First Read

FIA Expo: Acid washed options
Spencer Doar – JLN
The clear message from FIA Expo was that the options industry needs market makers and regulators are making it hard on market makers.

At the risk of sounding like “South Park’s” Mr. Mackey, that’s bad, m’kay?

Adding to the current quandary of market makers in the options space is the sheer number of markets that need making.

While kicking off the “Equity Options Exchange Leaders” panel, moderator Patrick Hickey, head of market structure at Optiver, discussed the bloated number of strikes that participants have to deal with when trading and choosing strategies. Hickey also displayed an illustrative graph of the ever waning attention span of Expo-ers as the conference progressed.

Read the rest of the commentary at JohnLothianNews.com

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Investing in our families is a vital part of the economy
Melinda Gates – FT
The $10tn-worth of unpaid work that women do needs to be redistributed, says Melinda Gates
Imagine working long hours day in day out, falling into bed exhausted each night and getting up with the sun each morning — but never getting paid and never, according to the people who measure such things, actually “creating value”. It sounds grossly unfair, but this is the condition of most women around the world. When governments measure national economies in the gross domestic product, “women’s work” — caregiving, housekeeping, home-making — does not count as “work”. Thanks to a new report out from McKinsey on the gender gap in the workplace, though, we now know the actual value of all this unpaid work: a staggering $10tn. That is roughly the size of China’s GDP. If all the women taking care of their families constituted one nation, it would have the fourth-largest economy in the world.
on.ft.com/1NEpm0n

***** One of the stupidest things we do as a global society is hold back the potential of women to contribute fully to our world.

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Mary McDonnell, Simon Compliance – How to Manage (and even Succeed) in the Current Regulatory Marketplace
MarketsWikiEducation.com

“It’s a lot harder to do something than to tell somebody else how to do something.”

Mary McDonnell got her start in the financial markets as a regulatory auditor for the Chicago Board of Trade, and though she has spent most of her career on the compliance and regulatory side, she did spend some time as a floor trader. She says this experience taught her to empathize with the traders she would be overseeing over the ensuing years. With that backdrop, she looks at the current regulatory environment and what it means in terms of opportunities, but also in terms of limits.

“If you understand what you cannot do, it leads you to what you can do – legally!”

Watch the video »
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WFE Monthly FOCUS E-Zine – November 2015
Transformation is the pervasive theme in the exchange sector zeitgeist and this mood is certainly captured in this second edition of our monthly FOCUS e-zine.
bit.ly/1LVMmWd

***DA: In addition to an update on Federation news and a roundup of exchange news, the edition features an exclusive interview with TMX CEO Lou Eccleston and a look at JPX’s new online broadcast service.

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Sponsored Content
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FINCAD Networking Event, November 15, 2015
Join us for an evening of food, cocktails and conversation with your peers at Chicago’s iconic restaurant, The Gage. This event is complimentary, however space is limited. Register by Tuesday, November 10th to secure your place!
bit.ly/1LVPL7F

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After the Gold Rush
by Joshua M Brown, The Reformed Broker
The Reformed Broker turns seven years old today.
In blog years, this site is now eating dinner at 4pm and voting down the school budget. In human years, however, both the blog and its chief blogger have a long ways to go. I’ve written over 10,200 posts here on this site (a few of them were pretty good) and probably two hundred posts and articles elsewhere since November 2008. That’s a lot, but in my mind, I’m just getting warmed up 🙂
bit.ly/1kFHGL5

****** I have great respect for the business Josh Brown has built.

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No bad blood(line): Descendants of Alexander Hamilton and Aaron Burr are FRIENDS – 211 years after their famous ancestors dueled to the death
By CHRISTOPHER BRENNAN FOR DAILYMAIL.COM
More than 211 years after one’s ancestor killed the other’s four-time great-grandfather, the descendants of two Founding Fathers have become good friends. Despite their clashing bloodlines, there is no bad blood between Alexandra Hamilton Woods and Antonio Burr, and the pair have become friends after meeting at a party several years ago.
dailym.ai/1WLLpCY

***** I am a big fan of Alexander Hamilton. Not so much Aaron Burr. I am glad to see the current generation can put this tragedy behind them.

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Americans over 30 are more miserable than they’ve ever been
By CATEY HILL – MarketWatch
It all goes downhill after 30 — at least when it comes to happiness.
“Adults over 30 are less happy than their predecessors,” concludes a study published online Thursday in the journal Social Psychology and Personality Science, which examined happiness data from more than 50,000 adults, gleaned from the General Social Survey, carried out by NORC at the University of Chicago, a nonpartisan, independent research organization, which has collected information about American adults since 1972.
on.mktw.net/1QoViXl

****** I am not so much miserable as wretched. At one time, when I was a teenage high school singer, I sang a solo of “Tomorrow” from the musical Annie. It is an important perspective. The sun will come out tomorrow.

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How pot and hippie beer explain the future of the American economy
By Jim Tankersley- The Washington Post
Oregon’s breweries and dispensaries offer lessons for how policymakers might nurture a small-business comeback.
At first, Jon Turner was just a software guy who really liked to brew beer. He cooked up two batches a week in his kitchen and kept his hard-drinking friends well supplied. He once brewed one pale ale over and over for a year to get it just right. In 2011, at a national conference of home brewers, he fell under the spell of a panel called “Going Pro.”
wapo.st/1GSHVNj

***** I think I know why those under 30 are not miserable.

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Spoofing Conviction; Financial Crimes; CCOs; Tweets and Manipulation
Bridging the Week by Gary DeWaal: November 2 – 6 and 9 2015
Resolutions of criminal actions—including jury verdicts and pleas—highlighted developments in the financial services industry last week. Among these actions were Michael Coscia being convicted in a widely followed case involving the new Dodd-Frank provision of law prohibiting spoofing, and two former employees of the New York Federal Reserve Bank pleading guilty to criminal charges in connection with leaks of non-public information. Meanwhile, the Securities and Exchange Commission’s Director of Enforcement endeavored to calm chief compliance officers by saying that the agency was not out to get them despite a number of recent SEC enforcement actions against CCOs of investment advisers.
bit.ly/1WLS9AF

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Lead Stories

U.S. Probes Treasuries Niche That Some Investors Claim Is Rigged
Keri Geiger – Bloomberg
Prosecutors said to ask banks about `when-issued’ securities
Opaque market is marked by collusion, recent suits allege
U.S. officials investigating the $12.8 trillion market for U.S. Treasuries are zeroing in on a practice of trading the debt before it’s issued, said a person familiar with the matter — spotlighting trades that several recent lawsuits allege are part of big banks’ efforts to rig Treasury markets.
bloom.bg/1PxvgAq

Banking Giants Learn Cost of Preventing Another Lehman Moment
John Glover, Boris Groendahl – Bloomberg
FSB publishes final total loss-absorbing capacity standards
Banks’ total TLAC shortfall is up to $1.2 trillion, FSB says
Banking behemoths led by HSBC Holdings Plc and JPMorgan Chase & Co. now know the cost they’ll have to shoulder so the global financial system doesn’t have another Lehman moment.
bloom.bg/1WIo8Hg

Can Fintech Companies Restore Trust In The Financial Services?
The Startup Magazine
Western society has historically held a negative view towards lenders. Shakespeare’s Merchant of Venice is an early example of these negative sentiments. The Merchant of Venice tells the story of Shylock, a moneylender who gives a loan to a rival, Antonio. The two characters are juxtaposed – Shylock as a cold businessman and Antonio as generous and amicable. A large part of the reason why Shylock is looked down upon by the other characters was his enforcement of interest on his loans – a practice viewed as exploitative that was actually prohibited by the Catholic Church at the time. The negative view towards lending, and particularly those who earn their wealth through supposedly exploitative means, has been a cause for anger throughout history and could potentially explain the appeal and popularity of FinTech startups.
bit.ly/1L6cfPd

China’s Xi calls for strengthening of reform and governance
Reuters
China must strengthen its reforms and modernize its system of governance over the next five years, President Xi Jinping told a meeting of a key Communist Party body on Monday, the official Xinhua news agency reported. The government will push forward reforms in its free trade zones where it will provide more support for financial experimentation, including loosening market access and further opening the services sector, Xi said at the meeting.
reut.rs/1SbSStv

Democratic Presidential Candidates Tackle Wall Street; Hillary Clinton says she isn’t tied to financial firms; Bernie Sanders, Martin O’Malley disagree
By PETER NICHOLAS – WSJ
Hillary Clinton said Friday she isn’t beholden to Wall Street and would stand up for tougher regulations, rejecting suggestions that she is compromised by the speaking fees and donations she has received from financial firms over the years.
on.wsj.com/1MrNJxv

Bonus Pay on Wall Street Is Likely to Fall, a Report Says
By NATHANIEL POPPER – NY Times
Even as they emerge from the post-financial-crisis haze, bankers are seeing few signs that their institutions — and their bonuses — will stage a full recovery anytime soon.
nyti.ms/1QdGGuN

Big Banks Could Be Forced to Raise Up to $1.19 Trillion in New Securities; Rules from Basel-based Financial Stability Board aimed at stopping banks from becoming ‘too big to fail’
By VIKTORIA DENDRINOU – WSJ
Global financial regulators published new rules that aim to stop banks from becoming “too big to fail,” to prevent a repeat of the 2008 financial crisis, when taxpayers had to bail out banks whose collapse would have threatened large-scale financial panic.
on.wsj.com/1NEmnFf

Global banks must raise EUR 1.1tn in special debt by 2022
Thomas Hale in Basel, Caroline Binham and Laura Noonan in London – FT
The biggest international banks must raise as much as EUR 1.1tn by 2022 in special debt designed to prevent taxpayer bailouts of lenders, a global group of policymakers said as it claimed it had “created the tools needed to end too big to fail banks”.
on.ft.com/1SbQ27X

How Bad Weather Could Affect Stock Prices; Study suggests that those ‘clouds on the investment horizon’ are real
By CHARLIE WELLS – WSJ
Bad weather isn’t good for investors. Rain, wind and clouds, according to a new study, generate “mild depression” that distracts even some of the market’s most sophisticated participants, causing them to delay their responses to financial news.
on.wsj.com/1kknNtc

Saudi Arabia will not stop pumping to boost oil prices
Simeon Kerr, Roula Khalaf and Lionel Barber in Riyadh – FT
Saudi Arabia is determined to stick to its policy of pumping enough oil to protect its global market share, despite the financial pain inflicted on the kingdom’s economy.
on.ft.com/1NEoKI9

A Spooky October for Bond Traders
By JOHN CARNEY – WSJ
The fourth quarter hasn’t gotten off to a promising start for bond traders. That’s bad news for big banks with large capital-markets divisions who have struggled to grow revenue in this area so far this year.
on.wsj.com/1GSGSwB

RPT-NY attorney general wields powerful weapon in Exxon climate case
By Mica Rosenberg – Reuters
A near century-old statute that gives New York state prosecutors unusually broad authority to prosecute securities fraud could prove a powerful weapon as Attorney General Eric Schneiderman probes Exxon Mobil Corp over whether the oil firm mislead the public and shareholders about the perils of climate change.
reut.rs/1SDfsMt

These are the secret tricks Swiss banks used to hide American money
by Robert Hackett – Fortune
Want to know how tax dodgers have been skirting Uncle Sam? Look no further than the alluring, financial slopes of Switzerland.
for.tn/1Hq2LDw

Regulatory

OTC Derivatives Regulators Deliver Report to the G20 Leaders
CFTC
The OTC Derivatives Regulators Group (ODRG) delivered a report today to the G20 Leaders that provides an update regarding the ODRG’s continuing effort to identify and resolve cross-border issues associated with the implementation of the G20 OTC derivatives reform agenda.
1.usa.gov/1MjWA0L

?Derivatives authorities lag in advancing platform trading, FSB says
Neil Roland, MLex (Subscription Required)
Derivatives regulators across the world are farther behind in promoting platform trading than they are in advancing trade reporting, central clearing and capital standards for uncleared swaps, a global report shows.
bit.ly/1SbR4Rn

G20 finalizes tools for ending ‘too big to fail’ banks
BY HUW JONES – Reuters
Global regulators set out their “final tools” on Monday for ending the phenomenon of “too big to fail” banks, seeking to draw a line under a period of intensive rule making after a financial crisis that tarnished the sector and weighed heavily on taxpayers.
reut.rs/1RI9F7x

HFT law goes from bête noire to blueprint
By James Rundle – Financial News
While Europe has been focused on its grand regulatory projects that touch nearly every area of the financial markets, an attempt to curb one aspect of the modern landscape came from Germany in 2013, in the form of the Act for the Prevention of Risks and the Abuse of High-Frequency Trading, known as the HFT law for short.
bit.ly/1MjUwFW

How Basel III Might Blow Up CMBS – Daily News Article
GlobeSt.com
The Basel Committee on Banking Supervision is expected to publish a rule change for banks’ fixed income trading books (FRTB) that could hurt — quite significantly in the worse case scenario — the CMBS market, according to a client note published by JP Morgan Chase.
bit.ly/1MRRBd7

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

    • BOX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Adopt Business Continuity and Disaster Recovery Plans (BC/DR plans) Testing Requirements for Certain Options Participants in Connection with Regulation Systems Compliance and Integrity (Regulation SCI) (Release No. 34-76367; File No. SR-BOX-2015-35; November 5, 2015); see also Exhibit 5

 

    • MSRB: Order Granting Approval of a Proposed Rule Change Consisting of Proposed Amendments to Rule G-20, on Gifts, Gratuities and Non-Cash Compensation, and Rule G-8, on Books and Records to be Made by Brokers, Dealers, Municipal Securities Dealers, and Municipal Advisors, and the Deletion of Prior Interpretive Guidance (Release No. 34-76381; File No. SR-MSRB-2015-09)

 

    • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding NASDAQ Last Sale Plus (Release No. 34-76384; File No. SR-NASDAQ-2015-131); see also Exhibit 5

 

    • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Adopt Business Continuity and Disaster Recovery Plans Testing Requirements (Release No. 34-76368; File No. SR-NASDAQ-2015-134; November 5, 2015); see also Exhibit 5

 

  • NASDAQ: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to modify Chapter XV, entitled Options Pricing, at Section 2 governing pricing for NASDAQ members (Release No. 34-76365; File No. SR-NASDAQ-2015-130; November 5, 2015); see also Exhibit 5
  • NASDAQ OMX BX: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding NASDAQ Last Sale Plus (Release No. 34-76383; File No. SR-BX-2015-063); see also Exhibit 5
  • NASDAQ OMX BX: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Price Improving and Post-Only Orders (Release No. 34-76375; File No. SR-BX-2015-64; November 5, 2015); see also Exhibit 5
  • NASDAQ OMX BX: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Adopt Business Continuity and Disaster Recovery Plans Testing Requirements (Release No. 34-76371; File No. SR-BX-2015-065; November 5, 2015); see also Exhibit 5
  • NYSE: Notice of Filing of Proposed Rule Change to the Co-location Services Offered by the Exchange (the Offering of a Wireless Connection to Allow Users to Receive Market Data Feeds from Third Party Markets) and to Reflect Changes to the Exchanges Price List Related to These Services (Release No. 34-76374; File No. SR-NYSE-2015-52; November 5, 2015); see also Exhibit 5
  • NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide that the Co-location Services Offered by the Exchange Include 40 Gigabit Internet Protocol Network Connections in the Exchanges Data Center and to Amend the Exchanges Price List to Implement Fees for the New Service (Release No. 34-76369; File No. SR-NYSE-2015-54; November 5, 2015); see also Exhibit 5
  • NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide that the Co-location Services Offered by the Exchange Include 40 Gigabit Internet Protocol Network Connections in the Exchanges Data Center and to Amend the Exchanges Price List to Implement Fees for the New Services (Release No. 34-76372; File No. SR-NYSEArca-2015-105; November 5, 2015); see also Exhibit 5
  • NYSE Arca: Notice of Filing of Proposed Rule Change to the Co-location Services Offered by the Exchange (the Offering of a Wireless Connection to Allow Users to Receive Market Data Feeds from Third Party Markets) and to Reflect Changes to the NYSE Arca Options Fee Schedule and the NYSE Arca Equities Schedule of Fees and Charges Related to These Services (Release No. 34-76364; File No. SR-NYSEArca-2015-99; November 5, 2015); see also Exhibit 5
  • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide that the Co-location Services Offered by the Exchange Include 40 Gigabit Internet Protocol Network Connections in the Exchanges Data Center and to Amend the NYSE MKT Equities Price List and the NYSE Amex Options Fee Schedule to Implement Fees for the New Service (Release No. 34-76373; File No. SR-NYSEMKT-2015-90; November 5, 2015); see also Exhibit 5
  • NYSEMKT: Notice of Filing of Proposed Rule Change to the Co-location Services Offered by the Exchange (the Offering of a Wireless Connection to Allow Users to Receive Market Data Feeds from Third Party Markets) and to Reflect Changes to the NYSE MKT Equities Price List and the NYSE Amex Options Fee Schedule Related to These Services (Release No. 34-76366; File No. SR-NYSEMKT-2015-85; November 5, 2015); see also Exhibit 5
  • Phlx: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Adopt Business Continuity and Disaster Recovery Plans Testing Requirements (Release No. 34-76370; File No. SR-Phlx-2015-90; November 5, 2015); see also Exhibit 5
  • jlne.ws/1eCTnOv

    Exchanges & Trading Facilities

    SGX welcomes Jumbo Group Limited to Catalist
    SGX
    Singapore Exchange (SGX) today welcomed Jumbo Group Limited (Jumbo) to Catalist under the stock code “42R”.
    bit.ly/1L6aDoC

    Saudi Stock Exchange Concludes Roadshow In New York
    Mondovisione
    The Saudi Stock Exchange held the third and final summit of its international roadshow in New York on Friday, marking the end of a series of stops that included events in Singapore and London.
    bit.ly/1MROPVl

    Saudi stock exchange tries to find new investors in London; The emerging stockmarket has plans for its own IPO as it searches for more global investors
    Marion Dakers – The Telegrapyh
    The Saudi Arabian stock exchange is preparing its own initial public offering as part of an attempt to open the market more for international investors.
    bit.ly/1kkq4od

    Thomson Reuters forges single FX platform
    ByJames Rundle – Financial News
    Information giant Thomson Reuters has consolidated all of its foreign-exchange services onto a single platform it calls FX Trading, to cater for changes in the structure of the world’s currency markets.
    bit.ly/1M1IDq4

    National Stock Exchange, Inc. Announces Plan to Relaunch Exchange
    NSX
    National Stock Exchange, Inc. (“NSX”) announced today that it is in the final stages of relaunching its national securities exchange for trading equity securities and ETFs, subject to final approval by the Securities and Exchange Commission (“SEC”). Upon relaunch, NSX plans to employ a market and fee structure that will challenge long-standing and ordinary course exchange-industry practices.
    bit.ly/20GDawJ

    Hedge Funds & Managed Futures

    Hedge-Fund Prodigy Takes a $300 Million Hit
    By ROB COPELAND – WSJ
    She earned an M.B.A. from Wharton at age 21, won backing from hedge-fund industry heavyweight Julian Robertson before she turned 30 and earlier this year became one of the few women to manage more than $1 billion in an industry long dominated by men.
    on.wsj.com/1M1HhM2

    Million Student March aims to fight for free college tuition and cancellation of student debt
    By JILLIAN BERMAN – MarketWatch
    On a recent Tuesday at the City College of New York in Manhattan, a handful of students, activists and professors sat in a small circle casually planning a revolution.
    on.mktw.net/1QdGrjp

    Bond Traders Start to Buy Into Yellen’s Path on Interest Rates
    Alexandra Scaggs – Bloomberg
    Market still projects gradual pace of Fed tightening
    Two-year Treasuries post their worst week since February
    The bond market is beginning to warm up to Federal Reserve Chair Janet Yellen’s message on interest rates.
    bloom.bg/1QdHIHi

    Goldman’s BRIC Era Ends as Fund Folds After Years of Losses
    Ye Xie – Bloomberg
    BRIC fund loses 21% in five years, leading to investor exodus
    Acronym-based investment strategy comes under greater scrutiny
    The BRIC era is coming to an end at Goldman Sachs Group Inc.
    The bank’s asset-management unit folded its money-losing BRIC fund, which invests in Brazil, Russia, India and China, and merged it last month with a broader emerging-market fund. Goldman Sachs pulled the plug on the nine-year-old product because it doesn’t expect “significant asset growth in the foreseeable future,” according to a filing to the U.S. Securities and Exchange Commission.
    bloom.bg/1QoXjD1

    Goldman’s ‘second class’ fund arm fights dull label
    Sophia Grene – FT
    Goldman Sachs has become a byword for ruthless efficiency and is either loathed or feted, depending on whether you view its investment bank as a “vampire squid wrapped around the face of humanity” or not.
    on.ft.com/1NZhc0P

    Banks & Brokers

    ICAP STATEMENT REGARDING DISCUSSIONS WITH TULLETT PREBON
    ICAP
    Further to the announcement by Tullett Prebon , ICAP plc confirms that it is in discussions regarding the possible sale to Tullett Prebon of ICAP’s Global Broking business, including ICAP’s associated technology and broking platforms (including iSwap and Fusion), ICAP’s associated information services businesses and certain of ICAP’s joint ventures and associates.
    bit.ly/1QdELpW

    Thomson Reuters Creates Access to Largest Collective Independent Pool of FX Liquidity via a Single Desktop
    Globe Newswire
    Thomson Reuters integrates all of its FX transaction venues into next-generation FX Trading desktop to streamline access to liquidity for the FX community; includes advanced portfolio order management system for buy-side participants
    bit.ly/1MROEJw

    UBS Adds Israel Wealth Bankers as Tech Boom Breeds Millionaires
    Yaacov Benmeleh – Bloomberg
    Wealth-management business has almost 1,000 Israeli clients
    Swiss bank to recruit more talent to serve growing market
    UBS Group AG is adding staff to its wealth-management business in Israel as a boom in the country’s technology industry turns a growing number of entrepreneurs into millionaires.
    bloom.bg/1WInOYV

    After Criminal Leak Case, Goldman Changes Its Revolving Door Policy
    Trying to put the “Government Sachs” label to rest.
    Ben Walsh – Huffington Post
    Goldman Sachs has implemented new policies restricting the work newly hired current and former government officials are allowed to do, a source at the bank familiar with the matter told The Huffington Post.
    huff.to/1L5ojAi

    Wall Street Bracing for Lower Bonuses for First Time in Years; Wall Street paychecks are expected to drop for the first time in four years
    By JUSTIN BAER – WSJ
    Wall Street bonuses are expected to drop for the first time in four years as financial firms reel from a choppy 2015, according to a closely watched study from consulting firm Johnson Associates Inc.
    on.wsj.com/1GSH2nS

    Goldman Sachs Takes a Stab at Making Banking a Little Less Soul-Crushing
    By Alison Griswold – Slate
    In the past few years, it’s become trendy to periodically wonder whether Silicon Valley is the new Wall Street. Such ruminations are often triggered by the latest reports on where newly minted college grads are headed, which really means Harvard kids. And yikes, was the banking sector in for a tough break this year. Over at Harvard Business School, a mere 4 percent of the class of 2015 said they intended to work at a bank after graduating in May. Among those respondents, only one was in the top 5 percent of the class. Tech, on the other hand, was attracting a reported 16 percent of Harvard’s MBAs, six of whom were at the top of the class.
    slate.me/1HCrkYM

    Clearing & Settlement

    Research: Blockchain Systems Won’t Replace DTCC, LCH
    Finance Magnates
    A recent research report by Tabb Group says that blockchain-powered systems are only a matter of time. But contrary to some bullish commentaries, they won’t replace conventional clearing houses, and may in fact enhance them.
    bit.ly/1MRPOEW

    From Our Man At The 31st Annual FIA Futures & Options Expo – Tom Groenfeldt: Blockchain — Clearing, CCPs Gaze Into The Abyss
    Do Central Clearing Parties (CCP) reduce risk or concentrate it? And how do laws and regulations need to change? Those were among the topics that executives of leading clearers addressed at FIA Expo last week. Regulators see high concentration on the clearing side, noted Matthias Graulich, chief client officer at Eurex. Is the simple answer to water down the capital rules, probably not the desired outcome for regulators as market structure would stay the same. Regulators should modify capital rules and take netting effects into account.
    bit.ly/1MRPKFh

    Criteria for Fund Managers to consider when selecting an OTC derivatives CCP
    COOConnect
    A poll of fund managers conducted by COO Connect in early autumn of 2015 found that two out of three respondents had yet to choose a counterparty clearing house (CCP) through which to clear their European OTC derivative business. Yet time is running out.
    bit.ly/1MRPUwn

    Clearing groups explore buyside access
    Financial News
    The world’s largest clearing houses are ramping up their efforts to offer direct access to buyside firms, in a bid to fill the void left by banks retreating from the clearing business due to punitive capital charges.
    bit.ly/1MRQ3jn

    Indexes & Products

    New Van Eck Global equity index ETF launched on Xetra; First ETF with focus on most competitive US stock corporations
    Deutsche Börse
    Deutsche Börse Cash Market: A new exchange-listed index fund issued by Van Eck Global (Europe) has been tradable on Xetra and Börse Frankfurt since Monday.
    bit.ly/1HpXmfC

    BMO launches nine ETFs for UK investors
    FTAdviser.com
    BMO Global Asset Management has launched nine exchange-traded funds (ETFs) focusing on a mixture of equity and fixed income asset classes. Listed on the London Stock Exchange, the range includes five equity ETFs tracking indices developed by BMO in conjunction with index provider MSCI. The indices screen for quality companies with higher than average dividend yields.
    bit.ly/1MRQbPN

    What $1.5 Trillion in Stock Buybacks Doesn’t Buy
    WSJ
    The third quarter was big for buybacks. Nearly one-quarter of the companies in the S&P 500 that have reported results have shrunk their shares outstanding by at least 4% over the past year, according to S&P Dow Jones Indices. The companies in the index that so far have detailed their buyback figures reported spending $106 billion repurchasing shares.
    on.wsj.com/1MRQcmS

    SPDJI adds ESG smart beta index
    Funds Europe
    S&P Dow Jones Indices (SPDJI) has created a ‘smart beta’ sustainability index that tracks high income European companies. The firm says the launch represents an expansion of its smart beta indices that are constructed along environmental, social and governance (ESG) lines.
    bit.ly/1MRQev5

    Technology

    Bank Usage Of Blockchain Applications Poised To Grow In The Future
    Mondovisione
    Currently more than 30 banks experimenting with usage of blockchain solutions for a variety of different purposes; Success of fintech ventures in this space depends on willingness of financial institutions to embrace blockchain technology specifically for market structure-facing technology
    A new report from GreySpark Partners, a global capital markets consulting firm, examines how a large number of investment banks and exchanges are experimenting with usage of the blockchain and distributed ledger technology (DLT) in 2015.
    bit.ly/1M1IfId

    Orc Introduces Pioneering Trading Solution and New Expert Services Offering to Facilitate MiFID II Transition
    Orc
    Orc, the global market leader in electronic trading technology for listed derivatives, today announced an expanded trading solution and expert services offering to address new requirements arising from updated European market regulation. From January 3, 2017, the revised MiFID II Directive and the new MiFIR Regulation will apply throughout the EU, with major implications expected for market participants: trading venues, investment firms and their clients.
    prn.to/1SbR2Jf

    EU financial market reform faces IT bugs
    Jim Brunsden and Philip Stafford – FT
    The EU’s plans for reforming financial markets face delays amid warnings that regulators and the financial services industry will struggle to develop key information technology systems on time.
    on.ft.com/1SbRdEd

    How can we encourage responsible digital finance?
    By Sneha Stephen and Pooja Wagh – World Economic Forum
    This article is published in collaboration with The Bill & Melinda Gates Foundation.
    Digital technology is rapidly changing the way we design and offer financial products. Consumers who were unreachable by brick-and-mortar banks can now access formal financial services quickly and cheaply through their mobile phones or prepaid cards. But while digital financial services (DFS) offer a multitude of benefits for the poor, they are not without their own set of challenges.
    bit.ly/1PksFeH

    Deutsche Bourse and Markit lend backing to capital markets fintech fund Illuminate
    Finextra
    Illuminate Financial, a fintech venture fund for the capital markets industry, has closed its first round of capital raising with the support of Deutsche Börse and Markit.
    bit.ly/1MRRnCM

    Enforcement

    CFTC Releases Annual Enforcement Results for Fiscal Year 2015
    The U.S. Commodity Futures Trading Commission (CFTC) today released the agency’s enforcement results for fiscal year (FY) 2015, which included a record $3.144 billion in civil monetary penalties ordered against wrongdoers and continued the CFTC’s unwavering commitment to the protection of customers and ensuring market integrity.
    This past fiscal year, the CFTC filed 69 enforcement actions focusing on manipulation, spoofing and fraud and ensuring market participants meet their regulatory requirements. The agency also continued to devote significant resources to litigating complex cases, and a number of those litigations reached successful resolutions.
    1.usa.gov/1LVViLn

    CME Group fines, suspends soybean trader for spoofing violation
    Reuters
    CME Group Inc said on Friday it fined a futures trader and suspended him from the company’s markets for entering orders he did not intend to execute, a practice known as spoofing.
    reut.rs/1Pxyt2V

    Environmental & Energy

    Coal in crisis as energy sector stumbles
    Henny Sender – Bloomberg
    In Singapore, on the sidelines of the annual infrastructure conference of the World Bank sponsors in mid-October, there was a vigorous debate among attendees on the merits of coal-fired power plants.
    on.ft.com/1MjShT9

    Speculators Share Andy Hall’s Optimism That Oil Prices at Bottom
    Dan Murtaugh – Bloomberg
    Hedge funds increased net-long positions the most since April
    Onshore production in U.S. dropped for fifth straight month
    Andy Hall and Daniel Yergin think oil prices are bottoming out. Hedge funds agree.
    bloom.bg/1Oz6dOP

    Think you can’t help the environment? These Europeans disagree; From picking up rubbish to cleaning the sea, people across the continent are making a huge a difference
    Kate Lyons, Nabeelah Shabbir, Michael Bauchmüller, Tomasz Ulanowski, Rémi Barroux and Alberto Simoni – The Guardian
    Climate change has vanished from the headlines since the financial crisis elevated other economic concerns to the top of the agenda. But across Europe there is no shortage of activists trying to make a difference before this month’s UN climate summit.
    bit.ly/20Gx2o4

    No pets, no kids, no flights: how readers are reducing their carbon footprint; Poll by Guardian and partner papers finds Europeans pessimistic but proactive before crunch Paris climate talks
    by Kate Lyons and Nabeelah Shabbier – The Guardian
    English speakers are the least optimistic about humanity’s chances of avoiding dangerous climate change, according to a survey of readers in English, French, German and Italian conducted by the Guardian, Le Monde, Süddeutsche Zeitung and La Stampa.
    bit.ly/1SDcmYT

    Company floats proposal for 1st wind farm off California
    Associated Press
    A Seattle company is floating a proposal for California’s first offshore wind farm.
    sfg.ly/1NmfP9V

    Climate change in Kenya: if we don’t act now, we Turkana could lose our homes
    Ekai Nabenyo – The Guardian
    My people, the Turkana, live in Turkana county, one of the poorest regions in Kenya. As pastoralists who practise nomadism and tend to goats, camels, donkeys and zebus, we have lived off this dry, hot stretch of land near the Ugandan border for centuries. But like fellow Kenyans – and Africans – the changing climate has made our daily lives more difficult.
    bit.ly/1XZmH4u

    100 Million More People Will Be In Poverty By 2030 Without Action On Climate, World Bank Says; The World Bank says climate change threatens the goal of eradicating poverty by 2030.
    Laura Barron-Lopez – Huffington Post
    If countries fail to sustain policies that combat the impacts of climate change while also providing safety nets for the world’s poor, global warming will drive an additional 100 million people into poverty by 2030, a new World Bank report finds.
    huff.to/1le91Ez

    When Gold Isn’t Worth the Price
    By MICHAEL J. KOWALSKI – NY Times
    THERE are few places in the world more beautiful than the landscape of salmon-rich rivers that flow into Bristol Bay, Alaska. I arrived there seven years ago not as a sportsman or ecotourist, as most visitors do, but as a chief executive fearful that the company I led would be seen as complicit in the destruction of this remarkable place.
    nyti.ms/1kkszHb

    US credibility on global warming stronger with Keystone rejected: State Department
    Reuters
    The U.S. State Department said on Friday that rejecting the controversial Keystone XL pipeline has strengthened U.S. standing as a global leader to fight climate change.
    reut.rs/1HCr6Rg

    Asia-Pacific

    The great Hong Kong versus Singapore debate
    The Straits Times
    Both are prominent regional financial centers and were being touted as a refuge for bankers looking for opportunities away from Western markets during the financial crisis. This is a dilemma facing every banker who wants to work and settle in Asia. If you are a banker in North America, you probably wouldn’t hesitate too much where to work before heading to New York, and London still has the biggest draw among financial centers in Europe.
    bit.ly/1MRQp9L

    BNP Said to Shut H.K. Dark Pool Amid Tougher Rules
    Alfred Liu – Bloomberg
    BNP Paribas SA is closing its dark pool business in Hong Kong in December as tougher rules kick in, according to a person familiar with the matter.
    bloom.bg/1MuxIXy

    China’s new bull market could be doomed without better earnings
    The Globe and Mail
    Hao Hong has seen this movie before, and it didn’t end well for China’s stock-market bulls. Five months after an equity boom built on weak corporate profit turned into a $5-trillion (U.S.) crash, a similar scenario is playing out in China today. The benchmark Shanghai Composite Index has surged more than 20 per cent from its Aug. 26 low, despite third-quarter profits that trailed analyst estimates at 68 per cent of companies in the index, the eighth straight quarter of disappointing results.
    bit.ly/1MRQsCq

    How Hong Kong should position itself in 13th Five-Year Plan
    EJ Insight
    Five years ago, Hong Kong’s financial sector anxiously waited for Beijing to unveil its 12th Five-Year Plan, and hoped it would bring new opportunities. Hong Kong has always played a key role in trading and services, helping the mainland attract investment and conduct trade using the city’s financial strength.
    bit.ly/1MRQytU

    Economic policy: Japan’s Abe counting on business to spread money around
    Nikkei Asian Review
    Abenomics, Japanese Prime Minister Shinzo Abe’s signature economic policy package, had a watershed moment last week with the successful initial public offering on Nov.4 of shares of Japan Post Holdings and its two financial arms, Japan Post Bank and Japan Post Insurance. All three issues ended their first day of trade above their offering price, and rose again on the following day.
    s.nikkei.com/1MRQABX

    Frontier Markets

    Six smart things to know about sovereign gold bonds
    Economic Times
    bit.ly/1RIa9KZ

    Argentina is also a frontier market fairy tale
    Khaleej Times
    In a world where a Chinese hard landing will gut emerging markets, with their $18 trillion in unhedged corporate debt, Turkey is vulnerable to the mother of all funding crises as Fed rate hikes bite in 2016. While Turkey is not an exporter to China, its banks and corporates are overleveraged with US dollar borrowings, the sort that proved fatal in 1998, 2001 and 2008.
    bit.ly/1MRQH0i

    Pakistan’s debt affordability weakened: report
    Daily Times (Pakistan)
    The concerns of the Moody’s Investor Services about Pakistan’s debt affordability come just as the International Monetary Fund (IMF) has projected that the country’s net external debt will increase by $3 billion to a whopping $68 billion when the current fiscal year ends. According to the lender, Islamabad will need $6.7 billion during the current year to service external debts alone.
    bit.ly/1MRQKt7

    Cash-strapped frontier economies rush to bond markets in tight window
    Reuters
    Dollar bond sales by smaller, junk-rated emerging countries have sprung back to life in October following a three-month hiatus as governments rush to raise much-needed cash before U.S. interest rates start rising. Sliding commodity prices and political turmoil have pummelled many countries labelled as “frontier” – a fast growing but less developed and higher risk sub-set of emerging economies that ranges from Angola and Belarus to Egypt and Pakistan.
    bit.ly/1MRQOZP

    Duet MENA sees frontier markets continuing to offer unique opportunity for specialist investors
    Zawya
    Dubai, UAE: With economic growth slowing in China, Standard and Poor’s cutting Brazil’s credit rating to ‘junk’ status and oil prices wallow at below US$50 per barrel, investors’ portfolio have taken a beating in recent months. However, Dubai-based global alternative asset manager Duet MENA Limited , believe that buying when everyone else is selling is one of the ways to buck the market slump trend.
    bit.ly/1MRQRF2

    NCDEX imposes 75% margin on chana bulls; With this, the total margin in November chana contracts will be 75 per cent on long positions from Monday
    BS Reporter
    The National Commodity and Derivatives Exchange (NCDEX) has imposed heavy margins on forward trades in chana (chickpea), effective from Monday, to curb excessive speculation in its price.
    bit.ly/1Ozagup

    Miscellaneous

    This Is What Happens When A CEO Actually Cares About Equality For Women; Salesforce has spent $3 million adjusting salaries so that women and men are paid equally.
    Emily Peck – Huffington Post
    The price of gender equality: $3 million. That’s how much cloud-based software company Salesforce has so far spent on adjusting the salaries of its workers so that men and women are paid fairly, Chief Executive Marc Benioff said at a conference sponsored by Fortune magazine earlier this week. To put it into perspective, the company did $5 billion in revenue for its 2015 fiscal year.
    huff.to/1NDsppK

    Cheap Hams Could Steal the Show From Turkeys This Thanksgiving
    Lydia Mulvany – Bloomberg
    U.S. pork getting cheaper as record output leaves excess meat
    Slump prompts hedge funds to cut hog holdings most since April
    Nevermind the traditional Thanksgiving turkey. How about a nice ham instead?
    bloom.bg/1WLOdQy

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