John Lothian Newsletter: US exchanges urged to act in HFT debate; Banks to Settle With Investors in Suit Over Financial Crisis; Fears grow over US stock market bubble

Sep 14, 2015

First Read

Bits & Pieces: A Close Call and a Beautiful Weekend
By John J. Lothian
On a bike-trip Boy Scout campout this weekend one of our vehicles was totaled, when a cement truck barreled into the back of a minivan at an intersection, pushing it into one of our cars. No one was hurt with only a driver in the vehicle, but the minivan was totaled, with the third seat crushed into the second seat.

A second car, belonging to my Boy Scout Troop committee chair, was in front of the minivan and had his bikes, rack and the back end of his Prius damaged in the collision. A close call but luckily no one was hurt.

I was leading the scouts to the other end of the bike trail, the epic Sparta-Elroy trail in northwestern Wisconsin, when the accident happened.

Otherwise we had a great weekend, riding 32 miles on the old railroad bed and traveling through three old railroad tunnels. One of the tunnels was one mile long, and dark and dripping with water.

On Sunday, JLN Managing Editor Sarah Rudolph and I head to Switzerland for the SFOA Bürgenstock Conference. We follow up the conference with a short trip to Paris and then home on the following Sunday.

It is going to be a couple of very busy weeks, as Jim Kharouf heads to New York with Patrick Lothian to shoot a video project for one of our sponsors. While in town, they will head to the inaugural DTCC-Euroclear Collateral Conference for the Americas

We are exactly one month away from our MarketsWiki Education series in London. Registrations are trickling but the big push is just ahead. Please help us out and spread the word to all of your friends, colleagues and associates in the U.K., and direct them to the information page HERE

This week, Frank Pusateri and Bucky Isaacson bring their ever-popular CTA Expo conference to Chicago. The big event is Thursday, and on Wednesday, there will be a special seminar for CTAs and asset managers. In one of the sessions, Doug Ashburn and BarclayHedge founder Sol Waksman will co-host a talk on databases and, in particular, the importance of video to help tell one’s story.

Check out our fresh off the headlines interview with Richard Sandor below about his latest endeavor.

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MarketsWiki Education London 2015
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All Smalls and Mediums: Richard Sandor Looks To Transform The Small and Mid-Tier Bank Sector
JohnLothianNews.com

Over the past 40 years, Richard Sandor has created some of the most successful products in financial markets, from interest rate futures to greenhouse gas derivatives. Now he’s shifted his attention to small and mid-sized banks with a new exchange platform that could transform the way in which those Main Street institutions lend, borrow and set interest rates for themselves. Sandor spoke with John Lothian News about his new venture, the American Financial Exchange, and the future for his latest marketplace.
Watch the video »
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Dick Grasso: Today’s Markets Aren’t Fair
Turmoil in August was a sign something was awry with capital markets, former NYSE chief Richard Grasso says
By BRADLEY HOPE, WSJ
The former head of the New York Stock Exchange says modern markets have sacrificed fairness for speed.
jlne.ws/1Q7mjvH

***** From the guy who got how many millions and knows everything about “fair.” I can’t find a single futures professional from Chicago who would say the NYSE was “fair” when Mr. Grasso ran it with the specialist system.

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OCC Applauds SEC Decision to Discontinue Stay and Proceed with Review of Capital Plan
OCC
OCC, the world’s largest equity derivatives clearing organization, today expressed support for the decision of the U.S. Securities and Exchange Commission (SEC) to lift the stay of the approval order of OCC’s proposed capital plan, allowing OCC to proceed with implementation of the capital plan. Under its order to discontinue the stay, the SEC determined that “strengthening the capitalization of a systemically important clearing agency, such as OCC, is a compelling public interest.” Under SEC rules, the stay was instituted automatically by the filings of petitions requesting review by the full Commission of the approval order.
jlne.ws/1UHRZi0

***** Have you ever seen a clearing house clap?

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The Unraveling of Tom Hayes;Part One; RAIN MAN IN TROUBLE
By David Enrich, WSJ
Tom Hayes paced his kitchen. He walked past the wine refrigerator and around the granite-topped island. Through the window of his seven-bedroom house, he could see the summer sun descending over the English countryside. Then he paced some more.
jlne.ws/1iaCzkB

***** WSJ goes stylish in telling this story.

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James Gellert, Rapid Ratings International – Connecting the Dots and Innovating Ratings
JohnLothianNews.com

“While you are completing your internships, it is important to think about where you want to be, but you cannot over-prescribe it. You may need to take a circuitous path to get where you need to be.”

James Gellert is a former banker and technology entrepreneur who now runs an entrepreneurial financial technology firm, Rapid Ratings, which uses a proprietary quantitative system to evaluate the financial health of companies. In this MarketsWiki Education talk, Gellert tells the story of his first internship, where he was paid to kick one of the most powerful men on Wall St. to keep him awake during meetings. He then compares his firm to the traditional rating agencies and the difference between a “user pays” model versus an “issuer pays” model.

Watch the video »
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TABB Group Promotes Matt Simon, Principal, to Oversee Consulting & Advisory Services Business
TABB Group
TABB Group announced today that Matt Simon, a principal at the firm and its former head of futures research, will manage the firm’s consulting and advisory services business, reporting to Anthony Perrotta and Andy Nybo, partners, global heads of research and consulting.
jlne.ws/1NyX73L

****** Climbing the corporate TABBS one step at a time.

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Bridging the Weeks
by Gary DeWaal, Katten Muchin Rosenman LLP
August 31 to September 11 and September 14, 2015 (Spoofing, Individual Accountability, Cybersecurity, Audit Opinions, Hedging and Reporting)
jlne.ws/1iIVOlR

****** Gary DeWaal hitting all of my favorite topics.

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Lead Stories

US exchanges urged to act in HFT debate
Robin Wigglesworth and Nicole Bullock, FT
The investment chief of one of Europe’s biggest asset managers has urged US exchanges to ensure that ordinary investors enjoy a level playing field with high-frequency traders.
jlne.ws/1FHQRPn

Banks to Settle With Investors in Suit Over Financial Crisis
By NATHANIEL POPPER, NY Times
Large banks are preparing to pay $1.865 billion to settle accusations that they conspired unfairly to control a derivatives market that stood at the center of the financial crisis, a lawyer suing the banks said in court on Friday.
jlne.ws/1Klympb

Franklin Templeton suffers record outflows
Stephen Foley in New York, FT
Analysts are slicing their earnings forecasts for Franklin Templeton, as the US asset management group wrestles with some of the worst outflows from its mutual funds in its history.
jlne.ws/1M6lwdG

Fears grow over US stock market bubble
John Authers, FT
A growing number of investors believe that US stocks are overvalued, creating the risk of a significant bear market, according to research by Yale University market scholar Robert Shiller.
jlne.ws/1ipH23N

Firewall for Options Market Clears SEC Hurdle for Capital Plan
Brian Louis, Bloomberg Business
A plan to bolster the financial strength of the U.S. options market’s backstop that has drawn criticism from some exchanges and traders cleared a regulatory hurdle. The Securities and Exchange Commission on Thursday lifted a stay on a plan by Options Clearing Corp., which processes and guarantees all trading of stock options on U.S. exchanges, to shore up its capital. Under the proposal, Chicago-based OCC has collected $150 million from the five exchanges that own it.
jlne.ws/1OpPmwi

Wild Trading Exposed Flaws in ETFs; Managers of exchange-traded funds, such as BlackRock, work to find out what caused disruptions on Aug. 24
By CORRIE DRIEBUSCH, SAUMYA VAISHAMPAYAN and LESLIE JOSEPHS, WSJ
The extreme stock-market gyrations in August exposed cracks that many critics had warned about in the booming business of exchange-traded funds—cracks that fund managers such as BlackRock Inc. are now acknowledging as they work to figure out what went wrong.
jlne.ws/1glS2gA

Stock sell-off reveals ‘major faultlines’ in economy, BIS says
Ferdinando Giugliano, Economics Correspondent, FT
The sell-offs rocking equity markets reflect the “release of pressure” accumulated along “major faultlines”, the Bank for International Settlements said, as it warned that investors should not expect central banks to ride to the rescue and solve such deep-rooted problems.
jlne.ws/1glPM8V

Was Tom Hayes Running the Biggest Financial Conspiracy in History?; Or just taking the fall for one?
Liam Vaughan, Gavin Finch, Bloomberg
On a deserted trading floor, at the Tokyo headquarters of a Swiss bank, Tom Hayes sat rapt before a bank of eight computer screens. Collar askew, pale features pinched, blond hair mussed from a habit of pulling at it when he was deep in thought, the British trader was even more disheveled than usual. It was Sept. 15, 2008, and it looked, he would later recall, like the end of the world.
jlne.ws/1FHOo7u

Dow Jones strikes chord with Symphony
Matthew Garrahan in New York, FT
Symphony, the messaging tool backed by some of Wall Street’s biggest banks, has struck a deal with Dow Jones to offer news content in its service, a move that raises the stakes in its battle with Bloomberg, the market leader.
jlne.ws/1Ka6Zgt

Ex-Citi trader’s case could be bellwether for other forex claims
By Katie Martin and Jane Croft, FT
“Dude, get yourself on chat.”
Former Citigroup currencies trader Perry Stimpson testified to an employment tribunal last week that he received that nugget of advice from a senior manager in 2009, as he sought to back up his claim that he was fired unfairly in 2014.
jlne.ws/1F92W58

Germany’s refugee influx ‘may reach 1 million’
FT
Germany is bracing itself for 1m refugees this year, sharply more than the government forecast of 800,000 only a month ago, deputy chancellor Sigmar Gabriel said on Monday, amid signs that Berlin is struggling to cope with migrant inflows.
jlne.ws/1iISWpb

Investors Lose in Today’s Markets, Says Former NYSE Head Grasso
Bloomberg Business
Investors haven’t benefited from changes in the way the market functions, according to Dick Grasso, the former head of the New York Stock Exchange. “The structure of the market today for major securities has been terribly hurt,” Grasso said in a taped interview for the television program “Wall Street Week” that also was streamed online. “A fast market is not necessarily a fair market.”
jlne.ws/1OpRUui

Regulatory

US-EU talks slow to advance on clearinghouse recognition, Massad says
Neil Roland, MLex (Subscription Required)
The US Commodity Futures Trading Commission is making only limited progress in clearinghouse-recognition talks with the European Commission that have already fallen behind schedule, CFTC Chairman Timothy Massad said.
jlne.ws/1NyT1sz

Regulatory pressure on banks could cut credit to energy firms -sources
BY JONATHAN SCHWARZBERG AND LYNN ADLER, Reuters
U.S. regulators are scrutinizing the impact of falling energy prices on bank loans in a move that could make it more difficult for lenders to extend extra credit to troubled oil and gas companies, sources familiar with the review said.
jlne.ws/1ipFrel

ESMA Defends Efforts to Regulate Derivatives Trades by Non-Banks
Bloomberg Business
The European Union’s new derivatives regulations need to apply to non-financial companies as well as banks and other investment firms, according to the European Securities and Markets Authority. The Paris-based regulator also defended its efforts to improve oversight of bond-market trading and central counterparties, in a Sept. 2 letter to nations and the European Commission. http://jlne.ws/1VRMwlP

Traders’ Phones Are Becoming a Surveillance Zone
WSJ
Wall Street has a message for its traders: Watch what you say. At large banks in the U.S. and Europe, traders’ everyday activities are being recorded and monitored more often than ever before. Lately, banks and their regulators have focused on perusing the minutiae of phone conversations traders have each day with colleagues, competitors and customers.
jlne.ws/1OpRLHj

Exchanges & Trading Facilities

Bloomberg, Tradeweb SEFs dominate two key derivatives trading sectors
Neil Roland, MLex (Subscription Required)
Bloomberg and Tradeweb swap execution facilities have captured more than half the volume in two important derivatives markets, new studies. The sustained dominance of the two dealer-to-customer trading platforms would seem to mark the end of the SEF reign by interdealer brokers, which offer a dealer-to-dealer model.
jlne.ws/1KltIaP

“The market is ready for IRS Constant Maturity Futures.” Interview with GMEX’ Hirander Misra.
Eurex
We spoke with Hirander Misra, CEO & Co-founder of GMEX Group about the recently launched GMEX IRS Constant Maturity Futures. He is also Co-founder and Non-Executive Chairman of the trading technology firm Forum Trading Solutions. Previously he was the co-founder and Chief Operating Officer of Chi-X Europe Limited.
jlne.ws/1UQHvHW

EEX mulling add-ons for cap futures
Futures & Options World
The European Energy Exchange (EEX) is already considering follow-on products for its new “cap futures” contract, ahead of the long-awaited launch of the new futures on Monday. The new futures contract has been developed in response to the evolving energy market, namely the rapid shift to renewables. Available to all EEX derivatives trading participants, the cap future will allow traders to hedge against price peaks the hit the German intraday market.
jlne.ws/1OpS598

Hedge Funds & Managed Futures

Goldman Says QE to Weigh on Yen and Euro as Fed Holds This Week
Netty Idayu Ismail, Bloomberg
Dollar-yen upside `highly actionable’ on three-month horizon
Goldman says Fed to keep interest rates unchanged on Thursday
Goldman Sachs Group Inc. said the yen and euro will weaken on further quantitative easing in Japan and Europe, while the Federal Reserve refrains from raising interest rates when U.S. policy makers meet this week.
jlne.ws/1OPJOct

EUROPE’S SEARCH FOR CAPITAL
KIRA BRECHT, Open Markets
Early in 2015, the EU Commission published a green paper on the idea of a Capital Markets Union (CMU) for all 28 member states of the European Union. The goal of the CMU is to expand capital access for businesses across Europe – especially mid-size and SME businesses; attract more financing from institutional and retail investors in the EU and beyond; and help create a more stable financial system overall. Seven months on, has this long-term project gotten off to a good start?
jlne.ws/1F93jg5

Why investors need normalisation of risk/return trade off; QE and inflation have skewed curve
Daniel Flynn
Former Barings CIO Michael Hughes has said the time has come for global asset allocation to be geared towards a normalisation of the risk/return trade off.
jlne.ws/1Qcqdne

Debunking quantitative tightening in one paragraph?
David Keohane, FT
And here’s that paragraph, from JPM’s Niko Panigirtzoglou and team, with our emphasis:
First, we disagree with the description that FX reserve depletion is QE in reverse. This is because the FX reserve depletion that is happening currently is not an exogenous policy action but represents a policy reaction to capital flows out of EM. But the capital that leaves EM does not disappear from the financial system.
jlne.ws/1EXzxLq

Portfolio Managers Struggle to Beat Benchmarks
By MAUREEN FARRELL, WSJ
Stock picking is a dicey business, and in the first half of 2015, the majority of large-cap stock portfolio managers failed to beat the S&P 500?s returns.
jlne.ws/1K9da25

Safety Suffers as Stock Options Propel Executive Pay Packages
By GRETCHEN MORGENSON, NY Times
Outsize executive pay packages have frequently been a flash point for stock market investors. Lavish executive compensation at publicly traded companies should be a significant concern for consumers, too.
jlne.ws/1NyXmMn

Retirement prospects only bright for diligent savers
Gail MarksJarvis, Chicago Tribune
If you think you are going to retire at 65, think again.
It’s likely that you aren’t going to have enough money stashed away to make retirement work out for you. Only two in five people working for large U.S. companies will be ready financially to retire at age 65, according to a study by human resources firm Aon Hewitt.
jlne.ws/1UP8Bod

Commodities Producers’ Currency Prop
By HELEN THOMAS, WSJ
Some emerging-markets exposure can be a valuable currency – for commodities producers.
jlne.ws/1Ltp4nv

Banks & Brokers

Banks Wanted to Keep the CDS Market to Themselves
By Matt Levine, Bloomberg
The job of a dealer in financial markets is to buy low and sell high. Of course that’s the job of an investor too. That’s the obvious, only job. What distinguishes dealers from investors is, loosely speaking, that dealers are not making their buying-and-selling decisions based on some analysis of the value of what they’re buying and selling, but rather based on information about who else wants to buy and sell, and at what price. Their job is to know their customers, not their securities. And the information they have about potential customers is pretty much the value that dealers add. It’s what they get paid for: Sellers come to dealers to find buyers, and buyers come to find sellers. So the dealers try to make sure that they have information that other people — like the customers — don’t have.
jlne.ws/1glLgaC

Cantor’s Howard Lutnick Remembers Sept. 11
Bloomberg Video
Cantor Fitzgerald CEO Howard Lutnick remembers the events that took place on September 11, 2001 and discusses the company’s fund raising efforts to aid families of victims. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)
jlne.ws/1F92Cn0

Clearing & Settlement

Derivatives Data at Heart of Clearing Dispute in Scandinavia
Bloomberg Business
Scandinavia’s finance industry has found an unlikely ally in its fight against stricter rules for the region’s over-the-counter derivatives market. Sweden’s debt office is echoing concerns raised by banks and brokers that data behind a derivatives study in Scandinavian currencies may be faulty. Any decision to impose clearing requirements on interest-rate swaps and forward-rate agreements in the region would be based on the data in question.
jlne.ws/1OpOW9g

TriOptima & LCH.Clearnet NZD Swap Cycle Eliminates $590.2 billion
Finance Magnates
TriOptima and LCH.Clearnet have announced a sizable compression in unlinked, cleared interest rate swaps, whereby eliminating 30% of New Zealand Dollar (NZD) notional outstanding in the first SwapClear NZD cycle, according to an ICAP statement.
jlne.ws/1OpPvjt

HSBC seminar on automated platforms
The Daily Star
Online banking platforms enable customers to make seamless payments between countries and currencies and give businesses greater control over cash and collection, a banker said.
jlne.ws/1OpPKeg

Indexes & Products

KRX Launches Strategy Indices Of KOSDAQ And Currency Derivative Markets
Mondovisione
Korea exchange (KRX) plans to introduce 2 (two) KOSDAQ 150 Strategy Indices and 10 (ten) currency derivative strategy Indices on September 14, 2015. These indices are developed to provide various investment tools in KOSDAQ and currency derivative markets and support the vitalizations of both markets.
jlne.ws/1Nrrl7k

Qatar Upgraded By Global Index Provider FTSE Russell To Secondary Emerging Mondovisione
As part of its 2015 Country Classification review, on Friday evening FTSE announced Qatar was to be upgraded from Frontier to Secondary Emerging within the FTSE Global Equity Index Series. The upgrade will be implemented over two equal tranches in September 2016 and March 2017
jlne.ws/1QA3C4T

Turnover of most active ETFs up 13% in September month-to-date
FTSE Global Markets
In the September 2015 month thus far, the MSCI World Index has declined 1.0%, while the MSCI Asia Pacific Index fell 2.0%. The MSCI AC Asia Pacific Index captures large- and mid-cap representation across five developed markets and eight emerging markets in the Asia Pacific region. It comprises 1,000 stocks with Japan, Australia and China as its largest country weightings.
jlne.ws/1OpQ0tA

Dow Jones revises sustainable indices
InvestorDaily
S&P Dow Jones Indices, in partnership with RobecoSam, announced the addition of Bank of America, Telefonica SA and BHP Billiton to the indices. Companies are chosen for the indices based on an assessment of long-term economic, environmental and social criteria. As a result, Cisco Systems, PepsiCo and Royal Bank of Canada have been deleted from the list, effective 21 September 2015.
jlne.ws/1OpQaBm

Technology

Human traders can still beat computers
Henny Sender, FT
Crowdsourced data are one way of getting an edge over the algos
ew individuals understand the shifting dynamic between humans, computers and the algorithms that increasingly govern share trading better than Leigh Drogen. Mr Drogen spent years of his life as a quant trader.
jlne.ws/1iIUbou

Thomson Reuters launches industry leading market data services in SGX co-location data centre
FX-MM
Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, announced the launch of its industry leading market data services inside Singapore Exchange’s co-location data centre. This will help provide local financial firms with access to high-performance, high-quality content while lowering their total cost of ownership.
jlne.ws/1Qcq1Em

Bitcoin Blockchain Technology In Financial Services: How The Disruption Will Play Out
Forbes
In a year marked by announcements of financial incumbents’ interest in the technology underlying the digital currency — startup investments, lab experiments, board appointments and Nasdaq’s intention (partnered with Chain.com) to pilot using blockchain technology to manage shares in private companies — the funding underscored the fact that Wall Street is serious about using so-called distributed ledger technology in its offerings.
jlne.ws/1OpQpwg

Wall Street takes a keen interest in Bitcoin’s technology
Irish Times
Most people still think of Bitcoin as the virtual currency used by drug dealers and shadowy hackers looking to evade the authorities. But the innovations that helped turn Bitcoin into the most popular virtual currency are now being viewed as a potentially enormous disruptive force for several industries, including accounting, music and law.
jlne.ws/1OpQBLW

Traders’ Phones Are Becoming a Surveillance Zone; At large banks, regulatory requirements and new technology change how conversations are conducted
By EMILY GLAZER, WSJ
Wall Street has a message for its traders: Watch what you say.
jlne.ws/1KhQRGK

Facebook Looks to Bring Virtual Reality to Mobile Devices; 360-degree video app would allow users to change viewing perspective by tilting their phones
By DEEPA SEETHARAMAN and ORR HIRSCHAUGE, WSJ
Facebook Inc. is vying to bring virtual reality to your phone.
jlne.ws/1UQL1lu

Cyber insurance to triple to $7.5 billion by 2020, attracting disruptors: report
Reuters
The cyber insurance market will triple in size to $7.5 billion in annual premiums by 2020 and the insurance industry could face competition from disruptors such as Google (GOOGL.O) if it does not act fast to develop products, a report said.
jlne.ws/1FHU15z

Enforcement

CFTC Charges California Resident Hannes Tulving, Jr., through his company, The Tulving Company, Inc., with Misappropriation and Fraudulent Solicitation in a $17.8 Million Precious Metals Scheme
CFTC
In its enforcement action, the CFTC alleges that the Defendants fraudulently offered contracts of sale of commodities in interstate commerce, namely, contracts for the sale of gold, silver, platinum, and palladium bullion and coin (precious metals). In offering these contracts, the Defendants obtained and misappropriated at least $17.8 million from at least 381 customers located throughout the United States for the purchase and sale of precious metals, according to the Complaint.
jlne.ws/1Lc8nkK

SEC Charges Five Arizona Residents With Stealing Millions From Investors to Fund Travel and Entertainment Sprees
SEC.gov
The SEC alleges that Jason Mogler, James Hinkeldey, Casimer Polanchek, Brian Buckley, and James Stevens misappropriated roughly 97 percent of the $18 million they raised from 225 investors who were told the funds would be used to acquire and develop beachfront property in Mexico as well as to operate recycling facilities and purchase foreclosed residential properties for resale. They repeatedly lied about the purported progress of the investments to calm worried investors as time extended past when their promissory notes should have been repaid. In certain instances they made Ponzi-like payments to investors who were threatening them with lawsuits by using money from new investors, which Mogler termed “robbing Peter to pay Paul.”
jlne.ws/1Lc8UU1

Wall Street banks to settle CDS lawsuit for $1.9bn
Ben McLannahan and Joe Rennison in New York, FT
Some of Wall Street’s biggest banks have agreed to a $1.87bn settlement to resolve allegations that they clubbed together to inflate prices and keep out new entrants in the $16tn credit default swaps market.
jlne.ws/1KlxEs9

China punishes 4 brokerages in crackdown on illegal margin financing
Reuters
China’s securities regulator said on Friday that it would punish four brokerages for their lack of due diligence when connecting to external trading systems, in its latest effort to crack down on grey-market margin financing. The four brokerages are Huatai Securities, Haitong Securities, Founder Securities and GF Securities.
jlne.ws/1OpRDHX

Mt Gox founder Mark Karpelès charged with embezzlement
Leo Lewis in Tokyo, FT
The founder of Mt Gox, the exchange that once handled 80 per cent of global bitcoin trading, has been charged with embezzlement and data manipulation as mystery continues to swirl around the massive digital burglary at the company.
jlne.ws/1J7mIZI

Environmental & Energy

Rich world struggles to resolve row over coal subsidies; France has said will scrap the subsidies; Japan holding out for continuing financial support; Issue is an embarrassment ahead of U.N. climate summit
By Barbara Lewis, Reuters
Rich nations are stubbornly divided ahead of talks in Paris on Thursday to seek a deal to phase out coal subsidies in a foretaste of the difficulty of agreeing on action to curb global warming at a U.N. summit later this year.
jlne.ws/1UQIW9p

Global warming alert as El Niño returns with a vengeance
Pilita Clark in London, FT
The world is starting to heat up again, say British scientists, raising speculation that a 15-year slowdown in the rate of global warming could be coming to an end.
jlne.ws/1QA1IB6

Study Predicts Antarctica Ice Melt if All Fossil Fuels Are Burned
By Justin Gillis – The New York Times
Burning all the world’s deposits of coal, oil and natural gas would raise the temperature enough to melt the entire ice sheet covering Antarctica, driving the level of the sea up by more than 160 feet, scientists reported Friday.
jlne.ws/1F8yM1W

***LB: Also in this story “In a major surprise to the scientists, they found that half the melting could occur in as little as a thousand years, causing the ocean to rise by something on the order of a foot per decade, roughly 10 times the rate at which it is rising now. Such a pace would almost certainly throw human society into chaos, forcing a rapid retreat from the world’s coastal cities.”

Poor nations want U.S. to pay reparations for extreme weather
By Thomas M. Kostigen – USA TODAY
Poorer nations suffering from extreme weather disasters, so much so that their citizens are seeking refuge in safer terrains outside their borders, want rich nations like the United States to pay for reparations and to relocate populations.
jlne.ws/1F8uIys

California drops plan to slash fuel use by 50 per cent after oil industry backlash
By Jessica Shankleman – BusinessGreen
Plans for a new law in California aiming to halve transport fuel use have been dropped, following fierce lobbying by the oil industry and despite support from a wide range of other businesses.
jlne.ws/1LbMDFM

Replace carbon taxes with green incentives, say manufacturers
By Madeleine Cuff – BusinessGreen
Carbon reduction policies are too focused on red tape that pushes up energy prices and damages Britain’s international competitiveness, according to a new report released today by manufacturers’ organisation EEF.
jlne.ws/1Oa4jTX

Asia-Pacific

Wolters Kluwer launches OneSumX anti-money laundering for Taiwan
Finextra
Wolters Kluwer Financial Services has launched its OneSumX Anti-Money Laundering (AML) solution for the Taiwanese market.
jlne.ws/1FHQ3Kf

Japan Exchange Group: Regarding Recent Revelation Of Improprieties By A Listed Company
Mondovisione
Recently, there was a regrettable case where a company listed on the JPX market had implemented improper accounting practices aimed at overstating apparent profits from short-term interests. The case has undermined the confidence of investors.
jlne.ws/1UP6r7R

Rule change hits demand for Australian investor visas
Jamie Smyth in Sydney, FT
Demand for Australian investor visas has slowed to a trickle following a government decision to follow Canada and the UK in tightening rules on fast-track residency in return for investment.
jlne.ws/1KhQko7

Why China’s Next Bad Bank May Not Be All That Good
WSJ
China wants to tap more foreign capital to help clean up its debt mess. Investors should steer clear.
jlne.ws/1VXqz4M

What Do U.S. Economists Think of Official China Statistics? ‘Only a Fool Would Believe Them’
By JEFFREY SPARSHOTT, WSJ
An overwhelming majority of the respondents to the latest Wall Street Journal survey of 64 economists – not all of whom answered every question – said China’s gross domestic product figures miss the mark. How far-fetched are the numbers? Well, here are a few comments on the question, “Do you think that China’s GDP statistics accurately reflect the state of the Chinese economy?”
jlne.ws/1J7my4F

Frontier Markets

BIST 30 Index derivatives begin trading in London
Daily Sabah
The London Stock Exchange Derivatives Market (LSEDM) will launch trading in BIST 30 Index futures and options denominated in Turkish Lira, the London Stock Exchange Group (LSEG) and Borsa Istanbul announced at a ceremony Friday. Following a partnership agreement signed between LSEG and Borsa Istanbul earlier this year, the London Stock Exchange’s global client base will be able to trade futures and options on the BIST 30 Index.
jlne.ws/1OpP34A

Multi-legged order entry in currency futures from tomorrow: BSE
By PTI
Leading stock exchange BSE will launch multi-legged order entry facility for its currency derivative segment from tomorrow.
jlne.ws/1OpPMCN

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