First Read

I Love London
By John J. Lothian

I love London. Last year our MarketsWiki Education World of Opportunity Series attracted 142 interns, college students and young professionals to our events at the CME Group‘s offices and the London Stock Exchange

Next week, yes next week, we will be at Nasdaq‘s offices in the Woolgate Exchange building to present our 2015 MarketsWiki Education World of Opportunity Series. I am pumped by the great lineup of speakers we have.

We have tracked down Garry Jones, CEO of LME, to come speak during a very busy LME Week in a talk titled “Managing an Exchange in Uncertain Times.” During my trip to Geneva, Switzerland I was able to secure Nils-Robert Persson, executive chairman of Cinnober Financial Technology to agree to speak.

Our dear friend David Setters, senior associate of Contango Markets and one of the stalwarts behind Futures for Kids, has agreed to speak. You will recall David’s guest editorship of JLN when he announced he has ALS. His presentation is called “The Derivatives Industry as a Community, Maximizing the Opportunities.”

We have Mark Spanbroek, acting chairman of the European Principal Traders Association and chairman CME Europe speaking, as well as Adrienne Seaman, associate general counsel for Europe, Middle East and Africa (Emea) with CME Group.

Lee Hodgkinson , CEO, Euronext UK and head of markets and global sales is another speaker who will give us a great European perspective to the series.

I could go on about Cathy Lyall, Paul McCormick, Scott Riley, Sandra Ro, Christian Nentwich, Gareth Parker, Alun Green and Daniel Day-Robinson, but I won’t. They will be great.

If you have not signed up your interns, newer employees, friends, colleagues, daughters, sons, nephews, nieces or mistresses in London interested in careers in the markets, please do. The free event sign up is HERE

I have been to London many times. I love that we have been able to bring this series there and positively impact so many young people, firms and the industry. You can help do the same by giving us one last shout out before our event next week.

The MarketsWiki Education World of Opportunity is just in its third year and second in London. It is just the start of something really great for the future of our industry. Help us out. Get the word out one last time this week. We could not have put on the London, New York or Chicago events without the generous support of the CME Group, our global premier sponsor.

We will be sharing videos from this series on all our sites, including aggregating them all on MarketsWikiEducation.com.

MarketsWiki Education London 2015
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Winklevoss Twins’ Gemini Exchange Gets Trust License – BitBeat
By PAUL VIGNA, WSJ
A bitcoin exchange founded by Tyler and Cameron Winklevoss announced on Monday that it received regulatory approval from New York’s financial regulator to operate as a financial-services firm.
jlne.ws/1jMakKb

***** Gemini Exchange, hmmm, I see, or ISE a problem with that.

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In Book, Bernanke Pins Weak Recovery on Congress
By BINYAMIN APPELBAUM, NY Times
Congress is largely responsible for the incomplete recovery from the 2008 financial crisis, Ben S. Bernanke, the former Federal Reserve chairman, writes in a memoir published on Monday.
jlne.ws/1hnSfjW
***** I dislike being political here, but here is the new meme. I BLAME CONGRESS! I blame the U.S. Congress for the slow growth we have. I blame Congress for the mass shooting epidemic the U.S. is experiencing. I blame Congress for passing bill after bill to roll back Obamacare, wasting time and money on a fruitless endeavor. I could go on, but I BLAME CONGRESS! says enough.

***DA: Settle down, John. Your heart is the only thing the doctors have not operated on. Three surgeries in three years? I BLAME CONGRESS for that.

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A Core Tenet of How Central Bank Stimulus Supports Growth Doesn’t Fit the Data, According to Deutsche Bank; Lower rates actually hurt consumers.
Luke Kawa, Bloomberg
Central banks the world over have reduced interest rates more than 500 times since the collapse of Lehman Brothers in 2008. But a crucial part of their thesis on how lower rates are supposed to help spur economic activity may be off the mark, according to strategists at Deutsche Bank.
jlne.ws/1RrnGGQ

***** I have long said that QE is just stealing from savers to pay for the problems of the financial crisis. Do I sound like David Stockman?

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Yankees Ticket Prices Hit New Low for Wild Card Games
Eben Novy-Williams – Bloomberg
The average ticket costs $180.09 on the secondary market
Tickets for the National League Wild Card Game average $300
New York Yankees tickets are not usually among the cheapest in baseball. They are now.
jlne.ws/1LeGnsg

****** Cubs tickets are at a high, but then there is only one data point.

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How to invest like… The pair who called the Wall Street Crash; Messrs. Merrill and Lynch helped spread wealth and opportunity from elites on Wall Street to ordinary people
Ed Monk, The Telegraph
The names Merrill and Lynch are synonymous with both the best and worst of the investment world.
jlne.ws/1WKhywC

****** Interesting look back at the beginning of Merrill Lynch.

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Derek Sammann, CME Group – The Importance of Electronification and Globalization
JohnLothianNews.com

“The amount of structural change — driven by market regulations, the implosion of the credit markets, events in Greece, the hangover from 2008/2009 — has created an incredible amount of change that’s wrenching the infrastructure from the moorings of the last four years.”

A booming voice, large stature (did you play college football?), the ability to do math quickly since markets were made in minds — these were qualities Derek Sammann of CME Group recalls firms looking for when he became a trader in 1990. After 25 years, Sammann sees a much different landscape. Electronification shifted priorities from the pits to server rooms. Access to global markets no longer requires a central, physical trading hub. Focus rests less and less on the activities of day-to-day trading, but rather on optimizing infrastructure. With those macro examples in mind, Sammann imparts the valuable lesson, “change will not slow down, change will speed up.”

Watch the video at MarketsWikiEducation.com »
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Larry Tabb is looking for an equities market structure analyst to grow our research franchise
jlne.ws/1PgmuqN

***** You can be the next Tabb-ite.

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TABB Group’s Larry Tabb Rebuts ASX CEO Elmer Kupper, Writes “Competition, Technology And Market Efficiency In Australia”
Mondovisione
Contrary to claims by ASX CEO Elmer Kupper, exchange competition lowers fees, brings new entrants into the market, reduces spreads, and makes markets more efficient, says global market structure analyst, TABB Group CEO Larry Tabb.
jlne.ws/1JPT2AH

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Shortening The Settlement Cycle: The Move to T+2
T+2 Industry Steering Committee
Following the 2008 financial crisis, the industry has increased its focus on reducing risk, achieving greater transparency, and improving efficiency in order to establish a safer market environment. The crisis led to a host of regulations and initiatives impacting markets, products, and participants. Shortening the settlement cycle, while not a regulatory mandate in the United States, is an industry effort that is expected to yield important benefits including reduced counterparty risk, decreased clearing capital requirements, reduced pro-cyclical margin and liquidity demands, and increased global settlement harmonization.
Download your free copy of ‘Shortening The Settlement Cycle: The Move to T+2’ HERE
***DA: SEC Chair Mary Jo White roundly endorsed T+2 last week. Read more about it HERE

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Lead Stories

Royal Dutch Shell CEO to Call for Effective System for Pricing Carbon; Ben van Beurden to say world must find economic ways to reduce polluting fossil-fuel dependence
By SARAH KENT, WSJ
LONDON—The chief executive of oil firm Royal Dutch Shell PLC will tell a gathering of industry executives Tuesday that the world must find economic ways to reduce its dependence on the most polluting fossil fuels, calling on governments to institute an effective system for pricing carbon.
jlne.ws/1Ma2WmX

Treasury auction sees US join 0% club
Patrick McGee, FT
For the first time ever, investors on Monday parked cash for three months at the US Treasury in return for a yield of zero per cent.
jlne.ws/1OjcE8e

Winklevoss twins prepare to launch bitcoin exchange
Philip Stafford, FT
The exchange, known as Gemini after the twins’ Zodiac sign, was on Monday granted a charter under state law by the New York State Department of Financial Services, the banking regulator.
The exchange will act as a gateway for users who want to trade bitcoins but also have it linked with a normal bank account. However the launch comes as some start-ups struggle to turn their ideas into long-term sustainability.
jlne.ws/1WKe0u1

Alphabet to back Symphony service
Joe Rennison and Richard Waters, FT
Alphabet, Google’s renamed parent company, is set to become the latest investor to back Symphony, joining a host of big banks in their attempt to dislodge Bloomberg’s dominant position in Wall Street messaging.
jlne.ws/1WKe7FW

CME Europe’s COO Feltes set to leave
Futures & Options World
CME Europe is set to part ways with David Feltes, chief operating officer of the European exchange, marking the latest in a wave of senior departures. London-based Feltes is set to leave the Merc in the coming weeks, according to market sources, after serving as COO of CME Europe since 2012. He joined CME Group in 2010 as an executive director for the Merc’s alliance and venture management division.
jlne.ws/1WKl75T

RJO parts company with two senior brokers
Futures & Options World
US commodities specialist RJ O’Brien has parted company with two senior brokers at its London-based operation, marking the latest departures from brokerage firms in London. David Levy, who joined the Chicago-based firm in London as senior vice president and head of its global markets desk in February 2013 and latterly worked as the firm’s head of European trading operations, left the firm last week, according to sources. James Rowe was the head of electronic trading services at RJ O’Brien (UK) from January 2014 to his departure last month, according to sources.
jlne.ws/1WKjbdH

Japan must refresh domestic equity appetite
Leo Lewis, FT
Mrs Watanabe, aged somewhere between 40 and 70, nauseated by volatility, a contrarian by habit and the notional holder of Japan’s household purse-strings, has some serious thinking to do.
jlne.ws/1Z6NAVB

For the world is cold and less full of inflation
David Keohane, FT
So charted by Citi.
jlne.ws/1jaS6SM

For Activist Investors, Billion-Dollar Bets Have Become the Norm
By ALEXANDRA STEVENSON, NY Times
When William A. Ackman announced his $1 billion bet against the nutritional supplements company Herbalife in 2013, the wager was surprising for its size.
jlne.ws/1FRsh4c

Are commodities companies livin’ on a prayer?
Karen Tso, CNBC
Investors have over the past week questioned if major commodities names are – to quote the 1980’s Bon Jovi hit — “Livin’ On A Prayer” if prices relapse or remain battered for years.
jlne.ws/1Lver9Z

Lynn Tilton and Patriarch Partners Sued Over Investors’ Losses; Suit seeks damages over alleged misrepresentation linked to debt funds
By PEG BRICKLEY, WSJ
Investors in Lynn Tilton’s funds sued Monday seeking damages for alleged fraudulent misrepresentation and concealment tied to her multi-billion-dollar debt funds.
jlne.ws/1MWi0mE

What the bankers can teach stimulus-addicted economists
Ludger Schuknecht, FT
Myopia contrasts with more convincing action to repair the financial sector, writes Ludger Schuknecht
Macroeconomic stimulus is a hard habit to kick, so many economists keep asking for more.
jlne.ws/1j3fil3

In Ben Bernanke’s Memoir, a Candid Look at Lehman Brothers’ Collapse
Andrew Ross Sorkin, NY Times
It is astonishing to hear a former Federal Reserve chairman acknowledge that he may have misled the public as part of an agreement with another senior government official about one of the most crucial moments in recent financial history — and that he now questions whether he should have “been more forthcoming.” But that is what Ben S. Bernanke says in his new memoir, “The Courage to Act: A Memoir of a Crisis and Its Aftermath.”
jlne.ws/1NiVuHO

Traders questioned as NY probe of automated FX heats up
BY KAREN FREIFELD, Reuters
Oct 5 New York’s banking regulator has questioned dozens of traders and executives at Credit Suisse Group AG, Barclays, Deutsche Bank and other banks about whether their electronic foreign exchange trading platforms were rigged, according to a person familiar with the matter.
jlne.ws/1LfEhwx

Supreme Court Denies Request to Hear Insider Trading Case
By MATTHEW GOLDSTEIN and ADAM LIPTAK, NY Times
The Supreme Court on Monday refused to review an appeals court decision that made it harder to prosecute insider trading and threatens to undermine a number of convictions.
jlne.ws/1LfEujs

Regulatory

Limits on Insider-Trading Prosecutions to Remain; Supreme Court won’t consider U.S. prosecutors’ appeal of ruling that favored Wall Street defendants
By BRENT KENDALL and CHRISTOPHER M. MATTHEWS, WSJ
The Supreme Court on Monday left in place a court ruling limiting the government’s leeway on insider-trading prosecutions, ending an effort to overturn a decision favoring Wall Street defendants.
jlne.ws/1McuTGi

SEC net capital rule fails to rein in systemic risks, Fed’s Tarullo says
Neil Roland, MLex (Subscription Required)
US Federal Reserve Governor Daniel Tarullo criticized the US Securities and Exchange Commission’s net capital rule for broker-dealers while calling for long-term changes in global capital standards for banks. Neither the SEC rule nor the Basel framework adequately addresses systemic risks posed by short-term wholesale lending, he said.
jlne.ws/1LcmUZ0

Corporate debt may threaten financial stability, G-20 arm says
Neil Roland, MLex (Subscription Required)
The Financial Stability Board flagged mounting corporate debt, particularly in China and other emerging economies, as a potential risk to world financial stability.
jlne.ws/1j0MPfU

PS15/24: Whistleblowing in deposit-takers, PRA-designated investment firms and insurers
UK FCA
In this policy statement we are setting out a package of rules on whistleblowing designed to build-on and formalise examples of good practice already found in the financial services industry.
jlne.ws/1OjdhPi

FCA introduces new rules on whistleblowing
UK FCA
The Financial Conduct Authority (FCA), alongside the Prudential Regulation Authority (PRA), has today published new rules in relation to whistleblowing. These changes follow recommendations in 2013 by the Parliamentary Commission on Banking Standards (PCBS) that banks put in place mechanisms to allow their employees to raise concerns internally (i.e., to ‘blow the whistle’) and that they appoint a senior person to take responsibility for the effectiveness of these arrangements.
jlne.ws/1Oibng4

Michael Liftik Named SEC Deputy Chief of Staff
SEC
The Securities and Exchange Commission today announced that Michael Liftik will become a deputy chief of staff of the agency.
jlne.ws/1LvhuyG

SEC Deputy Chief of Staff Erica Williams to Leave Agency
SEC
The Securities and Exchange Commission today announced that Erica Williams will be leaving the SEC after serving as deputy chief of staff to three Chairs, Mary Jo White, Elisse B. Walter, and Mary L. Schapiro.
jlne.ws/1Q471bo

Exchanges & Trading Facilities

INTERCONTINENTAL EXCHANGE REPORTS ICE & NYSE SEPTEMBER STATISTICS
ICE
September Oil Daily Volume up 9%, Ags up 13%, Cash Equities up 27% Yr/Yr
Third Quarter Futures & Options Daily Volume up 3% and U.S. Equities Volume up 36% Yr/Yr
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, today reported September exchange traded volume
jlne.ws/1FPYRDn

Intercontinental Exchange Sets November 3 for Third Quarter 2015 Earnings Announcement
Yahoo Finance
Intercontinental Exchange (ICE), the leading global network of exchanges and clearing houses, will announce third quarter 2015 financial results on Tuesday, November 3, 2015. An earnings press release will be issued prior to the earnings conference call, which will begin at 8:30 a.m. ET.
jlne.ws/1FUzNLh

Euronext announces share repurchase
Euronext
Euronext today announced its repurchase of 317,195 shares as part of the first tranche of its share repurchase programme, which aims to hedge price risk arising from the past employee share plans. A second tranche will be initiated soon to cover the LTI plan for 2015.
jlne.ws/1Q4hGD9

Euronext announces monthly trading volumes for September 2015
Euronext
Euronext, the leading exchange in the Eurozone, today announced trading volumes for September 2015.
jlne.ws/1WKo7iw

Euronext signs MOU with Haitong Bank s.a.
Euronext
Euronext today announced that is has signed a Memorandum of Understanding (MOU) with Haitong Bank S.A. with the aim of it expanding its membership role and activities on the Portuguese market as well as more broadly on the Euronext markets. In particular, the two parties will identify business opportunities in listings and the co-development of products and services.
jlne.ws/1MWuQ4x

Hong Kong exchange gives up on dual-class share plan
Jennifer Hughes in Hong Kong and Josh Noble in London, FT
The Hong Kong stock exchange has given up on letting companies sell shares with different voting rights, dealing a big blow to its efforts to attract high-profile technology companies to list in the territory.
jlne.ws/1NiRVRR

DGCX Q3 Volumes Up 36% With Trading In Gold Leading The Way
Mondovisone
Year-to-date volumes grew 19% and year-on-year volumes up 29%
Continued concerns over Chinese growth and expectations of an upcoming interest rate hike by the U.S. Federal Reserve have led risk-averse investors to hedge their risks and trade derivatives products on UAE’s leading derivatives bourse, Dubai Gold & Commodities Exchange (DGCX). The Exchange’s trading volumes in Q3 2015 grew 36% from Q2, trading 4,142,368 contracts. The Exchange also saw a year-on-year increase of 29%, trading 1,461,264 contracts in September 2015.
jlne.ws/1KXHHTl

Hedge Funds & Managed Futures

“Life Is Unfair”: Talking Inequality With The Hedge Fund Industry’s Biggest Cheerleader
Gawker
Hedge fund managers tend to be secretive. Except for Anthony Scaramucci.
jlne.ws/1jM8b11

Opinion: The times when long-term investing fails to pan out
By J.J. Zhang, MarketWatch
My last column looked at the frequency and statistics of market declines and how long it took them to recover. Those statistics make a fairly strong case for investing in the stock market, especially during the kinds of temporary dips we are having now.
jlne.ws/1Ojcde1

Are Activist Investors Helping or Undermining American Companies?; Journal examines 71 campaigns at big companies, finds runaway winners, a few duds
By DAVID BENOIT and VIPAL MONGA, WSJ
The rise of activist investing has sparked debate across markets, boardrooms and even during the presidential campaign: Are activist shareholders good or bad for business?
jlne.ws/1jaRRXQ

Fidelity, Aberdeen and Invesco could join IA exodus; Could follow M&G and Schroders
Daniel Flynn, InvestmentWeek
Another three key members of the Investment Association could join M&G Investments and Schroders in withdrawing their membership, according to Sky News.
jlne.ws/1VCQLQj

Google just valued a would-be Bloomberg killer at $650 million
Melvin Backman, Quartz
Symphony, the chat app aiming to take business away from Wall Street’s ubiquitous Bloomberg terminals, just got a big vote of confidence from Google.
jlne.ws/1L4b9oA

Templeton Betting on `Multi-Decade’ Emerging-Market Opportunity
Ye Xie – Bloomberg
Currencies in Mexico, Malaysia and Indonesia are cheap
Money manager betting against Treasuries on inflation, Fed
The recent selloff in emerging-market assets, including Mexico and Malaysia’s currencies, has opened up investment opportunities not seen for decades, according to Franklin Templeton’s Michael Hasenstab, who’s well known for making contrarian bets.
jlne.ws/1FUun2Y

Big U.S. firms hold $2.1 trillion overseas to avoid taxes: study
Reuters
The 500 largest American companies hold more than $2.1 trillion in accumulated profits offshore to avoid U.S. taxes and would collectively owe an estimated $620 billion in U.S. taxes if they repatriated the funds, according to a study released on Tuesday.
jlne.ws/1Q45GSa

Bad Bets Take Down a Pair of Hedge Funds; MeehanCombs fund closes after bets on junk and Europe; Armored Wolf also returning client money
By ROB COPELAND and MAUREEN FARRELL, WSJ
A messy stretch in global markets claimed two more victims as a pair of hedge-fund firms decided to shut down.
jlne.ws/1Gue5ZA

Banks & Brokers

Wall St banks feel equities fee pinch as Chinese competition bites; Only four global banks among top 10 ECM fee earners in AsiaPac; ECM fees jump for Chinese banks; mostly lower for global banks; Competition set to keep ECM fees under pressure in the region
By Elzio Barreto, Reuters
Despite record deal volumes this year, Wall Street banks are earning less when helping companies raise equity in Asia as Chinese rivals increasingly eat away their margins, a Thomson Reuters quarterly survey of investment banking activity shows.
jlne.ws/1NiRlUc

Treasuries Rise as Goldman Says Fed May Hold Rate Well Into 2016
Candice Zachariahs, Eshe Nelson – Bloomberg
Traders cut bets on rate move this year to 36%, futures show
Weak job data make it hard for Fed to act, Mitsubishi UFJ says
Goldman Sachs Group Inc. says there’s a chance the Federal Reserve will delay its planned interest-rate increase well into 2016, or even later.
jlne.ws/1VCR4up

Clearing & Settlement

Esma to align indirect clearing rules
IFRAsia
The European Securities and Markets Authority has opened a new consultation on rules for indirect clearing of over-the-counter and exchange traded derivatives. The regulator is hoping to reverse an inconsistent approach to the currrent requirements, which fall under two separate pieces of legislation. Esma chairman Steven Maijoor has written to Europe’s financial stability commissioner, Jonathan Hill, explaining the regulator’s decision to exclude new rules for indirect clearing for exchange-traded derivatives from final regulatory technical standards for Mifid II that were published last week.
jlne.ws/1WKg70Z

TradeCycle – the complete post-trade offering
ISS
A partnership between Commerzbank and Clearstream of the Deutsche Börse Group has delivered Europe’s first integrated post-trade servicing, writes Eric Bystrom, Head of TradeCycle Solutions at Commerzbank Corporates & Markets
jlne.ws/1WKgcSi

CFTC Gives Eurex Clearing More Time for DCO Bid
FTF News
The CFTC’s Division of Clearing and Risk is giving Eurex Clearing more time in its bid to become a derivatives clearing organization (DCO). The division extended the no-action relief granted in CFTC Letter 14-156 to Eurex Clearing AG (Eurex Clearing) and its clearing members that are U.S. persons (U.S. clearing members), CFTC officials say.
jlne.ws/1WKggS3

Renminbi overtakes Japanese yen as global payments currency
FT.com
China’s renminbi has surpassed the Japanese yen to become the world’s fourth-most-used payments currency, despite an unexpected devaluation and concerns about slowing Chinese growth. The renminbi accounted for 2.79 per cent of global payments in value terms in August, up from 2.34 per cent in July and higher than the yen’s 2.76 per cent share, according to Swift, the payments services provider.
jlne.ws/1WKgnx5

Indexes & Products

STOXX And Sustainalytics Publish Esg Report For Germany – Munich RE Identified As Most Sustainable DAX Component
Mondovisione
STOXX Limited, a leading provider of innovative, tradable and global index concepts, and Sustainalytics, a leading provider of ESG and corporate governance ratings and research, today presented the research report “Global ESG Leaders (?) – Nachhaltigkeit im DAX” at a media breakfast and awards ceremony in Frankfurt. This report evaluates companies that are part of the German blue-chip index DAX from a sustainability perspective, and ranks them according to their overall sustainability profile as a group on a global level and within Germany.
jlne.ws/1JPPGxC

Rimes adds adds new data source from S&P Dow Jones Indices
Finextra
Rimes, the leading provider of managed data services for the buy-side, today announced it has added the S&P 500 Bond Index to its data sources from S&P Dow Jones Indices.
jlne.ws/1WKgAjL

El Niño Won’t Keep This Commodity Hot
Indexology – S&P Dow Jones Indices
Commodities have faced many headwinds this year from the strong U.S. dollar, high supply from OPEC and the slowing Chinese demand growth. The S&P GSCI Total Return hit a 15 year low in August, 23 of 24 commodities dropped in July and the 3rd quarter was the 3rd worst in history. For the year, all sectors are negative and all commodities are negative but one – that is cocoa. However, cocoa may not stay hot for long.
jlne.ws/1WKgFEf

Technology

APIs add fuel to FinTech innovation
By Hazem Dawani, CEO and co-founder of OptionsCity Software, in FOW
Ever wonder how Uber seamlessly plugs into Google Maps? Or how golf courses can show The Weather Channel’s forecast alongside tee times? The simple answer: APIs. In one way or another, most of today’s consumer-facing technology is powered by APIs, which run under the surface and allow software programs to interact with one another. For companies (and developers), APIs drastically reduce the time required to build applications – relying in part on third parties for the skeletal structure.
jlne.ws/1QUngYS

Data Transfer Pact Between U.S. and Europe Is Ruled Invalid
By MARK SCOTT, NY Times
Europe’s highest court ruled on Tuesday that a widely used international agreement for moving people’s digital data between the European Union and the United States was invalid.
jlne.ws/1JPPD4Y

Levante Capital Selects Orc to Support Growth in Energy Markets
MarketWatch
Orc, a global leader in trading technology, today announced that Levante Capital has selected Orc for connectivity to Nasdaq Futures, Inc. (NFX), a derivatives exchange for energy and power contracts. Levante Capital is a proprietary trading group active in energy derivatives, including crude oil and natural gas. Leveraging Orc’s Trading Bricks solution for market making, Levante is expanding their Orc connectivity to realize new opportunities on NFX. Levante will specifically trade the WTI Crude Oil and Natural Gas options markets.
jlne.ws/1WKeWif

Rival Systems Signs Cardinal Capital Management for Rival Trader
PRNewswire
Chicago-based Rival Systems (Rival), a trading software company established earlier this year, announced today that Cardinal Capital Management (Cardinal) has deployed the new Rival Trader front-end derivatives trading and risk management platform. Cardinal’s agricultural market making group is using the low latency platform for all of its trading activities.
jlne.ws/1WKhHQB

Could the Blockchain solve the collateral conundrum?
The Trade News
As the financial industry continues to tackle the challenge of collateral management it is only natural for a range of solutions to be touted as the ‘savior’ of said troubles.
jlne.ws/1VB1ika

Fintech (the Word, That Is) Evolves
American Banker – Bank Think
The earliest use of the term “fintech” I can find in American Banker wasn’t by some coder in a garage or venture capitalist in Silicon Valley. It was by Citi.
jlne.ws/1WKgPeJ

Rival Systems Signs Cardinal Capital Management for Rival Trader
Rival Systems
Chicago-based Rival Systems (Rival), a trading software company established earlier this year, announced today that Cardinal Capital Management (Cardinal) has deployed the new Rival Trader front-end derivatives trading and risk management platform. Cardinal’s agricultural market making group is using the low latency platform for all of its trading activities.
jlne.ws/1WKhHQB

Enforcement

SEC Charges Bristol-Myers Squibb With FCPA Violations
SEC.gov
The Securities and Exchange Commission today announced that New York-based pharmaceutical company Bristol-Myers Squibb has agreed to settle charges that its joint venture in China made cash payments and provided other benefits to health care providers at state-owned and state-controlled hospitals in exchange for prescription sales. Bristol-Myers Squibb will pay more than $14 million to settle the SEC’s finding that it violated the Foreign Corrupt Practices Act (FCPA) and reaped more than $11 million in profits from its misconduct.
jlne.ws/1OfKo4Z

SEC Charges Florida Investment Adviser and His Company With Defrauding Investors
SEC.gov
The Securities and Exchange Commission today announced fraud charges against Florida-based investment adviser Arthur F. Jacob and his company, Innovative Business Solutions LLC, for allegedly deceiving clients over a period of at least five years.
jlne.ws/1FQ0NMd

SEC Charges Home Loan Servicing Solutions for Misstatements and Inadequate Internal Controls
SEC.gov
According to the SEC’s order instituting a settled administrative proceeding, HLSS misstated its handling of transactions with related parties, including Ocwen Financial Corp., whose Chairman also served as HLSS’s Chairman. From 2012 to 2014, HLSS disclosed that to avoid potential conflicts of interest, it required its Chairman to recuse himself from transactions with Ocwen and other related parties. However, the SEC order found that HLSS had no written policies or procedures on recusals for related-party transactions and that its Chairman approved many transactions between HLSS and Ocwen.
jlne.ws/1FQ0UYb

Federal Court Orders Alexander Glytenko and His Company, Direct Investment Products, Inc., to Pay a Monetary Penalty and Restitution Totaling More than $3.8 Million in Connection with Commodity Pool Fraud
In the Order, the Court found that, from approximately 2005 through approximately 2010, Glytenko and DIP, either directly or through their agents, knowingly misrepresented the Pool’s performance history to both prospective and actual pool participants.
jlne.ws/1Mbsrjn

Environmental & Energy

A (Not So) Crazy Idea to Sell Republicans a Carbon Tax
By Christopher Flavelle
If you were to select the most hopeless cause in Washington, getting Republican lawmakers to support a carbon tax would have to make the shortlist. The idea combines much of what conservatives hate most: a new tax, less coal, a more intrusive government and an acknowledgment that scientists — worse, scientists at the United Nations! — might be right about something.
jlne.ws/1McuzaG

Carbon Offset Trading – Managing Risk in a Time of Regulatory Uncertainty
Biofuels Digest
Until very recently, the demand for carbon offsets was almost exclusively driven by the desire of private entities and corporations to voluntarily commit to “green” their operations by reducing greenhouse gas emissions. We now see existing compliance programs, such as California’s AB32 cap-and-trade regulation and the Regional Greenhouse Gas Initiative (RGGI) in the Northeast, take root and ramp up. Additionally, the Environmental Protection Agency’s (EPA) recently proposed Clean Power Plan would apply strict limits on carbon emissions from steam-generating and gas-fired electric utility generating units across the country.
jlne.ws/1WKh1KS

Shell CEO to call for effective carbon pricing
MarketWatch
The chief executive of oil firm Royal Dutch Shell PLC will tell a gathering of industry executives Tuesday that the world must find economic ways to reduce its dependence on the most polluting fossil fuels, calling on governments to institute an effective system for pricing carbon.
jlne.ws/1WKh3T6

Asia-Pacific

China Responds Cautiously To TPP Deal, Which Analysts Say Will Bring Pressure For Faster Reforms
IB Times
China has reacted cautiously to the Trans-Pacific Partnership trade deal (TPP), which U.S. President Barack Obama said explicitly was designed to prevent “countries like China” from writing “the rules of the global economy.” China’s Ministry of Commerce said it took an “open-minded attitude” to the deal, though Chinese analysts said it would increase pressure on Beijing to introduce further economic reforms
jlne.ws/1WKhywz

Renminbi overtakes Japanese yen as global payments currency
Gabriel Wildau in Shanghai, FT
China’s renminbi has surpassed the Japanese yen to become the world’s fourth-most-used payments currency, despite an unexpected devaluation and concerns about slowing Chinese growth.
jlne.ws/1JPPwGE

Three big China finance firms set to list in Hong Kong as stock market pickup eyed
South China Morning Post
Three giant state-owned financial companies are to land in Hong Kong for initial public offerings this month even though the receptions for the listings appears cool, market sources said, as Beijing pushes for diversified ownership reform over state-owned enterprises.
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How Hong Kong can survive a China hard landing
MarketWatch
Just how much will Hong Kong feel the pain of a China slowdown? A report by Fitch last week warned that a China “hard-landing” would hit Hong Kong the hardest, alongside South Korea and Japan. This China hard-landing scenario would see China’s growth slump to just 3% in 2016, the currency depreciate 10% and non-performing loans rise to 8% (that’s up from around 1% today).
jlne.ws/1WKhk8y

Hong Kong puts shareholder rights ahead of desire for IPOs
FT.com
The HKEx bowed to the inevitable on Monday and scrapped its efforts to change its listing rules. The dream of luring listings from big Chinese companies could not overcome regulatory opposition and Hong Kong’s long standing tradition of one-share one-vote.
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Frontier Markets

RBI may sell extra govt bonds to foreign investors via auction; Foreign institutional investors have already used up almost their entire $25 billion allocation of government debt
Reuters
The Reserve Bank of India is likely to sell extra government bonds made available for foreign institutional investors last week through an auction rather than on demand as of now, a senior official with direct knowledge told Reuters on Tuesday.
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No end in sight, as money flees ‘cheap’ emerging markets
By Sujata Rao, Reuters
Money is fleeing emerging markets en masse in 2015 for the first time in 27 years and few global investors are tempted to return to equities, currencies or bonds there as many of the populous economies defining the asset class slow inexorably.
jlne.ws/1jaTftn

Perpetual bonds are quite a hit with investors in rate-cut season
By ET Bureau
Perpetual bonds, a product category long ignored by sophisticated investors, are in vogue these days. The well-heeled have been lapping up such bonds of public sector banks on hopes the yield differential vis-a-vis the 10-year benchmark government bond would shrink as the Reserve Bank of India cuts policy rates.
jlne.ws/1Z6NTQa

Barley hits upper circuit in futures trade, climbs 4%
Speculators widen positions on strong demand in physical market
Press Trust of India
Barley prices went up by 4 per cent to hit the upper circuit at Rs 1,420 per quintal as speculators indulged in widening positions, driven by a firming trend in the physical market on strong demand.
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Miscellaneous

Tribune Publishing Announces Staff Reduction
By RAVI SOMAIYA, NY Times
Tribune Publishing announced a long-anticipated staff reduction plan to employees on Monday, amid a falling stock price and questions from analysts about the ability of the company’s management to turn around its media properties, which include The Los Angeles Times and The Chicago Tribune.
jlne.ws/1hnW8Fn

DraftKings employee may have used insider information to net $350K on FanDuel
NY Post
An early release of lineup information in a DraftKings contest is raising questions about the transparency of the burgeoning daily fantasy industry.
jlne.ws/1LfEM9U

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