director General, Federation of European Securities Exchanges (FESE) & Dr Christoph Boschan, Member Of The Management Board, Boerse Stuttgart AG
Mondovisione
Although binding rules are important for the markets, a poorly conceived system of pension provision can be detrimental to investors.
jlne.ws/1Lb9oc4

Tokyo Stock Exchange: More Than 600 Companies Using “Company Announcements Distribution Service In English”
MondoVisione
Tokyo Stock Exchange, Inc. (TSE) is pleased to announce that the number of listed companies using “Company Announcements Distribution Service in English” has exceeded 600.
jlne.ws/1Gha60N

TAIFEX To Launch RMB FX Futures On July 20, 2015, With Two New ETF Futures Added On July 8, 2015
MondoVisione
The Taiwan Futures Exchange (TAIFEX) will launch two RMB FX futures contracts, the USD/CNT FX futures (RTF) and the USD/CNH FX futures (RHF) on July 20, 2015. RTF and RHF are with contract sizes of USD 20,000 and USD 100,000 respectively. Trading hours for both contracts will be from 8:45am to 4:15pm to cover the trading hours of Taiwanese interbank spot FX market.
jlne.ws/1M1oce3

R5FX EMERGING MARKETPLACE ENTERS BETA TEST PHASE
R5FX
R5FX, the emerging marketplace for local market FX trading, today announced the successful completion of its first Brazil, Russia, India and China (BRIC) trades. The London FinTech start-up is now in beta testing, prior to launch later this year.
(NO LINK)

Hedge Funds & Managed Futures

For Indians, paper gold can’t beat the real thing; Physical gold helps hide ‘black money’;D ealers to boycott tax requirement for bigger purchases;Doubts over attraction of gold-backed bonds, gold deposits
By Rajendra Jadhav, Reuters
India is meeting stiff resistance in its drive to make the buying of gold jewellery more transparent and to channel demand into paper gold to stop the metal being used to hide billions of dollars of undeclared ‘black money’.
jlne.ws/1Gh4HH5

Gender diversity: a hidden problem for fund houses
Madison Marriage, FT
Information is a prized commodity for fund managers, who demand high levels of transparency from the companies they invest in.
jlne.ws/1CzKb9S

Asset managers are putting on the poor mouth
Sophia Grene, FT
Sophia Grene feels little pity for an industry making money out of a lack of transparency
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Appetite for hedge funds remains strong
Chris Newlands,FT
When Calpers, the largest US public pension fund, talks, everyone with an interest in institutional asset management stops to listen.
jlne.ws/1HYkgZU

Greek, Chinese and Puerto Rican Crises All Fall Short of Going Global; Scant financial contagion of the sort that followed deepening U.S. mortgage crisis in 2008
By GREG IP and JON HILSENRATH, WSJ
After economic turmoil erupted on three continents in recent weeks, a familiar consequence of past crises is notably absent: panic.
jlne.ws/1M1kocN

Learn to Chart, Learn to Lose Less Money, Learn These Books; Technical analysis for the masses
by Tom Keene, Bloombert
Here is reality: Books on charts, or technical analysis, sell like hotcakes.
jlne.ws/1O5O7Ae

BlackRock proposes bond market liquidity reforms
Anna Fedorova, Investment Week
BlackRock has published a paper proposing a raft of reforms for regulators and asset managers to address the growing problems with liquidity in the bond market.
jlne.ws/1Sj76b9

Managers warn of ‘massive repercussions’ from unwinding of China bubble
Natalie Kenway, Investment Week
Fund managers have warned the Chinese government’s latest intervention to halt a stock market rout will not be enough to prevent a noticeable slowdown for the world’s second largest economy, with huge repercussions for global growth.
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Banks & Brokers

Mack the Knife steps in to call the tune at Barclays
Martin Arnold, FT
Among the dinosaur skeletons of London’s Natural History Museum at this week’s Euromoney awards, one of the main topics of discussion was how Antony Jenkins had been made extinct as Barclays chief executive.
jlne.ws/1HpXWoj

Lehman’s Fuld defeats employee lawsuit over retirement losses
By Jonathan Stempel, Reuters
A U.S. federal judge on Friday dismissed a lawsuit by former Lehman Brothers Holdings Inc employees seeking to hold onetime Chief Executive Richard Fuld liable for their retirement plan losses as the Wall Street bank plunged into its 2008 ban
jlne.ws/1Mpmi4J

UK regulator fails to harpoon London Whale
Caroline Binham, Financial Regulation Correspondent, FT
The UK’s financial watchdog has failed to harpoon the London Whale: the former JPMorgan Chase trader at the centre of a $6bn mismarking scandal that cost the bank $1bn in penalties.
jlne.ws/1dVBb2Q

Hayes Says UBS Had ‘Instruction Manual’ for Rigging Rates; Tom Hayes tells Libor trial he decided to fight charges after he was shown internal UBS document
By DAVID ENRICH, WSJ
Tom Hayes, the alleged mastermind of a global interest-rate-rigging conspiracy, said that he decided to fight charges against him after discovering in 2013 that his former employer, UBS AG, had what he called an “instruction manual” for manipulating rates.
jlne.ws/1HpRxLW

TD Ameritrade Experienced Order Routing, Messaging Problems; Issue related to overnight software update, was resolved at 10 a.m. ET
By DANIEL HUANG And BRADLEY HOPE, WSJ
Some TD Ameritrade Holding Corp. customers experienced delays in placing orders Friday morning due to a software glitch, the brokerage said.
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Clearing & Settlement

Thomson Reuters SEF Completes Certification Testing With LCH.Clearnet’s ForexClear
Mondovisione
Thomson Reuters Swap Execution Facility (SEF) undergoes rigorous certification testing with LCH.Clearnet to meet demanding functional and technical test requirements as a prerequisite to offering comprehensive functionality when providing a connection to clearing for dealer-client FX non-deliverable forwards (NDF) transactions
jlne.ws/1K0DUGS

PC-SPAN Version 4.5 Build 588A
CME Group
Please be advised that on Monday July 13th, 2015 CME Clearing will release a new build of PC-SPAN, Version 4.5 Build 588A. This build includes support for hybrid spreads. It will be available for download through CME Core on Monday July 13th, 2015. Access to CME CORE requires a CME SMART CLICK ID. New users can register here: ttps://login.cmegroup.com/sso/register
jlne.ws/1Lb77xj

Dtcc snaps up assets as counterparty link folds
Waters Technology
CPL was a global legal entity source for KYC-relevant financial information. The company had some 80 customers, for which it provided research and maintenance of legal entity data for know-your-customer and anti-money laundering regulation.
jlne.ws/1UU7mSb

Change in trading platform and procedures for derivatives contracts traded on Nasdaq Dubai
Zawya
Note that Nasdaq Dubai is only outsourcing its trading system function to Dubai Financial Market . Clearing will continue to take place on Nasdaq Dubai ‘s Clearing system. All trading and clearing will be subject to Nasdaq Dubai Business Rules and operating procedures.
jlne.ws/1JdHcAW

Indexes & Products

China’s market-tracking ETFs roiled by share suspensions
Josh Noble in Hong Kong, FT
A wave of stock suspensions has played havoc with exchange traded funds tracking Chinese markets, causing wild price swings and big price gaps between passive funds and the assets they track.
jlne.ws/1HpMfjA

KBW and Nasdaq Launch Global Bank Index
NASDAQ.com
Keefe Bruyette & Woods (KBW), a Stifel company (NYSE:SF), and Nasdaq (NASDAQ:NDAQ) today announced the launch of the KBW Nasdaq Global Bank Index (Ticker: GBKX), the first and only index designed to track the performance of those banks designated as global systemically important (G-SIBs) by the Financial Stability Board and Basel Committee on Banking Supervision. The 28 banks included in the KBW Nasdaq Global Bank Index represent 45% of the global investable banking universe and account for approximately $3T in total market cap.
jlne.ws/1UU3O27

Global index provider MSCI joins the list of those blamed for China market crash |
South China Morning Post
As Beijing fights its worst stock market crisis in years, the two most important questions facing leaders – including Premier Li Keqiang – must be where to find the money to boost the market and what was the real cause of the crash.
jlne.ws/1JdHp77

How to Beat a Stock Index
Barron’s
Money managers like to flatter their performance record by pitting it against a patsy index. If you’re shopping for such a benchmark, consider the Russell 2000. June’s end brings the annual reshuffling of this small-cap index, which comprises the 2,000 U.S. stocks whose market capitalizations trail the 1,000 large-caps of the Russell 1000.
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Technology

The next wave for high-speed trading
By Tim Cave, Financial News
on Somerset’s north coast is a big draw for beach lovers. It is easy to see why when you stand on its long stretch of sand, which faces westward and is reputedly the second-longest of its kind in Europe.
jlne.ws/1TwGl5z

Cybersecurity firm CrowdStrike raises $100 mln in funding round
BY JOSEPH MENN, Reuters
Closely held cybersecurity firm CrowdStrike Inc has raised $100 million in a funding round led by Google Capital, giving it an undisclosed valuation that sources close to the transaction said was approaching $1 billion.
jlne.ws/1HWZxHB

The Future Of Finance Is In Real Time
TechCrunch
In a world of decreasing size and rapidly increasing technological development, the financial sector needs to keep up at the same pace. While physical supply chains have improved to keep track of the digital world, the financial supply chain has not kept pace.
jlne.ws/1JdHJ5K

Enforcement

Federal Court Orders North Carolina Resident Carl David Wright to Pay a $1 Million Civil Penalty for Commodity Pool Fraud
CFTC
The Court’s Orders arise out of the CFTC enforcement action filed on June 24, 2013, charging Wright with violating the anti-fraud provisions of the CEA by fraudulently soliciting and accepting at least $1 million from approximately 16 customers (see CFTC Complaint and Press Release 6618-13). According to the Consent Order, although Wright told participants that their funds would be invested in a variety of investments, including commodity futures, he in fact misappropriated most of the funds, using them to pay personal expenses and to make so-called profit payments to participants.
jlne.ws/1dQqhLZ

DOJ investigates ex-Deutsche Bank traders over Libor: Bloomberg
Reuters
U.S. Department of Justice prosecutors are investigating former Deutsche Bank AG traders in connection with their participation in the interest rate-rigging scandal and could bring charges this year, Bloomberg reported, citing two people with knowledge of the situation.
jlne.ws/1TwKCWO

Financial Adviser and Race Car Driver Convicted of Conning Millions from Investors; Arizona men convicted of defrauding Long Island business people, professional athletes
By MARIA ARMENTAL, WSJ
A former financial adviser and a retired professional race car driver were convicted Thursday of conning millions of dollars from investors, from Long Island businessmen and police officers to Olympics and National Hockey League stars.
jlne.ws/1UU8Jjz

Environmental & Energy

Saudis Pump Record Crude as OPEC Sees Stronger Demand in 2016
by Grant Smith, Bloomberg
Saudi Arabia told OPEC it raised oil production to a record as the organization forecast stronger demand for its members’ crude in 2016.
jlne.ws/1CAqKxn

Benefits far outweigh costs of tackling climate change, says LSE study
By Katie Allen – The Guardian
The economic benefits for a country from tackling climate change easily outweigh the costs, according to a study that seeks to highlight the incentives for individual nations to take urgent action to cut emissions.
jlne.ws/1K0p8Qv

Gas overtakes coal at US power stations
By Ed Crooks – Financial Times
The US generated more of its electricity from gas than from coal for the first time ever in April — in a sign of how the shale boom is putting mounting pressure on the country’s mining industry.
jlne.ws/1IUFFE1

Environmentalists differ in mindset, willingness to work with frackers
By Katelyn Ferral – TribLive
On the battleground against fracking, critics who say they fight for the environment often are branded broadly.
jlne.ws/1fBV1C2

Asia-Pacific

China’s rich seek shelter from stock market storm in foreign property
BY JANE WARDELL AND KATE HOLTON, Reuters
Realtors in Australia, Britain and Canada are bracing for a surge of new interest in their already hot property markets, with early signs that wealthy Chinese investors are seeking a safe haven from the turmoil in Shanghai’s equity markets.
jlne.ws/1M5O35p

Stock market rescue places China’s renminbi reform under threat
Tom Mitchell in Beijing, FT
The crisis that erupted on China’s stock markets over the past month destroyed about $3tn in market capitalisation before an unprecedented rescue programme appeared to calm investor nerves on July 9 and 10.
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China’s Richest People Just Lost About $100 Billion in a Month; Market Seesaw Reshapes Global Wealth Landscape
by Tom MetcalfJack WitzigSterling Wong, Bloomberg
It takes an iron stomach to be one of the richest people in China.
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China market rout, slowing economy sap demand for luxury cars
BY NORIHIKO SHIROUZU, Reuters
Prices for German luxury cars in China are tumbling as the country’s stock market sell-off and worries about broader economic growth chill demand for auto brands that once commanded price premiums from affluent Chinese consumers.
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China wary of killing stock rally with margin lending curbs
Gabriel Wildau in Shanghai, FT
Emergency government measures designed to curb a free fall in the Chinese stock market last week have apparently succeeded in stabilising the market. Now regulators have turned their attention to the root causes of the boom-bust cycle.
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Frontier Markets

India’s Outsourcing Firms Change Direction as ‘Cloud’ Moves In; Tata Consultancy, Wipro and others try to adapt as more companies shift to cloud computing
By SEAN MCLAIN, WSJ
AstraZeneca PLC is sharply scaling back the business it gives to the Indian outsourcing companies that it has long relied on for tech help.
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Banks to start cross-checking KYC scores, too
Business Standard
Apart from checking credit history, banks and financial institutions have also started checking identity score as part of Know Your Customer (KYC) procedure
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Miscellaneous

Ageing cocoa farmers pose risk for Ghana industry
Maggie Fick in Suhyen, Ghana, FT
Her brow glistening with sweat after a morning of hard work on her land, 65-year-old cocoa farmer Felicia Mensah of Ghana does not know who will harvest the cocoa pods that will in about four years’ time begin springing from the tree she has just planted.
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Hedge funder’s pricey divorce
By Emily Smith, NY Post
Hedge funder Kevin Ulrich, whose New York investment firm Anchorage Capital Group is the largest owner of Hollywood studio Metro-Goldwyn-Mayer, is getting a divorce from his interior designer wife, Laura Santos.
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