First Read

Yesterday’s Top 3
The top read stories in yesterday’s JLN were: Chicagoans help subdue unruly passenger on detoured United flight which included industry veteran Bob Fitzsimmons; Upstart IEX exchanges blows with small investors over high-frequency trading and Hedge Fund Veterans Who Blew Themselves up Now Courting Chinese Investors

In today’s issue, under the Exchange section, there is a nice analysis of CME’s 2015 volumes. Among the product sectors analyzed, energy showed the biggest jump in volume last year, up 20 percent year-over-year. This year is off to another wild start in energy, just as Derek Sammann pointed out in our Sweet 16 series

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Survey Says – Give the readers what they want!
Yesterday we kicked off our 2016 survey campaign. Help us help you by giving us three minutes of your time and sharing your thoughts. Plus, we tried to make it fun and colorful. The final kicker? You could win an Apple Watch. Click HERE to get started.

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One FIA is here
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One FIA: Global Reach. Regional Expertise.
The merger of FIA, FIA Europe and FIA Asia into a single organization took effect on January 8, 2016. The newly merged organization will serve both the global and regional needs of the futures, options and cleared swaps industries.
bit.ly/1ULSW4D

***** In honor of One FIA, here is THE VOGUES- “YOU’RE THE ONE”

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Risk Management for a Volatile Market: Prepping for 2016 – Jan 14, 2016, TT’s Tech Tap
Trading Technologies, CBOE Futures Exchange and Advantage Futures are pleased to present this event as a forum to discuss risk challenges and how to manage them for the new year.
Discussion Points:
Understanding the Term Structure of VIX
As Market Participants Vary, So Do Risk Profiles
Futures, Options or ETPs?
Introduction: Drew Shields, CTO – Trading Technologies International, Inc.
Moderator: Jay Caauwe, Managing Director – CBOE Futures Exchange
Panel:
Larry Schulman, CEO,Cheiron Trading LLC, Henry Carter, Head of US Index Trading, IMC
Ari Pine, President of Exchange Connectivity, Trading Technologies, Euan Sinclair, CEO and Co-Founder,FactorWave

Agenda:
3:30pm Registration
4:00pm Panel Discussion
5:00pm Drinks & Network

When
Thursday, January 14, 2016 from 3:30 PM to 6:30 PM (CST)
Where
TT’s Tech Tap – 222 S Riverside Plaza. 11th Floor. Chicago, IL 60606

The event is free to attend but you must register by clicking HERE

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WFE Focus
World Federation of Exchanges
CEO Interview: NSE – financing India’s transformation; Education, Education, Education – WFE’s new Working Group; Open Outcry – London Metal Exchange relocates the Ring; WFE’s new vocational video – full-length version is released; Headlines from the Exchanges
bit.ly/1ULLsyr

****** Check out WFE’s magazine.

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TABB Group Adds Tom Lehrkinder and Callie Bost as Analysts
Press Release
TABB Group has hired Tom Lehrkinder and Callie Bost as research analysts to further strengthen their derivatives practice. Lehrkinder and Bost are based in New York and will focus on the global listed derivatives markets for TABB’s research and consulting practices, reporting to Andy Nybo, partner, global head of research and consulting.
bit.ly/1ndwsyX

***DA: Bost’s report on the possible regulatory impact on options markets has been a top-clicked story in the last couple newsletters.

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China ‘Blew It’: Bart Chilton
TABB Forum
Chinese regulators “blew it,” according to former CFTC commissioner Bart Chilton, who says moves by the regulator failed to establish market confidence and exasperated last week’s market volatility. Speaking on CNBC, he explains some of the differences between US circuit breakers and those in China, and why China’s circuit breakers failed.
bit.ly/22XfWDF

***** The second funniest Bart in video.

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John Maynard Keynes: Great Economist, Terrible Currency Trader
Neil Irwin – NY Times
If you watch a lot of business news on cable, you will inevitably see advertisements for software platforms that enable do-it-yourself currency trading. Great fortunes have been made by traders who correctly predicted swings in the dollar, yen or pound, that much is true.
nyti.ms/1ZhUNPW

***** Remember, the market can stay irrational longer than you can stay solvent.

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Starbucks Plans Thousands of New Stores in China; China’s coffee consumption remains tiny compared with North America’s
By LAURIE BURKITT – WSJ
Starbucks Corp. is upping its bet on Chinese consumers’ taste for coffee, despite global jitters over the country’s slowing economy and market turmoil.
on.wsj.com/1OolY6w

****** Latte in Chinese is pronounced Ná tie. And that is a lot of Ná tie.

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Eternally Internal: WH Trading CTO Mike Madigan
Waters Technology
Mike Madigan has spent nearly 15 years at Chicago-based WH Trading, building the proprietary trading firm’s technology from the ground up. The CTO talks with Dan DeFrancesco about developing the firm’s technology for trading in the futures and options markets, and the importance of keeping a majority of the technology in-house.
bit.ly/1ndyorh

***DA: Great piece on my favorite Mike Madigan in Chicago. I was there, as one of the junior traders at Cooper, Neff & Associates, along with WH founder Will Hobert, when we hired him into the derivatives world. We’re both still around.

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Lead Stories

Nasdaq Suspends Currency-Trading Plans While Rivals Race Ahead
John Detrixhe – Bloomberg
Exchange operator says lack of demand led it to halt plans
Nasdaq said to have been among bidders for Hotspot FX and 360T
Nasdaq Inc. has put its foreign-exchange ambitions on hold because of a lack of demand from customers, even as its rivals spent about $1.2 billion last year on platforms to trade the world’s biggest asset class.
bloom.bg/1IZhZk1

Betting big against the yuan? Beijing will crush you
Steve Mollman – Quartz
The question of where China’s currency is headed has transfixed investors for months, including since the start of 2016, when it’s been swinging sharply. The answer has global repercussions, yet the decision processes behind Beijing’s tight control of the yuan remain opaque.
bit.ly/1RzxkuJ

Sell everything ahead of stock market crash, say RBS economists
Nick Fletcher – The Guardian
Investors face a “cataclysmic year” where stock markets could fall by up to 20% and oil could slump to $16 (£11) a barrel, economists at the Royal Bank of Scotland have warned.
bit.ly/1RjMDHu

China’s Muscling Hong Kong Won’t Save Yuan
By AARON BACK – WSJ
Dominating the small yuan market in Hong Kong is one thing; solving China’s fundamental currency conundrum is another
China has declared war on offshore speculators betting against its currency. But it is merely attacking a symptom, not the root causes, of its currency woes
on.wsj.com/1N4BS3U

Bowie Bonds: When the Man Who Sold the World sold asset-based securities
Phil Rosenthal – Chicago Tribune
David Bowie — alias Ziggy Stardust, Aladdin Sane, the Thin White Duke, the Man Who Sold the World and the Man Who Fell to Earth — was also the Man Who Sold Asset-Based Securities.
trib.in/1JHw2e3

A New Focus on Liquidity After a Fund’s Collapse
By LANDON THOMAS Jr. – NY Times
The college seminar was drawing to a close in October and Martin J. Whitman was pondering the hits and misses in his long career at the top of Third Avenue Management, one of Wall Street’s better-known value investment firms.
nyti.ms/1PpcGaj

China’s two renminbi rates converge
Jennifer Hughes in Hong Kong – FT
China’s two renminbi rates returned to parity for the first time in two months thanks to suspected offshore buying by Beijing, less than a week after a record gap between them helped spark market turmoil around the world.
on.ft.com/1RjMX9d

Exclusive: Chinese regulator asks banks to cut wealth management yields – sources
BY ZHENG LI AND NATHANIEL TAPLIN – Reuters
China’s banking regulator and main bond clearinghouse have asked commercial banks to reduce rates they offer on high-yielding wealth management products (WMPs), five sources told Reuters, an apparent back-pedalling on commitments to let markets price credit.
reut.rs/1J0oC5u

Michael Bloomberg May Run for President; Good News for Bankers Who Don’t Especially Like Soda: N.Y. Times Suggests
By Eric Levitz – New Yorker
If we know anything about America in 2016, it’s that gun confiscation, calorie restriction, and Wall Street all enjoy overwhelming popular support, especially in swing states.* So it should come as no surprise that Michael Bloomberg, a public figure associated with bond trading, small sodas, and weapons bans, is once again contemplating a run at the White House.
nym.ag/1KaWjwn

Why European Banks Must Compete On Wall Street; Without an American presence the banks will also be less relevant at hom
By PAUL J. DAVIES – WSJ
European pop stars rarely make it big in America—but they must try because the commercial rewards are vastly greater than anywhere else.
on.wsj.com/1mSxhwz

What the End of the Case Against Steven Cohen Means
White Collar Watch
By PETER J. HENNING – NY Times
General Douglas MacArthur said in his retirement speech before Congress that “old soldiers never die; they just fade away.”
nyti.ms/1l2FsVK

Regulatory

SEC’s Top Exam Priorities for 2016
Think Advisor
The Securities and Exchange Commission said Monday that the agency’s examiners will zero in this year on several new areas — liquidity controls, public pension advisors and product promotion among them, as well as exchange-traded funds and variable annuities.
bit.ly/1W35GF6

Banks’ Worst Fears Eased as Basel Soft-Pedals Capital Overhaul
Bloomberg Business
Global banking regulators pledged to refrain from further tightening capital requirements with new rules to be finalized in 2016, dispelling industry fears that triggered intense lobbying efforts over the past year. The Basel Committee on Banking Supervision doesn’t plan to raise capital requirements across the board in the remaining projects of its post-crisis bank rule overhaul, it said Jan. 11 after a meeting of its oversight body, chaired by European Central Bank President Mario Draghi. The group, which includes the Bank of England and U.S. Federal Reserve, said it will assess the potential costs of any additional action.
bloom.bg/1IZhmHg

Regulation watch: Setting the precedent; As US and European regulators push to ensure investors get a fair deal from traders, Henry Yegerman considers how regulators on both sides of the Atlantic are demanding Best Execution.
By Henry Yegerman – The Trade News
Current industry discussions on best execution tend to focus on the implementation of the Markets In Financial Instruments Directive II (MIFID II).
bit.ly/1mTLGZT

Temporary prohibition of short selling: Banca Monte dei Paschi di Siena S.p.A.
UK FCA
The Financial Conduct Authority (“FCA”) notifies that it temporarily prohibits short selling in the following instrument under Articles 23 (1) and 26 (4) of Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012. This follows a decision made by another EU Competent Authority.
bit.ly/1ZpJP03

ISDA Determinations Committees Vote to Change DC Rules
ISDA
he International Swaps and Derivatives Association, Inc. (ISDA) today announced that the ISDA Credit Derivatives Determinations Committees (DCs) have voted to make a series of changes to the DC rules as part of an effort to further strengthen the process for determining whether a credit event has occurred in the credit derivatives market.
bit.ly/1ULPSoW

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

    • 17d-2: File No. 4-694: Proposed Plan for the Allocation of Regulatory Responsibilities Between the Financial Industry Regulatory Authority, Inc. and the National Stock Exchange, Inc.

 

    • 17d-2: Notice of Filing of Proposed Plan for the Allocation of Regulatory Responsibilities Between the Financial Industry Regulatory Authority, Inc. and the National Stock Exchange, Inc. (“Release No. 34-76856; File No. 4-694; January 8, 2016”)

 

    • 17d-2: 17d-2 Plans for Allocation of Regulatory Responsibilities

 

    • BATS: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rules 27.1, Definitions, and 27.4, Temporary Rule Governing Phase-Out of P and P/A Orders (Release No. 34-76864; File No. SR-BATS-2015-122); see also Exhibit 5

 

    • BATS: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc. (Release No. 34-76863; File No. SR-BATS-2015-120); see also Exhibit 5

 

    • BATS: Notice of Filing of Proposed Rule Change to List and Trade Shares of the SPDR DoubleLine Emerging Markets Fixed Income ETF of the SSgA Active Trust (Release No. 34-76862; File No. SR-BATS-2015-94)

 

    • CBOE: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Limit Order Price Protections for Stock-option Orders (Release No. 34-76857; File No. SR-CBOE-2016-003; January 8, 2016)

 

    • Phlx: NASDAQ OMX PHLX LLC (Phlx) Rulemaking Archive: 2015

 

    • Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Permit Fees (Release No. 34-76858; File No. SR-Phlx-2015-109; January 8, 2016)

jlne.ws/1JoVeWA

Exchanges & Trading Facilities

CME Group: Trading Activity Slows Down in December, But Sets Volume Record For The Year
Trefis
After a sustained period of high trading activity through the year, CME Group (NASDAQ:CME) witnessed a slowdown in the fourth quarter of 2015. Average daily volumes (ADVs) declined by 4% on a year on year (y-o-y) basis to 13 million trades per day in December and by 11% y-o-y to 13.2 million trades per day in the fourth quarter. However, despite slow trading activity in the last quarter, the first nine months helped CME Group average a record 14 million trades per day in 2015, a growth of 2% annually.
bit.ly/1ndwAOI

CME sees demand for Japan aluminium premium future
Futures & Options World
The CME Group has passed a milestone in the adoption of its aluminium premium products by trading 600 contracts on its new Japanese contract, just days after its rival LME said its contracts had not traded. The Merc said on Monday its Aluminium Japan Premium future traded 622 contracts on its first day of trading (Friday January 8), a solid start for the product.
bit.ly/1mTIpd7

EEX Group Achieves Impressive Results Across All Markets
Press Release
The European Energy Exchange (EEX) enjoyed a successful 2015 and was able to further extend and strengthen its position as the leading European energy exchange. As a result of the expansion of EEX Group with Powernext and EPEX SPOT, which have been fully consolidated since 2015, and Gaspoint Nordic as well as the introduction of new products, it was able to significantly increase its trading volumes and gain further market shares compared to the over-the-counter market.
bit.ly/1ndxfjk

Euronext to add French weekly options
Futures & Options World
Pan-European exchange Euronext is set to launch new French weekly equity options contracts on Friday January 29 in a bid to boost trading opportunities in the CAC 40 index. The exchange will launch weekly expiries on its French CAC 40 index options contracts on January 29. The launch will begin with the introduction of the week two contracts which will expire on Friday February 12, 2016.
bit.ly/1mTIfTh

Gearing up audit committees for 2016 – raising the bar in financial reporting and audit
SGX
Over 400 audit committee and board members gathered at the annual Audit Committee Seminar today to hear first-hand from corporate regulators on key areas of focus for 2016.
bit.ly/1ON7gJT

Interview: Mint Tower Capital – a hedge fund directly accessing the exchange to get the whole of the European Equity Options
Eurex
Cornelius Müller, Eurex Exchange responsible for Dutch institutionals and Equity Options, spoke with Bart Bijmolen, Head of Sales at Mint Tower Capital, joining Eurex as a participant, about the company’s arbitrage strategies and what made them join Eurex Exchange.
bit.ly/1ULOvXi

DGCX Celebrates 10th Anniversary On A Record-Breaking Note With Its Highest-Ever Trading Volume
Mondovisione
DGCX records over 14.5 million contracts in 2015 – its highest annual volume since inception in 2005; Launched Dubai Spot Gold Contract and Chinese Yuan futures in December 2015
The Dubai Gold & Commodities Exchange (DGCX) announced today that it concluded the fiscal year with record-breaking trading volumes of over 14.5 million contracts – an increase of 23% compared with 2014
bit.ly/1Rzz7jk

CBOE, C2 and CFE Trading Schedule for the Martin Luther King, Jr. Holiday
CBOE
CBOE Holdings, Inc. (NASDAQ: CBOE) announced the following trading schedule for Chicago Board Options Exchange (CBOE), C2 Options Exchange (C2) and CBOE Futures Exchange (CFE) in observance of the Martin Luther King, Jr. holiday:
bit.ly/1Q2cJxl

Tokyo Stock Exchange Announces Winners Of The 4th Corporate Value Improvement Award
Mondovisione
Tokyo Stock Exchange hereby announces that the Listed Company Award Selection Committee (Chairman: Research Professor Kunio Ito, Graduate School of Commerce and Management, Hitotsubashi University) has selected the winners of the Corporate Value Improvement Award for FY2015.
bit.ly/1JHvsgo

Politics

Financial Crisis Still Divides GOP, Democrats; Parties’ different interpretations on what caused bust shape their proposals for regulating Wall Street
By NICK TIMIRAOS – WSJ
The 2016 presidential campaign is offering ample evidence for why Washington, eight years after the financial crisis, remains so divided on how to regulate Wall Street: Republicans and Democrats still have wildly different interpretations about what caused the bust.
on.wsj.com/1ZpMd6X

Clinton plans extra 4% tax on America’s wealthy
Courtney Weaver in Washington – FT
Hillary Clinton, the Democratic frontrunner for the White House, has proposed a 4 per cent additional tax on US individuals who earn more than $5m a year.
on.ft.com/1ZpJr1u

Father of Koch Brothers Helped Build Nazi Oil Refinery, Book Says
By NICHOLAS CONFESSORE – NY Times
The father of the billionaires Charles G. and David H. Koch helped construct a major oil refinery in Nazi Germany that was personally approved by Adolf Hitler, according to a new history of the Kochs and other wealthy families.
nyti.ms/1nf20ED

Hedge Funds & Managed Futures

Why the panic selling on Wall Street hasn’t gone nearly far enough
By Barbara Kollmeyer – MarketWatch
The shock waves from last week’s worst-ever start to the year for stocks are still rippling through this market. An ominous, unforgettable start for some.
on.mktw.net/1OonPYX

Exclusive: Billionaire Lasry’s junk fund stops voluntary reporting of asset levels
BY TIM MCLAUGHLIN AND SVEA HERBST-BAYLISS – Reuters
A junk bond fund run by billionaire Marc Lasry’s Avenue Capital Management, which has experienced heavy investment losses and investor withdrawals, has stopped voluntarily reporting daily asset figures to the mutual fund industry’s top two tracking firms.
reut.rs/1J0pBTf

Investors sue company rescued by Shkreli for return of $5 million
BY JIM CHRISTIE – Reuters
Investors who backed a biotechnology company led by executive Martin Shkreli are suing to get back the $5.4 million they had invested just hours before his arrest, according to court papers.
reut.rs/1RIWc1d

Author offers tips on how to find competent financial adviser
By Tim Grant / Pittsburgh Post-Gazette
The No. 1 red flag that an investor may be dealing with a bogus financial adviser, according to money coach Liz Davidson, is if he or she guarantees a high percentage return with no risk. This type of investment simply does not exist, and investors should run out of that office as if the building were on fire.
bit.ly/1mSvWWs

Investors on Gold ETF Buying Spree Amid Global Stock Rout: Chart
Ranjeetha Pakiam – Bloomberg
Investors embarked on the biggest three-day buying spree in gold-backed exchange traded funds for a year as bullion rallied at the start of 2016 amid a stock-market slump.
bloom.bg/1ZY9RV5

The Crop Surplus is Bad News for America’s Farms
Alan Bjerga, Jeff Wilson – Bloomberg
Debt levels at 31-year high as Fed begins boosting loan costs
Record land values poised to fall with profit at 13-year low
The American farm boom is all but over.
Farmland values are down from all-time highs. Global surpluses left corn and soybean prices below the cost of production. And the amount of agricultural debt relative to income ballooned to the highest in three decades, just as the Federal Reserve has begun raising interest rates for the first time since 2006.
bloom.bg/1KaZXpW

Banks & Brokers

Icap Sef COO Peter Best leaves firm
Futures & Options World
Icap has parted company with the chief operating officer of its US swap broking venue Peter Best as the world’s largest inter-dealer broker works on a plan to spin-off this year one of its main broking units and merge it with a rival. Best, who joined Garban-Intercapital as an interest rate swap broker in 1994 before that firm became Icap in 2001, left the broker last week, according to the FSA Register.
bit.ly/1mTI7TE

Goldman Sachs Sees $64 Billion in Buybacks Rescuing Japan Stocks
Tom Redmond, Toshiro Hasegawa – Bloomberg
After Japanese stocks’ worst start to a year on record, Goldman Sachs Group Inc. has a $64 billion reason to keep the faith.
bloom.bg/1ZY9slp

OTC Global Holdings Achieves Landmark Year in 2015
4-Traders
OTC Global Holdings (OTCGH), the leading independent commodities interdealer broker, celebrated a landmark year in 2015 in the face of continued industry upheaval and a highly fractured market.
bit.ly/1ndZZIC

Clearing & Settlement

Outlook 2016: Ali Hackett, LCH.Clearnet
Markets Media
LCH.Clearnet has continued to be fully engaged in the industry debate designed to help strengthen the financial system. We are strong advocates of increased transparency and have proposed a standardized framework for stress testing, which will make it easier for clearing members and regulators to compare different central counter-parties on a relative basis and evaluate the strength and resiliency of clearing houses.
bit.ly/1ULSvqY

Markit Acquires the Technology Assets of DTCC Loan/SERV LLC
Finance Magnates
The important acquisition will help Markit foster and develop new cash settlement functionality across its loan trade settlement platforms.
bit.ly/1ULSwLE

TriOptima launches triResolve Margin, an automated end-to-end margin processing solution
Mondovisione
TriOptima, an award-winning post trade infrastructure provider, announces the launch of its latest post trade service, triResolve Margin, a web-based, end-to-end margin processing solution delivered in collaboration with AcadiaSoft.
bit.ly/1OYM6uf

Margin platforms link-up ahead of new rules
IFRe
Post-trade services provider TriOptima has launched an automated margin processing service that will link up to competing vendor AcadiaSoft’s MarginSphere platform. The link is part of industry efforts to bolster collateral management processes ahead of regulatory requirements that require the margining of uncleared over-the-counter derivatives from September
bit.ly/1ULSnaX

FX: CLS outlines plans for expansion
Euromoney magazine
CLS, the systemically important FX settlement system, has a number of plans in the pipeline, including an initiative with LCH.Clearnet and a settlement system for currencies outside its proprietary system.
bit.ly/1ULSymC

Indexes & Products

VIX Weekly Futures Prices Rose 42% in First Week of 2016
Matthew Moran, CBOE Options Blog
Jan. 10, 2016 – The first week of 2016 was a challenging one for many financial markets worldwide, as (1) It was the worst opening week of the year in history for both the S&P 500® Index (SPX) and the Dow Jones Industrial Average, (2) The Shenzhen Composite Index of Chinese stocks fell 14.2%, (3) Crude oil futures (Feb. WTI) fell 10.5%, and (4) The U.S. dollar posted its biggest weekly loss vs. the yen since August 2013.
bit.ly/1ndtRFh

Russell 2000 enters bear-market territory
MarketWatch.com
The Russell 2000 index , which gauges the performance of small-capitalization stocks, is off 1.3% intraday to 1,032 and is now 20% below its all-time high, set on June 23, 2015 — a move which represents the traditional definition for an asset falling into bear-market territory. The last bull market lasted 935 trading days, the longest since the bull market from October 2002 through July 2007, during which the index more than doubled, according to FactSet data.
on.mktw.net/1ULSHq4

MSCI chief to visit S. Korea on advanced market index
Yonhap News
The chief of global index provider MSCI Inc. plans to visit South Korea this week for talks on the country’s possible inclusion in its advanced market index, officials here said Tuesday.
bit.ly/1ULSLWR

Using Indexing Tools for Risk Management — Sophisticated Strategies from Basic Building Blocks
Indexology – S&P Dow Jones Indices
Advisors today share a problem new to the careers of all but the eldest of us. As I discussed in a recent webinar, at Giralda Advisors, we call it the Portfolio Problem — unique in the last 30 years and arguably the most significant issue facing financial planning professionals over the next several years, if not decades.
bit.ly/1IZkgM5

Technology

A Strategist’s Guide to Blockchain
Strategy+Business
The distributed ledger technology that started with bitcoin is rapidly becoming a crowdsourced system for verifying transactions of all types. Could it replace central banks, notary publics, and manual vote recounts?
bit.ly/1RwGmso

S3 Signs Major U.S. Retail Broker to Its Best Execution Analytics Platform
FinanzNachrichten.de
S3 (“the Company”), a financial services software company that provides customized solutions to monitor and analyze trade execution, today announced that is has signed a major U.S.-based retail broker to its best execution analytics software platform, for both equities and options. The customer win represents the ongoing growth of the Company’s client base of retail and bulge bracket banks, institutions, broker-dealers, exchanges, and market makers in addition to retail brokers.
bit.ly/1W39WVk

FD acquires QuantumKDB
Stockmarketwire
FD (AIM: FDP.L, ESM: FDP.I), a leading provider of software and consulting services, announces that it has acquired the entire issued share capital of QuantumKDB (UK) Limited (“Quantum”) for a total consideration of up to £2.2m. The acquisition provides the Group with complementary consultancy expertise to support the growth of its Kx business and is expected to be earnings enhancing in the first full year following acquisition.
bit.ly/1P6X3DR

Enforcement

U.S. Probes Lawyers on Standard Chartered Sanctions Settlement
Keri Geiger, Greg Farrell – Bloomberg
Prosecutors said to be asking if firms gave improper advice
Sullivan & Cromwell, Slaughter and May e-mails said requested
U.S. prosecutors are asking whether two law firms gave Standard Chartered Plc improper advice as they steered the bank through a sanctions-violations investigation, according to people familiar with the matter.
bloom.bg/1W316qn

Environmental & Energy

African Sunshine Can Now Be Bought and Sold on the Bond Market
Anna Hirtenstein – Bloomberg
First securitization of off-grid solar contracts into notes
Developer aims to raise up to $2 billion in next five years
Africa’s off-grid solar industry has been turned into an asset class for the first time, bundling contracts for thousands of the sun-powered rooftop electricity systems to sell as bonds.
bloom.bg/1OYLwN3

Oil Plunge Sparks Bankruptcy Concerns; Crude’s plunge to near $30 a barrel fans worries that it could sink a third of U.S. oil producers
By BRADLEY OLSON and ERIN AILWORTH – WSJ
Crude-oil prices plunged more than 5% on Monday to trade near $30 a barrel, making the specter of bankruptcy ever more likely for a significant chunk of the U.S. oil industry.
on.wsj.com/1RIYRrH

Santander, Canadian funds acquire 392 MW of wind farms in Brazil – report
by Ivan Shumkov – Seenews
Through their joint venture, Spain’s Banco Santander SA (BME:SAN) and two major Canadian pension funds have bought 392 MW of wind farms in Brazil for BRL 2 billion (USD 493.5m/EUR 453m), an official told Bloomberg.
bit.ly/1J0o7s8

Asia-Pacific

China banks feel the heat of meltdown
Patrick Jenkins – FT
Lenders could require up to $7.7tn of new capital and funding over the next three years
If the US or Europe had experienced the kind of equity market slump that China has suffered of late, its financial institutions would be quaking and leading the list of biggest fallers in Shanghai and Hong Kong trading.
on.ft.com/1RzzmLb

`Murderous’ Yuan Rate Jolts Hong Kong as Top Currency Hub
Kyoungwha Kim, Enda Curran – Bloomberg
Volatility comes after weakness in city’s yuan business
Interbank yuan rate surged to an unprecedented 66.8%
An unprecedented surge in the cost of borrowing in yuan in Hong Kong adds to questions about the outlook for the city’s role as the biggest offshore hub for the Chinese currency.
bloom.bg/1OYLjJO

China Stock Selloff Abates on State Efforts to Stabilize Yuan
Kyoungwha Kim – Bloomberg
Offshore yuan climbs to one-week high amid intervention
Shanghai Composite’s RSI signals oversold conditions
China’s stocks rose in volatile trading after the benchmark index briefly fell below the 3,000 level as policy makers intensified efforts to stabilize the yuan.
bloom.bg/22XaReA

China takes first step to centralize control over financial regulators
BY BENJAMIN KANG LIM AND KEVIN YAO – Reuters
China’s cabinet is taking a key first step toward tighter control of its financial regulatory apparatus, a source told Reuters, after repeated regulatory missteps have dented confidence as the world’s second-largest economy struggles.
reut.rs/1l2K1iM

Frontier Markets

Sebi tightens debt investing norms for mutual funds; Regulator also clears framework for dissenting shareholders’ exit and green bonds
Business Standard
The Securities and Exchange Board of India (Sebi) on Monday announced tighter norms governing mutual fund investments in debt securities. The regulator has reduced single security exposure, sector exposure and group exposure for debt schemes.
bit.ly/1KaYnUW

Sebi tightens operating conditions for commexes; Sebi in a letter said: “If there is no trading operation on the platform of any commodity derivatives exchanges for more than 12 months, then…(it) shall be liable to exit”
Business Standard
The Securities and Exchange Board of India (Sebi) has stiffened the operating conditions for commodity exchanges.
bit.ly/1l2FgWy

Thai junta pledges aid for rubber farmers hit by falling prices
Michael Peel in Bangkok – FT
Thailand’s junta has pledged to help rubber farmers hit by tumbling world prices in a sign of the impact of worries about China’s economy on Southeast Asia.
on.ft.com/1Ppcs2O

Saudi Arabia Says It Remains Committed to Dollar Peg; Cheap oil, record budget deficit had raised speculation over currency link
By AHMED AL OMRAN and NIKHIL LOHADE – WSJ
Saudi Arabia will maintain the riyal’s peg to the U.S. dollar, the governor of the country’s central bank said Monday, while criticizing bets against the currency.
on.wsj.com/1nf2kTS

Yet another massive Ponzi scheme goes pop in India
Madhura Karnik, Manu Balachandran – Quartz
Some three decades ago, Nirmal Singh Bhangoo was a milk seller near the India-Pakistan border in Punjab’s Attari. In 1996, he founded PACL Ltd—then known as Gurwant Agrotech—selling magnetic pillows, among other things.
bit.ly/1W31qpe

Miscellaneous

Blast in Istanbul tourist district kills at least 10
Mehul Srivastava in Istanbul – FT
A large explosion has killed 10 people and wounded 15 in Istanbul’s historic Sultanahmet district, an area of the city popular with foreign tourists.
on.ft.com/1N4C57k

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