Bits & Pieces
by John J. Lothian
Yesterday was Veteran’s Day in the U.S. My daughter Katherine took to Facebook to share her thoughts on the holiday and wrote the following:
“Today is a day of celebration and remembrance of those who have fought for us. Today is also 3 months since I came home from Japan and the best experience of my life. In Japan I spent 12 days camping with 34,000 people from 130+ countries. So many people from so many different countries and cultures. But we were there peacefully. Meeting people from countries America has fought against and seeing their reactions to where I am from opened my eyes to see that we can live in a world made of peace. There was community within those 34,000 people and I wish every day to go back to my time there. But if we as the human race could create a world where we no longer have veterans, is a world I want to live in. I honor our veterans. But I am saddened that we have them. I’ve seen a world of peace. And I’d like to share it with the rest of you.”
Happy Veterans Day.
I can’t say enough about how proud I am of my daughter Katherine.
My son Tim did go to class yesterday at the University of Missouri after the person behind the threats of violence on the Internet was arrested. It has been an amazing series of events at the University. Tracking your son’s college experience via Twitter is a little different, #Mizzou.
Spot Trading held a Trading Tech 300 merit badge workshop yesterday for 13 scouts from across Chicago. They taught the Programming merit badge and the Personal Management merit badge. The merit badge counselors were 20-somethings from Spot, including two Eagle Scouts. None of the counselors began writing computer code until they got to college, and they helped these Scouts yesterday write some code. It was very cool for the kids and the merit badge counselors. Thank you to Spot, and especially to Deb Lenchard, the mother of an Eagle Scout, for their great work making this day happen.
Realignment of Executive Board responsibilities
Deutsche Börse: Deutsche Börse AG will realign the assignment of responsibilities within its Executive Board, effective 1 January 2016. As announced, Deutsche Börse AG will place client focus at the heart of its organisational structure. With the steps taken now, Deutsche Börse AG will bundle related areas in Executive Board portfolios, accelerating process flows and simplifying them – in the interest of the company’s clients.
**** A new role for Deutsche Börse executives, including Andreas Preuss, head of the newly-created division, “IT & Operations, Data & New Asset Classes.”
Why Disobedient Children Make Great Entrepreneurs
BY ILAN MOCHARI – Inc.
According to recent research, unruly, rule-breaking kids earn more as grownups–and are likelier to become entrepreneurs.
Entrepreneurs are boundary pushers. Sometimes, in the opinion of government officials, they are lawbreakers. But they are probably doing what they’ve always done–going back to their childhoods.
***** I do like to push boundaries.
| CEINEX – Bridging Markets
China Europe International Exchange (CEINEX) provides international investors with efficient and transparent access to the world’s second biggest economy. Founded by three strong partners, the Shanghai Stock Exchange, the China Financial Futures Exchange and Deutsche Börse Group, CEINEX offers trading opportunities in Renminbi-denominated instruments at European trading hours.
Market participants will benefit from the new global liquidity pool for Chinese cash market products initially and derivatives at a later stage. The new marketplace will be based on Deutsche Börse’s proven infrastructure for trading – Xetra for cash market products and in the future Eurex for derivatives contracts.
It all starts on November 18! More details: www.ceinex.com
Banks need to tell compelling stories to win the best brains
Emma Dunkley – FT
When The Wolf of Wall Street hit cinema screens two years ago as a story based on the greed and excess of the finance world, many in banking thought of it as a parody of a bygone era. While the high pay still attracts people to banking and consulting, the financial crisis and subsequent stream of regulation has shifted employees’ priorities and the way companies recruit.
***** We as an entire industry need to do a better job of telling the compelling story about the opportunities to do well through doing good.
Ed Haravon, Spot Trading – Ask Why? Opportunities in Financial Markets
Remember when you could see the action matinee double feature for a buck? Or when a cream soda cost a dime? At some point in time those favorite, stale references were simply the present. Ed Haravon, COO of Spot Trading, says these are the good old days to be in financial markets. In every convoluted regulatory hurdle, bit of market fragmentation and algorithmic uncertainty lies the potential for an innovative solution and to blaze a new trail. And some day we’ll be the curmudgeons in a Jetsonian flying car reminiscing about ZIRP and five dollar beers. What better place to do that than Chicago, where all the cool kids go to hedge.
Watch the video »
Trading Tech 300 is the Opportunity of a Lifetime
On November 19, 2015 the LaSalle Street Trading Tech Awards will be given out by the Pathway to Adventure Council of the Boy Scouts of America. These are not awards for the shiniest new technology or product, but rather to honor those firms who have shown great heart, foresight and soul in participating in the Trading Tech 300 merit badge workshop program. It is to honor those firms and those individuals who have given young Scouts the opportunity of a lifetime through this program.
Spoofing Warnings Sent as Finra Teaches Brokers to Spot Cheats
Annie Massa – Bloomberg
Five firms involved in Finra pilot program to detect spoofing
Effort comes as authorities crack down on practice in futures
A U.S. regulator is trying to teach stock brokers to identify when their clients are engaging in a form of market manipulation known as spoofing.
Global Banks Rewrite Contracts in Bid to Avert Lehman Repeat
John Glover – Bloomberg
ISDA announces extension of resolution stay protocol
New agreement applies to securities financing transactions
The world’s biggest banks agreed to rewrite trillions of dollars of financial contracts as the industry responds to pressure from regulators to help make sure lenders can fail without bringing down the global economy.
Convergex Partners with FCStone to Launch Futures Prime Brokerage
One of the biggest agency-focused global brokers, Convergex, has announced today that it has entered into a clearing agreement with INTL FCStone Financial Inc. (NASDAQ:INTL) to offer its clients access to FCStone’s futures execution capabilities and prime brokerage platform.
Deutsche Boerse reshapes board roles to match growth goals
Deutsche Boerse Chief Executive Carsten Kengeter has created new business divisions and board roles as he reshapes the German financial exchange operator to meet its mid-term earnings targets.
ICAP Said to Keep Liability for ISDAfix Case After Tullett Deal
Matthew Leising – Bloomberg
Barclays settled first ISDAfix case in May for $115 Million
ICAP’s ‘Treasure Island’ desk at heart of CFTC’s ISDAfix probe
Even though ICAP Plc is selling a division at the heart of a trading scandal, it’s retaining any future legal liability, according to a person familiar with the matter.
Foreign investors warn China e-trading proposal could sink Stock Connect
By Michelle Price and Saikat Chatterjee -Reuters
Draft rules to curb high-speed trading blamed for China’s summer stock market crash could kill off billions of dollars of investment into China, global banks and investors have told Chinese regulators in a letter.
Five Strange Things That Have Been Happening in Financial Markets
Negative swap spreads, fractured repo rates, big moves, and much more.
Tracy Alloway – Bloomberg
“May you live in interesting times” is sometimes said to be an ancient Chinese curse.
**JK – Another phrase that should be stricken from articles and speeches – beaten, down, dead.
End QE now or risk a new financial crisis, warn Germany’s ‘Wise Men”
By Mehreen Khan – Telegraph
Council of Economic Experts says low interest rates pose risk for financial stability, and call on the ECB to end stimulus measures
The European Central Bank must end its unprecedented stimulus measures in order to prevent a new financial crisis from erupting in the eurozone, Germany’s top economic advisers have warned.
Forget the march of the makers; Britain’s future is in finance
By Jeremy Warner – Telegraph
It’s reasonable to contemplate a UK financial sector 15 times the size of GDP, but first the Bank of England needs to solve the ‘too big to fail’ problem
There were howls of outrage in some quarters after Mark Carney made his remarks. The horror! How could the Governor of the Bank of England, speaking at the Bank’s first Open Forum on the future of finance, seriously contemplate a financial sector that is 15 times the size of GDP?
Alleged Spoofer Oystacher Said to Face Fresh CME Investigation
CME Group Inc., operator of Chicago Mercantile Exchange and New York Mercantile Exchange, has begun a new formal investigation into Oystacher’s recent trading, according to a person familiar with the matter. That comes less than a year after the CME settled an enforcement case against Oystacher that included a $150,000 fine and a 30-day trading ban, in which the Russian-born trader neither admitted nor denied the findings.
Democratic Candidates Take Aim at Wall Street; Hillary Clinton, Bernie Sanders and Martin O’Malley all want to tax financial transactions
By BOB DAVIS – WSJ
Democratic presidential candidates are pushing a Wall Street tax that has been debated since Keynes as a way to corral financial markets, a sign of how much the finance industry remains in the cross hairs seven years after the meltdown of Lehman Brothers.
Investors will pay if liquidity dries up
Dan McCrum – FT
Liquidity is a term of negotiable affection because it will wear whatever accompanying financial jargon is desired and bend to many a usage. Central banks are often said to have flooded the system with it. Banks and companies need it to go about their business. Markets are defined by it, but not often in a precise way, more by a sense of whether it is usually there or not.
Populism on the Rise in GOP Race for President
By NICK TIMIRAOS – WSJ
Candidates bash big banks, the Fed, corporations and international trade deals in their latest debate
The latest presidential debate vividly captured how the 2008 financial crisis has reshaped the Republican Party by unleashing a potent populist strain that could further scramble an already unpredictable primary contest.
Bond traders miss out in bankers’ pay rise
Ben McLannahan and Kadhim Shubber in New York – FT
Bond traders are set to miss out on a general trend of modest pay rises for bankers this year, according to a survey that highlights the waning influence of fixed-income departments within the biggest global banks.
Even Famous Female Economists Get No Respect
Justin Wolfers – NY Times
Men’s voices tend to dominate economic debate, although perhaps this is shaped by how we talk about the contributions of female economists. This is easiest to see in how we discuss the work of economist power couples.
Cruz’s Criticism Underlines Fed’s Politics Problem This Election
Christopher Condon – Bloomberg
Ted Cruz claims Fed ‘tightened’ in 2008 when it cut rates
Rand Paul complains of rising prices yet inflation is too low
It was open season on the Federal Reserve at Tuesday’s Republican presidential debate. Candidates blamed Fed officials — “philospher kings” in Texas Senator Ted Cruz’s words — for everything from the financial crisis to income inequality.
That massive big-bank cyberfraud, in jaw-dropping numbers
By VICTOR REKLAITIS -MarketWatch
It’s been called one of the biggest cybercrimes in history, involving the theft of data from millions upon millions of people, and requiring a massive worldwide ring of accomplices.
Forcing derivatives onto exchanges
Mifid II will force certain standardised OTC derivatives to trade on electronic venues, fulfilling part of Europe’s efforts to meet the G20’s 2009 commitment to reform those markets. This trading obligation will specifically apply to OTC derivatives subject to the clearing mandate under the European Market Infrastructure Regulation, such as interest swaps and credit derivatives.
CMA enforcement chief vows to be tougher on cartels
Lindsay Fortado, Legal Correspondent – FT
The new director of enforcement at the Competition and Markets Authority has said he has “high profile cases in the pipeline” as he vowed to focus on more individuals and even to disqualify directors who violate cartel law.
Lobbyists and lawyers warn over delay to Mifid II
By James Rundle and Bernard Goyder – Financial News
The financial industry has expressed relief at the European Commission’s suggestion this week it will a delay implementing the wholesale reform of Europe’s trading rulebook, but executives have warned the move is far from certain and urge that regulatory work should proceed as scheduled.
Towards global hyper fungibility
Izabella Kaminska – FT
The euro may have been pointless, but it might have been a whole lot less pointless if there’d been political union from the onset. So implied Mario Draghi, ECB President, at the BoE Open Forum on Wednesday.
Proposed guidance for firms outsourcing to the ‘cloud’ and other third-party IT services
We invite views on the proposed guidance, which intends to clarify the requirements on firms when outsourcing to the ‘cloud’ and other third-party IT services.
Possible FCA Handbook changes to reflect the introduction of the Innovative Finance ISA and the regulated activity of advising on peer-to-peer agreements
In this discussion paper, we set out our initial thinking about possible changes to our Handbook to make sure our regulatory approach takes account of two proposed legislative developments that will impact on the regulated loan-based crowdfunding sector.
The FCA asks for views on changes it plans to make to its rules and guidance as a result of the introduction of the Innovative Finance ISA and the regulated activity of advising on peer-to-peer agreements
In April 2016, the Government will introduce the Innovative Finance ISA (IFISA). This will allow for peer-to-peer (P2P) agreements to be included within an ISA tax wrapper. Additionally, the Government intends to make advising on P2P agreements a regulated activity.
Bad bankers are like shoplifters, says George Osborne; It’s wrong that people who steal from shops are jailed, but bad bankers are not held to account
By Peter Spence, and Tim Wallace – Telegraph
Bankers who received taxpayer money during the financial crisis are not unlike shoplifters, Chancellor George Osborne has said.
Exchanges & Trading Facilities
Chris Landis has led SIX Swiss Exchange on an interim basis since May 2015 and will step into his new role with immediate effect.
The Board of Directors of SIX has appointed Chris Landis as the new Division CEO of SIX Swiss Exchange and thus also as a member of SIX Group Executive Board. “With Chris Landis we have a Division CEO who is experienced and has strong leadership qualities, who is highly familiar with the stock-exchange business, and who has made a crucial contribution to the successful positioning and development of SIX Swiss Exchange”, commented Urs Rüegsegger, Group CEO SIX.hris Landis has led SIX Swiss Exchange on an interim basis since May 2015 and will step into his new role with immediate effect.
IPO of German Startups Group Berlin GmbH & Co. KGaA at Frankfurt Stock Exchange
Deutsche Börse welcomes investment company in Entry Standard
Deutsche Börse: German Startups Group Berlin GmbH & Co. KGaA (ISIN: DE000A1MMEV4) has been listed in the Entry Standard of the Frankfurt Stock Exchange since 11 November. In the IPO capital of 11.1 million in shares have been included in trading. The initial listing price was EUR 2,80.
Marcus Zickwolff leaves Deutsche Börse Group; Resigns as EACH Chairman and CCP12 Chairman
Eurex Clearing: Marcus Zickwolff, former senior advisor at Eurex Clearing AG, left Deutsche Börse Group on 31 October 2015 in order to pursue new opportunities. Due to his departure on amicable terms he also chose to resign from his positions as Chairman of EACH, the European Association of CCP Clearing Houses, and Chairman of CCP12, the Global Association of Central Counterparties.
CME Group Declares Dividend
CME Group Inc., the world’s leading and most diverse derivatives marketplace, today declared a fourth-quarter dividend of $0.50 per share, payable December 28, 2015, to shareholders of record as of December 10, 2015.
MGEX Sets Pair Of Top Five Daily Volume Records
The total volume number is the fifth-highest ever for MGEX, marking the ninth time in Exchange history that total volume has surpassed 20,000 on a single day. Electronic volume had its second-straight top 20 day on Tuesday, finishing 4th-best on the record charts after reaching the No. 16 spot on Monday.
How much potential do Weekly Equity Options have? An assessment by Susquehanna’s Cathal Hardiman.
As turnover figures show equity options with weekly expiry are enjoying ever-increasing popularity. September saw highest monthly turnover ever with 76,000 contracts. And the annual turnover including September is already more than five times higher than the total turnover in 2014. Read why Cathal Hardiman from Susquehanna International Securities Limited, the first active Market Maker in our Weekly Equity Options, still sees considerable potential to be tapped.
Euronext welcomes Amundi, Europe’s leading asset management company, to its Paris market; Paris stock exchange’s largest IPO in ten years
Total amount of the offer of approximately EUR 1,501 million, which may be brought to approximately EUR 1,726 million in the event the over-allotment option is exercised in full. Around EUR 7.5 billion market capitalization
Hedge Funds & Managed Futures
Here’s Why the GOP Can’t Stop Talking About the Gold Standard
By Rob Garver – The Fiscal Times
During the Republican presidential primary debate Tuesday night, Texas Sen. Ted Cruz called for returning the United States to the gold standard. The loud sound heard across the nation immediately afterward came as thousands of economists and monetary policy experts simultaneously slapped palms to faces in disbelief.
Small Businesses Struggle to Tap ‘Crowd’ Funds; States make it easier to raise money, but few small firms take advantage of opportunity
By RUTH SIMON – FT
Lawmakers have opened up crowdfunding to small businesses, but so far crowdfunding hasn’t opened up much in return.
Investors, bankers wrestle for stock listing pricing power
BY EMILIANO MELLINO
Companies planning stock market listings before next year are having to lower their expectations or postpone their flotations as the power to determine the price on initial public offerings has shifted from issuers to investors.
Banks & Brokers
Deutsche asks court to strike out sacked banker’s bonus claim
Jane Croft – FT
Deutsche Bank is attempting to strike out a High Court claim by a former banker seeking more than £5m in bonuses, as it argued that his “hopeless” case should not go forward to trial.
Icap-backed start-up seeks trade repository status
By Anna Irrera – Financial News
A London based start-up backed by Icap has applied to become a trade repository under new European rules, as the interdealer broker commits to devoting more resources to its fintech investment vehicle after agreeing to sell its voice-broking operations to a rival.
Icap and Tullett Prebon merger sees brokers braced for cuts; John Phizackerley of Tullett said job losses would be ‘a logical conclusion’
Russell Lynch – Independent
The sector has been squeezed by tougher regulation and lower trading volumes
Hundreds of jobs are at risk after Icap and Tullett Prebon sealed plans to create a £1.5bn City broking giant and said the deal would generate at least £60m in savings.
ABN Amro: going Dutch
Like a phoenix from the flames, here comes the reformed, rejuvenated ABN Amro via an IPO later this month. Only it is not so much a phoenix as a blackbird. Or perhaps a sparrow. At any rate, an unspectacular creature. Other than the name, it shares little with the entity that RBS, Fortis and Santander bought in 2007 for EUR71bn, and which was subsequently bailed out by the Dutch government. The IPO, which will give the bank a market capitalisation of about EUR17bn, will allow the kingdom to begin its exit.
Exclusive: Morgan Stanley turns to stodgy bank accounts to boost profit
BY OLIVIA ORAN – Reuters
Morgan Stanley, (MS.N) better known for underwriting bonds than for retail banking, plans to offer savings accounts and certificates of deposits next year to wring more profit from its wealth management clients, executives told Reuters.
Why Big Banks Weren’t Smiling During the GOP Debate; Lenders find themselves again in the political cross hairs
By JOHN CARNEY – WSJ
For all the talk of repealing the Dodd-Frank Act at Tuesday night’s Republican presidential debate, there was little good news for the biggest U.S. banks. If anything, it only underscored that the coming presidential-election year will heighten political risk for the stocks.
Clearing & Settlement
Clearing hurdles: diversifying to solve CCP systemic risk
Futures & Options World
The G20 leaders summit in 2009 kick-started a crucial yet complex process towards central clearing for derivatives. Implementing EMIR, defining consistent rules for CCPs and introducing the clearing obligation are all major tasks. The next logical step is to tackle any risk associated with the new structure – and with the European Commission due to release technical standards soon, recovery and resolution is high on the agenda.
Clearstream’s October 2015 figures
In October 2015, the overall value of assets under custody held on behalf of customers registered an increase of 8 percent to EUR 13.2 trillion (compared to EUR 12.3 trillion in October 2014).
Swift Institute evaluates real-time payment systems
The Swift Institute announces the availability of a new paper that proposes a hybrid model for real-time retail systems, combining the benefits of a real-time gross settlement system (RTGS) with those of a deferred net settlement (DNS) system.
The Liquidity Alliance now able to extend collateral management services to buy-side via 360T
Clearstream: – Service enables the buy-side to trade triparty repos with banks on 360T platform as collateralised alternative to unsecured cash deposits
New Trade Repository to Launch in Europe
Abide Financial, the independent regulatory reporting firm, is applying to become an authorised trade repository in Europe as the region looks to improve the quality of reporting before new regulations come into force.
Indexes & Products
Low Volatility and Equal Weight: Two Popular Smart Beta Approaches Among Advisors; FTSE Russell Survey
According to the first FTSE Russell U.S. retail financial advisor survey, smart beta index adoption by financial advisors is prevalent and broad-based. This survey — Smart Beta: 2015 survey findings from U.S. financial advisors — confirms an increased interest in, and adoption of, multiple smart beta indexes among retail financial advisors.
U.S.-listed Chinese shares fall ahead of MSCI inclusion
BY TARIRO MZEZEWA
Chinese stocks that trade on U.S.-listed exchanges were mostly lower on Wednesday, even as investors expect indexer MSCI to add some well-known company stocks to its emerging market indexes.
Active Versus Passive Through Municipal Bonds
Indexology – S&P Dow Jones Indices
Municipal bond mutual funds gathered USD 2.8 billion in the four-week period ending Oct. 28, 2015, according to the Investment Company Institute, while muni bond ETFs added USD 593 million of inflows in October, according to SSGA. Despite this low number, at the recent S&P Dow Jones Indices Municipal and Global Bond Forum, various panelists highlighted the relative benefits of municipal bond ETFs.
FTSE SBI India Bond index to be launched
FTSE Russell, a global index provider, has announced the signing of letter of intent between FTSE TMX Global Debt Capital Markets and State Bank of India to develop in partnership, a new index, FTSE SBI India Bond index. This new index would track Indian fixed income securities.
Smart beta gaining favour with financial advisors, finds FTSE Russell
TSE Russell, a global index provider, has released the results of a survey of US financial advisors. The survey identifies increasing adoption of smart beta strategies within client portfolios.
Amazon debuts in Thomson Reuters 2015 top 100 innovators list
Online marketplace Amazon.com Inc (AMZN.O) made its debut in the 2015 Thomson Reuters Top 100 global innovators list, leaving International Business Machines Corp (IBM.N), the world’s largest technology services company, out of the list.
SunGard wins Insurance Risk Awards for best actuarial modelling software and best data management service provider
SunGard has received two 2015 Insurance Risk awards for “Best Actuarial Modelling Software” for its Prophet actuarial modelling solutions, and “Best Data Management Service Provider” specifically for its Prophet Data Management Platform. The awards were announced at a reception on November 11th in London.
Bitcoin and the Volatility in the Digital Currency Market
Bitcoin’s recent rally has reversed in a major way.
While the virtual currency is still about 20 percent higher than it was a month ago, it has fallen sharply in recent days.
R Consortium Awards First Grant to Help Advance Popular Programming Language for Unlocking Value from Data
Inside Big Data
The R Consortium, a Linux Foundation Collaborative Project and open source foundation to support the R user community, announced it is awarding its first grant to advance the infrastructure supporting the R programming language. Led by the R Consortium Infrastructure Steering Committee (ISC), the grant program provides financial support to projects that will address critical needs of the R user community.
SEC Charges Two With Insider Trading in TPG-Linked Deals; Regulator alleges that the two profited from trades related to two health care takeovers
By JULIE STEINBERG – WSJ
The U.S. Securities and Exchange Commission has brought charges of insider trading in a civil case against a former employee of private-equity firm TPG Capital and his cousin, related to two health care takeovers involving the firm.
Valeant, Ackman must face U.S. insider trading lawsuit
BY JONATHAN STEMPEL – Reuters
A U.S. judge said Valeant Pharmaceuticals International Inc (VRX.TO) (VRX.N) and activist hedge fund manager William Ackman must face a lawsuit accusing them of insider trading in Allergan Inc before making an unsuccessful takeover bid for the maker of Botox.
Environmental & Energy
Russia’s Oil Rivalry With Saudis Masks the Bigger Iranian Threat
Dina Khrennikova – Bloomberg
Inflow of Iranian oil may cut Russian export prices in Europe
Saudis unlikely to ship significant supplies to the region
Competition is growing in Russia’s biggest oil market. While Saudi Arabia’s encroachment in Europe is getting all the attention, the biggest threat comes from another part of the Middle East — Iran.
Energy Hasn’t Been This Hot Since They Invented Fire; And the revolution is just beginning.
Eric Roston – Bloomberg
Nothing in the energy business can compete with oil for volatility, geopolitical drama, or sheer utility. Its low price per barrel, currently under $50, won’t last forever. But it may last through the year ahead.
Greenhouse Pollution Per Person Falls for Many Major Economies
By Alister Doyle – Reuters
Greenhouse gas emissions per capita are falling in 11 of the Group of 20 major economies, a turning point for tackling climate change, a study showed on Tuesday.
Top EU court set for view on legality of free carbon permit rules
By Barbara Lewis – Reuters
A top EU court adviser will on Thursday deliver an opinion on whether the European Commission’s calculations to decide free carbon allowances are legal, in a case brought by refiners OMV, Esso Italiana and big chemical firms.
These could be the first U.S. states to tax carbon — and give their residents a nice paycheck
By Chelsea Harvey – The Washington Post
In Washington state, a circulating petition might be the key to both permanently cutting down on the state’s carbon footprint and also reforming what is widely considered one of the nation’s most regressive tax systems.
China Changes Its Currency-Market Ways; Beijing’s typically ham-handed approach to yuan interventions may be giving way to subtler techniques
By ANJANI TRIVEDI – WSJ
China’s typically ham-handed approach to currency interventions—exemplified by its market-wrenching August devaluation—may be giving way to a lighter touch.
Zhou Xiaochuan says the central bank wants to greatly increase the international use of the yuan.
South China Morning Post
China faces an uphill battle against financial risks in the next five years as it gradually opens up its capital account and makes the renminbi an international currency, the central bank governor said.
Central bank sends more currency overseas to meet RMB demand
The People’s Bank of China, which issued a new 100 yuan note today, has been transporting ever increasing quantities of renminbi to foreign countries to meet a growing demand for China’s currency. The central bank transported 50 billion yuan ($7.9 billion) in cash to Hong Kong, the country’s offshore RMB center, during the first nine months of the year, an increase of more than 46 percent year-on-year, according to a bank insider in Shenzhen.
Yuan ticks IMF boxes for reserve currency
By Bloomberg via Economic Times
China has ticked most of the boxes set by the International Monetary Fund (IMF) to grant the yuan reserve-currency status, prompting many banks to predict approval this month. Membership of the IMF club would be a crowning achievement after three decades of breakneck growth that saw the Chinese economy take its place as the world’s second-largest after the US.
MSCI index change ‘massive’ for China markets
The MSCI’s inclusion of Chinese American Depository Receipts (ADRs) into its indexes, which is expected to be announced tonight, is a “massive change” for the indexes, say experts. The MSCI is expected to announce the inclusion of Chinese ADRs after US market close tonight. The inclusion will occur in two stages: one at the end of November and another in May 2016.
Global gold demand hits more than two-year high in Q3: World Gold Council; July’s price drop boosted buying of jewellery, coins and bars
Global gold demand hit its highest in more than two years in the third quarter as July’s price drop boosted buying of jewellery, coins and bars, the World Gold Council said on Thursday.
Parliamentary committee calls for one regulator for money pooling schemes; Different schemes fall under different regulatory ambit, leading to lapses in enforcement
Jayshree P Upadhyay – Business Standard
The parliamentary standing committee on Finance has raised issues on the various money pooling schemes that are duping investors. It is reliably learnt that the committee headed by the Congress minister, Verrapa Moily is likely to take up the matter of a separate regulator for the money pooling schemes in the upcoming winter session.
Cos listed on VSEL to move on BSE dissemination board; The move is effective from tomorrow
Press Trust of India
To safeguard the interest of investors in firms listed solely on exiting bourses, BSE has placed as many as 50 companies listed on Vadodara Stock Exchange to the dissemination board (DB).
Futures volume witnesses 20% fall amid festive season
Vimukt Dave – Business Standard
India’s leading commodity exchanges – the National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX) -have seen a fall in volumes by 20 per cent in the last week.
Increase in contract size hits derivatives volumes; Experts reckon at least 30% of retail volumes could get hit because of the new contract size
Ashley Coutinho – Business Standard
Increase in the minimum contract size for trading in equity derivatives from Rs 2 lakh to Rs 5 lakh has adversely impacted derivatives volumes on the bourses. According to exchanges data, monthly average daily volumes in the F&O segment has dipped about 23 per cent in November over the previous month. Monthly average daily volumes have stayed over the Rs 3-lakh-crore mark in six out of 10 months this year.
Currency wars: special focus
Call it what you will – currency war, competitive devaluation, currency manipulation, currency intervention – but central banks are knee-deep in the trenches as they battle to lower their exchange rates and boost their economies.
Why Cocaine Farmers Are Getting Into Chocolate Instead
Marvin G Perez – Bloomberg
Cocoa futures have surged 39 percent in the past three years
54% of Colombia cocoa plantings are in once illegal-crop areas
It was the murder — execution-style, in broad daylight — of a friend and fellow farmer in the Colombian countryside that prompted German Sanchez to finally heed government calls to get out of the cocaine trade and plant cocoa instead. Six years later, market forces, more than concerns about personal safety, are persuading him not to switch back.
GrainCorp faces tough year ahead
Eastern Australia’s biggest grain handling business GrainCorp has told the government to get on the “front foot” in infrastructure spending and warned against restrictions on foreign capital, as the agribusiness braces itself for another challenging year of tough cropping conditions.