SFOA Founder and Long-time CEO Paul-André Jacot Passes Away
Friends from Switzerland reported Saturday that Paul-André Jacot, founding member and long time CEO of the SFOA, died Friday night. He was a member of the FIA’s Futures Hall of Fame.
We will have more on Paul-André tomorrow. SFOA has a message on their website here. Our condolences to his family and friends.
The Next Stock Market Shutdown Could Be Much Worse; The NYSE’s three-hour closure in July sent a signal that more data competition is needed among exchanges.
By HAL SCOTT And JOHN GULLIVER, WSJ
The three-hour shutdown of the New York Stock Exchange last month made headlines world-wide. Despite the brief calamity, investors emerged largely unharmed, because the technical glitch was with the NYSE’s trading platform. The outcome would have been very different had the problem been with the exchange’s consolidated public market data feed—the live feed that lets traders and investors see public bid and ask prices, the price and time of the last trade, and other crucial information.
****** When the sky falls next, more of the sky will fall.
The Recent Chinese A Share Market Turmoil and Its Implications
Chinese Finance Association of America
What’s going on in China’s stock market? Just last November China launched the game-changing market opening program, Shanghai-Hong Kong Stock Connect. Now the Chinese stock market is in turmoil and the authorities have taken a host of measures to try to stabilize it. This presentation, featuring Nick Ronalds, Managing Director of Equities at Asia Securities Industry and Financial Markets Association (ASIFMA), will review recent market developments, including stock connect, discuss the implications for China’s markets now and in the weeks and months ahead.
***DA: The presentation is today, 5pm, at DePaul’s downtown campus on Jackson in Chicago.
Stumbling dragon, crumbling commodities; Slowing growth in China up to 2017, as recommended by the IMF, would keep a lid on commodity prices
Manas Chakravarty, Livemint
Commodity prices fell sharply last week as China devalued the yuan. But a depreciation of 3-4% is unlikely to affect the demand for commodities in China. Instead, the way to look at it is that both yuan depreciation and low commodity prices are the outcome of low Chinese growth. What matters for commodity prices is, therefore, the outlook on Chinese growth. Clues about that are available from the International Monetary Fund’s (IMF’s) annual consultations with the Chinese authorities, the report on which was made available last Friday.
***** Where are the massive passives when you need them?
The Best Ways to Turn an Interview Into a Job; While an endorsement from someone who works at a potential employer is as helpful as you might expect, surprisingly few applicants make use of company referrals
Julie Verhage, Bloomberg
While you might consider a number of avenues in going after your next job, not all of them were created equal.
****** Make your own luck with hard work.
MarketsWiki Page of the Day
Mark P. Wetjen
MarketsWiki Recent Updates
Companies, Organizations and Groups
London Metal Exchange; BP; CEE Stock Exchange Group; CameronTec; Belgrade Stock Exchange; Power Exchange Central Europe; Vienna Stock Exchange; Goldman Sachs; Wedbush Securities; Chicago Board Options Exchange
66,689,373 pages viewed, 8,254 articles, 193,641 edits
Promontory to Challenge New York Regulator on Ban; Consulting firm to seek stay of ruling in state court
By RACHEL LOUISE ENSIGN and CHRISTOPHER M. MATTHEWS, WSJ
Promontory Financial Group built a reputation as one of the financial industry’s most powerful consultants by steering banks through potentially damaging clashes with regulators. Now, it is preparing for a confrontation of its own.
BP fights to blow away gas market rigging case
Gregory Meyer and Ed Crooks in New York, FT
The weekend before the Lehman Brothers collapse unleashed a financial cyclone, a real one made landfall on the Gulf of Mexico.
U.S. Credit Traders Send Warning Signal to Rest of World Markets
Lisa Abramowicz, Bloomberg
Credit traders have an uncanny knack for sounding alarm bells well before stocks realize there’s a problem. This time may be no different.
Phone call at heart of US case against BP
Ed Crooks in New York, FT
At the heart of the US government’s case against BP is a recording of a telephone conversation between Gradyn Comfort, one of its senior natural gas traders, and Clayton Luskie, a graduate trainee who was in a panic about his future at the company.
Dutch Investors Get Tough on Fee Disclosure
By YOLANDA BOBELDIJK, WSJ
Investors in the Netherlands are leading the push for transparency on private equity fees – with some of the major pension plans increasing their requests for information disclosure.
Commodities caught in Federal Reserve crossfire
Henny Sender, FT
After it emerged from bankruptcy protection in 2014, Genco Shipping & Trading was the darling of many hedge funds and distressed investors. But with world trade still virtually flat, Genco’s prospects have not improved much. The circumstances of dry bulk carriers are especially bleak.
Mob-Busting Informant Resurfaces in SEC Probe; After he wore a wire to help ensnare mobsters, an informant’s involvement in penny stocks is drawing the SEC’s attention
By JEAN EAGLESHAM, WSJ
After he was busted for stealing more than $5 million from his clients, New York accountant Stephen P. Corso informed on so many mobsters that a Las Vegas columnist wrote he “did everything but dig up Jimmy Hoffa.”
Americans are bad at protecting financial information
By Gregory Bresiger, NY Post
Americans are less concerned about having compromising pictures of themselves published online than having their vital financial information swiped.
Statement of Chairman Timothy G. Massad on the Resignation of Commissioner CFTC
Commodity Futures Trading Commission Chairman Tim Massad today made the following statement on the resignation of CFTC Commissioner Mark P. Wetjen:
FIA Statement on CFTC Commissioner Mark Wetjen’s Resignation
FIA President and CEO Walt Lukken released the following statement in response to CFTC Commissioner Mark Wetjen’s announcement that he would retire from the Commission on August 28, 2015.
Wetjen to leave CFTC after five-year stint
The Trade News
Mark Wetjen has announced he will step down from his role at US derivatives regulator the Commodity Futures Trading Commission (CFTC) at the end of the month.
Mutual funds say SEC derivatives plan needs tougher cybersecurity
Anjelica Tan, MLex
A mutual fund group conditioned its support for a US Securities and Exchange Commission proposal to collect derivatives investment data from asset managers on the regulator bolstering its cybersecurity.
Hong Kong’s Securities And Futures Commission Issues First-Quarter Report
The Securities and Futures Commission (SFC) today published its Quarterly Report summarising key developments from April to June 2015.
Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
- BATS: Notice of Filing of a Proposed Rule Change, as modified by Amendment No. 1 Thereto, to Adopt New Rule 8.17 to Provide a Process for an Expedited Suspension Proceeding and Rule 12.15 to Prohibit Layering and Spoofing on BATS Exchange, Inc. (Release No. 34-75693; File No. SR-BATS-2015-57; August 13, 2015); see also Exhibit 5 and Exhibit 4
- CBOE: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Delay the Implementation Date of the Rule Change to Allow Market Orders to Sell in No-bid Series to be Entered into the Electronic Order Book from a PAR Workstation (Release No. 34-75699; File No. SR-CBOE-2015-069)
- EDGA: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.6, Definitions; Rule 11.8, Order Types; Rule 11.9, Priority of Orders; Rule 11.10, Order Execution; and Rule 11.11, Routing to Away Trading Centers (Release No. 34-75700; File No. SR-EDGA-2015-33); see also Exhibit 5
- FINRA: Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change to Expand FINRAs Alternative Trading System (ATS) Transparency Initiative to Publish OTC Equity Volume Executed Outside ATSs (Release No. 34-75697; File No. SR-FINRA-2015-020; August 13, 2015)
- NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Nasdaq Rules 7014 and 7018 (Release No. 34-75701; File No. SR-NASDAQ-2015-099)
- NASDAQ: Notice of Filing of Proposed Rule Change Relating to the Listing and Trading of the 1-3 Month Enhanced Short Duration ETF, a Series of Plus Trust (Release No. 34-75694; File No. SR-NASDAQ-2015-089; August 13, 2015)
- NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 79A to Delete Supplementary Material .20 Requiring Prior Floor Official Approval Before a Designated Market Maker can Initiate Certain Trades More than One or Two Dollars Away From the Last Sale (Release No. 34-75695; File No. SR-NYSE-2015-33; August 13, 2015); see also Exhibit 5
- NYSE Arca: Notice of Filing of Proposed Rule Change Relating to Implementation of a Fee on Securities Lending and Repurchase Transactions with Respect to Shares of the CurrencyShares Euro Trust and the CurrencyShares Japanese Yen Trust (Release No. 34-75698; File No. SR-NYSEArca-2015-68); see also Exhibit 2A and Exhibit 2B
- NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 79A – Equities to Delete Supplementary Material .20 Requiring Prior Floor Official Approval Before a Designated Market Maker can Initiate Certain Trades More than One or Two Dollars Away From the Last Sale (Release No. 34-75696; File No. SR-NYSEMKT-2015-58; August 13, 2015); see also Exhibit 5
- Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Customer Rebate Program (Release No. 34-75702; File No. SR-Phlx-2015-68); see also Exhibit 5
Exchanges & Trading Facilities
Derivatives market launch in 2016, will help cos hedge interest rate & exchange rate ops in Vietnam: SSC
Through 15 years of development, Vietnam has operated only the stocks and bond markets. In recent years, the country has been researching to restructure the entire securities market, by improving the quality of brokerage houses and launching new indices as underlying assets for a diversity of products, including derivatives.
Thailand Futures Exchange Ready For Rubber Trading RSS3 Futures In Q4
Thailand Futures Exchange PCL – under the Stock Exchange of Thailand group, revealed that TFEX was ready to trade the first agricultural derivatives product which was ribbed smoked rubber sheet no.3 futures within the fourth quarter of this year after the exchange had merged with The Agricultural Futures Exchange of Thailand and The National Legislative Assembly approved the Agricultural Futures Trading Act amendments.
Training course at Capital Markets Academy helps you succeed in your career
On efinancialcareers.com, Gerhard Bauer, Head of the Capital Markets Academy, talks about the characteristics and general study set-up of the training course „Capital Markets Products and Portfolio Management”. Upon completion, graduates receive a certification as a Qualified Portfolio Manager. Furthermore, Gerhard Bauer highlights how participants’ careers may benefit from the course.
Hedge Funds & Managed Futures
Gundlach, BlackRock Now Buying Top-Rated Debt They Had Shunned
Cordell Eddings, Bloomberg
Bonds issued by the highest-rated and most financially sound U.S. companies are once again appealing to the world’s biggest debt investors.
Bond Market’s $2.46 Trillion Dilemma May Not Be So Serious
Liz McCormick, Daniel Kruger, Kasia Klimasinska, Bloomberg
For bond investors worried about what might happen when the Federal Reserve starts whittling down its $2.46 trillion of Treasuries, there’s good news.
You’ll barely even notice.
Meet the Man Who Won on Greek Stocks When All Others Failed
Camila Russo, Bloomberg
MetLife MFC’s Vasileios Antoniadis made money in Greek stocks even as the country’s drawn-out bailout talks with creditors roiled markets. None of his peers did.
Crazy Numbers: Average FTSE 100 CEO Paid 183 Times Average British Worker
Tim Worstall ,CONTRIBUTOR, Forbes
Opinions expressed by Forbes Contributors are their own.
The outrage du jour comes to us courtesy of the High Pay Group. That is, it comes from a small, self-appointed, group of Guardian affiliated leftists who are permanently affronted by the very existence of capitalism. Their observation is that the bosses of the largest companies on the London stock market make very much more than the average worker in Britain. Something which no doubt comes as a great surprise and shock to many. Sadly, their little statistic doesn’t in fact have any relevance at all to the UK economy: largely because the stock index they’re looking at has very little relevance to the UK economy. They’re just playing with numbers in order to try to generate some outrage.
Gross resurrects ‘short of a lifetime’ to recover losses
Laura Dew, InvestmentWeek
Bill Gross has said he has successfully executed his “short of a lifetime” trade, after adjusting the investment strategy following losses in May.
Banks & Brokers
Mexican Billionaire’s Firms Swept Up in U.S. Probe of Citigroup
Alan Katz,Dakin Campbell, Bloomberg
The U.S. Justice Department is looking into Citigroup Inc.’s dealings with companies linked to Mexican billionaire Carlos Hank Rhon as part of an expanding investigation into the bank’s money-laundering controls.
TD Bank bets on US branches as rivals cut back
Ben McLannahan in New York, FT
If you are idling away time in a TD Bank branch, try throwing some change in the free TD coin-counter. If your children are nagging, let them play on the jukebox-like quiz machine. If your dog fidgets, toss it a TD biscuit.
Clearing & Settlement
A green light doesn’t mean go for swaps clearing
Leaders of the G20 said in 2009 that to help prevent another financial crisis they wanted the world’s over-the-counter derivatives – traded largely in private between banks – to be reported and run through clearing houses so risks could be reduced and measured. They wanted it done by 2012.
ESMA recommends streamlined EMIR framework
Pinsent Masons – Out-Law.com
In four reports released simultaneously ESMA recommended changes to the EMIR regulatory and supervisory framework, which covers derivatives, central counterparties and trade repositories. These include simpler identification of high risk non-financial central counterparties (NFCs) and clearer rules and standards.
Indexes & Products
FTSE Russell signs Deutsche Bank for new index
Futures & Options World
FTSE Russell, the London Stock Exchange-owned index compiler, has licenced its newly launched FTSE 100 Semi Annual Equally Weighted Index to Deutsche Bank, in the latest move as compiler looks to beef up its index offering. Deutsche Bank last week launched the first exchange-traded fund (ETF) linked to the benchmark, the db x-trackers FTSE 100 Equal Weight UCITS ETF.
Wealth Adviser Daily Briefing: Some Advisers Stick by Lagging Commodity ETFs
By DAISY MAXEY, WSJ
The average broad-based commodity exchange-traded fund has lost 7.9% each year over the past five years, and the bloodletting has intensified in the past year, but some advisers say commodities exposure remains an important element of a portfolio, writes WSJ.com’s Wealth Adviser. “Historically, commodities have demonstrated attractive returns with long-term performance and volatility similar to equities,” says Treven Ayers, chief investment officer at Clearview Wealth Management. It’s been frustrating to watch stocks soar while commodities decline over the past few years, says Kevin Hrdlicka, manager of investment services at Savant Capital Management, but nothing has changed from an overall investment perspective. He’s been reiterating to some clients why exposure to commodities makes sense.
Smart beta’s new kids on the index block
John Authers, FT
“Can I create an algorithm to be Warren Buffett? No,” says Baer Pettit, head of index strategy at MSCI. “But over time, can I do a lot of what he does systematically? Maybe. You can at least avoid the same things that he avoided.”
Investing: The index factor – FT.com
It seemed a mundane statement. MSCI, the New York-based index provider that runs the most widely accepted benchmarks of the emerging markets, had decided against a proposal to add China’s domestic A-shares to its main indices. The company explained that China had still not shown that A-shares — open to non-Chinese only through a steadily expanding quota system — were sufficiently available to overseas investors.
IBM launches Linux-only mainframe system LinuxONE
International Business Machines Corp said on Monday it launched Linux-only mainframe servers called LinuxONE.
Why is Bitcoin forking?;A tale of differing visions
By Mike Hearn, Medium.com
So this is it. Here we are. The community is divided and Bitcoin is forking: both the software and, perhaps, the block chain too. The two sides of the split are Bitcoin Core and a slight variant of the same program, called Bitcoin XT. As of August 15th, there is now a full release available.
SunGard’s 10-year squeeze
Joseph N. DiStefano, Philly
Six wealthy corporate buyout firms — Silver Lake Management, Bain Capital, Blackstone Group LP, Goldman Sachs Group, KKR, Providence Equity Partners, TPG Capital — and senior managers paid $11 billion (including about $3.6 billion in equity, the rest of it borrowed) to buy Wayne-based SunGard Data Systems from its stock-market shareholders in 2005, the biggest leveraged buyout in years.
‘Flash crash’ trader Navinder Singh Sarao wins bail
Lindsay Fortado in London, FT
Navinder Singh Sarao, the trader who US authorities allege contributed to the 2010 flash crash, was released from prison on Friday after a judge granted him a bail reduction.
Hackers cash in with insider trading
The bust of an international hacking ring that spent years manipulating the stock market has many proclaiming a new, insidious era of insider trading. While investigators and prosecutors say they’ve been attuned to the threat for years, most thought the incidents were unaffiliated outliers.
Environmental & Energy
Low Oil Prices Pose Threat to Texas Fracking Bonanza
By CLIFFORD KRAUSS, NY Times
No place in Texas produces more oil than Karnes County, but suddenly the roaring economy here is cooling fast, chilled by the plunging price of crude.
Norway’s oil fund excludes four Asian companies
Richard Milne, Nordic Correspondent, FT
Norway’s $870bn oil fund excluded four of Asia’s biggest companies because of concerns over severe environmental damage at Indonesian palm oil plantations.
EU ex-climate chief Hedegaard backs fossil fuel divestment
By Megan Darby – RTCC (Responding To Climate Change)
The EU’s former climate commissioner is backing fossil fuel divestment to support a UN carbon-cutting pact in Paris this December.
Obama’s climate plan is another half-baked carbon trading scheme
The US Clean Power Plan puts a national limit on greenhouse gas emissions for the first time. Despite a few critics, environmentalists have on the whole reacted positively. Yet, as societies around the world are already struggling with the effects of climate change, is Obama’s plan ambitious enough? As he acknowledged himself, “there is such a thing as being too late when it comes to climate change”. We suggest precisely that: his plan is too little, given that it has arrived so late.
Yuan Market Calms After Historic Currency Regime Shift
Ye Xie, Bloomberg
China’s foreign-exchange market is stabilizing after a historical week that saw the biggest selloff in two decades and a move to a more market-driven currency regime. Here’s a look at where things stand after the volatile trading days.
Problems for China’s economy extend far beyond currency
Gabriel Wildau in Shanghai, FT
The sudden fall in China’s currency last week spurred a lively debate about whether the move was a victory for market reform or a competitive devaluation designed to shore up flagging exports.
The problems for Asia’s growth
East Asia Forum
There has been a great deal of brouhaha about the risks of a collapse in the Chinese economic growth over the past couple of months because of the dramatic fall in Chinese stock markets. The truth is that movement in the Chinese stock market has never been closely related to China’s economic growth rate performance. In periods of strong growth, the stock market was stagnant. As growth fell back, the stock market surged. The stock market seemed to play a game all of its own, though over the long term the growth of equity value must come to reflect the productive capacity of the Chinese economy.
Dubai Financial Market (DFM) Achieves 100% Compliance In Local Company Disclosures Of Q2-2015 Results
Dubai Financial Market (DFM) today announced that its listed local public joint stock companies have recorded a 100% compliance regarding the disclosure of Q2-2015 results within the deadline of 45 days from the end of the period.
Borsa Istanbul Monthly Report – July
Nigeria adopts unorthodox measures to defend the naira
Maggie Fick in Lagos, FT
The Nigerian government has resorted to chopping down trees lining the streets of its capital to thwart black market money changers, one of a range of unorthodox measures it is deploying to defend its weakening currency.
Can foreign brokerages crack the retail code?; High cost structure, compliance requirements has made retail broking a tricky area to navigate for these players
Ashley Coutinho, Business Standard
n French bank BNP Paribas and Sharekhan has once again put the spotlight on foreign brokerages in India.
A growing divergence between India and other emerging markets
While the rupee has been resilient, in case there is a sharp depreciation and reforms do not gather steam, there could be some outflows from India, too
African markets to cross list exchange traded funds
Discussions are under way between market participants in South Africa, Nigeria and Kenya to launch the cross listing of exchange traded funds (ETFs), which will lead to improved liquidity on Africa’s exchanges.
Cargill to Acquire EWOS, Norwegian Fish Feed Supplier, for $1.5 Billion
By CHAD BRAY, NY Times
Cargill said on Monday that it had agreed to acquire EWOS, a supplier of feed for salmon and trout farms, from its private equity owners for 1.35 billion euros, or about $1.5 billion.
Employers asked to help as more CFA students skip exams
By Lucy Burton, Financial News
The CFA Institute has called on employers to help bring down the number of candidates who do not show up to its Chartered Financial Analyst exams, after one in five of those who applied across the three-part course failed to turn up to the tests for the fourth year in a row.