First Read

From the Top
By John J. Lothian

Yesterday I received an email telling me my comments about the passing of actor Alan Rickman were insensitive. Such is the risk when writing a newsletter that claims to be irreverent, but never irrelevant. Even so, my apologies for seeming to be insensitive. Alan Rickman was a talented actor who will be greatly missed.

There is a long story about the poster my daughter has, which was bought at a Futures for Kids auction, and was signed by all the actors of the Harry Potter movie, including Alan Rickman. The story even involves today’s MarketsWiki Page of the Day, Nick Solinger

Perhaps I have been in this industry too long. I can remember it only took 40 seconds until the first cruel and insensitive joke was told in the Soybean Options pit about one of the Space Shuttle’s blowing up. I shan’t repeat the joke.

On other subjects, a week ago some of my team had a chance to tour the new offices of ADM Investor Services on the 21st floor of the Chicago Board of Trade Building Annex. ADMIS has taken a 15-year lease, representing their commitment to being in the futures brokerage space.

ADMIS did a tremendous job of developing the space and even installed new desks that can be used with a chair or standing. Sitting is the new smoking we were told. Even with the new offices, I am glad to be out of the very competitive brokerage space.

It was a busy week for the JLN staff, with the Securities Traders Association of Chicago’s 90th Annual Mid-Winter meeting going on and the CBOE holding their annual press lunch. It was after the CBOE’s press lunch two years ago that I wrote the “CME Should Buy the CBOE Soon.” Maybe one of these years I will be right.

BTW, I thought Spencer Doar did a nice job with his recap of the CBOE lunch, though he broke one of my cardinal rules, which is don’t use “Back to the Futures” as a title of a story. It has been done already.

Lastly, Jim Kharouf and I are headed to Washington, DC on January 25 and 26. The CFTC’s Technology Advisory Committee will meet for the first time in a long time under the guidance of CFTC Chairman Timothy Massad. While he is not Scott O’Malia, he has also proven to be no Gary Gensler (a good thing). The last item the TAC will look at is blockchain. You might want to look at our Special Report from last June, Unchained: How Blockchain And Bitcoin Are Going Mainstream if you are interested in attending. Or see the Matt Leising story below about Overstock.com.

++++

Gareth Parker, FTSE Russell – The Boring Bit of the Investment Management World, And Why It’s Not
MarketsWikiEducation.com

“Smart Beta is essentially the indexing of interesting ideas. These index guys are turning expensive good techniques into cheap good techniques.”

Picture if you will a time and place where there is no such thing as an index – no Dow Jones Industrial Average, Russell 2000, no FTSE 100. How would you measure relative performance? The answer is, you wouldn’t, and it was not so long ago that we didn’t.

Gareth Parker takes us through a brief history of indexing, what he calls the “boring bit” of the investment world. As the talk progresses, we see that not only is the always evolving world of indexing not boring, it can be lucrative, for both job seekers and investors.

Watch the video »
++++

Discount Retailer Overstock Has New Target: Upending Wall Street
Matthew Leising – Bloomberg
Company is close to issuing digital stock that uses blockchain
Aim is radically speeding up how long it takes to trade shares
Overstock.com Inc., which is aiming to radically change how stocks and bonds are bought and sold, is close to unveiling the first securities-trading system using the blockchain technology that makes bitcoin possible.
bloom.bg/1RT9QPo

***** The first link in the chain.

++++

Analyst Cuts Price Target on Canada’s Largest Newspaper Chain to Zero; Giving new meaning to “buried lede.”
Luke Kawa – Bloomberg
Persistently underwhelming revenue ahead of a looming maturity wall prompted RBC Dominion Securities to cut its price target on Postmedia Network Canada to zero, from 50 cents.
bloom.bg/1mYAavJ

***** I am a buyer at zero!

++++

Yesterday’s Top Three
Our top read stories from Thursday’s newsletter are Chicago Board Options Exchange: Back to the Futures by our own Spencer Doar, followed by the Reuters story Goldman Sachs throws support behind IEX exchange application, and still on the leader board from Wednesday, JPM looks to pull the plug on Bloomberg terminals.

++++

MarketsWiki

MarketsWiki Page of the Day
Nick Solinger
Nick Solinger is president of the technology services division of the Futures Industry Association, an advocacy and education organization for the global derivatives markets. He joined FIA in January 2016 after spending seven years as the head of product strategy and chief marketing officer at Traiana, a post-trade processing and risk management network for FX, exchange-traded derivatives, equities and equity derivatives.

MarketsWiki Recent Updates

People

Nick Solinger; Marco Duquette; Juan R. Luciano; Peter Best; Robert D’Arco; Harold Duineveld; Steven A. Cohen

Companies, Organizations and Groups

Audacity Capital; BGC Partners, Inc.; Nasdaq Futures, Inc. (NFX); Archer Daniels Midland; NASDAQ, Inc.; Sapient Global Markets; Pakistan Stock Exchange Limited; Rival Systems, LLC; Integritas Financial Consulting

Miscellaneous

Options Industry Council; Wholesale Market Brokers’ Association; Futures Industry Association

Statistics

73,519,066 Pages viewed; 21,810 Pages; 195,907 Edits
MarketsWiki Statistics

Lead Stories

Rajaratnam and 75 Other Reasons Hedge Funds Are Scared Straight
Katherine Burton, Matt Robinson, Patricia Hurtado – Bloomberg
All those insider-trading convictions gave Wall Street chills; Training sessions include photos of white-collar perp walks
The ghost of Raj Rajaratnam still haunts hedge funds. Some make employees sign pledges that they’ve not acted on illicit tips, others snoop on their traders with keystroke-reading software. At the compliance meetings everybody has these days, prison isn’t an off-the-wall topic.
bloom.bg/1n2ET01

Morgan Stanley Heeds Investors With Cuts in Fixed-Income Division
By NATHANIEL POPPER – NY Times
In recent years, meetings between James P. Gorman, Morgan Stanley’s chief executive, and the bank’s investors often came back to the same question: When was Mr. Gorman going to do more to deal with the bank’s most problematic business — its bond and commodity trading desks.
nyti.ms/1PfrnMG

China Isn’t the First to Fumble a Stock Panic
By Stephen Mihm – Bloomberg
The Chinese authorities’ seemingly capricious decision last week to trigger circuit breakers, and then to rapidly remove them, added to the chaos in the country’s stock exchanges and intensified unease about the world’s second-largest economy and its commitment to free markets.
bv.ms/1PfpXBR

EU and US close in on derivatives oversight agreement
Philip Stafford in London and Jim Brunsden in Brussels – FT
The EU and US are closing in on a deal to close a gap in financial markets regulation that traders have warned could fracture global derivatives trading.
on.ft.com/1ZzWsG0

The CEO of a top investment bank says Wall Street pay is out of whack
By Portia Crowe – Business Insider
Credit Suisse CEO Tidjane Thiam says today’s pay model for investment bankers “does not work.”
yhoo.it/1We59QN

Switzerland: A Test Case for Currency Shock
By JOHN REVILL – WSJ
Decision a year ago to abandon franc’s ceiling raises cost of Swiss goods in global markets, complicates inflation efforts; ‘a disaster for many companies’
A year after the Swiss central bank scrapped its policy of limiting the value of the franc, the Alpine country has become a test case for the economic effects of a starkly stronger currency.
on.wsj.com/1KhbcgI

Euronext Amsterdam appoints Joost Kromhout as Head of Listing
Euronext
Euronext Amsterdam today announced the appointment of Joost Kromhout as Head of Listing, as of 1 March 2016. In this role Joost will be responsible for the listing strategy, business development and client coverage of Euronext Amsterdam.
bit.ly/1TZVAnh

Liquidity “not an exact science” regulators warned; US asset managers warn against imposing overly strict rules on liquidity measurement.
By John Bakie – The Trade News
Liquidity cannot be measured in the exacting ways regulators are seeking to impose, the US Securities and Exchange Commission (SEC) has been warned by an asset management group.
bit.ly/1Sm4spz

JPMorgan’s Dimon urges investor ‘focus on the good’
Ben McLannahan in New York – FT
Jamie Dimon, chairman and chief executive of JPMorgan Chase, has sought to ease market jitters over China, urging investors to focus on the “pretty good” US economy as well as the “winners” from a collapse in commodities.
on.ft.com/1Nb8VmV

Regulatory

Re: National Futures Association: Financial Requirements – NFA Financial
Requirements 1 and 16 and its related Interpretive Notice to Conform to
the CFTC’s Enhancing Protections Afforded Customers and Customer
Funds Held by FCMs and DCOs Rulemaking
NFA
Letter to CFTC
bit.ly/1PvGli8

Basel Committee softens new rules on bank capital
Laura Noonan, Martin Arnold and Caroline Binham in London – FT
Global banking supervisors have softened new rules forcing investment banks to hold much more capital against their trading books, after heavy lobbying from the banking industry.
on.ft.com/1nnfYUS

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

    • CBOE: Order Approving a Proposed Rule Change to Permit P.M.-Settled Options on Broad-Based Indexes to Expire on Any Wednesday of the Month by Expanding the End of Week/End of Month Pilot Program (Release No. 34-76909; File No. SR-CBOE-2015-106)
    • FINRA: Order Instituting Proceedings to Determine Whether to Approve or Disapprove Proposed Rule Change to Amend FINRA Rule 4210 (Margin Requirements) to Establish Margin Requirements for the TBA Market, as Modified by Partial Amendment No. 1 (Release No. 34-76908; File No. SR-FINRA-2015-036)
    • ISE: Notice of Designation of Longer Period for Commission Action on Proposed Rule Change to Amend Rule 804(g) (Release No. 34-76893; File No. SR-ISE-2015-30; January 13, 2016)
    • MIAX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Its Fee Schedule (Release No. 34-76892; File No. SR-MIAX-2016-01; January 13, 2016); see also Exhibit 5
    • NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE BBO and NYSE Trades (Release No. 34-76912; File No. SR-NYSE-2016-03); see also Exhibit 5
    • NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE OpenBook (Release No. 34-76900; File No. SR-NYSE-2016-02); see also Exhibit 5
    • NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE ArcaBook (Release No. 34-76903; File No. SR-NYSEArca-2016-01); see also Exhibit 5
    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT Order Imbalances (Release No. 34-76911; File No. SR-NYSEMKT-2016-05); see also Exhibit 5
    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 132.30(9) Equities to Conform the Exchanges Rules to Industry-Wide Standards for Recording the Capacity in Which a Member Organization Executes a Transaction (Release No. 34-76907; File No. SR-NYSEMKT-2016-07); see also Exhibit 5
    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT BBO and NYSE MKT Trades (Release No. 34-76906; File No. SR-NYSEMKT-2016-04); see also Exhibit 5
    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Fees for NYSE MKT OpenBook (Release No. 34-76901; File No. SR-NYSEMKT-2016-03); see also Exhibit 5
    • Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Delete Obsolete Rules 1000B 1012B and to Amend Rule 722 (Release No. 34-76910; File No. SR-Phlx-2016-02); see also Exhibit 5
    • Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Delete Phlx Rules 792, 794, 797, and 798 (Release No. 34-76902; File No. SR-Phlx-2016-01); see also Exhibit 5
    • ISE Gemini: Notice of Designation of Longer Period for Commission Action on Proposed Rule Change to Amend Rule 804(g) (Release No. 34-76894; File No. SR-ISEGemini-2015-17; January 13, 2016)

jlne.ws/1JoVeWA

Exchanges & Trading Facilities

DGCX adds single stock futures contracts
Alice Attwood – Futures & Options World
The Dubai Gold and Commodities Exchange (DGCX) launched on Friday its first single stock futures contracts, offering the ability to hedge key Indian and US stocks. The exchange added equity futures contracts on firms such as Facebook, Google, JP Morgan, Microsoft and Apple, as well as Indian equity stocks, such as Ifosys and Tata Motors. The launch is set to support DGCX’s global equity market access, said the exchange.
bit.ly/1SRMY3M

Nasdaq launches new investor relations platform
By Anna Irrera – Financial News
Nasdaq has launched a new investor relations platform, as businesses increase their focus on developing products and services to make it easier for companies to engage with their investors.
bit.ly/1RSZAGN

Traded Bonds – Trading to be suspended Friday, January 15, 2016
NYSE
The following Traded bonds will be suspended from trading prior to the open on Friday, January 15, 2016 and will be removed from the NYSE list prior to the opening. The NYSE is required to suspend a “traded” debt security if the common stock or wholly owned subsidiary is no longer listed on the NYSE.
jlne.ws/1vJQIpD

SGX urges caution when dealing in Koyo International Limited shares
SGX
Singapore Exchange (SGX) urges investors and potential investors to exercise caution when dealing in shares of Koyo International Limited (Koyo).
bit.ly/1ldEq9v

Listing Nominating Committee Extends Application Period for Listing Committee Candidates
HKEx
The Listing Nominating Committee has extended the application period for nominations to the Listing Committee to 31 January 2016 from 15 January 2016. The Listing Nominating Committee is seeking applications from individuals interested in serving on the Listing Committee and the Growth Enterprise Market (GEM) Listing Committee1. Appointments will be for a term of approximately 12 months commencing in July 2016.
bit.ly/1ZA3E50

Client’s view: Assenagon on the use of derivatives in multi asset strategies
Eire
In view of the capital market environment, which is marked by persistently low interest rates, many institutional investors are reconsidering their investment strategies. As a result, there is a growing need for flexible approaches that are not based on a benchmark, but rather aim at an absolute return. Eurex Exchange spoke to Thomas Romig, Managing Director at Assenagon Asset Management S.A., about the role of derivatives as a main component in this capital-preserving portfolio structure.
bit.ly/1ldCPRa

Delisting of 62 Single Stock Futures, seven equity options and six Single Stock Dividend Futures
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG decided with effect from 18 January 2016 to delist 62 Single Stock Futures, seven equity options and six Single Stock Dividend Futures in accordance with the attachment due to previous corporate actions.
bit.ly/1RT1yqF

Reminder: Compliance with rules governing the usage of market data
Eurex
As part of a Deutsche Börse Group compliance initiative, we wish to remind you of the rules regarding market data usage within your internal systems and onward dissemination to third parties.
bit.ly/1SRH0zH

BOX Price Improvement Activity for December
Boston Options Exchange
In the month of December price improved contracts on BOX Options Exchange (“BOX”) averaged 302,926 per day. Price improvement versus the prevailing NBBO for contracts submitted via BOX’s price improvement auction, PIP, averaged $515,548 per day, while total savings to investors in December was $11.34M. With this, BOX has saved investors over $706M since its inception in 2004. Overall average daily trading volume on BOX in the month of December was 452,732 contracts
bit.ly/1n5dkTO

Politics

Ted Cruz under fire for undisclosed 2012 Goldman loan
Demetri Sevastopulo in Washington – FT
Ted Cruz, the Republican presidential contender vying with Donald Trump in Iowa, has found himself having to explain a loan he received from Goldman Sachs to finance a previous campaign at the same time that he is attacking Wall Street. The Texas senator, whose populist, anti-establishment campaign has catapulted him to second place in the Republican polls, was forced to admit that he did not inform the Federal Election Commission, as required, about a $500,000 loan that he received from the bank when he was running for the Senate in 2012.
on.ft.com/1ZA0D4H

Anti-Wall Street Sentiment Breaks by Party Line in Iowa Poll
John McCormick, Arit John – Bloomberg
There’s a reason Democratic presidential front-runners Hillary Clinton and Bernie Sanders continually bash the financial industry: “Anti-Wall Street” and “socialist” are each chosen by more than 40 percent of those planning to attend their party’s Iowa caucuses as words or phrases that describe them well.
bloom.bg/203XMh2

Trump and Clinton tax plans scare Wall Street
Barney Jopson in Washington – FT
US private equity and hedge fund managers are growing concerned at an unprecedented two-pronged assault from the Republican and Democratic presidential frontrunners, who both threaten to scrap a tax break worth billions of dollars to Wall Street.
on.ft.com/203VgYm

Hedge Funds & Managed Futures

Dog Days for Hedge Funds
By Duncan Mavin – Bloomberg Gadfly
Among the gloomy hedge fund news in recent weeks was BlueCrest Capital Management’s decision to return $8 billion of outside money to clients.
bloom.bg/1NbbIMY

Banks & Brokers

Here’s What Morgan Stanley Is Telling Its Wealthiest Clients About Uber; No financials, but a number of risk factors.
Julie Verhage – Bloomberg
Wealthy clients of Morgan Stanley and Bank of America just got dibs on shares of the unlisted Uber Technologies, but that doesn’t mean they’re getting a chance to see the ride-sharing company’s financials, according to an offering document seen by Bloomberg News.
bloom.bg/1US2ZVU

Morgan Stanley Shakes Up Fixed-Income Division; Division co-heads replaced by stock-trading head
By JUSTIN BAER – WSJ
Morgan Stanley is shaking up its struggling fixed-income division, replacing the two co-heads of the division with the head of its stock-trading desk, according to memos sent to employees and reviewed by The Wall Street Journal.
on.wsj.com/1NbaMby

Morgan Stanley names new fixed income head in bid to reshape business
Reuters
Morgan Stanley named a new head for its fixed income trading unit as it seeks to turn around the struggling business.
reut.rs/1Pfrb02

JPMorgan rebuffs suggestions it too optimistic on energy loans
BY DAVID HENRY – Reuters
JPMorgan Chase & Co executives said on Thursday they do not expect losses on the bank’s oil and gas loans to accelerate with the pace and severity that the decline in oil market prices might suggest.
reut.rs/1PvGW3d

JPMorgan: carrying on
FT Lex
Steady banks should be havens in unsettled times
Turmoil? What turmoil? So wondered Jamie Dimon during JPMorgan Chase’s fourth-quarter earnings call on Thursday. Revenues and profits exceeded expectations and, for the full year, the figures reached all-time highs. While global debt and equity markets whipsaw, the CEO claimed the majority of Americans were unperturbed (apparently, JPMorgan customers do not have pension plans). He is right that, overall, the US economy remains steady and families are finding work and spending money. JPMorgan’s results confirm this view.
on.ft.com/203VUoA

Turning Point? J.P. Morgan Builds Loss Reserves for the First Time in Six Years; Bank expects to add more reserves for energy-industry loans in the next couple of quarters
By MICHAEL RAPOPORT – WSJ
J.P. Morgan Chase & Co. built up its reserves for bad loans, a shift that spotlights Wall Street’s mounting concerns about the fate of oil and gas companies.
on.wsj.com/2347en9

Clearing & Settlement

CME Group Clearing Notices
CME Group

    • Credit Event Advisory – Auction Results for Abengoa, S.A. Credit Event – Effective 01/14/16
    • Addition of ClearPort Broker Party Role to Allocation Messages
    • Updated: Product Modification Summary: Replace S&P 500 Serial & E-mini S&P 500 Serial Options with Week 3 Options – February 22, 2016
    • Agriculture, Coal, Natural Gas, Petroleum, Refined Products, Crude, and FX Margins – Effective Friday, Jan 15, 2016
    • REVISED HOLIDAY SCHEDULE – Dr. Martin Luther King, Jr., January 18, 2016

bit.ly/1QJZcMg

Ex-CME clearing head Husted joins Ocreus
Futures & Options World
Adam Husted, the former head of clearing at the CME’s European clearing house, has joined financial consultancy Ocreus Group to help its large bank and buy-side clients with their preparations for new European clearing rules. Husted, who left his post as executive director, head of clearing and business development at CME Clearing Europe in October, as reported by FOW, joined Ocreus last week as a senior director focused on clearing projects.
bit.ly/1SRN3UT

DTCC’s Avox Data Services gathers momentum; validates two million entities
Automated Trader
The Depository Trust & Clearing Corporation (DTCC), the post-trade market infrastructure for the global financial services industry, has announced that Avox Data Services, the provider of legal entity reference data, has successfully researched and published two million entities globally in its database.
bit.ly/1SRLKVW

Interview with Founder Dr. Avtar Sehra on Crowdaura, Accenture’s London Lab and the Future of Blockchain Tech in the FS Industry
Coinjournal
the true power is leveraged in networks where exchanges can connect up with brokers, or banks with buy-side clients. In such cases we have developed a Blockchain engine, chain agnostic, that can be leveraged for clearing, settlement and depository services, and executing Delivery Versus Payment (DVP) using fiat currencies.
bit.ly/1SRM1sc

Indexes & Products

BATS ETF Marketplace Welcomes Two New Reality Shares ETFs
DFND and GARD Began Trading Today on BATS
BATS
BATS Global Markets (BATS), the #1 U.S. market for the trading of exchange-traded funds (ETFs), today welcomed two new Reality Shares ETFs to The BATS ETF Marketplace
bit.ly/1J6Conn

EQM Indexes LLC Launches the IBUYXT Online Retail Index
Yahoo Finance
EQM Indexes LLC, , a San Diego-based provider of index benchmarks for Exchange Traded Products (ETPs), has launched an index that tracks the online retail market segment. The IBUYXT Index tracks the combined performance of a basket of 40 to 50 global stocks that derive significant revenue from online retail and virtual commerce including the online retail, online marketplace and online travel market segments.
yhoo.it/1RQd5Hg

Where the S&P 500 Stands: The Long and Short of the January Selloff
MoneyBeat – WSJ
Here’s the bottom line: Two major indexes, the Russell 2000 and the Dow Jones Transportation Average, have fallen into bear markets, down 20% from their bull highs. Two others, the S&P 500 and the Nasdaq Composite, are in correction territory, off more than 10% from their recent post-August selloff highs (that both are in their second correction inside of six months is another wrinkle). The granddaddy of these indexes, the Dow Jones Industrial Average, barely avoided falling into correction territory, sliding as much as 9.9% from its recent high through Wednesday’s close, just off the 10% level that most use to define a correction. Now, what’s all that mean, and what should you be looking at from here?
on.wsj.com/1SRNxdL

Technology

Amazon Subsidiary Gains Approval to Ship Ocean Freight
By DAVID STREITFELD – NY Times
Drones might get all the attention, but Amazon’s interest in more traditional methods of moving things around is not slowing down.
nyti.ms/1SRGuBG

A Bitcoin Believer’s Crisis of Faith
By NATHANIEL POPPER – NY Times
Mike Hearn, a British computer programmer, holed up in his two-bedroom apartment in Zurich over several days and nights last week, writing a cri de coeur.
nyti.ms/1OuQ88a

The resolution of the Bitcoin experiment
By Mike Hearn, Medium.com
I’ve spent more than 5 years being a Bitcoin developer. The software I’ve written has been used by millions of users, hundreds of developers, and the talks I’ve given have led directly to the creation of several startups. I’ve talked about Bitcoin on Sky TV and BBC News. I have been repeatedly cited by the Economist as a Bitcoin expert and prominent developer. I have explained Bitcoin to the SEC, to bankers and to ordinary people I met at cafes.
bit.ly/1ZzVTfq

Enforcement

SEC Charges Goldman Sachs With Improper Securities Lending Practices
SEC.gov
According to the SEC’s order instituting a settled administrative proceeding, broker-dealers such as Goldman Sachs are regularly asked by customers to locate stock for short selling. Granting a “locate” represents that a firm has borrowed, arranged to borrow, or reasonably believes it could borrow the security to settle the short sale. The SEC finds that Goldman Sachs violated Regulation SHO by improperly providing locates to customers where it had not performed an adequate review of the securities to be located. Such locates were inaccurately recorded in the firm’s locate log that must reflect the basis upon which Goldman Sachs has given out locates.
1.usa.gov/1Zye9Wl

SEC Charges State Street for Pay-to-Play Scheme
SEC.gov
he Securities and Exchange Commission today announced that State Street Bank and Trust Company agreed to pay $12 million to settle charges that it conducted a pay-to-play scheme through its then-senior vice president and a hired lobbyist to win contracts to service Ohio pension funds.
1.usa.gov/1Zyef0h

Goldman to Pay Up to $5 Billion to Settle Claims of Faulty Mortgages
By MATTHEW GOLDSTEIN – NY Times
More than seven years after the worst of the financial crisis, Goldman Sachs is again paying a price for the role it played.
nyti.ms/1Kh8YOr

Goldman Sachs to pay $15 mln to settle SEC stock lending case
By Suzanne Barlyn – Reuters
Goldman Sachs & Co will pay $15 million to settle civil charges that its securities lending practices violated federal regulations, the U.S. Securities and Exchange Commission said on Thursday.
reut.rs/1QaBvLV

State Street to pay $12 mln to settle pay-to-play scheme in Ohio
Reuters
State Street Corp. will pay $12 million to settle allegations that it conducted a pay-to-play scheme to win Ohio pension fund contracts, U.S. regulators said Thursday.
reut.rs/1RSX9UH

Environmental & Energy

In Climate Move, Obama to Halt New Coal Mining Leases on Public Lands
By CORAL DAVENPORT – NY Times
The Obama administration will announce on Friday a halt to new coal mining leases on public lands as it considers an overhaul of the program that could lead to increased costs for energy companies and a slowdown in extraction, according to an administration official.
nyti.ms/1J6EK5A

Solar and Wind Just Did the Unthinkable; Cheap oil and gas couldn’t stop another record year for renewables, or a turning point for energy investment.
Tom Randall – Bloomberg
The sun and the wind continue to defy gravity. Renewables just finished another record-breaking year, with more money invested ($329 billion) and more capacity added (121 gigawatts) than ever before, according to new data released Thursday by Bloomberg New Energy Finance.
bloom.bg/1RHIeyt

Landmark U.S. LNG exports delayed to late February, March
Reuters
The long-awaited first liquefied natural gas exports from the lower 48 U.S. states will have to wait another month or two due to mechanical problems at the Sabine Pass terminal in Louisiana, Cheniere Energy Partners LP said Thursday.
reut.rs/1JOaVqE

Tokyo Gas to book $90 million impairment loss on U.S. shale gas project
Reuters
Tokyo Gas Co said on Friday it expects to book 10.6 billion yen ($90 million) in impairment losses on its Texas shale gas development project in the October-December quarter, reflecting the recent steep declines in oil and gas prices.
reut.rs/1Sm1GR8

Asia-Pacific

China Stocks Enter Bear Market, Erasing Gains From State Rescue
Bloomberg News
Shanghai Composite drops more than 20% from December high; Some banks won’t accept small-cap stocks as collateral
Chinese shares fell into a bear market for the second time in seven months, wiping out gains from an unprecedented state rescue amid waning confidence in the government’s ability to manage the country’s markets and economy.
bloom.bg/203XsyR

China’s Stock-Market Rout Spreads to Hong Kong Dollar
WSJ
Chinese markets ended another week of turmoil with shares in Shanghai entering a bear market the same day Hong Kong’s currency fell to its weakest level in more than four years.
on.wsj.com/1SRNYos

Hong Kong dollar will weaken further with capital outflow, says financial secretary
South China Morning Post
Hong Kong Financial Secretary John Tsang Chun-wah said on Friday he expects the Hong Kong dollar may weaken amid expectations of more capital outflow from the city. The currency fell further on Friday morning to trade at 7.7854 against the US dollar at midday, weaker by 0.057 per cent from Thursday when it dropped to a four-year low.
bit.ly/1SRO3sk

Market turmoil: China slowdown a worry for Southeast Asia
Nikkei Asian Review
While China’s economy continues to grow much faster than those of Japan and most Western countries, according to official figures, the country’s mix of slowing imports, wobbly stock markets and a weakening currency is a growing concern for Southeast Asian countries that have grown increasingly dependent on trade with Asia’s largest economy.
s.nikkei.com/1SROiDK

The yuan and the markets
The Economist
“What if we could just be China for a day?” mused Thomas Friedman, an American columnist, in 2010. “…We could actually, you know, authorise the right solutions.” Five years on, few are so ready to sing the praises of China’s technocrats. Global markets have fallen by 7.1% since January 1st, their worst start to the year since at least 1970. A large part of the problem is China’s management of its economy.
econ.st/1RQ4OmS

Frontier Markets

Exclusive: Saudi Arabia plans new sovereign wealth fund – sources
BY KOH GUI QING AND HADEEL AL SAYEGH – Reuters
Saudi Arabia plans to create a new sovereign fund to manage part of its oil wealth and diversify its investments, and has asked investment banks and consultancies to submit proposals for the project, according to people familiar with the matter.
reut.rs/1UU2ASL

Miscellaneous

Wikipedia has new cash source for birthday
The Australian Business Review
Wikipedia is getting another source of cash for its 15th birthday, expanding beyond fundraising drives that have poured $US250 million ($A358 million) into the internet’s leading encyclopaedia. The extra money will come from a new endowment created for Wikipedia, the website of which started on January 15, 2001, and is now overseen by the non-profit Wikimedia Foundation in San Francisco.
bit.ly/1PfrjMQ

Pin It on Pinterest

Share This Story