First Read

Spread the Word; Grow the Pie
By John J. Lothian

How can you help this industry grow and help make the markets more dynamic? The answer is easy. Help us fill up our FREE London events on October 14 and 15 and help us attract and bond as an industry with the next generation of industry professionals and participants.

We need the energy, intellect and perspective of young people to help our markets grow. You can help by passing along our event information (HERE), and strongly recommend young people you know in London, or those who may be older but interested in careers in the industry, to attend the MarketsWiki Education World of Opportunity series.

You can make a difference in your own success by helping others. You can lend a helping hand and make a difference in someone’s life. The strongest growth currents in the industry are those that lift all boats.

Help us fill up the sessions at Nasdaq’s Headquarters in London in the Woolgate Exchange. Help us fill up the sessions of this series sponsored by the CME Group, Nasdaq, FTSE Russell, Nadex, The IFM and Sungard

We have a great list of speakers and social events catered to engage the attendees with the speakers. This could be our best event yet, with your help.

Send some emails, give a call, make a difference. Help our industry grow by making this investment in all our futures and the futures of young people you know.


John Avery, SunGard – Financial Technology: An Innovative Career Choice

“The cost to comply with all of that [post-2008] regulation has actually forced firms to reduce what they spend on revenue generating opportunities… That’s created a situation where revenue growth hasn’t been as dramatic or as aggressive as it has been in the past.”

From incubators to hackathons, from the buy-side to the sell-side, fintech is consistently finding new places and avenues to develop. For John Avery of SunGard, that represents an opportunity to find technological solutions to industry-wide problems — the sort of redundant occurrences that drain a company’s coffers and employees’ time that could have been spent on innovation.

In this video Avery shares his experience rolling with the punches in a fintech career that featured the decision to choose Wall Street over Silicon Valley, a big firm over a small firm and selling over building the future.

Watch the video at »

African Exchanges Emerge at SFOA Conference in Switzerland
Sarah Rudolph – John Lothian News
Emerging markets face many economic challenges, not the least of which is setting up exchanges in order to facilitate price discovery and to help farmers and others hedge their products. But with the help of mobile technology and a spirit of cooperation among regions, some exchanges in Africa are getting started for the first time and attempting to create alliances that will help bring price transparency and hedging to the region. Leaders of these exchanges spoke about their plans at a panel at the SFOA Conference in Geneva, Switzerland.

Africa has enormous potential for growth, with more than 30 out of 50 countries there attempting to develop some kind of market or commodities exchange, though few are operational yet. The Agricultural Commodity Exchange for Africa (ACE) in Malawi is just getting started, and according to its CEO, Kristian Schach Moller, it is likely the world’s smallest exchange, in a very small country. But it could be the start of something big for the African continent.

Read the rest of the article at


Green Key Technologies Adds Chicago Trading Firms DRW and Eagle Seven as Equity Owners PRNewswire
Green Key Technologies, winner of the 2015 most promising sell-side start up award and maker of patented voice software designed specifically for traders and brokers, today announced that Chicago-based trading firms DRW and Eagle Seven have become equity owners.
Green Key also announced that Don Wilson has agreed to serve on the company’s advisory board. Wilson will join former CFTC commissioner Jill Sommers, former CEO of ICAP Electronic Broking David Rutter, and former General Counsel of ICE Exchange Jim Falvey

***DA: The next logical step for Green Key as it helps the OTC world adjust to new regulatory and technological requirements. The way I understand it, real time, readable, searchable voice transcription is something the company is working on, and something the regulators want. Plus, once voice is digitized it becomes data, and data is of value to proprietary traders. Furthermore, the OTC and listed derivatives worlds are crashing together. Green Key’s equity owners and advisory board fits together like a jigsaw puzzle.


How the banks ignored the lessons of the crash
The Guardian
Joris Luyendijk spent two years talking to hundreds of City insiders. They revealed how close we came to disaster – and how quickly finance went back
Ask people where they were on 9/11, and most have a memory to share. Ask where they were when Lehman Brothers collapsed, and many will struggle even to remember the correct year. The 158-year-old Wall Street bank filed for bankruptcy on 15 September 2008. As the news broke, insiders experienced an atmosphere of unprecedented panic. One former investment banker recalled: “I thought: so this is what the threat of war must feel like. I remember looking out of the window and seeing the buses drive by. People everywhere going through a normal working day – or so they thought. I realised: they have no idea. I called my father from the office to tell him to transfer all his savings to a safer bank. Going home that day, I was genuinely terrified.”

***** Nice work by The Guardian.


GOLDMAN SACHS: The stock market stops working when there are too many passengers
Julia La Roche, Business Insider
Tim O’Neill, Goldman Sachs’ partner and global cohead of the investment management division, has a warning: If passive investing gets too big, then the market won’t work.

***** We need traders, not just investors. It is pretty simple, too much of a good thing is bad.


Aeropostale gets listing warning from NYSE as shares fall below $1
Apparel retailer Aeropostale Inc said the New York Stock Exchange has warned that the average price of its shares had fallen below $1 for 30 trading days and it was considering a reverse stock split to return to compliance.

***** Now we know what the cool kids are not wearing anymore.


Lead Stories

McKinsey warns banks face wipeout in some financial services
Martin Arnold, Banking Editor, FT
The digital revolution sweeping through the banking sector is set to wipe out almost two-thirds of earnings on some financial products as new technology companies drive down prices and erode lenders’ profit margins.

ECB to use STOXX GC Pooling indices as new euro secured benchmark rate
Deutsche Börse
Deutsche Börse Group welcomes that the European Central Bank (ECB) will use the STOXX EUR GC Pooling index family going forward. According to the central bank, the secured market rate with regard to fixed term deposits in euro will be the STOXX EUR GC Pooling term indices with a comparable maturity, due to the discontinuation of the Eurepo index.

Incentives in futures markets attract scrutiny
Gregory Meyer in New York, FT
If the energy market was a vast sea, Nasdaq’s new futures exchange would be a puddle: it handles one in 500 US oil futures transactions.

Traders Flee Emerging Markets at Fastest Pace Since 2008
Taylor Hall – Bloomberg
Investors have sold $40 billion of assets in the third quarter
Biggest outflow since fourth quarter of 2008, IIF data show
Investors have pulled $40 billion out of developing economies in the third quarter, fleeing emerging markets at the fastest pace since the height of the global financial crisis.

Glencore Investors Zero In on Trading Unit; Investors wary about division’s debt load, while executives mount a defense of company’s business model
Glencore PLC’s large trading division has moved into investors’ cross hairs amid concerns that the $18 billion in short-term loans it uses to buy, sell and ship goods is riskier than the company says.

U.S. appeals court backs SEC’s use of in-house trials
By Sarah N. Lynch, Reuters
A U.S. appeals court on Tuesday rejected a request by an investment manager to have his in-house trial before a Securities a

BofA Merrill Confronts Austerity; New layoffs, cost cuts test Thomas Montag’s leadership at investment-bank unit
Thomas Montag rose to second in command at Bank of America Corp. in large part by making his investment-banking units consistently among the firm’s most profitable.

Metals Analyst Chris Olin Joins Rosenblatt Securities
Press Release
Rosenblatt Securities is pleased to announce that veteran metals-industry analyst Chris Olin has joined the firm. Based in Cleveland, Olin will cover publicly listed metals, specialty-materials and aerospace-supply companies, such as Alcoa, Nucor and Carpenter Technologies.

R3 Said to Add 13 Banks to Blockchain Effort to Overhaul Finance
Matthew Leising – Bloomberg
More banks have joined forces with R3, a startup headed by a former ICAP Plc executive, to study how securities, derivatives and loans trading can be overhauled by using bitcoin’s blockchain technology, according to people familiar with the matter.

Banks ‘are past the worst on fines and punishments’; Record-breaking fines for finance firms are likely to be a thing of the past, as the regulators cut back on huge financial penalties in the City
The Guardian
Britain’s financial sector is past the worst of the storm of fines and charges from regulators, with the wave of penalties last year unlikely to be repeated, according to a new analysis of the sanctions handed out by the Financial Conduct Authority.

Traders start pricing Glencore bonds like junk
Gavin Jackson and Dan McCrum, FT
Traders have started to quote prices for Glencore debt in a manner normally associated with lower-quality paper, commonly known as junk bonds.

JPMorgan ordered to face London Whale class action in U.S
JPMorgan Chase & Co (JPM.N) shareholders on Tuesday won court permission to pursue their securities fraud lawsuit against the bank over the “London Whale” trading scandal, which caused a $6.2 billion loss, as a class action.

China Regulator Imposes Record Fines in Market Rout Clampdown
Bloomberg News
September’s fines, confiscations are five times total for 2014
CSRC pledges sustained campaign to deter market wrongdoing
China’s securities regulator has handed out at least 2.37 billion yuan ($370 million) in penalties this month, five times the total for all of 2014, as the government clamps down after a stock rout.

Euro-Area Inflation Rate Turns Negative as ECB Debates Stimulus
Alessandro Speciale, Lorenzo Totaro. Bloomberg
Consumer prices declined 0.1 percent from year earlier
Jobless rate remained unchanged at 11 percent in August
The euro area’s inflation rate unexpectedly turned negative in September for the first time in six months, adding pressure on the European Central Bank to bolster stimulus.


SEC to Hold Equity Market Structure Advisory Committee Meeting on October 27
The Securities and Exchange Commission today announced that its Equity Market Structure Advisory Committee will hold its second meeting on October 27, beginning at 9:30 a.m. ET. The Commission established the advisory committee in February to provide a formal mechanism through which the Commission can receive advice and recommendations on equity market structure issues.

CFTC Issues Guidance on “Firm or Forced Trades” Process
by James M. Brady, Kevin M. Foley, Katten Muchin Rosenman LLP via J.D. Supra
The Commodity Futures Trading Commission’s Division of Clearing and Risk and Division of Market Oversight have issued guidance to derivatives clearing organizations (DCOs) that use a “firm or forced trades” process to determine the price of swaps for which public market prices are not available. Specifically, the guidance confirms that a DCO is not required to register as a swap execution facility solely by virtue of using a “firm or forced trades” process.

CFTC head calls for leverage ratio fix
Joe Rennison in New York, FT
The head of the main US derivatives regulator has reiterated calls for a softening of bank capital requirements blamed for a decline in the number of clearing firms.

Japan Watchdog’s New Top Man Sees Need for Tougher Punishments
Tom Redmond, Takako Taniguchi – Bloomberg
Nation had ‘shame culture’ instead of big monetary penalties
SESC is ‘extremely interested’ in high-frequency trading
Regulators outside Japan fined UBS Group AG about $1.5 billion for rigging benchmark interest rates. Their counterpart in Tokyo essentially ordered some of the bank’s traders to take a week off.

Sebi issues final guidelines for commodity derivatives brokers
The Economic Times
A day after taking charge of commodity market regulations, Sebi today issued final norms for traders of commodity derivatives exchanges that need to be complied with.
Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans

    • FINRA: Notice of Filing of a Proposed Rule Change to Amend FINRA Rule 8312 (FINRA BrokerCheck Disclosure) to Reduce the Waiting Period for the Release of Information Reported on Form U5 (Release No. 34-75988; File No. SR-FINRA-2015-032; September 25, 2015); see also Exhibit 5


    • ICEEU: Order Approving Proposed Rule Change Relating to CDS End-of-Day Price Discovery Policy (Release No. 34-75983; File No. SR-ICEEU-2015-013; September 25, 2015)


    • MIAX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the MIAX Options Fee Schedule (Release No. 34-75986; File No. SR-MIAX-2015-55; September 25, 2015); see also Exhibit 5


    • NASDAQ: Notice of Filing of Proposed Rule Change to Amend Rule 4758 (Release No. 34-75987; File No. SR-NASDAQ-2015-112; September 25, 2015); see also Exhibit 5


    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Adding to The Rules of the Exchange the Third Amended and Restated Certificate of Incorporation of NYSE Market, Inc., and the Eighth Amended and Restated Operating Agreement of New York Stock Exchange LLC (Release No. 34-75984; File No. SR-NYSEMKT-2015-71; September 25, 2015)


    • NYSEMKT: Exhibit 5B (Release No. 34-75984; File No. SR-NYSEMKT-2015-71; September 25, 2015)


    • NYSEMKT: Exhibit 5A (Release No. 34-75984; File No. SR-NYSEMKT-2015-71; September 25, 2015)

Exchanges & Trading Facilities

ASX sets up Hong Kong base to drive expansion
The Trade News
Australian exchange operator ASX is opening a Hong Kong office in order to get closer to its growing customer base in the region.

Hedge Funds & Managed Futures

Bill de Blasio calls on New York pension funds to divest from coal companies; Mayor says investments must ‘catch up’ with the rest of the city in its effort to battle climate change and shift toward renewable energy
Ellen Brait in New York, The Guardian
New York’s Mayor Bill de Blasio called on the city’s five pension funds on Tuesday to end their investments in coal companies, demonstrating his commitment to taking on climate change.

Trading in the spotlight as Glencore seeks way out of crisis; Glasenberg confident about role of trading; Problems in Singapore show scope of difficulty; Reliance on trading division set to rise; For a graphic on Glencore trading earnings:
By Jessica Jaganathan, Libby George and Dmitry Zhdannikov, Reuters
As Glencore’s stock went into free fall in August in the face of heavy debts and shrinking earnings, its chief Ivan Glasenberg had a defiant message – traders can beat weak commodity prices during market downturns.

Gov. Bruce Rauner offers tax breaks to lure ConAgra HQ to Chicago
Kim Janssen, Chicago Tribune
Gov. Bruce Rauner has offered packaged food giant ConAgra tax incentives to move its headquarters from Omaha to Chicago, according to a source familiar with the deal.

Is Swing Trading the Best Strategy for You?; Why swing trading and other short-term trading strategies can hurt your returns.
Motley Fool
Swing trading is a broad term that includes a variety of short-term trading strategies in the stock market. The Internet, online trading platforms, and the information revolution have made swing trading strategies increasingly accessible to the individual investor over the past several years.

Rate Jitters Scared Stock Fund Investors In August
Investors pulled a net $9.22 billion from stock funds in August, as the market fell amid stock market news concerns about China’s economic slowdown.

Eurozone inflation tumbles below zero for first time in six months
James Shotter in Frankfurt, FT
Eurozone inflation slipped below zero in September, a development that is likely to spur further calls for the European Central Bank to ratchet up its EUR60bn per month asset-purchase programme.

Here’s what Wall Street isn’t telling you about this stock market
By Barbara Kollmeyer, MarketWatch
Welcome to the worst day of the year for investors, though you wouldn’t know it by looking at stock futures this morning. Thank the portfolio window-dressers or bouncy dead cats, but the market looks set to fly.

Banks & Brokers

Northern Trust Launches CompleteFX
CompleteFX is a fully-customized service and technology platform supporting FX transaction processing and execution, combining the operational proficiency of the company’s Global Fund Services infrastructure with the market and execution expertise of its Global Foreign Exchange group. Developed from existing FX execution services Northern Trust offers to its investment operations outsourcing clients, CompleteFX provides investment managers the benefits of outsourced FX processing and execution.

RBC’s Appeal on Merger Ruling Has Banks Concerned; Financial advisers have traditionally not been sued for errors or conflicts of interest in M&A deals
When lawyers for RBC Capital Markets enter a Delaware courtroom Wednesday, Wall Street rivals will be watching closely.

Goldman Fixed-Income Executive to Step Down After 30 Years
A senior executive in Goldman Sachs Group Inc.GS -0.67%’s fixed-income trading unit is retiring after almost 30 years. Paul Huchro, who is head of U.S. flow credit and municipals trading, will step down at the end of the year and be succeeded by Jeffrey Verschleiser, according to internal memos seen by The Wall Street Journal. A spokesman for the bank confirmed the contents of the memos.

BofA Said to Cut Dozens of Traders, Bankers as Revenue Drops
Hugh Son, Bloomberg
Allison Ferreira, Frank Laino said to be among the departures
CEO Moynihan said this month that trading revenue was down
Bank of America Corp. is cutting dozens of jobs across the firm’s trading and banking divisions after Chief Executive Officer Brian Moynihan pledged to trim expenses amid a decline in trading revenue, according to two people with knowledge of the plans.

BofA Loses $3.3 Billion Wealth Team as Another Boutique Is Born
Dakin Campbell, Margaret Collins – Bloomberg
Group includes seven advisers in wealthy Newport Beach area
Tech ventures are enabling private bankers to set up own shops
A group of Bank of America Corp. private bankers that helped anchor the firm’s wealth-management practice in one of California’s wealthiest enclaves has defected to start an independent company.

StanChart aims to hire financial crime compliance staff in Middle East
Standard Chartered (STAN.L) plans to hire several financial crime-fighting staff in the Middle East, according to online jobs postings, as it seeks to strengthen controls after legal and compliance problems in the United States.

Clearing & Settlement

Massad ups pressure on clearing house equivalence
Futures & Options World
Speaking at the OTC Derivatives Conference on Tuesday, Massad said: “There is a better way to consider whether we need international standards on margining that are more granular than the PFMIs [Principles for Financial Market Infrastructures]. That is the current CPMI-IOSCO process that is already underway.”

The Clearing House takes aim at CCP risk governance
The Clearing House – a New York-based group of 24 US banks – has criticised inconsistencies in the risk governance of central counterparties (CCPs) and called on regulators to impose tougher minimum standards.
In a September 18 letter to regulators, the group said it supported the drive to centrally clear standardised over-the-counter derivatives through CCPs – a goal adopted by Group of 20 leaders at Pittsburgh in 2009. But it added that “the shift to central clearing has the potential to concentrate systemic risks within the CCPs, as increasingly recognised by regulators”.

Indexes & Products

Smart Beta ETFs, Highly Popular, Face One Big Challenge
More than two-thirds (68%) of financial advisors are using smart beta ETFs — but roughly a third don’t know it, according to a new study. Only 35% of financial advisors in the survey reported having used a smart beta exchange traded fund without the help of descriptive examples and other prompts. But when prompted by specific product names, 68% described themselves as users, index provider FTSE Russell found in its first U.S. retail financial advisor Smart Beta market survey, which was released Monday ahead of a major ETF industry conference.

Hedge Funds Devise Trades to Benefit From ETFs’ Woes; In some cases, gains come at expense of individual investors
Wall Street is concocting ways to capitalize on potential weak spots in exchange-traded funds, which showed signs of vulnerability during the recent market turmoil.

Volatility Is Just a Fad for Buy-the-Dip Believers as VIX Surges
Bloomberg Business
As stock charts get ever uglier, one group of traders is refusing to give up on a big bet that things will turn around. Their faith can be measured in the market capitalization and outstanding shares of a security that has come to serve as a proxy for the strategy known as shorting volatility — betting today’s stock market stresses won’t last. Both values surged when equities began their selloff in August and have held steady amid the market’s subsequent twists.


Meet the new kids on the blockchain
By Anna Irrera, Financial News
From OTC clearing to smarter lending, a host of start-ups have developed ways to put blockchain technology to work in finance. Financial News profiles four.

Blockchain: Four financial frontrunners
By Anna Irrera, Financial News
Brainstorming ideas, setting up specialist labs, launching small-scale systems…Financial News looks at how four big names in finance are exploring blockchain.

Fintech startups pose threat to traditional banks’ retail profit
The Globe and Mail
Banks could lose up to 60 per cent of their retail profits to nimble fintech firms within the next decade, according to global consultancy McKinsey & Co., offering a particularly alarming outlook as new financial technology players nibble away at some of the more vulnerable areas of traditional banking.

S3 Launches Upgraded Regulatory Reporting Analysis Software
Press release
Company Enhances Analytics Tools for Rule 605 and 606 Reporting, and Now Offers Reporting Capabilities for Rule 611 and RegSHO
S3 (“the Company”), a financial services software company that provides customized solutions to monitor and analyze trade execution, today announced the launch of its enhanced regulatory reporting analytics suite. The Company’s already strong Rule 605 and 606 analysis tools have been significantly upgraded, and its software platform now offers support for Rule 611 and RegSHO reporting.

Is Israel the next global Fintech hub?
Keren Licht – The Times of Israel
The growth of the Fintech industry surprised many in the beginning, but now it is a global phenomenon. It is now ubiquitous, whose unstoppable progress has got insiders guessing as to where will be its next global hub, following the usual suspects of London, New York, Singapore and of course, Silicon Valley. We believe that one country in particular has the potential to overtake them all. Furthermore, this country is in the Middle East. Israel has tremendous potential for the unrivalled development of the Fintech sector. These are the reasons why.


CFTC Order Imposes a Monetary Penalty and Permanent Trading and Registration Bans against Daniel Bowman for Violating Speculative Position Limits in Live Cattle Futures
The Order finds that on three trading days in 2010, and three trading days in 2013, Bowman exceeded the spot month speculative position limit for the CME Live Cattle futures contract. The spot month speculative position limit was established by the CME and approved by the CFTC. In 2013, Bowman controlled the Live Cattle futures trading of Four Aces Investment Group, LLC (Four Aces). On the trading days of the position limit violations in 2013, the aggregate futures position held by Four Aces and Bowman exceeded the spot month speculative position limit in the Live Cattle futures contract, the Order finds.

CFTC Charges Florida Resident Todd Owen Marshall and His Companies Harvard Assets LLC, London Assets Inc., and Harvard International Trading, Inc. with Engaging in Illegal, Off-Exchange Precious Metals Transactions and Registration Violations
The CFTC Complaint charges the Defendants with engaging in illegal, off-exchange transactions in precious metals with retail customers on a leveraged, margined, or financed basis, and charges the Entity Defendants with acting as Futures Commission Merchants (FCMs) without registering as such with the CFTC, as required.

CFTC Orders Florida Resident Barbara Cohen and Her Company, Pure Reason, LLC, to Pay a $140,000 Penalty for Cohen’s False Statements to the CFTC and for Not Disclosing that Profitable Trading Results Were Based on Hypothetical Trading
The Order finds that on October 22, 2014, Cohen knowingly made false and misleading statements to CFTC staff while testifying under oath. The Order finds that Cohen falsely testified that she was authorized to trade and traded an account that she never in fact traded or had any authority to trade. Such conduct violated the Commodity Exchange Act (CEA), which prohibits the making of a false or misleading statement to the CFTC.

SEC Charges Investment Adviser With Fraud
In a complaint filed in U.S. District Court for the District of Massachusetts, the SEC alleges that Family Endowment Partners LP and its owner, Lee Dana Weiss, of Newton, Massachusetts, urged their clients to invest more than $40 million in illiquid securities issued by several related companies without disclosing that Weiss had an ownership interest in the parent company of these entities and received payments from these entities.

SEC Charges UBS Puerto Rico and Two Individuals in Actions Relating to Former Broker’s Fraud
The Securities and Exchange Commission today charged UBS Financial Services Inc. of Puerto Rico and a former branch manager for failing to supervise a former broker who had customers invest in UBSPR affiliated mutual funds using money borrowed from a UBSPR affiliated bank. UBSPR and the bank prohibited using such loans to purchase securities and the practice exposed investors to losses while producing profits for the former UBSPR broker, the SEC alleged.

CFTC Orders Florida Resident Alan M. Kneller and His Company American Portfolio Asset Management, Inc. to Pay Restitution and a Civil Monetary Penalty Totaling More than $578,000 in Precious Metals Enforcement Action
The CFTC Order finds that, from at least August 2011 through at least February 2013, the Respondents solicited retail customers to buy and sell physical precious metals, such as gold and silver, in off-exchange, leveraged transactions. According to the Order, customers paid a percentage of the purchase price for the metals and received financing for the remainder of the purchase price, while paying commissions and fees on the transactions.

Alberta Securities Commission: Joseph Bucci Sentenced To 18 Months For Role In “Pump And Dump” Scheme
Joseph Gaetano Bucci, president and CEO of Coastal Pacific Mining Corp., has pled guilty to acting as a dealer of securities without registration, not filing a prospectus, and engaging in a course of conduct that resulted in a false appearance of trading activity and an artificial price for the Coastal Pacific securities. Provincial Court Judge Skene accepted the pleas and sentenced Bucci to an 18 month conditional sentence.

Securities Commission Malaysia Revokes Licence Of Khoo Chee Leong For Conducting Deceitful Activities
The Securities Commission Malaysia (SC) has revoked the Capital Market Services Representative’s Licence (CMSRL) of Khoo Chee Leong (Khoo) effective from 28 August 2015. Khoo was formerly attached to Kenanga Investment Bank Berhad (KIBB) as a CMSRL holder for dealing in securities.

Environmental & Energy

Mark Carney warns investors face ‘huge’ climate change losses
Pilita Clark in London, FT
The governor of the Bank of England has thrown down the gauntlet to the fossil fuel industry with a blunt warning that investors face “potentially huge” losses from climate change action that could make vast reserves of oil, coal and gas “literally unburnable”.

Challenges loom for China’s carbon market plan, East Asia News & Top Stories
The Straits Times
China’s plan to launch a national emissions trading market in 2017 has injected fresh political energy into talks ahead of December’s climate change summit in Paris, but experts say Beijing will have to overcome daunting challenges to develop a successful carbon market.

A Carbon Tax Can Be Designed To Be Pro-Poor
Existing research suggests that a carbon tax is likely the most efficient policy to fight global greenhouse emissions. An argument often used against a carbon tax is that it will impose costs on firms and eventually on households, particularly low income households, as prices of taxed items rise. However, it is important to remember that existing Environmental Policy Agency regulations on carbon emissions are also costly.


China ETF options traders braced for more pain
Even with a recent sharp decline in China’s equity market, some do not believe the selling is at an end, judging by activity in the options market.

Hong Kong loses crown as world’s best financial sector, but city’s education ranking surges
South China Morning Post
Hong Kong no longer has the best financial sector in the world, losing its top ranking to New Zealand and Singapore, according to the latest report from the World Economic Forum. Despite losing its crown in finance, Hong Kong has held its place as the seventh most competitive economy in the world for the third year in a row in the 2015-16 World Economic Forum Global Competitiveness report, released on Tuesday.

Hong Kong home prices ‘set to plunge’, Business News & Top Stories
The Straits Times
Hong Kong home prices are the highest relative to shares of the city’s publicly traded developers in almost two decades. For Bocom International Holdings analyst Alfred Lau, that’s a sign that the property market’s about to drop as much as 20 per cent.

Singapore’s future rests on its evolving economy
Malay Mail Online
Singapore is a curious sovereignty in that it and its economy can and perhaps should be treated as indivisible. It was founded in 1819 for economic reasons, and without its thriving economy today it would be hard to imagine that its heterogeneous and complex society can remain cohesive.

Frontier Markets

Frontier markets: Namibia flying under the radar
New Era Newspaper Namibia
Being an avid fan of rugby, and especially the World Cup, I have been drawn to the events currently taking place in London. I’m supporting England, of course, because India is not fielding a team, but I am also intrigued by the other countries competing, and one in particular, Namibia.

Renaissance Capital Goes Live On Calypso – Leading Emerging And Frontier Markets Investment Bank Modernizes Back-Office Operations
Calypso Technology Inc., the standard for treasury and capital markets software, has successfully deployed its award-winning solution at leading emerging and frontier markets investment bank Renaissance Capital as a strategic cross-asset back-office solution for the bank’s client and proprietary operations.

Emerging Market Debt In Focus On Nigeria Debt Exclusion
While emerging market equities receive a lot of attention, a large amount of assets also follow emerging market local debt. J.P. Morgan estimates that approximately $200 billion is tied to its Government Bond Index-Emerging Markets (GBI-EM) Index series. The countries included—or excluded—from the Index can have a major impact on performance. Case in point, Nigeria.

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