First Read

WILD Symposium Explores Opportunities and Challenges in a Changed Industry
Sarah Rudolph – JLN

The Women In Listed Derivatives (WILD) annual symposium last week at the Chicago Federal Reserve Bank addressed a pressing question and one that men face as well. Now that floor trading is mostly gone and that route into the business closed, what can young women do to get into the industry and what can the veteran professionals do to help them?

This fourth year for the event was a chance for women in the derivatives industry to be among a sea of women, rather than the usual sea of men we find at most industry gatherings. WILD aims to help women advance in an industry that still is dominated by men.

Craig Donohue, executive chairman of the OCC, the first male speaker at the symposium opened the event with a telling statistic about the state of the industry.

“Currently only 1.4 percent of CEOs in the financial industry are women,” he said. “And only 19.8 percent held board seats in the financial sector, versus 20.7 percent of the overall S&P index of companies.”

Read More Here


OCC’s Donohue Tells WILD Symposium in Chicago There is Work to be Done to Achieve True Gender and Pay Equality in the Workplace
In remarks on October 15 to the 4th Annual Women in Listed Derivatives (WILD) Symposium In Chicago, OCC Executive Chairman Craig Donohue applauded the work of WILD to empower women and create more visibility and opportunity, but said much more needs to be done.


Kapil Rathi, BATS – Start Your Career with Confidence

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

If you’re starting a new job, have your house in order, literally. Kapil Rathi, vice president of options business strategy with BATS, focused his talk on the all-important moments at the very beginning of a new job or career. While confidence is key in nearly all endeavors, there are some simple steps that, if executed properly, put people in a position to succeed before even completing day one. When it comes to room and board, be fully settled. Don’t have moving logistics, roommates, a child’s schooling opportunities, negotiations with a landlord, a different transit route and the like to contend with. Try to have life’s usual messiness in the rearview mirror, at least temporarily, in order to be able to focus 100 percent on the work. Also, learn as much as possible about your employer. If there are relevant articles, books or white papers to read — read them. If soon-to-be-co-workers are available — meet them for lunch. Rathi firmly believes that setting and accomplishing goals beforehand ensures that walking into that fresh lobby, vestibule or elevator is not intimidating.

Watch the video at »

Euro-BONO-Futures: Introduction of futures contracts on long-term Spanish government bonds
The Euro-BONO-Futures (Eurex product code: FBON) on long-term Spanish government bonds will be available to participants domiciled in the U.S. effective start of trading on 26 October 2015. This circular contains information regarding the new product assignment group for Euro-BONO Futures, the vendor product codes and the adjusted Market-Making scheme.

***** I wanted to Cher this information with you.


Why Americans Don’t Trust the Fed; Since the Revolution, the U.S. has been wary of both big government and big banks
Antipathy to the central bank is a uniquely American tradition. No federal agency, except the Internal Revenue Service, is held in lower regard than the Federal Reserve, according to public opinion surveys. The left accuses the Fed of being too cozy with banks; the right says it is planting the seeds of a massive inflation.

****** I blame Congress for the Fed’s low regard.


Wealth therapy tackles woes of the rich: ‘It’s really isolating to have lots of money’; It’s tough at the top. As one psychological counsellor to the 1% says: ‘I am not necessarily comparing it to what people of color have to go through, but …’
Jana Kasperkevic, The Guardian
It’s a rainy Wednesday morning and Clay Cockrell is sitting in his office at Columbus Circle across the street from 1 Central Park West, which houses Trump International Hotel and Tower. In front of the tower is Central Park, where Cockrell holds his popular walk and talk therapy sessions.

***** Everyone has problems. Some people’s are just a little more ridiculous than others.



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Lead Stories

Futures exchanges feel threat from LSE venture
Philip Stafford,
The London Stock Exchange Group’s unveiling of its new interest rate futures venture CurveGlobal finally brings out into the open one of the worst kept secrets in the industry. Its new £30m venture backed by Goldman Sachs, Citi, JPMorgan, Bank of America Merrill Lynch, Barclays, Société Générale and CBOE Holdings, the Chicago options exchange, is also likely to be the most carefully-watched new project in years.

Banks Said to Ask Exchanges for Views on London Gold Clearing
Eddie Van Der Walt, Bloomberg
Five banks and World Gold Council ask exchanges for proposals
Group seeks views on central clearing, listing derivatives
A group of five banks, including Goldman Sachs Group Inc. and Morgan Stanley, have asked exchanges for proposals on how to start standardized central clearing and listed derivatives for the London gold market, two people familiar with the matter said.

China mounts gold liquidity grab as London market reforms; London market re-examines OTC gold trade; Exchanges vie for London gold futures contracts; China’s benchmark ambition could further hit London liquidity
By Clara Denina, Reuters
As the London gold market enters its next phase of reform, a sense of urgency is key because competitors, including commodity consuming giant China, are poised with new products to grab liquidity and global influence.

Billboards urge Wall Street employees to report financial crimes
By John Aidan Byrne, NY Post
The NYPD asks if you see something, say something. And now a band of Wall Street gadflies are similarly seeking help in sniffing out weapons of financial destruction.

JPMorgan’s Frank Troise Said to Be Next ITG Chief Executive
Sam Mamudi, Hugh Son – Bloomberg
Troise succeeds Bob Gasser, who left after SEC dark-pool case
ITG paid record penalty and has seen its shares drop 39%
Investment Technology Group Inc., the brokerage that paid a record fine in August over its dark-pool trading venue, is expected to name JPMorgan Chase & Co.’s Frank Troise chief executive officer, according to a person with knowledge of the matter.

SEC Chair Scolds Hedge Funds for ‘Cracks in Bulwark’ of Investor
Tighter registration and reporting requirements for hedge funds have given regulators better visibility on the potential risks such funds pose to the broader financial system. They have also shed light on sloppy marketing practices and dishonest disclosure at individual firms that could harm their investors, according to Mary Jo White, chairman of the Securities and Exchange Commission.

CME Group and China Construction Bank Sign Memorandum of Understanding; First time that Offshore Chinese Renminbi Futures contracts will be physically deliverable into London
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, and China Construction Bank, a leading commercial bank in China, announced today that they have signed a Memorandum of Understanding (MOU) to support the further strengthening of their business relationship.

Goldman, JPMorgan Said to Fire 30 Analysts for Cheating on Tests
Sofia Horta E Costa, Ruth David, Bloomberg
Goldman Sachs Group Inc. is dismissing about 20 analysts globally in offices including London and New York after discovering they had breached rules on internal training tests, said people familiar with the matter.

Canada Voters Head to Polls With Trudeau Poised to Oust Harper
Theophilos Argitis, Josh Wingrove, Bloomberg
Polls show 71% of Canadians want change in government
Incumbent Conservatives trailing Liberals heading into vote
Canadians vote Monday in a tight federal election that polls suggest will bring Justin Trudeau’s Liberal Party to power, ending the decade-long run of Prime Minister Stephen Harper’s Conservatives.

NY Fed’s Dudley says too early to think about a rate rise: paper
It is too early to consider an interest rate rise in the United States due to concerns about global economic growth, New York Federal Reserve Bank President William Dudley was quoted as saying by an Italian newspaper on Monday.

China Economic Growth Falls Below 7% for First Time Since 2009; Figure adds to worries about global economic outlook
China’s once-world-beating economy sputtered further in the third quarter, decelerating to its slowest pace since the global financial crisis and adding to concerns about the world economic outlook.

Sovereign wealth funds are flogging assets – and that means big trouble
By: Matthew Lynn, Moneyweek
What do Norway, Saudi Arabia and Russia have in common? They are all players in the oil industry, perhaps? None of them have ever won the World Cup, or are ever likely to? Maybe true, but the answer I was looking for is that they all have massive sovereign wealth funds (SWFs). Rewind a few years and these state-owned investment funds were all the rage. Huge amounts of capital from mostly oil-rich countries were being accumulated.

Bernanke: U.S. should have prosecuted individuals after collapse
Chicago Tribune
Former Federal Reserve Chairman Ben Bernanke knows Americans have not forgiven him for the Wall Street bailout that saw greed in financial company executive suites go unpunished while regular people lost their homes, jobs and nest eggs in the financial crisis of 2008.

Bush, Clinton are Wall Street’s favorites, donations show
By Emily Flitter and Grant Smith, Reuters
Jeb Bush is leading the U.S. presidential campaign by at least one measure: financial support from Wall Street.


The SEC’s whistleblower program remains unclear
By John Aidan Byrne, NY Post
If it’s about increasing transparency within the finance industry, the Securities and Exchange Commission’s whistleblower program is clear as mud.

Glass Steagall Would Not Have Prevented The Crash: Thus A New One Won’t Prevent Another
Tim Worstall, Forbes
Obviously we don’t want to have a repeat of the Great Financial Crash: therefore we need to work out exactly what the GFC was, what caused it and thus how we’re going to stop it happening again. And the truth of the matter is, once we’ve worked through that, then we’ll see that Glass Steagall wouldn’t have prevented it happening and having a new Glass Steagall won’t stop it happening again. That is, assuming that we actually examine what banks were allowed to do under Glass Steagall and don’t just use it as a handy synonym for “stop banks doing things that crash the economy.”

S.E.C. Releases Data on Fund Advisers
The Securities and Exchange Commission on Friday released its first set of statistics on more than 2,600 private fund advisers as part of an effort to make it easier for investors to evaluate them.

A Jury, Not the S.E.C.
Who should decide a defendant’s fate — a jury of everyday people or a judge employed by the Securities and Exchange Commission?

SEC’s investor advocate pans NYSE’s plan to ease rules for small companies
A U.S. government advocate for investors is urging securities regulators to reject a proposal by the New York Stock Exchange that would permit smaller public companies to issue more shares to insiders without stockholders’ approval.

ETFs’ Rapid Growth Sparks Concern at SEC; Commissioner says rise in number of exchange-traded products ‘poses a challenge’
The proliferation of exchange-traded funds is causing concern at the U.S. Securities and Exchange Commission, the latest sign of increased scrutiny of the popular products.

Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans

    • FINRA: Notice of Amendment No. 1 and Order Granting Accelerated Approval to a Proposed Rule Change, as Modified by Amendment No. 1, to Require an Indicator When a TRACE Report Does Not Reflect a Commission or Mark-up/Mark-down (Release No. 34-76176; File No. SR-FINRA-2015-026)


    • ISE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Schedule of Fees (Release No. 34-76177; File No. SR-ISE-2015-31); see also Exhibit 5


    • ISE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Schedule of Fees (Release No. 34-76173; File No. SR-ISE-2015-32); see also Exhibit 5


    • NYSE Arca: Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change Regarding a Change to the Reference Index of the Market Vectors Short High Yield Municipal Index ETF (Release No. 34-76174; File No. SR-NYSEArca-2015-74)

Publication of Summary Points from 2015-2016 Strategic Directions and Priorities
FSA Japan

Exchanges & Trading Facilities

CME Group Announces Launch of Ultra 10-Year U.S. Treasury Note Futures and Options
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of the Ultra 10-Year U.S. Treasury Note futures and options for early in the first quarter of 2016. These contracts will be listed with, and subject to, the rules and regulations of the CBOT, pending certification of contract terms and conditions with the CFTC and completion of all applicable regulatory review periods.

Oslo Børs – Introducing Merkur Market
As previously announced, Oslo Børs will introduce Merkur Market in January 2016. Merkur Market will be introduced on the existing version of Millennium Exchange, although additional values ??in the combined reference data files for Merkur Market, Oslo Børs, Oslo Axess and Nordic ABM require minor adjustments to be carried out by third parties. The changes in the reference data files will come into force in the production environment Monday 7 December 2015, and in the test environment from Monday 2 November 2015.

LSE aims to secure place in interest rate futures market
Philip Stafford – FT
The London Stock Exchange Group is to launch an aggressive push into the European futures markets dominated by Deutsche Börse and Intercontinental Exchange with a £30m bank-backed venture.

Celebrating 30 years of 10-year JGB futures
Since the launch of 10-year JGB futures on the TSE market 30 years ago on October 19, 1985, we have seen steady demand for JGB derivatives with the launch of 10-year JGB futures options, 20-year JGB futures, 5-year JGB futures, and mini-10year JGB futures.

Hedge Funds & Managed Futures

Alternative Investments Offer Stability in a Rocky Market; Managers of these investments work hard to detach them from the direction of stocks and bonds
By Kathy Kristof, From Kiplinger’s Personal Finance
us the mind on alternative assets, a category that most people ignored over the past few years as share prices soared to new highs. But following the recent stock market plunge, alternatives, which have little to no correlation with the stock and bond markets, are looking more appealing.

Investment Association seeks peacemaker amid review
By Mike Foster, Financial News
The Investment Association is close to appointing a senior peacemaker to its board of directors as the industry body for UK fund managers tries to win member backing for a sweeping governance review.

Commodities slump casts a pall over UK dividend growth
Judith Evans in London – FT
Dividend growth from London-listed companies is set to slow sharply in 2016 as the commodities sell-off hits payouts.

UK pension funds adopt fiduciary management
Sophia Grene – FT
After a number of false starts, fiduciary management, where the day-to-day management of a pension scheme is outsourced, seems to be taking off in the UK market.

PNC CEO: The Fed is forcing America’s retirees to bail out the younger generation
Bob Bryan, Business Insider
Despite months of anticipation and speculating, the Federal Reserve chose not to raise interest rates in September, citing low inflation and global economic weakness.

Banks & Brokers

Credit Suisse Overhaul Could Mirror Local Rival, UBS; Recently appointed CEO is expected to make changes to the bank’s investment and private banking arms
Clues about how Credit Suisse Group AG Chief Executive Tidjane Thiam plans to overhaul the bank may lie just down the road at its biggest rival, UBS Group AG.

New Credit Suisse Survey Shows Clients Are More Confused Than Ever; A wall of worry.
Julie Verhage, Bloomberg
Credit Suisse’s Andrew Garthwaite has been talking to his (confused) clients.

Deutsche Bank restructures business, removes top executives
By Arno Schuetze, Reuters
Deutsche Bank is restructuring its business, splitting its investment bank in two and parting ways with some of its top bankers as the new chief executive of Germany’s biggest bank sets out its most “fundamental” overhaul.

‘Barclays made me sign a gag order before it would return £2,000 of my own money’
Financial firms tell fraud victims that they will get their money back – only if they keep quiet, in a disturbing new trend uncovered by Telegraph Money
Fraud victims could be forced to sign “gagging orders” by financial institutions as a condition of having their stolen money returned, Telegraph Money can reveal.

Barclays to speed up investment bank cuts
Martin Arnold, Banking Editor, FT
Barclays plans to accelerate the shrinkage of its investment bank by exiting trading operations in continental Europe, Asia and Latin America in a plan supported by incoming chief executive Jes Staley, say two people familiar with the strategy.

TD Bank lays off Canada, U.S. staff after review: sources
Toronto-Dominion Bank has begun laying off staff in Canada and the United States as part of a company-wide initiative to cut costs, according to two sources familiar with the matter.

Goldman Says Older U.S. Workers Poised for a Comeback
Jeanna Smialek, Bloomberg
Older U.S. workers are defying expectations, and international trends, when it comes to their labor force involvement.

Clearing & Settlement

CloudMargin signs with OpenGamma for OTC trade margin validation
CloudMargin, the first and only cloud-based collateral and risk management platform, and OpenGamma, a leading provider of market structure risk solutions, have joined forces to assist CloudMargin clients in meeting their increasingly complex risk management needs arising from the central clearing obligations for OTC derivatives.

OTC derivative reform still confusing for many Hong Kong players
South China Morning Post
Banks in Hong Kong were given four weeks to read through a dense 184-page document that will form the basis of the rules and regulations expected to be voted into law by the Legislative Council in January. They have until the end of October to give their views. Yet, as of last week, even senior business heads at top 10 banks contacted by the South China Morning Post who would be directly affected were unclear about the consequences. Most said they are unaware of the full scope of the changes.

Indexes & Products

The ETF Whale Blamed for Moving Japanese Markets Gets Reeled In
Anna Kitanaka, Bloomberg
Leveraged ETF seen by some traders as fueling late-day moves
CLSA sees potential market impact receding after order halt
In the final moments before Japan’s stock exchange closes each day, one investor has increasingly captured the attention of traders in Tokyo: the world’s biggest leveraged exchange-traded fund.

BUSINESS DAY TV: New JSE index series aimed at greater transparency
CORLI le Roux, head of sustainability at the JSE, speaks to BDTV about the exchange’s new Responsible Investment Index Series, aimed at stimulating greater transparency on environmental, social and governance issues

A Closer Look at SPIVA India Mid-Year 2015
Indexology – S&P Dow Jones Indices
The SPIVA India Scorecard reports on the performance of actively managed Indian mutual funds compared with their respective benchmark indices over one-, three-, and five-year investment horizons. With the SPIVA India Mid-Year 2015 Scorecard, we have also introduced asset-weighted fund returns and the quartile breakpoints of fund performance.


Banks jolted as HP unplugs popular back-office software
By James Rundle, Financial News
Hewlett-Packard is set to retire a piece of post-trade software used by several major banks, potentially leaving back-office operations with a serious problem ahead of a critical period in over-the-counter markets.

Orc Adds OneTick Data Management to Strengthen MiFID II-Compliant Solutions Offering
Orc (sto:ORC), the global market leader in electronic trading technology for listed derivatives, today announced a partnership with OneMarketData, LLC, to make OneMarketData’s flagship OneTick product an integral component of Orc’s Trading Bricks and Execution Bricks platforms.

Record And Replay A Whole Trading Day With Horizon Platform
Horizon Software has today announced the launch of its innovative market data recording and replaying module. The Horizon Replayer allows financial institutions to replay an entire day of market data for a broad range of asset classes and instruments, including stocks, futures, options, bonds, indexes and ETFs. For the first time this enables traders to test and fine-tune their algo strategies using real-time data.

Russian Hacker Group Infiltrated Dow Jones Servers
FBI, Secret Service and SEC said to be probing incursion
Hacking investigation said to have begun at least a year ago
A group of Russian hackers infiltrated the servers of Dow Jones & Co., owner of the Wall Street Journal and several other news publications, and stole information to trade on before it became public, according to four people familiar with the matter.

Neonet Goes Live with New BATS Periodic Auctions Book
Continues to expand liquidity access for clients trading larger size orders
Neonet, the independent agency broker and execution specialist, today announced that it will provide access to BATS Periodic Auctions Book from its go-live date today.


JPMorgan, Morgan Stanley pay most in $1.9 bln swaps price-fixing settlement
JPMorgan Chase & Co, Morgan Stanley and Barclays Plc will pay over half of a more than $1.86 billion settlement resolving investor claims they conspired to fix prices and

Kweku Adoboli, Ex-UBS Trader, Is Blocked From Financial Industry
British regulators said on Friday that Kweku M. Adoboli, a former UBS trader found guilty nearly three years ago of fraud related to a $2.3 billion trading loss at the bank, had been barred from the financial industry.

Environmental & Energy

Big Oil’s Murky Climate: Liam Denning
Liam Denning – Bloomberg
Big Oil is getting religion — sort of.
Ten major oil companies including Royal Dutch Shell, BP and Saudi Aramco declared on Friday that they totally get the climate change thing and would support measures aimed at preventing it.

Exxon’s climate change denial warrants federal inquiry, congressmen say; Members of Congress claim that oil company’s ‘sustained deception campaign’ could be prosecuted through truth in advertising and racketeering laws
The Guardian
Members of Congress have asked for a federal investigation into whether ExxonMobil broke the law by intentionally obscuring the truth about climate change.

Kerry urges ‘ambitious’ climate deal, warns on food security
U.S. Secretary of State John Kerry urged global leaders on Saturday to agree an “ambitious” deal at a climate conference in Paris in December, saying global warming was the biggest threat to global food security.

Oil chiefs fail to reach common position on carbon pricing
Executives of ten of the world’s largest oil and gas companies decided on Friday not to take a common position on the price of carbon because of differences among the groups’ members, and countries ahead of a climate summit in Paris in December.


A major Chinese state-owned steel trader may be about to default on its debts
David Scutt, Business Insider Australia
Sinosteel, a major Chinese state-owned miner and steel trader, is poised to default on its bonds this week according to a letter sent to investors.

Just the job: Hong Kong financial secretary says low unemployment can drive city’s economic growth in tough times
South China Morning Post
Stability in the labour market and consistently low unemployment could emerge as the main driving force for the city’s economic growth and buffer against negative external factors, Financial Secretary John Tsang Chun-wah said on Sunday.

China’s wise men come down to earth with a bump
China invented the compass. Yet in a curious irony, the direction of the world’s second-largest economy has become more or less unreadable. The country’s GDP increased by 6.9 percent in the third quarter, the slowest rate in six years. What investors, corporate chieftains and others really want to know, though, is how well China will manage an alarming slowdown. The signs aren’t terribly encouraging.

Frontier Markets

India Should Have An Onion Futures Market
Tim Worstall, Forbes
The lessons of economics are universal: once we manage to work out what those lessons are of course. And one of the things we think we know is that the presence of a futures market lessens price volatility. This is because a futures market moves prices through time: and it’s that aspect of such markets working as a time machine which lowers the price volatility across that time.


New book dives into Wall Street’s shady dealings
By Gregory Bresiger, NY Post
Wall Street often puts the individual investor to sleep, then picks his or her pockets, say the authors of a new book.

Mets’ winning mojo helps team flex post-Madoff financial muscle
Fans of the New York Mets had bemoaned the negative impact of the Bernie Madoff financial scandal on the Major League Baseball team’s payroll until Thursday night’s series-clinching victory over the Los Angeles Dodgers.

Financial Free for All: Fantasy Sites and the Stock Casino
Are daily fantasy sites games of skills, or games of chance? More centrally, how much do they resemble some of the games of chance people play in the stock market? That’s the question that we tackled in this week’s Financial Free for All podcast.

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