First Read

Spoofing Sentence Sends Clear Enforcement Message
Clifford C. Histed – Partner, K&L Gates LLP via Law360
Michael D. Ricciuti On July 13, 2016, U.S. District Judge Harry D. Leinenweber in Chicago sentenced Michael Coscia, the first trader charged with criminal “spoofing,” to three years in prison. Much has been written about this case, and the public debate has been just as intense as the litigation. In April 2015, we wrote about Judge Leinenweber’s denial of Coscia’s motion to dismiss his indictment, examined what guidance about spoofing could be gleaned from regulators, broke down the allegations in the indictment, and offered…
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***** Spoofing is bad is clearly the message.

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Wizards Of Today’s Markets: Blair Hull, Part 2
Trading Technologies
We’ve talked about some of your successes. Are there any failures in your career, either in Blackjack or trading, that you still look back on fondly in terms of learning a lesson, or helping form the rest of your career?
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***DA: In Part 2, Hull talks about ETFs, HFT and machine learning. Also, if you missed part 1, click HERE.

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Algo Trading

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Nearly Two-Thirds of Americans Can’t Pass a Basic Test of Financial Literacy
TIME
Quick: If you take out a $1000 loan that has a 20% rate, how much will you owe a year in interest?
Answer: $200. But if you got that wrong, you’re not alone. Nearly two thirds of Americans can’t calculate interest payments correctly, according to a new study. About a third said they didn’t even know how.
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***** “This research underscores the critical need for innovative strategies to equip consumers with the tools and education required to effectively manage their financial lives,” said FINRA Foundation Chairman Richard Ketchum in a press release.

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MarketsWiki Education Hits Interns With Risks, Technology, Volunteerism, Office Space and Bricks
Sarah Rudolph and Spencer Doar, JLN
Tuesday marked the first session of our MarketsWiki Education World of Opportunity series in Chicago. The event drew a standing room only crowd of 160 at the CME Group auditorium.
The event kicked off with Rob D’Arco, CEO of Rival Systems, who hammered home the intrinsic advantage the interns have over current industry professionals, as every intern in the room is considered a digital native. Taking advantage of that intrinsic knowledge and then pairing it with a deep understanding of market structure is essential for this coming generation.
goo.gl/5eHAxv

***DA: Today is our second of three Chicago sessions. We will be in the auditorium of Global Premier sponsor CME Group. We wrap it up tomorrow with a session at Trading Technologies, followed by a networking reception at the firm’s Tech Tap. All Chicago events have sold out. We still have room next week in New York, where we will hold two sessions at the Nasdaq MarketSite in Times Square. This will be a really cool event so please send this link to any young person, intern, and/or HR person who handles interns. It will be well worth their while. http://goo.gl/KDKCWz

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MWE 2016

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TOCOM Plans Launch of Physical Gold Market
TOCOM
The Tokyo Commodity Exchange Inc. (TOCOM) announced today that July 25th will be the start date of new Gold Physical Transaction, pending regulatory approval. Gold is the most actively traded commodity at the Exchange with both futures and options contracts listed. Simultaneously, TOCOM will introduce a delivery at settlement option for the Gold Rolling Spot contract. Originally a cash-settled contract, the change is expected to better serve investor needs.
goo.gl/vzbmcp

***** Christmas in July for gold traders.

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How to Succeed as a High-Frequency Trader: Problematizations of Trading Subjects in an Era of Automated Trading
Christian Borch and Ann-Christina Lange Department of Management, Politics and Philosophy Copenhagen Business School
Abstract: This paper examines the financial markets recent turn toward high-frequency trading (HFT). This turn is being legitimized (even celebrated) with reference to how algorithms are allegedly more rational and efficient than human traders, and less prone to emotionally motivated decisions. This article argues that although HFT does not render humans irrelevant, it is leading to a reconfiguration of both the ideal trading subject and the human machine relation. https://goo.gl/g8oZgm
***** A paper from academics in politics and philosophy. It shows how diverse the HFT discussion has gone.

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‘Pokémon Go’: Why You Should Play; It’s much more than a game—it’s the future of how we’re going to interact with computers
By JOANNA STERN – WSJ
We’re standing at a defining moment in the history of technology.
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***** I can’t wait for the competitive response that eats the Pokemon characters.

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Wednesday’s Top Three
Igor Oystacher has kept his string alive by once again finishing atop the leaderboard. When we include a story on Oystacher, 3Red or his alleged spoofing, it bubbles to the top of the count. According to yesterday’s top story from Bloomberg, he will be allowed to continue trading until his January 2017 trial. Time marches on in our second place story, Oil traders’ love affair with Yahoo Messenger nears end from the FT. And in third place, also from Bloomberg, was the questionably-titled Tattletales Wanted: To Nab Market Spoofers, Exchange Seeks Help. I know you are, but what am I?

Lead Stories

First Trader Convicted of Spoofing Gets 3-Year Prison Term
Janan Hanna , Brian Louis – Bloomberg
Panther Energy Trading’s Coscia was charged under Dodd-Frank; Greed is only explanation for illegal trades, judge says
Michael Coscia, the first person convicted of spoofing after it was made a crime under the Dodd-Frank Act, was sentenced to less than half the prison time sought by federal prosecutors.
goo.gl/AgL845

***DA: Or, if you prefer the story from Reuters, Here it is.

Deutsche Boerse Investors Poised to Back LSE Deal by End of Week
John Detrixhe – Bloomberg
Shareholder approval rises to 53% — near 60% minimum needed; Deal said likely to reach key investor approval level
Deutsche Boerse AG’s takeover of London Stock Exchange Group Plc is edging closer to shareholder approval, with the German exchange saying yesterday that 53 percent of shareholders have approved deal so far.
goo.gl/xzdvpa

Singapore Exchange Malfunction Ruins CEO’s First Anniversary
Bloomberg
It’s safe to say this isn’t how Loh Boon Chye pictured his one-year anniversary as chief executive officer of Singapore Exchange Ltd.
Not only was Southeast Asia’s biggest bourse forced to halt stock trading at 11:38 a.m. local time on Thursday because of a technical malfunction, it failed to follow through on two pledges to restart the market. SGX eventually said trading would remain closed for the rest of the day.
jlne.ws/29z20Jq

Theresa May urged to block German takeover of London Stock Exchange as one of her first acts as Prime Minister
By JAMES BURTON -THE DAILY MAIL
Theresa May has been urged to block a German takeover of the London Stock Exchange as one of her first acts as Prime Minister.
goo.gl/SshbJC

Traders’ ‘secret sauce’ threatened by CFTC plan, House Ag told
By Spencer Chase – Agri Pulse
The Commodity Futures Trading Commission’s efforts to regulate algorithmic trading fall short of practical rulemaking, a panel of experts told the House Agriculture Committee on Wednesday.
goo.gl/LdWzMW

SEC in transparency push on stock trading; Commission plans new rules on dealer information for clients
by: Nicole Bullock in New York – FT
US brokers would have to disclose details about how they handle large, institutional stock orders under new rules proposed by regulators amid concern about conflicts of interest.
/goo.gl/AJGSTq

Trading Technologies Launches First Major Marketing Campaign
‘Don’t Just Trade. Conquer’ Is Aimed at Professional Traders
By Kate Maddox – Ad Age
Trading Technologies, which makes software for professional traders, this week debuted its first major marketing campaign, called “Don’t Just Trade. Conquer.”
goo.gl/Y4UK2a

Investors Now Pay Germany to Borrow for 10 Years; Flurry of European bond auctions set new marks on global yield’s road lower
By EMESE BARTHA and CHRISTOPHER WHITTALL – WSJ
Germany sold 10-year debt at a negative yield on Wednesday, becoming the first eurozone nation to do so and setting a further milestone in the relentless fall of government bond yields around the world.
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35-Year-Old Bond Bull Is on Its Last Legs; There is a limit to how negative yields can go before money becomes meaningless
By JAMES MACKINTOSH – WSJ
They have been saying it for 35 years. But after 3½ decades of stunning returns, the biggest bond bull market in history looks to be entering its final stages. Why? Changing politics and the perverse, looking-glass world of negative yields.
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Bond Traders See Helicopters Loaded With Money
By Mark Gilbert – Bloomberg
The bond market is telling us that Milton Friedman’s 1969 thought experiment — freshly-created money appearing in people’s bank accounts, known as helicopter money — may be closer than we think.
goo.gl/IdCiHf

China hacked the FDIC – and US officials covered it up, report says
by Jose Pagliery – CNN
China’s spies hacked into computers at the Federal Deposit Insurance Corporation from 2010 until 2013 — and American government officials tried to cover it up, according to a Congressional report.
goo.gl/3AlJwI

Carney Opens Lehman Playbook at Bank of England
Jill Ward, Scott Hamilton and Lucy Meakin – Bloomberg
Mark Carney looks poised to repeat a strategy that served him well during the global financial crisis. As the Bank of England governor seeks to stave off any turmoil after Britain’s decision to quit the European Union, he has cited his experience at Canada’s central bank in 2008 as a guide. Acting early to prevent a deeper downturn became the hallmark of his approach in the prelude to the international slump, a perspective he can bring to the Monetary Policy Committee’s debate this week on whether to cut interest rates.
jlne.ws/29QFeSd

SSM’s Dombret Touts Frankfurt as Candidate for Euro Clearing
Alessandro Speciale, Nicholas Comfort – Bloomberg
Brexit bouys case for Deutsche Boerse-LSE merger, Dombret says; Frankfurt competing with Paris for euro trading business
Bundesbank board member Andreas Dombret signaled that Deutsche Boerse AG ‘s takeover of London Stock Exchange Group Plc would hand Frankfurt a trump card in the tussle for a slice of London’s banking business.
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ICAP to Stay Put Even If Clients Leave London Post Brexit
John Detrixhe – Bloomberg
Firm will consider moving sales staff if clients relocate; ICAP plans to complete sale of broking business this year
ICAP Plc Chief Executive Officer Michael Spencer said Brexit won’t alter the structure of his company, although he may move some sales staff to other European cities if clients relocate their trading operations.
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Brexit

Brexit strengthens case for LSE-Deutsche Boerse merger: Bundesbank
Reuters
London must prepare to lose euro trading and clearing activities once Britain leaves the European Union but the business case for merging the London and German stock exchanges has been strengthened, Bundesbank board member Andreas Dombret said on Wednesday.
goo.gl/cft9ob

Anger at JPMorgan’s ‘unhelpful’ Brexit warnings
Martin Arnold – Financial Times
Senior bankers in London are growing frustrated with JPMorgan Chase’s public warnings that it may cut thousands of jobs in the UK, saying such remarks send an unhelpfully negative message. The concerns come amid efforts by the Treasury to encourage international banks to paint a rosier picture of the City’s future in the aftermath of the UK’s referendum vote to leave the EU. The Treasury has separately urged British banks to refrain from public proclamations about any dire consequences from Brexit, people briefed on the discussions said.
jlne.ws/2aa3OcM

EU countries see surge in citizenship inquiries from UK
Rick Mertens – Financial Times
European countries including Germany, Hungary and Poland have seen a surge in citizenship inquiries from British people looking to guarantee their ability to live and work on the continent. Depending on the outcome of exit negotiations, Britons face losing the right to move freely throughout Europe after the country voted to leave the EU — unless they can obtain citizenship of another EU member state.
jlne.ws/29QFws2

Adjusting the Special Relationship After Brexit
Therese Raphael – Bloomberg
When Theresa May takes over as U.K. prime minister on Wednesday, her first job will be to steer the British economy past the shock of Brexit. But almost as important is the largest rewiring of British foreign policy since World War II — including its relationship with its closest ally and former colony.
jlne.ws/29QExIk

Wetherspoon Pub Founder Schools Goldman in Brexit Economics
Thomas Buckley – Bloomberg
Goldman Sachs and Morgan Stanley don’t understand economics. Nor do the Bank of England or the U.K. Treasury. At least according to Tim Martin, the pro-Brexit founder of British pub chain JD Wetherspoon Plc.
jlne.ws/29QFpN9

London Broker’s Dublin Hedge Shows Dim Hopes for Brexit Plan
John Detrixhe, John Glover – Bloomberg
Companies say new offices beat legal route in reaching EU; Brexit puts London firms in a bind in future of uncertainty
Theresa May has years to negotiate an exit from the European Union, but finance executives like Philip Gough don’t have that luxury. The chief of Convergex Ltd.’s U.K. brokerage is looking at a move to Dublin from the City of London as a way to keep unfettered access to the EU. Though the operation only employs 26 and rents about 3,000 feet of office space, multiply that by a few hundred and it’s easy to see why the stakes are so high for Britain’s economic engine with years of negotiation and obscurity looming.

Brexit Won’t Stop Globalization; Beyond the West, trade ties are growing and deepening.
Michael Schuman – Bloomberg
Globalization—that irresistible force that was inevitably, inexorably making the world flat—looks to be in retreat. Trade growth has never recovered to the levels reached before the 2008 financial crisis. Donald Trump is fueling his presidential campaign on fear of free trade and immigration. The economic problems of the U.S., he blasted in a June speech, are “the consequence of a leadership class that worships globalism over Americanism.” Then came Brexit, the worst setback for the European Union, that most ambitious experiment in globalization. Money manager Bill Gross said Brexit marks “the end of globalization as we’ve known it.”
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A Post-Brexit Opportunity Europe Shouldn’t Miss
By Nicolas Veron – Bloomberg
If there is a silver lining for the world of finance from the Brexit vote it is this: that the departure of Britain offers the European Union a chance to complete much-needed reforms to the Continent’s lagging capital markets. If it can do that, the EU might just be able to demonstrate its ability to enhance growth across its member states.
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Exchanges, OTC and Clearing

LME Consults On Caps For Warehouse Charges
Mondovisione
The London Metal Exchange (LME) is today initiating a market-wide consultation proposing to control escalating warehousing costs by imposing caps on maximum charges. If enacted, the first capped charges would come into effect on 1 April 2017.
jlne.ws/29EsoAq

Portugal protests against LSE-Deutsche Boerse merger
BY ANDREI KHALIP – Reuters
Portugal has asked Europe’s antitrust chief to take action to prevent a merged Deutsche Boerse and London Stock Exchange (LSE.L) becoming so dominant that it would make access to finance more difficult.
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Exchanges spar with CFTC over hedge exemptions; Latest tweaks to position limits rule draw ire of CME and Ice
Elizabeth Blosfield – Risk.net
Chicago-based CME Group and Atlanta-based Ice have clashed with the US Commodity Futures Trading Commission (CFTC) over the regulator’s latest effort to amend its controversial proposed rule on speculative position limits in commodity derivatives. The exchanges’ objections centre on the process by which market participants can obtain hedging exemptions from the new, federally mandated position limits regime that the CFTC is working to implement. In a supplemental proposal released on May 26, the…
goo.gl/jOu4qA

Bats U.S. Options Market Share Reaches Record 11.7% In June, Remains #1 In U.S. ETF Trading, #1 Pan-European Stock Market Other Highlights Include Launch Of New UK-Focused Index Series
Press Release
Bats Global Markets, Inc. (Bats: BATS), a leading global operator of exchanges and services for financial markets, today reported June data and highlights, including record market share for its U.S. Options business.
jlne.ws/2aa3F9g

Half of Deutsche Börse shareholders have approved LSE deal
James Shotter – Financial Times
Deutsche Börse said on Wednesday that the majority of its shareholders had backed its proposed merger with the London Stock Exchange Group, even as opposition to the deal continues to mount among regulators and politicians.
jlne.ws/2aa50g0

Dr Paul Fisher To Be The New LBMA Chairman
Press Release
The LBMA is delighted to announce the appointment of Dr Paul Fisher as the new Chairman of the Association, effective from 5 September, 2016. Paul is due to retire from the Bank of England at the end of July.
jlne.ws/29QEOej

STOXX ESG IMPACT INDICES TO UNDERLIE TWO EXCHANGE-TRADED FUNDS IN THE US
STOXX
STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today announced that the newly launched STOXX Global ESG Impact and STOXX USA ESG Impact indices have been licensed to FlexShares, managed by Northern Trust, to underlie two exchange-traded funds (ETFs). The ETFs will be listed on NASDAQ Stock Market (NASDAQ) as of today. The STOXX ESG Impact Indices are tilted towards companies that perform superior with respect to a set of selected environmental, social, and governance (ESG) key performance indicators (KPIs).
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Politics

Clinton Aims Party’s ‘Wall Street’ Tax at Flash Boys, Not Banks
Bloomberg
The Democratic Party’s proposed 2016 platform supports “a financial transaction tax on Wall Street” — but presumptive nominee Hillary Clinton is focused on a narrower approach that isn’t likely to target big banks.
Clinton and her advisers propose taxing some high-frequency traders who spam markets with thousands of orders they later cancel. That levy would affect a comparatively small number of firms — none of them household names — and Clinton isn’t likely to expand it into a tax on all trades of stocks, bonds and derivatives, according to senior policy analysts familiar with her campaign.
jlne.ws/29PBhNr

Boris Johnson Appointed U.K. Foreign Secretary in May Team
Thomas Penny and Robert Hutton – Bloomberg
Boris Johnson, who led the successful campaign to get Britain out of the European Union, was appointed foreign secretary by new Prime Minister Theresa May, two weeks after she mocked his negotiating skills.
jlne.ws/29QF9hg

Philip Hammond Named U.K. Chancellor as Osborne Steps Down
Alex Morales – Bloomberg
Philip Hammond was appointed the U.K.’s Chancellor of the Exchequer, tasked with the job of protecting the economy from the fallout of Brexit and meeting new prime minister Theresa May’s pledge to tackle “burning injustice” in society.
jlne.ws/29QF1ye

Investing and Trading

Germany Sells Bonds With Negative Yield at Auction
David Jolly – NY Times
When it comes to bond yields in Europe, it seems there is no such thing as too low. Germany on Wednesday became the first country in the eurozone to sell 10-year debt with a negative yield at an auction, effectively ensuring that investors lose money over the life of the bond.
jlne.ws/2aa3tGU

Gundlach Says Starvation for Yield Creating ‘Mass Psychosis’
John Gittelsohn – Bloomberg
Investors who rushed into bonds last week will face a hard time making money as the market finds a bottom and rates begin to rebound, according to Jeffrey Gundlach, chief executive officer of DoubleLine Capital.
jlne.ws/29QFgJC

Morgan Stanley Analyst Says Robo Advisers Are One of the Major Threats to the Industry
The wealth management landscape is changing and the industry needs to follow.
Julie Verhage – Bloomberg
Robo advisers aren’t going away any time soon, and the wealth management industry needs to make some changes if it wants to beat them and a host of other threats it is facing.
goo.gl/3nyxjd

European Stock Strategists Double Down on Gloom After Brexit
Aleksandra Gjorgievska – Bloomberg
Stock forecasters at European banks are resigning themselves to the prospect of steep losses for the region’s equities in 2016.
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Sorry, You’re Just Going To Have to Save More Money?
By JASON ZWEIG – WSJ
Bonds pay borrowers while lenders earn nothing. Stocks soar to all-time highs. How weird is today’s financial world?
goo.gl/vdWwtj

Why Ultralow Interest Rates Are Here to Stay; While central-bank bond buying is the proximate cause of a plunge in U.S. Treasury yields, the drop represents the cost of economic and political choices made over decades
By COLIN BARR – WSJ
Central-bank bond buying is the proximate cause for the plunge this month of the 10-year U.S. Treasury yield to its all-time low of 1.366%. But it would be a mistake to single out central bankers.
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Institutions

Christine Lagarde wants softer, kinder IMF to face populist anger
Shawn Donnan – Financial Times
The US should increase its minimum wage and do more to counter a growing income polarisation; France needs to better deploy public benefits to reduce inequality; Italy ought to bring more women into its labour force. The International Monetary Fund has long had an image as a neoliberal bastion of bureaucrats with an obsession for fiscal rectitude and a tin ear for social and political consequences. But in its advice to three of its biggest members this week, the fund displayed a concern with issues that just a few years ago might have seemed out of step with its traditional focus on growth and budget deficits.
jlne.ws/29QFcJV

Bernanke Floated Japan Perpetual Debt Idea to Abe Aide Honda
Toru Fujioka, Keiko Ujikane – Bloomberg
Prominent foreign economists drawn into nation’s policy making; Honda emerges as an ideas matchmaker for the prime minister
Ben S. Bernanke, who met Japanese leaders in Tokyo this week, had floated the idea of perpetual bonds during earlier discussions in Washington with one of Prime Minister Shinzo Abe’s key advisers.
goo.gl/1GYkJx

Bank of England readies new blast of QE for post-Brexit Britain
Andy Bruce – Reuters
Hailed by investors as a weapon to fight off recession but slammed by critics for fuelling inequality, quantitative easing looks set for a comeback in Britain as the Bank of England tries to shield the economy from the fallout of Brexit. The central bank is poised to cut interest rates as soon as Thursday and will probably follow up soon afterwards by reviving the massive bond-buying program that it credits with helping to shore up the economy after the global financial crisis.
jlne.ws/2aa4NJN

Banks expect credit demand to fall as post-Brexit uncertainty hits
Gemma Tetlow – Financial Times
The UK’s big banks expect demand for credit from businesses and households to fall as a result of post-Brexit economic uncertainty, according to a Bank of England review.
jlne.ws/29QEDjv

Amid Talk of Money Helicopters, Abe Eyes Reboot of Economic Plan
Enda Curran – Bloomberg
Ben S. Bernanke earned the nickname “Helicopter Ben” for once suggesting a central bank could overcome deflation by cranking up the money presses to finance tax cuts. He’s always made clear such efforts would be a last resort, the equivalent of dropping money from the sky.
jlne.ws/29QFm3Z

JPMorgan Profit Beats Estimates on Bond Trading, Loan Growth
Hugh Son – Bloomberg
Revenue increases 2.8% as fixed-income trading tops estimates; Loan growth and higher rates boost second-quarter revenue
JPMorgan Chase & Co., the biggest U.S. bank by assets, said second-quarter profit fell 1.4 percent, beating analysts’ estimates as fixed-income trading revenue and loan growth jumped.
goo.gl/W2Q9yQ

Citadel Securities to Start Trading European Credit Swaps
Katie Linsell – Bloomberg
Citadel Securities LLC is planning to start making markets in European credit-default swap benchmarks after expanding into trading of U.S. indexes earlier this year.
goo.gl/MgoP4J

The Fed and the Ghost of Inflation Past
WSJ
Sure, they might style themselves as objective observers of the economy, but the disparity of their views belies that idea. Compare the hawkish stance taken by former Federal Reserve Bank of Dallas President Richard Fisher who worked on Wall Street in the inflation-ridden late 1970s to the dovish views of younger officials, like Fed Governor Lael Brainard, and one suspects the central bankers are as bound up in their personal histories as the rest of us.
jlne.ws/2aa6A1G

Spanish Banks Surge as Fears Subside Over EU Mortgage Ruling
Stephanie Bodoni and Macarena Munoz Montijano – Bloomberg
Spanish banks such as Banco Popular Espanol SA surged after an aide to the European Union’s top court said they may avoid having to refund billions of euros to customers who paid too much interest on home loans before a 2013 ruling on so-called mortgage floors.
jlne.ws/29QESL4

China likely hacked U.S. banking regulator: congressional report
Jason Lange and Dustin Volz – Reuters
The Chinese government likely hacked computers at the Federal Deposit Insurance Corporation in 2010, 2011 and 2013 and employees at the U.S. banking regulator covered up the intrusions, according to a congressional report on Wednesday. “Even the former Chairwoman’s computer had been hacked by a foreign government, likely the Chinese,” staff at the U.S. House of Representatives Committee on Science, Space and Technology said in the report.
jlne.ws/2aa2oz3

Derivatives expert in Goldman Sachs-Libya dispute describes fight between sales, trading
Ben Moshinsky – Business Insider
An expert witness in the dispute between Goldman Sachs and Libya’s sovereign wealth fund described how sales representatives and traders compete within banks to claim profits and boost their bonuses. Nasir Afaf, testifying for the Libyan Investment Authority, said in a statement that there was a “well-known political dynamic” between client-facing sales and internal trading in investment banks, which could have encouraged Goldman Sachs employees to price derivatives transactions unfairly.
jlne.ws/2aa2EOf

BlackRock Profit Falls 5%, But Still Within Expectations; Despite a rocky quarter, assets under management increase
By AUSTEN HUFFORD – WSJ
BlackRock Inc. said Thursday that profit in its latest quarter fell, as the world’s largest money manager saw its clients drive assets into net-income products.
goo.gl/MNsGeK

Linear Investments selects RSRCHXchange to access institutional research and ensure MiFID II compliant research procurement
Linear Investments
Linear Investments, a specialist prime broker and an award winning hedge fund incubator, has selected RSRCHXchange, the online marketplace for institutional research, to enable their hedge fund clientele to access and track research consumption in a MiFID II compliant way.
/goo.gl/ImTvW6

Fintech

FINCAD Helps Investment Firms Overcome Market Challenges with New F3 WorkStation
Business Wire
FINCAD, the leading provider of sophisticated valuation and risk analytics for multi-asset derivatives portfolios, today announced that it has added powerful enhancements to F3, its advanced valuation and risk solution. Central to these enhancements are a straightforward interface and improved usability, enabling quants, portfolio managers, traders, and risk managers to quickly leverage F3’s capabilities to help generate superior investment returns in an extremely challenging climate.
jlne.ws/29Q0cAt

Regulation

U.S. broker-dealers may soon have to post more info on routing orders
Lisa Lambert – Reuters
U.S. broker-dealers would be required to post information for the first time on how they route large investors’ trading orders under a rule proposed by the Securities and Exchange Commission on Wednesday. The proposal would also require additional information on orders from smaller, individual customers.
jlne.ws/29QEqwm

FIA Testifies On Importance Of Automated Trading Risk Controls At Congressional Hearing
Press Release
On behalf of FIA, Greg Wood testified before the House Agriculture Committee today at a hearing to examine the Commodity Futures Trading Commission (CFTC) proposed rule to regulate automated trading (Reg AT).
jlne.ws/29QEA7i

SEC Proposes Rules to Enhance Order Handling Information Available to Investors
SEC
The Securities and Exchange Commission today voted to propose rules that for the first time would require broker-dealers to disclose the handling of institutional orders to customers. The proposed rules also would expand the information included in existing retail order disclosures.
jlne.ws/29QEzzY

CFTC Staff Approves A Public Comment Extension For A Rule Amendment Certification Filing By ICE Futures U.S.
Press Release
The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) announced today that it has granted ICE Futures U.S. a 15-day extension of the public comment period and a 45-day extension of the stay period for Submission No. 16-67, dated June 1, 2016. ICE Futures U.S. had requested both extensions. Comments must be submitted on or before July 29, 2016. The extended stay will expire on October 28, 2016.
jlne.ws/2aa2XIW

U.S. SEC takes another step toward tighter swaps regulation
Reuters
The top U.S. securities regulator on Wednesday took another step toward tightening its oversight of security-based swaps by proposing new reporting requirements for transactions, nearly six years after Congress directed it to build a regulatory regime for the derivatives.
jlne.ws/29QEMDz

SEC Adopts Additional Rules Related To Security-Based Swap Transaction Reporting
Press Release
The Securities and Exchange Commission today announced that it has adopted amendments and guidance related to rules regarding the regulatory reporting and public dissemination of security-based swap transactions, known as Regulation SBSR. The new rules and guidance are designed to increase transparency in the security-based swap market.
jlne.ws/2aa7Lhp

SEC Proposes Amendments to Update and Simplify Disclosure Requirements As Part of Overall Disclosure Effectiveness Review
SEC
The Securities and Exchange Commission today voted to propose amendments to eliminate redundant, overlapping, outdated, or superseded provisions, in light of subsequent changes to Commission disclosure requirements, U.S. Generally Accepted Accounting Principles (U.S. GAAP), International Financial Reporting Standards (IFRS), and technology.
jlne.ws/29QEv3u

U.S. SEC changes in-house trials to update rules, add flexibility
Reuters
The three members of the U.S. Securities and Exchange Commission on Wednesday unanimously approved changes to the agency’s in-house trials, after receiving complaints that the proceedings put defendants who have allegedly violated rules in unfair positions.
jlne.ws/29QEkVR

SEC Adopts Amendments To Rules Of Practice For Administrative Proceedings
Press Release
The Securities and Exchange Commission today adopted amendments updating its rules of practice governing its administrative proceedings. “The amendments to the Commission’s rules of practice provide parties with additional opportunities to conduct depositions and add flexibility to the timelines of our administrative proceedings, while continuing to promote the fair and timely resolution of the proceedings,” said SEC Chair Mary Jo White.
jlne.ws/2aa3nPA

Sebi simplifies process of opening trading a/c
Business Standard News
Making the investor account opening process easier for stock brokers, markets regulator Sebi has allowed them to provide certain standard documents in the electronic format after obtaining the client’s consent. These bulky documents, including Rights and Obligations of stock broker, sub-broker and clients, as also that of beneficial owner and depository participant, the Uniform Risk Disclosure Documents and Guidance Note detailing Do’s and Don’ts for trading on stock exchanges, need to be mandatory provided in the physical format.
jlne.ws/2aa36vW

ASIC reports on review of due diligence practices in IPOs
ASIC
An ASIC review of issuer due diligence in initial public offerings (IPO), has found a close correlation between defective disclosure in a prospectus and poor due diligence.
goo.gl/KsSCr4

Regions

Hong Kong is on the path to an ‘outright recession’
Business Insider
Hong Kong is on its way to “an outright recession,” according to a new research note from Nomura. The Japanese bank cut its GDP forecast for the city to -0.2% from 0.8% for 2016, and to 0.5% from 1.5% for 2017.
jlne.ws/29EreFn

Chinese banks help Hong Kong retain its IPO crown
Nikkei Asian Review
Risk-averse sentiment has sent initial public offering markets around the world to their worst states since the global financial crisis. In the six months through June, first-time share sales totaled $49.75 billion, down 57.4% from a year earlier, while the number of deals dropped 34.4% to 514, data from Dealogic shows.
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Trading Outage Deals Another Blow to Singapore Exchange’s Reputation
WSJ
Singapore’s stock exchange on Thursday suffered its fourth outage in two years, the latest hit to the reputation of one of Asia’s most prominent stock markets at a time when it is struggling to revive weak trading volumes. Singapore Exchange, better known as SGX, said trading on its securities market was halted at 11:38 a.m. local time (0338 GMT) due to duplicate trade-confirmation messages. It didn’t elaborate, but said no duplicate trades had taken place.
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Venezuela Trucks Food Directly to the Poorest as Chaos Spreads
Andrew Rosati and Fabiola Zerpa – Bloomberg
Catia, a vast network of makeshift homes in western Caracas, has long been a proud bastion of Venezuelan socialism. The residents may be working class but their housing is subsidized, their clinics free, their favorite color ruling-party red.
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Brexit Won’t Stop Globalization
Bloomberg
Globalization—that irresistible force that was inevitably, inexorably making the world flat—looks to be in retreat. Trade growth has never recovered to the levels reached before the 2008 financial crisis. Donald Trump is fueling his presidential campaign on fear of free trade and immigration. The economic problems of the U.S., he blasted in a June speech, are “the consequence of a leadership class that worships globalism over Americanism.” Then came Brexit, the worst setback for the European Union, that most ambitious experiment in globalization. Money manager Bill Gross said Brexit marks “the end of globalization as we’ve known it.”
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Miscellaneous

Facebook Omnipresence Makes Murdoch’s Journal Wary of Close Ties
Gerry Smith – Bloomberg
As dozens of media companies explore deeper ties with Facebook Inc., one publisher has remained especially wary of the social network: Rupert Murdoch’s News Corp. Unlike other news outlets, News Corp.’s Wall Street Journal hasn’t struck a deal to create live videos for Facebook. And while some publishers make all of their stories available as Facebook “Instant Articles” by posting content directly to the platform, the Journal offers only its technology stories.
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Live Streaming Breaks Through, and Cable News Has Much to Fear
Farhad Manjoo – NY Times
Cable news has functioned as the harrowing background soundtrack to much of 2015 and 2016. In covering terrorist attacks, protests against the police and a presidential election whose daily antics seem tailor-made for the overheated ethos of cable, Fox News, CNN and MSNBC have all won huge increases in viewership.
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