First Read


Profiles: Blair Hull

It’s not every day you hear one of the most successful traders and businessmen in the industry say he got his start as a card counter in blackjack.

“My brother-in-law told me that he made money in Lake Tahoe, enough money to pay for his vacations,” he said. “I said “Well, if you do that consistently, you should be betting a lot more money and you wouldn’t have to be an accountant.”

So Hull put his own money where his mouth was and took up the game of blackjack for five years learning probabilities and strategy. His success in the game allowed him to put $25,000 of his winnings into leasing a seat in 1976 at the Pacific Stock Exchange (now NYSE Arca).

Watch and read the rest of Hull’s story at JohnLothianNews.com
++++

Judge Paves Way for Nearly Full Recoveries for MF Global Brokerage Creditors; The bankruptcy judge approved the sale of MF Global’s brokerage litigation to its parent
By JOSEPH CHECKLER
A judge on Wednesday paved the way for nearly 100% recoveries for creditors of MF Global’s brokerage, an outcome considered unthinkable when the firm collapsed less than four years ago.
jlne.ws/1hrU8gu

****** Nightmare on LaSalle Street comes to an end, almost.

++++

CME Group to launch new pork cutout index
Reuters
The CME Group Inc, the world’s largest livestock futures exchange, effective Aug. 24 will begin publishing a new pork cutout index on its website and through the exchange’s Price Reporting System (PRS), the CME said on Wednesday.
jlne.ws/1E6OWbD

***** They are also launching a volatility index on iced broilers, call the VIXEN.

++++

Nominations wanted for FN Extra Mile 2015
By Graeme Kerr, Financial News
Do you know someone who goes the extra mile for good causes? Financial News wants your nominations for our annual list of the 40 people in finance who do the most to make the world a better place.
jlne.ws/1LkNkdY

***** I can think of many people who would be on this list, many of whom are probably still summering in the Hamptons.

++++

Are Lawyers Getting Dumber?; Yes, says the woman who runs the bar exam
Natalie Kitroeff, Bloomberg
Last August, the tens of thousands of answer sheets from the bar exam started to stream into the National Conference of Bar Examiners. The initial results were so glaringly bad that staffers raced to tell their boss, Erica Moeser. In most states, the exam spans two days: The first is devoted to six hours of writing, and the second day brings six hours of multiple-choice questions. The NCBE, a nonprofit in Madison, Wis., creates and scores the multiple-choice part of the test, administered in every state but Louisiana. Those two days of bubble-filling and essay-scribbling are extremely stressful. For people who just spent three years studying the intricacies of the law, with the expectation that their $120,000 in tuition would translate into a bright white-collar future, failure can wreak emotional carnage. It can cost more than $800 to take the exam, and bombing the first time can mean losing a law firm job.
jlne.ws/1TVdVWo

****** I have never not passed a bar….exam.

++++

Malcolm Gladwell attacks Yale for $480 million payment to hedge fund managers
Business Insider
Malcolm Gladwell is lashing out at Yale University for what he says is exorbitant spending on hedge fund management fees.
jlne.ws/1J6saja

***DA: If a hedge fund guy gives millions to the Yale endowment and then gets millions back for managing the same endowment, what is that called? Click to see Gladwell’s answer. Parental discretion is advised.

++++

Chris White, ViableMkts – De-Constructing Finance: Simplifying Wall Street
MarketsWikiEducation.com

Chris White learned the ins and outs of the markets while at Goldman Sachs, but to do that, he needed to master the financial language. He takes the audience through a fun, interactive word game that helps teach some of the key terms that put you on the path to success. How many terms do you know?

Watch the video »
++++

Lead Stories

The world should fear an emerging market rout; Developing countries need a stimulus to offset capital outflows
FT View
Capital is cascading out of emerging markets as investors, companies and financial institutions lose confidence in developing countries. The outflows, which have risen towards $1tn over the past 13 months, hold a significance that extends well beyond the frailties of the countries themselves. The dynamism of developing nations helped restore the world to growth in the aftermath of the 2008-09 financial crisis. It is now dissipating fast.
jlne.ws/1Nnf9We

IMF delays China’s bid for global reserve currency status
Shawn Donnan in Washington, FT
The International Monetary Fund has decided that China’s currency will not be included in a basket of reserve currencies for at least a year, delaying a move some had expected to take place as soon as January even as it took pains to stress the decision was largely procedural.
jlne.ws/1E6xggu

Global tagging system proposed for derivatives trades
Reuters
Global regulators and central bankers have proposed a common tagging system for off-exchange derivatives transactions to spot more easily which banks could be at risk in a market crisis. Regulators were left in the dark when Lehman Brothers went bust in September 2008, unable to see who was on the other side of the U.S. bank’s derivatives transactions, adding to uncertainty that fuelled a global markets meltdown.
jlne.ws/1J6qo1v

China Wants Great Power, Not Great Responsibility
By William Pesek, BloombergView
Forty-three years after Richard Nixon made his famous visit to China, that country has seemingly decided to take a page from the former U.S. president’s Treasury Department. As China lowers the value of the yuan, the country’s economic policy makers are mimicking the blasé attitude of Nixon-era Treasury chief John Connally, who dismissed international complaints about U.S. monetary policy with a curt remark: “It’s our currency, but it’s your problem.”
jlne.ws/1NndZKz

The Asian Century Hits a Speed Bump; With trade slowing, currencies weakening and growth waning, this is turning out to be a very bumpy year
Malcolm Scott, Bloomberg
Trade slowing, currencies weakening, stocks falling, economic growth waning and political wobbles emerging. 2015 is proving a bumpy year in what’s meant to be the Asian century.
jlne.ws/1Nnkb57

CME to cut minimum guaranty contribution for rate swap clearing
Reuters
CME Group Inc plans to reduce by 70 percent the minimum contribution that clearing members in the interest rate swaps market must make to a guaranty fund because of increased trading, the exchange operator said on Wednesday. Starting on Aug. 31, the minimum contribution to CME’s interest rate swap, or IRS, guaranty fund will drop to $15 million from $50 million, according to a notice sent to customers and posted on the company’s website.
jlne.ws/1J6my8C

So Long September: Bond Traders Defer Their Date With the Fed
Alexandra Scaggs, Bloomberg
Traders gearing up for the Federal Reserve to raise interest-rates next month reversed course Wednesday after minutes from the central bank’s July meeting showed policy makers were still waffling on whether the economy is strong enough to warrant higher borrowing costs.
jlne.ws/1MzwiKN

Bitcoin Is Having an Identity Crisis; An offshoot threatens to throw development of the digital currency into disarray, but such disorganization comes with the territory of open-source software
Olga Kharif, Bloomberg
Bitcoin was built on the sort of open-source ethos that has driven generations of geeks. But the same principles it celebrates—a decentralized network of contributors, a transparent code base—are allowing competitors to flourish. The bitcoin faithful aren’t so sure that’s a good thing.
jlne.ws/1WEso87

Wall Street’s Unlikely Rebel: Can Brad Katsuyama’s New Exchange Fix The U.S. Stock Market?
Steven Bertoni, FORBES
This story appears in the September 7, 2015 issue of Forbes.
Ask Brad Katsuyama if the stock market is rigged and he jumps from his chair, grabs a black marker and sketches on a whiteboard with the intensity of a head coach whipping up a Hail Mary. He draws squares to represent stock exchange servers and scribbles lines to show how high-frequency trading firms are threading cables through miles of rock, building microwave towers atop mountains and raising armies of computer-science Ph.D.s to outrun the rest of the financial community.
jlne.ws/1HXFS3F

Climate Change Intensifies California Drought, Scientists Say
By JUSTIN GILLIS, NY Times
Global warming caused by human emissions has most likely intensified the drought in California by roughly 15 to 20 percent, scientists said Thursday, warning that future dry spells in the state are almost certain to be worse than this one as the world continues to heat up.
jlne.ws/1gYrB1b

Regulatory

CFTC Issues Proposed Amendments to Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps
CFTC
The U.S. Commodity Futures Trading Commission today voted to propose amendments to existing regulations in order to provide additional clarity to swap counterparties and registered entities regarding their reporting obligations for cleared swap transactions; and to improve the efficiency of data collection and maintenance associated with the reporting of the swaps involved in a cleared swap transaction. The comment period ends 60 days after the publication in the Federal Register.
jlne.ws/1E5pDXA

***DA: Click for statements from Commissioners Giancarlo, Bowen and Chairman Massad

Shelly Luisi Named Associate Director in the Division of Corporation Finance
SEC.gov
Ms. Luisi currently is a Senior Associate Chief Accountant in the SEC’s Office of the Chief Accountant, where she co-leads the staff responsible for the agency’s accounting communications and accounting standard-setter oversight functions. She succeeds Kyle Moffatt, who recently moved to the senior leadership team of the Division of Corporation Finance’s disclosure review program.
jlne.ws/1E5qnfq

FINRA probes Merrill over anti-money laundering compliance: source
BY BRETT WOLF, Reuters
Wall Street’s self-regulatory body has been probing Bank of America Merrill Lynch over its failure to detect the activities of a former financial adviser, who pleaded guilty to helping a client cover up an insider-trading scheme and launder the proceeds, said a source familiar with the matter.
jlne.ws/1NxgGZ2

?Citi wins SEC waiver over Stein’s dissent after hedge-fund charges
Neil Roland, MLex
The US Securities and Exchange Commission granted Citigroup a waiver this week from stock-offering sanctions following a $180 million settlement, the latest in a series of passes to banks over Democratic Commissioner Kara Stein’s objections. The bank’s request for relief was its seventh since 2006 following criminal or regulatory penalties. Six of these requests have been granted.
jlne.ws/1KcP0Fc

SEC Says Felon Defied Ban, Prepared Financial Statements for Companies; Agency seeks money from once-jailed accountant and mob-informant Stephen P. Corso
By DANIEL HUANG, WSJ
After embezzling millions from clients, snitching on mobsters and declining an offer to go into the witness-protection program, Stephen P. Corso six years ago swore to a federal judge that he would “never, ever” practice as a licensed accountant again.
jlne.ws/1LmAGOA

ASIC warns on lending standards
Business Review
The corporate watchdog has warned lenders providing interest-only mortgages that they need to lift their standards in order to meet important consumer protection laws.
jlne.ws/1TZ193V

Firm that vetted Snowden reaches $30 mln settlement with U.S.
By Nate Raymond, Reuters
United States Investigations Services Inc, the private firm that vetted former National Security Agency contractor Edward Snowden, has agreed to a settlement worth at least $30 million, resolving U.S. claims connected to its background investigations.
jlne.ws/1NxiiBX

In Bribery Law, a New Tool to Scrutinize Wall Street
By PETER J. HENNING, WSJ
If you want to succeed on Wall Street, you have to build relationships. So firms will do almost anything to please clients, catering to their wishes in the hope of winning the next underwriting assignment or new assets to manage.
jlne.ws/1K8bUjF

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

    • CME: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Expand the Listing Schedule for the Urea (Granular) FOB US Gulf Coast Swaps (Clearing Only) Contract (Release No. 34-75724; File No. SR-CME-2015-015; August 18, 2015)

 

    • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Chapter XV, Section 3 Entitled NASDAQ Options Market – Access Services (Release No. 34-75739; File No. SR-NASDAQ-2015-101); see also Exhibit 5

 

  • ASDAQ: Notice of Filing of Proposed Rule Change Relating to the Listing and Trading of the Shares of the AltShares Long/Short High Yield Fund of ETFis Series Trust I (Release No. 34-75738; File No. SR-NASDAQ-2015-095)
  • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Surveillance Agreements (Release No. 34-75734; File No. SR-NASDAQ-2015-097); see also Exhibit 5
  • NYSE: Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, Amending Certain of Its Disciplinary Rules to Facilitate the Reintegration of Certain Regulatory Functions from Financial Industry Regulatory Authority, Inc. (Release No. 34-75721; File No. SR-NYSE-2015-35; August 18, 2015); see also Exhibit 5

jlne.ws/1eCTnOv

Exchanges & Trading Facilities

CME Group Announces $50,000 in Scholarships to Illinois State Fair Grand Champions
MarketWatch
CME Group, the world’s leading and most diverse derivatives marketplace, has presented one-time scholarships totaling $50,000 to the Illinois State Fair’s Grand Champion student exhibitors. CME Group Executive Chairman and President Terry Duffy presented the surprise scholarships of $5,000 to each student exhibiting Grand Champion livestock at last night’s Governor’s Auction of Champions and will be used for each student to further their education.
jlne.ws/1LmykiI

Amendment to IRS Clearing Member Minimum IRS Guaranty Fund Contribution
CME Group
Please be advised that commencing on Monday, August 31, 2015, CME Clearing will effectuate amendments to CME Rule 8G07, “IRS Financial Safeguards and Guaranty Fund Deposit”. CME Clearing periodically reviews its requirements for clearing membership and recently determined to reduce the minimum Interest Rate Swap (“IRS”) Clearing Member contribution to the IRS Guaranty Fund from $50,000,000 to $15,000,000. The growth of IRS clearing activity at CME Clearing and corresponding growth of the IRS Guaranty Fund ensures robust financial safeguards for IRS products and thereby allows CME to implement the change. The change will encourage more entities to apply for IRS clearing membership which would further the diversification of IRS Clearing Members, reduce concentration of risk and provide additional liquidity to the default management process. No other changes to IRS clearing membership requirements are being proposed.
jlne.ws/1JsHPMM

Bats mulls derivatives reporting extension
Futures & Options World
The exchange group is considering the extension to OTC derivatives, following the final draft of the European Securities and Markets Authority’s (Esma) Markets in Financial Instruments Directive (Mifid) II RTS, due in September, and is currently consulting with firms on the potential expansion, according to an FOW source familiar with the matter.
jlne.ws/1J6qYMD

DGCX Appoints Gaurang Desai As Chief Executive Officer – Gaurang Is The Founding Member Of The Team That Set-Up DGCX In 2005
Mondovisione
Dubai Gold and Commodities Exchange (DGCX) is pleased to announce the appointment of Gaurang Desai as the Chief Executive Officer. As one of the founding members of the team that set-up DGCX in 2005, Gaurang is ideally positioned to take the Exchange to its next stage of development.
jlne.ws/1LmyDtK

Sebi talks FMC merger with bourses
Business Standard News
Chairman of the Securities and Exchange Board of India (Sebi) U K Sinha on Wednesday met officials of commodity exchanges to iron out issues over its merger with the Forward Markets Commission (FMC). According to sources close to the matter, commodity exchanges must comply with all the regulations under the Securities Contract and Stock Exchange Regulations Act, 2012. They will be given a deadline to adhere to the rules.
jlne.ws/1J6qK8e

SGX welcomes Soo Kee Group Ltd to Catalist
SGX
Singapore Exchange (SGX) today welcomed Soo Kee Group Ltd (Soo Kee Group) to Catalist under the stock code “42G”.
jlne.ws/1TYSvT8

BRIEF-ICE inches up margins for coffee, sugar
Reuters
jlne.ws/1Nnep3u

Australian Exchange Plans Hong Kong Link to Tap Into China Growth
Eduard Gismatullin, Adam Haigh, Bloomberg
ASX Ltd. will connect its network to Hong Kong, offering derivatives traders in the Chinese city faster and cheaper access to Australia’s main stock exchange.
jlne.ws/1JsG0zC

Single Stock Dividend Futures: Designated Market-Making scheme: Extension and adjustment
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG took the following decisions effective 1 September 2015:
jlne.ws/1MzAbiS

LME announces plans for market making programmes
LME
The London Metal Exchange (LME) today announces it will introduce market-making programmes to support the launch of new products and enhance liquidity on existing contracts.
jlne.ws/cnFxBY

Hedge Funds & Managed Futures

Asset managers urge ECB action on ‘bail-in’ bank bonds
By Lucy McNulty, Financial News
Asset managers have written to the European Central Bank saying that some bank bonds could ultimately become “uninvestable” unless rules are clarified governing when investors would be forced to take losses.
jlne.ws/1NngkVG/

Glencore Billionaire Club Loses Half Its Members as Stock Crashes
Javier Blas, Jesse Riseborough, Bloomberg
Glencore Plc’s initial public offering minted six billionaires in 2011, when Ivan Glasenberg and five other executives together controlled stakes worth $24 billion.
jlne.ws/1E6OrOI

Hedge Fund Industry Overstates Performance Claims: New Research
International Business Times
A growing body of evidence suggests hedge funds don’t live up to the hype — a finding especially important for institutional investors, including the pension funds that ensure the retirements of millions of teachers, firefighters and other public employees. Now, two studies reveal the chief marketing strategies employed by the hedge fund industry substantially overstate returns and benefits.
jlne.ws/1J6sqyC

Banks & Brokers

CTA Challenge participants in final stretch of 2015 competition
Coquest Inc.
The CTA Challenge, a year-long competition for commodity trading advisors (CTA) organized by Dallas-based Coquest Inc., is hitting the home stretch of 2015, and at this point the winner is too close to call. Several different trading programs, judged by a combination of risk adjusted return and volatility, have held the pole position, jumping as much as five levels in a month.
jlne.ws/1E5psLP

JPMorgan, Goldman Sachs, Morgan Stanley to form data company-WSJ
Reuters
JPMorgan Chase & Co, Goldman Sachs Group Inc and Morgan Stanley are working to create a company that will pull together and clean reams of data used to determine pricing and transaction costs, the Wall Street Journal reported.
jlne.ws/1gYoOVM

FX Trader Carlier Says Lloyds Fired Him for Whistle-Blowing
Ambereen Choudhury, Suzi Ring, Bloomberg
Paul Carlier, a former foreign-exchange trader at Lloyds Banking Group Plc, is suing the U.K.-based lender, claiming he was dismissed for blowing the whistle on alleged malpractice.
jlne.ws/1MzyF0a

Clearing & Settlement

SGX proposes segregation of collateral of derivatives clearing members’ affiliates
SGX
Singapore Exchange (SGX) is consulting the public on the proposed introduction of Affiliate Segregation where collateral of an affiliate of an SGX Derivatives Clearing (SGX-DC) member is protected if the member defaults on its own contracts. The affiliate’s positions may also be transferred to another SGX-DC member.
jlne.ws/1TVf1Sd

Australia Falling In Line with Trend to T+2 Settlement
Finance Magnates
The Australian Financial Markets Association (AFMA), the leading industry association promoting efficiency, integrity and professionalism in Australia’s financial markets, has announced plans for Australia to move from a T+3 to T+2 (trade date plus two days) settlement cycle for fixed income products.
jlne.ws/1LmybvI

ASX chief upbeat on final regulatory hurdle to keeping share-clearing monopoly
Sydney Morning Herald
ASX Ltd chief Elmer Funke? Kupper? says the company will give up more than $30 million in revenue in 2016 due to existing and planned fee reductions if the government allows the exchange to keep its share-clearing monopoly for another five years. He is expecting the government to release its decision in September on whether to allow competition in ASX’s “post-trade” equities business. He said this will mark the end of the big regulatory ructions since the global financial crisis. Clearing accounts for 7 per cent of the ASX’s revenue, or about $45 million a year.
jlne.ws/1LmygPZ

Intelligent Clearing Network Receives Two Patents for Executing Digital Coupons in the Cloud
Virtual-Strategy Magazine
Latest patents cover validating, clearing and settlement of second generation digital coupons in the cloud
jlne.ws/1J6mGVp

Pooled clearing margin data to be analysed in Basel by year end
Risk.net (Subscription Required)
The Basel Committee on Banking Supervision has received aggregated data on margins from clearers to demonstrate its impact on bank leverage ratios Detailed and granular data showing the amount of on and off-balance-sheet margin being received by several over-the-counter derivatives clearing brokers has in the past few weeks been sent to the Basel Committee on Banking Supervision to indicate its impact on bank leverage ratios
jlne.ws/1J6mhCu

Indexes & Products

S&P 500 May Hit Another Record for Buybacks This Year
Maureen Farrell – WSJ
The companies in the S&P 500 are poised to spend more than $1 trillion on buybacks and dividends in 2015, shattering the record set last year, according to a new report.
jlne.ws/1J3I9vY

S&P 500 Catholic Values Index Launched by S&P Dow Jones Indices
MarketWatch
S&P Dow Jones Indices, one of the world’s leading providers of financial market indices, announced the launch of the S&P 500 Catholic Values Index which is designed to include the companies within the S&P 500 whose business practices adhere to the Socially Responsible Investment Guidelines as outlined by the United States Conference of Catholic Bishops and exclude those that do not. The Index has been licensed to Global X for product development.
jlne.ws/1J6nx8z

Weakening Ringgit Triggered Bond Outflow
Indexology: S&P Dow Jones Indices
Malaysian ringgit continued the plunge and hit a 17-year low. The offshore holding of Malaysia local government debt also fell with the heightening FX volatility and declining FX reserves. The S&P Malaysia Bond Index dropped 1.27% in August, bringing year-to-date (YTD) total return to 1.66%. Its broader benchmark, S&P Pan Asia Bond Index, aggregates the returns from 10 countries in Pan Asia and calculated in USD, dropped -0.56% YTD.
jlne.ws/1J6nSbq

Four Indexes Designed to Track Performance of Hedge Funds Using Volatility-Based Investment Strategies
CBOE
Chicago Board Options Exchange today announced it has launched four new benchmark indexes in collaboration with Eurekahedge, a Singapore-based hedge fund research and data collection company, that measure the performance of hedge funds that employ volatility-based investment strategies. Values for the new indexes will be available on CBOE’s and Eurekahedge’s websites beginning August 18.
jlne.ws/1E3rR9M

ETFs Forced to Get ‘Smart’ Hedging Dollar With Easy Money Gone
Rachel Evans, Bloomberg
The most popular strategy in the $2.1 trillion U.S. market for exchange-traded funds is losing its luster, leading the world’s biggest asset managers to search for ways to keep the money flowing.
jlne.ws/1WGw0qi

Technology

Tech start-ups flock to Hong Kong
Ben Bland in Hong Kong, FT
As he scoured Europe to find parts last year, German entrepreneur Florian Simmendinger was only able to locate a handful of motors small enough for the wearable, smartphone-controlled metronome he was building to help musicians keep the beat — and even they were too weak.
jlne.ws/1MzwIRt

Interim Financial Report – Cinnober Financial Technology AB
Cinnober
Period January 1, 2015 – June 30, 2015
jlne.ws/1TYUWFm

How I Broke the Internet
By Stephen L. Carter, BloombergView
I have to apologize for breaking the Internet. Yes, it was me. I’d have made my mea culpa sooner, but I didn’t realize how great a wrong I’d done. It was selfish of me to download ad-blocking software. I thought only of enhancing my own online experience. It never occurred to me that I would be the cause of so much trouble.
jlne.ws/1K86Uvs

Bitcoin’s Anarchists Can’t Make Up Collective Mind
By Justin Fox
We are now in Day 5 of the Post-Bitcoin-Fork Era, and the Earth is still orbiting around the sun. Bitcoins are still being mined and traded, too, although the price in dollars is down this week. We will all be OK, I think. Although there is at least a chance that bitcoin won’t be.
jlne.ws/1hrSwmM

Enforcement

CFTC Orders Swap Dealer INTL FCStone Markets, LLC to Pay a $200,000 Civil Monetary Penalty for Failure to Supervise Swaps Trading in Violation of CFTC Regulation 23.602
The CFTC Order finds that FCStone provided inadequate oversight of traders in its Kansas City Energy Group, lacked adequate policies and procedures to ensure that discretionary trading of customer accounts was appropriate and properly controlled, and failed to implement policies and procedures already in place. Such conduct violated CFTC Regulation 23.602, which requires swap dealers and major swap participants to diligently supervise their employees and establish and maintain systems to do so. This is the first CFTC enforcement action charging violations of Regulation 23.602, which imposes supervision standards specifically applicable to swap dealers.
jlne.ws/1PncARA

SEC Charges Citigroup Global Markets for Compliance and Surveillance Failures
SEC.gov
The Securities and Exchange Commission today announced that Citigroup Global Markets has agreed to settle charges that it failed to enforce policies and procedures to prevent and detect securities transactions that could involve the misuse of material, nonpublic information. The firm also failed to adopt and implement policies and procedures to prevent and detect principal transactions conducted by an affiliate. Citigroup agreed to pay a $15 million penalty.
jlne.ws/1E5qt6O

Citi Settles SEC Compliance Charges for $15 Million; Bank also to add $4.5 million in refunds for overcharged fees
By LISA BEILFUSS, WSJ
Citigroup Inc. on Wednesday agreed to pay $15 million to settle charges of compliance and surveillance failures, according to the Securities & Exchange Commission.
jlne.ws/1E6ynwy

Swap dealing unit of INTL FCStone to pay $200K over compliance failures
Reuters
The swap dealing unit of INTL FCStone will pay $200,000 to settle civil charges alleging it failed to diligently supervise traders in its Kansas City Energy Group, U.S. regulators said on Wednesday.
jlne.ws/1J7gjyY

Bank of NY Mellon sued by U.S. regulator over $2 bln in soured mortgages
By Joseph Ax, Reuters
A U.S. regulator sued Bank of New York Mellon Corp on Wednesday over $2.06 billion in residential mortgage-backed securities purchased by a failed Texas bank, and accused it of breaching its duties as bond trustee to protect investors.
jlne.ws/1hrV0Se

Hedge fund manager who beat insider-trading charges now battles SEC for records
Reuters
Hedge fund manager Nelson Obus spent 12 years battling the Securities and Exchange Commission until he was finally vindicated last year when a jury found him not liable for insider-trading charges. Now, Obus and his firm Wynnefield Capital Inc are waging a new kind of battle with the agency in an effort to gain access to government records at the heart of the SEC’s failed case against him.
jlne.ws/1J6sE8X

Environmental & Energy

MacArthur Foundation doles out $50 million toward climate change
By SHIA KAPOS , Crain’s Chicago Business
The John D. And Catherine T. MacArthur Foundation is moving fast with its plan to focus more on climate change.
jlne.ws/1PBi4ZP

Likelihood of U.S. Oil Sliding to $30 a Barrel Is Increasing; Oversupply and specter of Iranian oil’s return could see prices at lows of financial crisis, says analyst
By GEORGI KANTCHEV, WSJ
As U.S. oil fell to a six-year low below $41 a barrel on Wednesday, an increasing number of analysts and traders are saying crude could drop into the $30s—and soon.
jlne.ws/1Lmycjd

Weather Channel Hires Morgan Stanley, PJT to Seek Sale
Alex Sherman, Kiel Porter, Bloomberg
The owners of the Weather Channel have hired the banks Morgan Stanley and PJT Partners Inc. to explore a sale, according to people familiar with the matter.
jlne.ws/1J6oGgq

China’s Global Warming Pollution Estimates Cut in Harvard Study
Alex Morales, Bloomberg
China’s fossil-fuel emissions are lower than than previously estimated, according to research led by academics at Harvard University.
jlne.ws/1UUO3Hp

Oil still has the power to humble leaders who fail to hedge their bets
Telegraph
The oil price can still ruin the grand schemes of the powerful. We are witnessing vivid examples of how important it is to be adaptable in the face of that uncertainty.
jlne.ws/1J6pqCd

Opinion: A fee on carbon at the source is a market-based response to climate change
Montreal Gazette
Whatever his reasons for launching the 2015 election campaign early, if Stephen Harper really wants to keep the Conservatives in power, he should jump-start another campaign that is starting to roll — the campaign for carbon pricing.
jlne.ws/1J6pzFK

Asia-Pacific

Commodity surpluses set to rise as renminbi helps China producers
By Henry Sanderson, FT
China’s weaker currency could help producers of some commodities in the country who are struggling to survive as prices move below the cost of production.
jlne.ws/1E6O8n2

China’s Newest Make-or-Break Level for Stocks Is Shanghai 3,500
Fox Hu, Kyoungwha Kim, Bloomberg
In a Chinese stock market obsessed with round numbers, 3,500 has emerged as the latest make-or-break level for traders trying to gauge the staying power of state support.
jlne.ws/1Nxg71x

China’s Building a Huge Canal in Nicaragua, But We Couldn’t Find It
Michael D McDonald, Bloomberg
Deep on the southeastern side of Lake Nicaragua, along a bumpy dirt road that climbs gently through lush-green forest, sits the tiny town of El Tule. It is quintessential rural Central America: Chickens roam outside tin-roofed homes while pigs stand tied to trees, awaiting slaughter; the sound of drunk locals singing along to ranchera music greeted visitors on a recent rain-soaked afternoon.
jlne.ws/1JkWCr3

Frontier Markets

A Peru stock exchange downgrade would likely trigger large outflows -bourse
BY URSULA SCOLLO, Reuters
Aug 19 Any downgrade of Peru’s stock exchange to “frontier market” status by index provider MSCI Inc would likely trigger a capital outflow of $1.5 billion to $5 billion within three months, the head of Peru’s bourse said on Wednesday.
jlne.ws/1Kxp05U

Emerging-Market Rout Strains Pegs as Tenge Shifts to Free Float
Nariman Gizitdinov, Natasha Doff, Bloomberg
Kazakhstan relinquished control of its exchange rate in the latest sign emerging nations will stop defending their currencies after China roiled global markets by devaluing the yuan.
jlne.ws/1J7cmdD

Sebi talks FMC merger with bourses; Commodity bourses to have higher net worth of Rs 100 cr, and clearing houses
Jayshree P Upadhyay, Business Standard
Chairman of the Securities and Exchange Board of India (Sebi) U K Sinha on Wednesday met officials of commodity exchanges to iron out issues over its merger with the Forward Markets Commission (FMC).
jlne.ws/1J6qK8e

Miscellaneous

Billionaire hedge funder said to buy lavish NYC apartment
By Emily Smith, NY Post
Billionaire hedge funder Ken Griffin may be going through a messy divorce, but he is said to be buying a lavish apartment for himself at ultra-exclusive 220 Central Park South, dubbed “the billionaire’s bunker” by real estate insiders.
jlne.ws/1hrZLv2

Bloomberg to lay off about 100 editorial employees
By Kevin Dugan, NY Post
Bloomberg is planning to slim its ranks, sources said on Wednesday.
The financial media giant, which employs about 2,700 journalists across the globe, is planning to lay off about 100 employees, or about 3.7 percent, in its editorial division as soon as Labor Day, The Post has learned.
jlne.ws/1LmCQO2

Pin It on Pinterest

Share This Story