First Read

Tilly - Trading Tech 300
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Trading Tech 300 is the Opportunity of a Lifetime
by John J. Lothian

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.

More than a year ago, the then Chicago Area Council of the Boy Scouts of America asked me to reinvent the flagging LaSalle Street After Hours Affair. The After Hours Affair had replaced the once awesome LaSalle Street Dinner where hundreds of Chicago financial market power brokers and traders would party and celebrate Scouting under a tent on LaSalle Street in front of the Chicago Federal Reserve Building.

The event needed a new start after electronic trading, industry consolidation and other factors have left the industry less collegial, more spread out and ZIRPed.

Read the rest of the commentary at JohnLothianNews.com

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Ed Haravon, Spot Trading – Ask Why? Opportunities in Financial Markets
MarketsWikiEducation.com

“As you’ve all realized in your short time through your internships, for the most part this industry — and when I’m talking about this industry I’m talking about proprietary trading firms, exchanges, some the other service providers that support the business, so the industry at large — we really function more as applied science or applied technology companies, right?”

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 »
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Three charged in ‘sprawling’ JPMorgan hack
Gina Chon in Washington, Kadhim Shubber and Ben McLannahan in New York – FT
Two Israelis and an American with ties to Russia have been charged in connection with an alleged hacking scheme against 10 financial institutions, news organisations and other companies, including JPMorgan Chase, Fidelity Investments and the Wall Street Journal .
on.ft.com/1WRvpiK

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Environmental Financial Products, LLC (EFP) and CBOE Holdings (CBOE) Announce December 11 Launch of American Financial Exchange (AFX)
CBOE
Environmental Financial Products, LLC (EFP) and CBOE Holdings, Inc. (CBOE) today announced plans to launch the American Financial Exchange (AFX), an electronic marketplace for small and mid-sized banks to lend and borrow short-term funds, on December 11. The interbank loan market’s initial contract will be for an overnight loan.
bit.ly/1NHCT7B

***** One month to go until the launch of Dr. Richard Sandor’s next great products.

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University of Missouri Professor Who Confronted Photographer Quits Journalism Post
By RICHARD PÉREZ-PEÑA and CHRISTINE HAUSER – NY Times
After a University of Missouri professor was seen on video calling for “some muscle” to remove a journalist from a public demonstration, the professor cut her ties to the university’s journalism school on Tuesday as protest organizers — and the professor herself — joined college officials in stating that journalists had a right to be present.
nyti.ms/1PoAHmM

***** I was baffled by the actions of this “professor,” until she resigned, which was the right thing. Things are not good at Mizzou as threats of violences have been made. I know one smart student who is staying home from class today.

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Microsoft’s new service can tell how happy or angry you are in photos
Matt Weinberger – Business Insider
Microsoft just announced a bunch of updates to Project Oxford, a set of online services that help developers build more intelligent apps with complicated features like the ability to recognize faces.
read.bi/1Silmlz

****** They will need a new scale when they analyze my pictures.

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Are You Superstitious? Are You Stupid?; Maybe. And no. Your brain can dance the two-step, believing and disbelieving at the same time, a new paper explains.
Peter Coy – Bloomberg
Jane Risen thinks she knows why people get a little nervous around black cats and Friday the 13th. The rational part of their brains lets the irrational part have its way for a while.
bloom.bg/1MnAvhU

****** Market players are very superstitious. And many are stupid, knock wood.

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Second Annual “T4Youth” Raises Over $80,000 for Chicago Tech Academy
PR Web
Chicago tech and finance communities rally around their love for table tennis to create opportunities for minority and low-income high school students.
bit.ly/1WLl1OJ

***DA: Last year’s winner, DRW, came in second this year to a group from Slalom Consulting. TT’s Rick Lane took second in the “C-level” division. These two firms are among the strongest supporters of the event, which was founded by our industry’s very own Objctive Paradigm and 3Points Communications

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Lead Stories

Tullett Prebon Agrees to Buy ICAP’s Global Brokering Business
By CHAD BRAY – NY Times
The British brokerage firm Tullett Prebon said on Wednesday that it had agreed to acquire the global brokering business of its British counterpart ICAP in an all-stock deal.
nyti.ms/1WRt2fZ

Regulators to Courts: Stop That Spoofer; CFTC argues that Igor Oystacher present a threat to the markets and needs to be stopped
By BRADLEY HOPE – WSJ
Fellow traders call him “Snuggle Bear,” or “Snuggs,” for short. Regulators say trader Igor Oystacher continues to present a threat to the markets and needs to be stopped.
on.wsj.com/1M6dSAq

SEC Chair White: Short Selling Gets Continuous Attention
Bloomberg
Agency has been looking at possibility of disclosure rules
Questions arise after shares of Valeant, Mallinckrodt plunge
U.S. regulators are reviewing whether to make short sellers step out of the shadows, as negative comments by research firms increasingly batter share prices.
bloom.bg/1Hy8xTy

U.S. charges three in huge cyberfraud targeting JPMorgan, others
By Jonathan Stempel and Nate Raymond – Reuters
U.S. prosecutors on Tuesday unveiled criminal charges against three men accused of running a sprawling computer hacking and fraud scheme that included a huge attack against JPMorgan Chase & Co and generated hundreds of millions of dollars of illegal profit.
yhoo.it/1MmsFoz

Bank Hackers Thought Some Insider Trading Might Be Cool
By Matt Levine – Bloomberg
Let’s say you hacked into the computer system of a major financial company. There is a lot of information there. All sorts of stuff, with all sorts of illicit uses. The world is your oyster. You could do anything. You could … wait, what could you do?
bv.ms/1MnATNi

Neel Kashkari Named by Minneapolis Fed as Its Next President
By Christopher Condon – Yahoo Finance
Neel Kashkari, a former aerospace engineer who went on to stints in investment banking, asset management and politics, was named the next president of the Federal Reserve Bank of Minneapolis.
yhoo.it/20KAX3j

Republicans Clash Over How to Prevent Another Financial Crisis
John McCormick – Bloomberg
The Republican party’s leading presidential candidates clashed over how to reform the nation’s financial system and handle immigration in their fourth debate on Tuesday, exposing deep rifts in the Republican party and starkly different strategies for winning the election.
bloom.bg/1WRtjzf

LSEG appoints COO and CIO
Automated Trader
London Stock Exchange Group has appointed Chris Corrado as Group chief operating officer and Group chief information officer. He will also be a member of the LSEG Executive Committee. He will be based in London and joins the Group, effective from today.
bit.ly/1WMsJIq

Ex-Deutsche trader wins anonymity dispute
Caroline Binham, Financial Regulation Correspondent – FT
A former Deutsche Bank derivatives trader caught up in the interest-rate rigging scandal has won the right to put his side of the story to a court, after winning a preliminary legal battle against the regulator over “shaming but not naming” traders.
on.ft.com/1MWsXrQ

SIFMA’s Board of Directors Announces Newly Elected Officers
SIFMA
The Board of Directors of SIFMA announced that it has elected several directors to leadership positions on the Board for 2016.
bit.ly/1kMppeQ

Will the London Stock Exchange and Icap finally seal the deal?
NICK GOODWAY – Evening Standard
The London Stock Exchange updated investors on its $2.7 billion (£1.8 billion) takeover of Russell Investments earlier this week and it made interesting reading. Having, as it was always going to have to, sold off the fund management arm of Russell for $1.15 billion last month, it is now getting on with the task of integrating Russell’s indices with its own FTSE indices.
bit.ly/1MWw6I9

Bitcoin’s place in the long history of pyramid schemes
Dan McCrum – FT
General Gregor MacGregor returned to Britain in 1821 an exotic war hero, dubbed a Cazique, or prince, of Poyais by the Latin American kingdom’s royal family. His stories of the democratic and fertile land prompted investors to snap up land certificates and £200,000 in Poyaisian sovereign bonds.
on.ft.com/1kMqaVx

SEC Chair White: ‘This is an unprecedented period of rulemaking’
By Andy Blocker – SIFMA
Three top officials gathered at SIFMA’s 2015 Annual Meeting to discuss the state of capital markets and how the public and private sectors can work together effectively to strengthen the U.S. economy. Secretary of the Treasury Jacob Lew, SEC Chair Mary Jo White and Commodity Futures Trading Commission Chair Timothy Massad each outlined priorities for their agencies while keeping an eye toward the emerging challenges stemming from technology and global economic headwinds.
bit.ly/1NK2GvI

SIFMA Statement on SEC Chair White’s Comments at SIFMA Annual Meeting
SIFMA
SIFMA today issued the following statement from president and CEO Kenneth E. Bentsen, Jr. on the comments made by SEC Chair Mary Jo White at SIFMA’s 2015 Annual Meeting:
bit.ly/1MnBdvA

SIFMA President and CEO Kenneth E. Bentsen, Jr. Remarks as Prepared for the SIFMA Annual Meeting
SIFMA
Remarks as prepared for delivery by Kenneth E. Bentsen, Jr., President and CEO, SIFMA opening SIFMA’s 2015 Annual Meeting in Washington, D.C.
bit.ly/1O3jQCN

New York Regulator Seeks Proposals to Improve Cybersecurity
By LIZ MOYER – NY Times
New York’s financial industry regulator is seeking suggestions from other regulators on proposed regulations to shore up digital security defenses in the industry.
nyti.ms/1MAfvYI

Regulatory

Well Said, Chairman Massad
derivatiViews – OTC derivatives comments from ISDA officers
On the face of it, the mandatory reporting of derivatives transaction data has seen most progress of all the market reform commitments made by the Group of 20 nations in Pittsburgh in 2009. As highlighted in a progress report published by the Financial Stability Board (FSB) last week, 19 out of the 24 FSB jurisdictions have trade reporting requirements in place, and a further three are expected to follow next year. That compares favorably with the 12 out of 24 that have clearing frameworks in place, and the eight that have made progress on electronic trading rules.
bit.ly/pZFQ0O

SEF Trading: Challenges and Regulatory Hurdles
Ivy Schmerken, FlexTrade, in Markets Media
The regulatory overhaul of the OTC derivatives market has brought mandatory clearing and electronic trading to standardized swaps, but many say the market structure is stuck, citing regulatory ambiguity and separate liquidity pools. While a significant portion of volume in interest rate and credit default swaps has shifted to new trading venues, panelists at the SEFCON VI conference on Oct. 26 contend that the jury is still out on whether the market structure has changed.
bit.ly/1WMswF9

DFS has fintech app security concerns
Business Insider
The New York Department of Financial Services (DFS) is soliciting input from other top regulators including the Treasury Department’s Office of the Comptroller of the Currency on how both banks and startups can bolster cyber security.
read.bi/1WMtO31

Fake FCA emails, letters and phone calls
UK FCA
Find out how fraudsters claim to be from the FCA and other organisations, and what you can do to spot and avoid these scams.
bit.ly/1NJYtbq

Changes in mortgage regulation
UK FCA
Speech by Jonathan Davidson, Director of Supervision – Retail and Authorisations, delivered at the Council of Mortgage Lenders conference, London. This is the text of the speech as drafted, which may differ from the delivered version.
bit.ly/1WRsN4o

Director of SEC’s Enforcement Division Speaks About Market Structure Enforcement
Sarah Adams, Janet M. Angstadt | Katten Muchin Rosenman LLP
On November 2, Andrew Ceresney, the director of the Securities and Exchange Commission’s Enforcement Division (Division), gave a speech highlighting the sweeping changes that have occurred in equity market structure over the past 10 years and how SEC enforcement actions have kept pace with those changes. The Division’s job has been complicated in recent years by the proliferation of exchanges and other trading venues, the increased use of technology and automation with respect to trading, and the increased competition for order flow. Mr. Ceresney gave valuable insight into issues the Division has been and will continue to be committed to addressing, which include lack of fairness in trading venues, the misuse of confidential customer order information, inadequate risk controls by those with direct market access and high-volume manipulative trading.
bit.ly/1iTLwyT

What is a ‘Mifid’ and why care about its delay?
Jim Brunsden and Philip Stafford – FT
Brussels today made the embarrassing acknowledgment that a highly touted piece of regulation it adopted in response to the financial crisis — a law known as Mifid II — will be delayed.
on.ft.com/1Siniua

Exchanges & Trading Facilities

El Nino: One of the Strongest on Record
CME Group
CME Group Chief Economist Blu Putnam appears on Futures Institute to discuss El Nino.
bit.ly/1WLkix0

***DA: Also see Putnam’s take on the China slowdown and the “new normal” in terms of economic growth

BondsPro to offer US corporate bonds to Swiss market
Finextra
MTS Markets International, Inc., a London Stock Exchange Group (LSEG) company, today announced its authorisation as a recognised foreign exchange in Switzerland, enabling Swiss sell- and buy-side participants to trade US corporate and emerging market debt in an all-to-all electronic trading environment, MTS BondsPro ATS (alternative trading system).
bit.ly/1NHGGBK

Derivatives Boost Hong Kong Exchange’s January-September Revenues
Finance Magnates
The bourse reports that for the first time its overall income surpassed the $10-billion mark for a nine-month reporting period
bit.ly/1WMsFbD

T7 Trading System version 3.0
EEX
On 23rd November 2015 EEX will introduce the new Eurex T7 Trading System version 3.0. This will come hand in hand with new versions of frontend solutions offered by EEX (GV Portal, EEX TT Screen).
bit.ly/1PCaG1M

Montréal Exchange Interest Rate Derivative Market Closed Today
Mondovisione
The interest rate derivative market is closed today, November 11, 2015 (Remembrance Day).
bit.ly/1Y4hM2g

IPO of German Startups Group Berlin GmbH & Co. KGaA at Frankfurt Stock Exchange
Deutsche Börse welcomes investment company in Entry Standard
Deutsche Börse
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 EUR2,80.
bit.ly/20M7VjX

MGEX Sets Top 20 Electronic Daily Volume Record
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives
Clearing Organization (DCO), recorded an electronic volume of 15,835 from Monday,
making it the 16th-best electronic volume day in the history of the Exchange.
bit.ly/1RLAQi3

Vadodara Stock Exchange gets Sebi nod to exit bourse business; More than two dozen bourses have been allowed by the Sebi to exit the capital markets space
Press Trust Of India
The Securities and Exchange Board of India (Sebi) has allowed Vadodara Stock Exchange to exit the stock bourse business. More than two dozen bourses have been allowed by the Sebi to exit the capital markets space.
bit.ly/1SItlZU

EnterNext welcomes Curetis on Euronext Amsterdam and Euronext Brussels; Curetis raises EUR 40 million, reaches market capitalization of EUR 151 million
Euronext
EnterNext, the Euronext subsidiary dedicated to promoting and growing the market for SMEs, today celebrated the listing of Curetis N.V. (the “Company” and, together with Curetis AG, “Curetis”), a developer of next-level molecular diagnostic solutions. Curetis listed on Euronext Amsterdam and Euronext Brussels (ticker code: CURE).
bit.ly/1La4O9V

HKEx 2015 Third Quarter Results
HKEx
The board of directors (Board) of Hong Kong Exchanges and Clearing Limited (HKEx or the Company) is pleased to present the unaudited consolidated results of the Company and its subsidiaries1 (collectively, the Group) for the nine months ended 30 September 2015 (YTD Q32015).
bit.ly/1MKpO8g

Hedge Funds & Managed Futures

Why are swap rates below bond yields?
Michael Mackenzie and Joe Rennison – FT
US interest rate swaps, popular derivatives that track government bond yields, have experienced a spectacular collapse this month with an array of reasons being suggested by traders.
on.ft.com/1HHGYlA

Goldman Sachs has a scary warning for the bond market
Myles Udland – Business Insider
Goldman Sachs seems worried about bond-market liquidity.
read.bi/1kMok6S

High-profile Fidelity funds cut value of Snapchat by 25 pct
Reuters
Two high-profile funds at Fidelity Investments have cut the value of their stake in Snapchat by 25 percent, just months after initial investments in the high-flying tech company, according to recent disclosures by the Boston-based company
reut.rs/1M6gmin

Banks & Brokers

ICAP to combine its voice and hybrid broking and information business with Tullett Prebon
ICAP
ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services, announces today that further to the announcement of Tullett Prebon plc (“Tullett Prebon”), the Board of ICAP plc (“ICAP”) has agreed terms with Tullett Prebon for the disposal by ICAP of its global hybrid voice broking and information business to Tullett Prebon, including ICAP’s associated technology and broking platforms (including iSwap and Fusion) and certain of ICAP’s joint ventures and associates (“ICAP’s Global Broking Business” or “IGBB”) (the “Transaction”).
bit.ly/1lk31tX

ICAP and Tullett Prebon put aside rivalry to strike deal
Philip Stafford – FT
ICAP and Tullett Prebon on Wednesday put years of rivalry in the fiercely competitive world of interdealer broking behind them by unveiling a deal that will see Tullett buy assets and more than 1,500 of its peer’s brokers.
on.ft.com/1GWN4np

OTCGH’S EOXLIVE Represents More Than 47 Percent of Natural Gas Options Market Volume
Press Release
OTC Global Holdings (OTCGH), the leading independent commodities interdealer broker, announced today that on November 9, 2015, its EOXLive platform represented 47.3 percent of CME, ICE and Nasdaq’s total options volume. The total volume brokered by OTCGH on this day was 69,795 contracts.
bit.ly/1WLnetw

Top 10 books about bankers; A self-confessed ‘complete outsider in the City’, Joris Luyendijk reveals the best guides he’s found to this complex, sometimes terrifying world
Joris Luyendijk – The Guardian
I wanted to write a book about bankers because finance seems to have replaced politics, with democracy beginning to feel like a system that allows voters to decide which politician gets to implement what “the markets” dictate.
bit.ly/1lk4ekU

Scottrade, E*Trade, WSJ among victims in U.S. hacking case: source
Reuters
The victims of three men charged on Tuesday with hacking into JPMorgan Chase & Co and several other companies also include the Wall Street Journal, Scottrade Inc and E*Trade Financial Corp, a law enforcement source said.
reut.rs/1MnBrCF

Clearing & Settlement

ESMA Proposes Central Clearing For Norwegian, Polish And Swedish Interest Rate Swaps
Mondovisione
The European Securities and Markets Authority (ESMA) has today published additional draft regulatory technical standards (RTS) regarding the central clearing of Interest Rate Swaps (IRS) which ESMA is required to develop under the European Market Infrastructure Regulation (EMIR). ESMA’s RTS propose the mandatory central clearing of fixed-to-float IRS and forward rate agreements denominated in Norwegian Krone (NOK), Polish Zloty (PLN) and Swedish Krona (SEK).
bit.ly/1WMsg96

Highlights of Final Prudential Regulator Margin Rules for Non-Cleared Swaps
The National Law Review
The Rules are generally similar to the rules proposed by the prudential regulators last year and are consistent with the international standards for non-cleared swap margin published by the Basel Committee on Banking Supervision and the Board of the International Organization of Securities Commissions in September 2013. The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have not yet issued final margin rules for non-cleared swaps that would apply to the Swap Entities they regulate, but those rules are expected to be quite similar.
bit.ly/1WMszkq

SEC Chief Urges Caution But Sees Blockchain Potential
In her remarks, Kara Stein, who was appointed to the position by President Barack Obama in 2013, commented on the increasing attention the technology has received of late. Further, she noted the blockchain’s relationship to bitcoin and listed a series of use cases for which the tech is currently being explored, naming areas including clearing and settlement, payment processing and loan transactions.
bit.ly/1WMsZqR

Indexes & Products

Tokyo Stock Exchange: Revision Of Index Guidebooks
Mondovisione
The index guidebooks for TOPIX and other indices have been revised as follows due to the listing of Japan Post Holdings Co., Ltd. (6178).
bit.ly/1QhSjkp

S&P Dow Jones not including Chinese A-Shares in indexes
Reuters
S&P noted the steps taken to “improve market accessibility” in the country, but said in a statement that it would “take a wait-and-see approach as significant uncertainty remains around what the eventual landscape will be for foreign investors.”
reut.rs/1WMtpO8

Synchrony Financial Poised to Join S&P 500 Index
Barrons.com
GE won approval last month to complete the split of Synchrony into a publicly owned savings and loan holding company. The split has been a long time coming; the conglomerate said in 2013 that it would exit the business as part of a broad effort to shrink GE Capital. GE will offer its shareholders a chance to exchange their GE shares for shares in Synchrony, a process that is expected to be completed next week.
on.barrons.com/1WMtvFj

A Guide to Selecting Strategic-Beta ETPs
Morningstar
A brief guide outlining how we set out to separate the wheat from the chaff in this field.
bit.ly/1WMtGQU

Technology

Fidessa’s Sentinel Named Best Compliance Product At Buy-Side Technology Awards – Wins Prestigious Award For Sixth Time
Mondovisione
A market-leading, multi-asset class solution, Sentinel provides the transparency and agility that buy-side firms require, enabling them to react quickly to sophisticated new mandates and legislation. Available as a fully managed service, Sentinel allows asset managers to reduce their operational costs by taking responsibility for rule coding, regulatory updates, data management, list maintenance and platform upgrades. Additionally, its real-time engine keeps pace with a firm’s pre-trade needs in today’s increasingly complex and diverse world.
bit.ly/1NHF4rE

SunGard wins Waters’ Buy-Side Technology award for best outsourcing provider
SunGard
SunGard has been named “Best Outsourcing Provider to the Buy-Side” by Waters Technology in their annual Buy-Side Technology Awards, recognizing SunGard’s Investment Operations technology suite.
bit.ly/1Hy9VWm

Lucera and Perseus Partner to Launch a Global Fiber Network for Trading
Finance Magnates
Lucera Financial Infrastructures and Perseus have come together to create a massive on-demand Software Defined Network (SDN) for the capital markets industry, offering direct access to a global fiber network dedicated to cross-asset class trading encompassing over 241 counterparties and 53 colocation centers across 24 cities, 15 countries and six continents.
bit.ly/1WMqQvo

Banks could use bitcoin technology by next year: study
Luke Graham, – CNBC
Capital markets could adopt the technology behind bitcoin as early as next year, revolutionizing the industry by enabling more secure transactions and creating new streams of revenue, according to a report by TABB Research.
cnb.cx/1MWrj9I

Are You Wasting Your Money at Coding Boot Camp?; As the market for alternative education programs explodes, a new private lender says it offers much-needed quality controls.
Sarah Grant – Bloomberg
Coding boot camps and certificate programs are proliferating, and private lenders are cropping up to help students attend them. One such lender, Skills Fund, says it won’t finance tuition for these classes unless it knows graduates will end up in high-paying tech jobs, making it a de facto rating service for the programs.
jlne.ws/1L4YLZB

Technology: Unicorns face end of the ‘steroid era’
Leslie Hook – FT.com
Companies like Square are what Silicon Valley is meant to be all about. Co-founded by Jack Dorsey, the boss of Twitter, the payments company has been backed by some of the Valley’s most prominent investors. Now, six years after its founding, it is preparing to list on public markets.
on.ft.com/1WMtTnb

SunGard’s pipeline platform helps DCP Midstream improve risk management and operational efficiency
SunGard
DCP Midstream, one of the leading full-service midstream logistics providers, has migrated to SunGard’s Aligne pipeline operations platform to manage its largest asset group, helping the company to better mitigate commodity risk exposure and reduce operational expenses. This is the first of a series of planned DCP Midstream asset roll-outs onto SunGard’s platform.
(NO LINK)

Enforcement

U.S. regulators accuse two Chinese citizens of insider trading
BY NATE RAYMOND – Reuters
The U.S. Securities and Exchange Commission has accused two Chinese citizens at a peer-to-peer lending platform of engaging in insider trading ahead of the announcement that two companies had agreed to be acquired by private equity firms.
reut.rs/1WRuKOr

Prosecutors Announce More Charges in Hacking of JPMorgan Chase
By LIZ MOYER – NY Times
Billing it as the largest hacking case ever uncovered, federal prosecutors in Manhattan on Tuesday described a global, multiyear scheme to steal information on 100 million customers of a dozen companies in the United States and use the data to advance stock manipulation activities, illicit online gambling and fraud.
nyti.ms/1RO3OxK

Environmental & Energy

Shell executive touts carbon tax or cap-and-trade at UH forum
Houston Chronicle
A carbon tax or cap-and-trade system in the U.S. – and globally – would serve the energy industry better than the current slate of piecemeal state and federal regulations, Shell Oil Co. President Marvin Odum said Tuesday. He acknowledged that Congress won’t take action soon in gridlocked Washington, but said that people should move beyond sound bites. Odum spoke at the University of Houston’s energy symposium focusing on whether now is the right time for a carbon tax.
bit.ly/1WMvg5j

Texas wind farms get customers free nighttime power
Brittany A. Roston – Slashgear.com
The colder, darker months are upon us, and that means higher electricity bills as lights are on more frequently and heaters are plugged in. Those in some Texas regions won’t be feeling the pinch as badly, however, as wind farms have proven successful and the benefits are rolling out to customers. Some utility companies are offering residents free electricity at night, a time when wind turbines are generating the most electricity.
bit.ly/1ODZMdp

A Glut of Coal-Fired Plants Raises Doubts About China’s Energy Priorities T
he New York Times
The plant is scheduled to come online in three years amid a glut of coal-fired power plants — an astounding 155 planned projects received a permit this year alone, with total capacity equal to nearly 40 percent of that of operational coal power plants in the United States.
nyti.ms/1WMv2LG

Asia-Pacific

China’s No-Brainer Stock Trade Goes Awry as Hong Kong Gaps Widen
Bloomberg Business
One year after the Shanghai-Hong Kong exchange link opened for trading, the disconnect between stock investors in China and the rest of the world shows no sign of going away. Defying predictions that the cross-border connection would narrow price differences between dual-listed shares, valuations on the mainland are growing more expensive versus their Hong Kong counterparts.
bloom.bg/1WMu5mu

China’s Crackdown on Financial Markets Gets Top-Level Support
The New York Times
President Xi Jinping of China called for more measures to protect stock market investors after meeting with financial regulators, the state news media said on Tuesday, signaling top-level support for a national campaign to crack down on market manipulation and to increase transparency.
nyti.ms/1WMubuv

Too big to fail Chinese banks face $400B capital call under FSB rules
CNBC
China’s four biggest banks may have to raise up to $400 billion to meet new global capital rules, an onerous task that could pressure them to slow down lending at a time when Beijing wants them to help prop up economic growth.
cnb.cx/1WMugOI

Japan Banks Seen Losing Profit Driver as Asia Economies Slow
Bloomberg Business
Japan’s three biggest lenders will probably report a drop in second-quarter profit after Asia’s economic slowdown weakened overseas loan growth and global financial-market volatility crimped fee businesses.
bloom.bg/1WMujtW

Frontier Markets

S&P Dow Jones downgrades Ukraine to stand-alone market
Pensions & Investments
Ukraine has been classified as a stand-alone market by S&P Dow Jones Indices due to concerns over liquidity in the market. The country will be reclassified in the March reconstitution from its current status as a frontier market.
bit.ly/1WMtqRZ

Will Abu Dhabi’s finance hub eat Singapore’s lunch?, Opinion News & Top Stories –
The Straits Times
Arab money has worked a miracle in enabling the Gulf states to capture a big chunk of international air traffic and giving Singapore Airlines a run for its money. Will it do the same in challenging the Republic’s status as an international financial hub?
bit.ly/1WMuqpc

Saudi Arabia Preparing To Fuel Its $100 Billion Oil War With Debt
Nathan Vardi, FORBES
Saudi Arabia has probably spent around $100 billion of its foreign reserves by now to prosecute its war against American shale and other low-cost oil producers. The oil kingdom’s decision one year ago not to cut production to support oil prices has driven the price of both Brent crude and West Texas Intermediate down below $50 a barrel, but Saudi Arabia will have to spend a lot more to win the battle.
onforb.es/1Y4kZia

Miscellaneous

The Problem With New York’s Move Against Fantasy Sports; New York’s attorney general has an inconsistent argument for why fantasy sports are the same as gambling. Will other states follow his lead?
Joshua Brustein – Bloomberg
Daily fantasy sports sites FanDuel and DraftKings have always maintained that the services they offer don’t count as gambling because they’re contests of skill. On Tuesday, New York Attorney General Eric Schneiderman cast the most important vote yet against this argument. In letters to both companies, Schneiderman defined daily fantasy sports as illegal gambling under New York state law, saying that “winning or losing depends on numerous elements of chance to a ‘material degree.'” If public officials in other states agree, it could be the end of the daily fantasy sports industry in the U.S.
bloom.bg/1SIo1Ww

No debate over Fox Business moderators: Better than CNBC
By Brian Stelter and Dylan Byers – CNN
Fox Business Network’s turn as a GOP debate host was a success, if only because it didn’t seem nearly as chaotic as CNBC’s debate two weeks ago.
cnnmon.ie/1NqS9kA

Leo Shapiro, market research pioneer, dies at 94
Crain’s Chicago Business?
Leo Shapiro, an innovative and quotable pollster whose clients ranged from companies like …
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New York tells fantasy sport sites to stop taking bets
Gina Chon in Washington – FT
Online fantasy sports companies DraftKings and FanDuel have been ordered to stop taking bets by the New York attorney-general’s office, which found that such companies are engaged in illegal gambling under state law.
on.ft.com/1PC9ADs

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