John Lothian Newsletter: US regulators propose powers to scrutinise algo traders’ source code; CBOE Holdings to Launch Options on FTSE 100, FTSE China 50 Indexes; Can the London Metal Exchange crack the steel market?

Dec 1, 2015

First Read

Mark Spanbroek, European Principal Traders Association – Financial Markets 2.0
MarketsWikiEducation.com

“What trading is really about is finding an algorithmic, or systematic way, to analyze the market. And this is done with data.”

Mark Spanbroek’s trading career spanned the transition from the old world of trading pits to the new world of algorithms. He now serves as acting chairman of the FIA European Principal Traders Association (EPTA).

In this MarketsWiki Education presentation, Spanbroek showcases both worlds – Financial Markets 1.0 and 2.0 – from the pit trader in the multi-colored trading jacket to today’s trader, who he says is not a trader, but rather an engineer, and today’s trading strategy is more of a team effort than an individual effort.

Watch the video »
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Börse Frankfurt: trading for a good cause
Deutsche Börse
Deutsche Börse and specialists to donate fees to charities Frankfurter Tafel and Bärenherz Stiftung on 8 December
Deutsche Börse AG and the specialists active on the Frankfurt trading floor will be donating trading and transaction fees generated via the Börse Frankfurt venue on 8 December. The exchange operator and the eleven companies acting as specialists are holding the “Trading Charity – Handeln und Helfen” event in support of two local charities, the “Frankfurter Tafel” food bank and children’s hospice organisation Bärenherz Stiftung.
jlne.ws/1LL2CG4

***** Today is Giving Tuesday. How are you going to give today? Let me know what charity you donated to today and we will publish the complete list.

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What makes Paris the best city in the world for students?
The Guardian
The French capital has topped a ranking of the best cities to study in – one student explains what makes it special
Like so many Parisians on 13 November, my friends and I stayed up the whole night, watching the news. We followed the tragedy of the terrorist attacks online and checked in with all our friends on social media, while sirens blared down the boulevards outside. Paris was different when we woke up. The few people who had ventured out onto the empty streets seemed tense, which was understandable; everyone knew of someone who had died or been injured.
jlne.ws/1MTCnBk

***** I love Paris and would have loved to have studied there as a student. There are many great cities in Europe, and ones with great universities, but Paris is special.

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How cycling could help the Paris climate talks change the world
Peter Walker – The Guardian
People ride a bike for all sorts of reasons: they’re fun; they keep you fit; in congested cities they have an amazing ability to deliver you to your destination on time. But what about saving the planet?
jlne.ws/1PYbVtZ

****** Jim Kharouf cycles to work every day, although when it was blowing 55 mph a week ago he drove in. He should have sailed into work that day.

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Corzine to reflect on ‘Success and Failure’ Thursday at FDU
New Jersey Hills: Florham Park Eagle News
The former New Jersey Governor, U.S. Senator and Goldman Sachs CEO will share his experiences on “A Life with Purpose: Reflections on Success and Failure” when he visits Florham Park for a presentation at Fairleigh Dickinson University’s Campus at Florham from 7:30 to 9 p.m. this Thursday, Dec. 3, in Lenfell Hall in Hennessy Hall on the campus at 285 Madison Ave. Corzine will deliver his presentation to students enrolled in the university’s Silberman College of Business, and his talk will be followed by a question-and-answer session for students only.
jlne.ws/1HD16Lk

***** Expect a group of protestors from “FCM Lives Matter” to be present at the event.

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Lead Stories

US regulators propose powers to scrutinise algo traders’ source code
Gregory Meyer in New York and Philip Stafford in London – FT
Futures trading is dominated by computers and nothing is more valuable than the “source code” of these high powered machines.
jlne.ws/1lVkEAz

CBOE Holdings to Launch Options on FTSE 100, FTSE China 50 Indexes
Press Release
New Index Options to Debut December 22
Offer Exposure to Largest Stocks in UK, China
In remarks made at CBOE’s Risk Management Conference Asia (RMC) in Hong Kong, CBOE Holdings Chief Executive Officer Edward T. Tilly announced the company’s planned launch of options on the FTSE 100 Index and the FTSE China 50 Index.
jlne.ws/1Su4Ejs

**JK: CBOE/LSE partnership takes root.

Can the London Metal Exchange crack the steel market?
Andy Home – Reuters
Steel could offer a timely boost to the LME, which is seeing volumes across its core base metals contracts decline for the first time in many years. But might the LME’s latest drive also finally crack open the steel market to derivatives trading? Because this is an industrial sector that has proved curiously resistant to exchange pricing, even while exchange volumes of iron ore rise steadily around the world.
jlne.ws/1LL77Aq

Here’s more evidence of Wall Street’s obsession with technology
Eugene Kim – Business Insider
Wall Street banks are well-aware of the potential change technology could bring to its field — and new data shows they don’t want to miss out on a chance to team up with financial tech startups early on.
jlne.ws/1jx2OCk

Bill Gates on climate change: ‘We need to move faster than the energy sector ever has.’
By Joby Warrick – Washington Post
The man who helped launch the personal computer revolution says the nations of the world aren’t doing nearly enough to boost the search for new energy sources that could help humans avoid a global-warming calamity.
jlne.ws/1XDXRFd

Fed Shuts Bailout Window for Too-Big-To-Fail
Reuters
The Federal Reserve Board on Monday adopted a rule that stops it from bailing out individual companies, a change that Congress demanded after the central bank’s controversial decision to help rescue American International Group and others during the financial crisis.
jlne.ws/1XDY4rZ

KCG Could Be the Big Winner in BATS IPO
By BRADLEY HOPE – WSJ
One winner from a BATS Global Markets Inc. IPO next year could be KCG Holdings Inc., the biggest single shareholder of the exchange operator.
jlne.ws/1NnCgzj

Two-Thirds of Americans Want U.S. to Join Climate Change Pact
By GIOVANNI RUSSONELLO -NY Times
A solid majority of Americans say the United States should join an international treaty to limit the impact of global warming, but on this and other climate-related questions, opinion divides sharply along partisan lines, according to the latest New York Times/CBS News poll.
jlne.ws/1TqT6yc

COP21 Paris climate talks: The challenge of achieving equity
FT
Ever since the first global environmental summit in Rio de Janeiro more than 20 years ago, attempts to forge international agreements to combat climate change have been bedevilled by questions of equity between the developed and developing worlds.
jlne.ws/1QaVWaC

China’s Renminbi Is Approved by I.M.F. as a Main World Currency
By KEITH BRADSHER – NY Times
The Chinese renminbi was anointed as one of the world’s elite currencies on Monday, a milestone decision by the International Monetary Fund that underscores the country’s rising financial and economic heft.
jlne.ws/1TqXFZj

Bank of England to Ease Capital Pressure on U.K. Banks; The Royal Bank of Scotland and Standard Chartered failed aspects of the BoE Stress Tests
By MAX COLCHESTER, JASON DOUGLAS and MARGOT PATRICK – WSJ
The Bank of England Tuesday said it would ease pressure on U.K. banks to hold more capital, drawing a line under years of post-crisis reforms aimed at making the banking sector safer.
jlne.ws/1PrqWVi

OCC fears approval will be held up by absence of SEC clearing rules
Risk.net (Subscription Required)
A new wrinkle in the transatlantic dispute over clearing house regulation could leave 18 European banks facing an estimated $30 billion jump in capital requirements, and limit access to equity options listed in the US.
The unlucky 18 are members of the Options Clearing Corporation (OCC), a US clearing house that is regulated by both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Because the SEC has not yet finalised its clearing house rules, it is not clear how European authorities can judge the OCC’s supervisory regime to be equal to Europe’s own – the first step in the approvals process for any foreign clearing house. If European clearing members continue using non-approved clearing houses after mid-2016, they will face big capital increases.
bit.ly/1Iwj0ua

Wall Street firms are banking on better family leave benefits to compete for talent
By Jena McGregor – Washington Post
U.S. employees of the Swiss banking giant Credit Suisse have another reason to be thankful on this post-holiday Monday. The firm announced today that it will be upping the length of its paid parental leave for primary caregivers to 20 weeks, making it among the longest paid leave benefits to be offered at a major bank.
jlne.ws/1lsacjJ

‘The Big Short’ Blows Away Bogus Argument That Poor People Caused The Financial Crisis
Ben Hallman – Huffington Post
Nearly a decade ago, I wrote an article about how workers in a peculiar American industry were beginning to worry about subprime home loans. They were Wall Street lawyers who specialized in a dark financial art called securitization — bundling up assets, such as home mortgages, into bonds for sale to investors.
jlne.ws/1Su5NYi

Regulatory

New Fed Rule Limits Emergency Lending Power
By PETER EAVIS – NY Times
In the lead-up to the financial crisis of 2008, the Federal Reserve had the ability to make huge emergency loans to almost any entity it chose, a power it used to help save Wall Street firms from possible collapse.
jlne.ws/1XDYtL4

New York Proposes New Banking Rules to Staunch Flow of Illicit Financing
By BEN PROTESS – NY Times
As authorities around the globe grapple with the threat of terrorism, Gov. Andrew M. Cuomo is preparing to impose new regulations on New York State banks to prevent illicit money from flowing through Wall Street and into the hands of militants and criminals.
jlne.ws/1ThYza1

Bank of England declares end to post-crisis period – FT
The Bank of England has declared that the UK’s financial system has moved out of the “post-crisis period” but was not showing enough signs of overheating to require action to rein in credit.
jlne.ws/1XDYAWP

SEC Names Katherine Martin as Associate Director in the Office of International Affairs
SEC
The Securities and Exchange Commission today announced that Katherine K. Martin has been named Associate Director in its Office of International Affairs.
jlne.ws/1XDYSgl

New Trax ‘Insight Demonstrator’ Helps Industry Prepare for Regulatory Obligations
MarketAxess Holdings
Trax Offers Testing Environment for MiFID II Transaction Reporting
Trax, a leading provider of capital market data, trade matching and regulatory reporting services, has launched the Insight Demonstrator, a validation engine that allows institutional firms to test their reporting activity against the new MiFID II transaction reporting obligations.
jlne.ws/1Ti3JTj

Lawyers call for clarity on possible Mifid delay
Futures & Options World
Greater clarity and a final decision over a potential delay to the implementation of Mifid II are required, lawyers have warned, after the European Parliament last week said it was ready to accept a delay to the introduction of the far-reaching reforms.
jlne.ws/1LLdNPd

Exchanges & Trading Facilities

Intercontinental Exchange announces launch of 81 new energy contracts
ICE
Intercontinental Exchange (NYSE:ICE), the leading global network of exchanges and clearing houses, today announced the introduction of 81 new energy futures and options contracts on December 14, 2015, subject to the satisfactory completion of applicable regulatory processes.
jlne.ws/1HCXngO

SGX launches SGX Thematic Indices
SGX
Singapore Exchange (SGX) today announced the launch of SGX Thematic Indices, a suite of equity indices under its index business, SGX Index Edge.
jlne.ws/1MTGqNX

BATS eyes second attempt at float after botched IPO; The exchange was forced to scrap its float in 2012 when computer glitches caused its stock market debut to flounder
By Ben Martin – Telegraph
The American stock exchange operator that was forced to scrap its float following technical glitches on its own computers is planning a second attempt at an initial public offering.
jlne.ws/1lseeZ9

Xetra Release 16.0 includes innovative matching functions; Technical and functional enhancements of the trading system/Volume Discovery Order provides MiFID II-compliant execution of large volume orders
Deutsche Börse
Deutsche Börse Cash Market: Deutsche Börse introduced a more advanced version of its Xetra electronic trading system on Monday. With the new 16.0 release, the operator of the Frankfurt Stock Exchange offers its customers new matching functions specially designed for larger volume orders. In addition hardware optimisation has furthermore led to an overall performance improvement and reduction in latency.
jlne.ws/1IzT5BJ

NLX lists options for testing, eyes 2016 launch
Futures & Options World
Nasdaq NLX, the fixed income exchange, has made available for trading European interest rate options in a test environment with a view to possibly launching these contracts in earnest next year. NLX, which has seen its futures volumes drop-off in the past year, said it listed euribor and short sterling options in the member facing test environment on Monday while options on bund, bobl and schatz “will follow shortly”.
jlne.ws/1HCZXU5

LME to boost revenue from allowing metal as collateral
BY ERIC ONSTAD – Reuters
The London Metal Exchange (LME) expects to boost revenue from a new service that allows members to use metal as collateral instead of cash and bonds, an executive of the exchange’s clearing house said on Monday.
jlne.ws/1NkLFDn

Can the London Metal Exchange crack the steel market? Andy Home
By Andy Home – Reuters
The London Metal Exchange (LME) has just launched two steel contracts, one for steel scrap and one for steel rebar.
jlne.ws/1lVoEB7

Sebi green light for exchange IPOs; Proposes regulations for green bonds and private debt placement offering online
Business Standard
The Securities and Exchange Board of India (Sebi) on Monday cleared the decks for initial public offerings (IPOs) by stock exchanges and depository firms by providing clarity on the listing framework.
jlne.ws/1NkGjIx

Hong Kong bourse bolsters product portfolio for future growth
Asia Asset Management – The Journal of Investments & Pensions
Hong Kong Exchanges and Clearing Limited (HKEx) is broadening its product portfolio with 34 new stock futures contracts and three more London Metal Mini Futures contracts that are part of a plan to prepare the Hong Kong market for future investment demands. In his latest blog, posted on November 29, HKEx Chief Executive Charles Li writes about why an expanded product portfolio is important to HKEx’s long-term strategy:
jlne.ws/1LLbRpL

THE SPANISH STOCK MARKET TRADED EUR894.5 BILLION TO NOVEMBER, UP 11.4% YEAR ON YEAR
BME
The equity trading volume in November reached EUR70.1 billion
Trading volume in ETFs to November increased 31.1% to EUR11.7 billion
The trading volume in the Warrants and Certificates market in the first eleven months was up 39%
Trading volume in IBEX 35 Futures to November was up 7% year on year
New issues on the Corporate Debt market in November were up 61,1%, at EUR7.7 billion
(NO LINK)

Hedge Funds & Managed Futures

Commodity performance in 2015
Business Insider
Commodities have been getting creamed in 2015. And according to Jodie Gunzberg, global head of commodities at S&P Dow Jones Indices, it isn’t going to get any better any time soon.
jlne.ws/1LL9OlF

A Flurry of ‘Unusual’ Options Bets in Zoetis, Kohl’s, Wal-Mart, Target, AT&T
By SAUMYA VAISHAMPAYAN – WSJ
Several large bets swept through the options market on Monday.
jlne.ws/1QaV1a9

Einhorn’s Greenlight Capital down 5 pct in Nov., off 20.6 pct YTD-sources
Reuters
Hedge fund manager David Einhorn has lost 20.6 percent this year, widening already deep losses when a bet on SunEdison cratered more than 50 percent this month, two people who have seen his returns said on Monday.
jlne.ws/1XuzC1l

Why IPOs ‘pop’ in New York but not HK
Jennifer Hughes in Hong Kong – FT
When Square’s shares surged 45 per cent on their first day of trading in New York last month, the online payments group shrugged — publicly, at least. Its opening day “pop” ranked just fifth among US IPOs in the year to date, and 27th in the past five years.
jlne.ws/1Rj9ly0

Banks & Brokers

Morgan Stanley Calls 2016 the Year of the Yen With BOJ on Hold
Lananh Nguyen – Bloomberg
Top trades include buying yen versus pound, franc and won
Japan’s currency will reach 115 versus dollar, bank forecasts
The yen will outshine the dollar as next year’s star performer in the $5.3 trillion-a-day global currency market, according to Morgan Stanley.
jlne.ws/1XDXWsx

Bank of England stress tests: RBS and Standard Chartered flagged for “capital inadequacies” as Bank warns new capital requirements could be introduced next year
by Lauren Fedor – City AM
British banks could be required to bolster their capital reserves by billions of pounds as soon as next year, the Bank of England said this morning, as it revealed that two of the country’s largest lenders had narrowly avoided failing its latest round of stress tests.
jlne.ws/1XDYaQn

RBS and Standard Chartered singled out as BoE unveils stress test results; Bank of England warns lenders they may have to set aside an extra £10bn as a capital buffer
By Tim Wallace – Telegraph
All of Britain’s biggest banks are strong enough to survive another major recession, the Bank of England said, although Royal Bank of Scotland and Standard Chartered came close to failing their annual stress tests.
jlne.ws/1jx0A5L

Wall Street Perk: Parental Leave; Credit Suisse gives new parents 20 weeks of paid time off as firms vie on benefits
By RACHEL EMMA SILVERMAN – WSJ
Lately Wall Street firms have been competing to offer the best benefits for new parents, adding weeks of paid maternity and paternity leave and providing perks such as nannies for business trips. The latest entrant in the race: Credit Suisse Group AG.
jlne.ws/1QRrMLa

Nomura says to boost Americas operations
Reuters
Japan’s biggest brokerage Nomura Holdings Inc on Tuesday said it will boost its Americas operation and invest further in it over the next two to three years.
jlne.ws/1Su4OqV

J.P. Morgan Hired Friends, Family of Leaders at 75% of Major Chinese Firms It Took Public in Hong Kong; Program known internally as ‘Sons and Daughters’ ran from 2004 to 2013
By NED LEVIN – WSJ
J.P. Morgan Chase & Co. hired friends and family members of executives at three-quarters of the major Chinese companies it took public in Hong Kong during a decadelong boom in Chinese IPOs, according to a document compiled by the bank as part of a federal bribery investigation.
jlne.ws/1jx2tzz

R.J. O’Brien (UK) Limited Wins ‘Best FCM – Innovation’ Award at CTA Intelligence European Services Awards 2015
Press Release
Chicago-based R.J. O’Brien & Associates (RJO) today announced that its London-based affiliate R.J. O’Brien (UK) Limited has won the award for “Best FCM – Innovation” at the CTA Intelligence European Services Awards 2015.
jlne.ws/1lseyav

Clearing & Settlement

Regulators’ boost for securities lending has risky implications
FT.com
New rules on bank capital, liquidity and the clearing of derivatives transactions are overhauling the way banks manage their balance sheets — and making the borrowing of ultra-safe bonds a good shortcut to compliance.
jlne.ws/1LL7qv6

Trade repositories fall short warns CPMI-IOSCO study
Banking Technology
Just under two-thirds of the world’s leading nations in capital markets have now adopted international best practices, according to a new report on financial market infrastructures, but more work is needed on trade repositories.
jlne.ws/1HCZpgO

***DA: Final assessment? “We’re getting there.” More work to be done, especially in the trade repository category.

Indexes & Products

S&P Dow Jones Indices Market Attributes: U.S. Index Dashboard
Press Release
Following a mid-month decline, U.S. equities rallied to end November in the black, as both the Dow Jones Industrial Average and the S&P 500 ended up less than 1% on a total return basis. Financials were the strongest sectoral performer, gaining 2% and entering positive territory year to date. The Utilities sector was the laggard, declining 2%. Volatility ticked up, as VIX ended the month up 7%.
jlne.ws/1LL9F1u

Japan Exchange Group: Launch Of S&P/JPX GIVI
Mondovisione
S&P Dow Jones Indices, Japan Exchange Group and Tokyo Stock Exchange today announced the launch of the S&P/JPX GIVI (Global Intrinsic Value Index).
jlne.ws/1TqPLzj

Investors chase new arrivals on MSCI
The Economic Times
Investors lapped up shares of companies that would be included in the MSCI indices from Tuesday on hopes that these shares will give better returns in the short term.
jlne.ws/1LL8fEm

This New ETF Tracks the Green Version of the S&P 500; The S&P 500 is now available scrubbed of companies that own fossil fuel reserves.
Eric Balchunas – Bloomberg
If you could scrub the carbon footprint from your S&P 500 exposure, would you?
jlne.ws/1lse4kv

How to gain from US-listed China firms included in MSCI indexes
EJ Insight
Market index provider MSCI Inc. has announced the inclusion of 14 US-listed Chinese companies in its MSCI Emerging Markets Index and MSCI China Index. Alibaba, Baidu, Ctrip and JD.com are among the stocks included. The index restructuring will be done in two steps, one in November and the other in May, to avoid volatility.
jlne.ws/1LL8uz8

‘Revolutionary’ changes in the index business
Mark Makepeace, CEO of FTSE Russell and LSEG Director of Information Services – Yorkshire Post
This is the last monthly column from London Stock Exchange Group in 2015, and as we all start to look ahead to 2016, at LSEG we have also been looking back and celebrating a notable milestone; FTSE International’s 20th anniversary.
jlne.ws/1LL9eEo

Technology

India is limiting its own innovation by sitting on a huge pile of pending patent applications
Itika Sharma Punit – Quartz
The Indian government is sitting on a growing pile of pending applications for patents and trademarks due to a staffing shortage. According to data shared on Nov. 30, the Indian government currently has 246,495 pending applications for patents (up from 226,339 in July) and more than half a million pending applications for trademarks.
jlne.ws/1N1eMwx

Fintech’s advantages: financial technology revolution is a boon for investors
Sydney Morning Herald
All we seem to hear about fintech? outfits is how they’re nibbling away at the banks, but it’s what they’re doing for investors that I like. Fintech, short for financial technology, is the buzzword for companies that apply software to finance. Don’t be put off by that. I call it a financial revolution.
jlne.ws/1LLa9Vu

How Financial Technology is Disrupting the Industry
NASDAQ.com
Technology is continually disrupting and shaping the landscape of many industries from communication to financial services. Traditionally, big banks and financial institutions had controlled the end-to-end process of lending, investing, and banking.
jlne.ws/1LLaHut

Kynetix announce commodity title transfer on blockchain using Sentinel
Kinetic
Kynetix, a global leader in commodity settlement and physical deliveries platforms, today announced it has successfully transferred title to a single lot of pepper using its blockchain-enabled Sentinel platform.
jlne.ws/1Ti3SGi

Metamako launches Partner Programme, with Algo-Logic first to join
Press Release
Metamako, the leading specialist in deterministic ultra-low latency devices for the world’s trading community has announced the launch of a Partner Programme, which will allow third parties to develop applications for Metamako’s platform. In addition to Metamako’s own applications, MetaMux and MetaWatch, partners will be able to build a broad range of additional applications. Algo-Logic, an FPGA and gateware developer for global financial institutions, is the first company to join the programme; a number of other vendors are working with Metamako on partnerships.
jlne.ws/1XuFk3e

What Fidelity National Has Planned for SunGard
Bloomberg
Fidelity National Information Services CEO Gary Norcross discusses the company’s acquisition of SunGard. He speaks on “Bloomberg Markets.” (Source: Bloomberg)
jlne.ws/1PYiCMB

Enforcement

Federal Court in Illinois Permanently Bans Former Sentinel Management Group, Inc. CEO and President Eric A. Bloom from the Commodities Industry
The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Charles P. Kocoras of the U.S. District Court for the Northern District of Illinois entered an Order for permanent injunction against Eric A. Bloom, formerly of Northbrook, Illinois, to resolve charges against him alleging violations of Section 4d(b) of the Commodity Exchange Act (CEA) in the handling of $562 million in commodity customer segregated funds that had been managed by Sentinel Management Group, Inc. (Sentinel).
1.usa.gov/1PWdmci

Standard Bank to Pay $4.2 Million to Settle SEC Charges
SEC.gov
The Securities and Exchange Commission today charged Standard Bank Plc with failing to disclose certain payments in connection with debt issued by the Government of Tanzania in 2013. The London-based bank acted as a lead manager for the offering and failed to disclose payments made by an affiliate to a Tanzanian firm that received a portion of the proceeds of the $600 million offering but performed no substantive role in the transaction.
1.usa.gov/1Rhf6wa

Standard Bank to pay $25m to settle bribery case
Jane Croft and Lindsay Fortado – FT
The headquarters of the Serious Fraud Office in Westminster.©Charlie Bibby
The British arm of South Africa’s Standard Bank will pay a $25.2m fine to settle accusations of bribery as part of the Serious Fraud Office’s first deferred prosecution agreement.
jlne.ws/1ThYDqe

Republicans’ new, twisted climate logic
By Stephen Stromberg – Washington Post
Senate Majority Leader Mitch McConnell (R-Ky.) published a twisted op-ed over the weekend in The Post arguing that “Obama thinks it’s okay to push a power plan that threatens working families for the benefit of, at best, a carbon rounding error.” How does he know President Obama’s plan will be so insignificant? In part because he and other Republicans are determined to make it ineffective. In other words, Republicans oppose Obama’s climate plan because it won’t work, and it won’t work because Republicans oppose Obama’s climate plan.
jlne.ws/1IlOMPz

Environmental & Energy

India and France launch international solar power alliance in Paris – video
The Guardian
Indian prime minister Narendra Modi holds a news conference alongside French president François Hollande on Monday to launch a global initiative for the promotion of solar power. The alliance of over 120 countries has pledged to invest in providing solar energy to developing areas, with Modi stating that the project will create ‘unlimited economic opportunities’, which will form the ‘foundation of the new economy of this century’
jlne.ws/1Nnzfza

Dhaka: the city where climate refugees are already a reality
The Guardian
Every day, another 2,000 people move to the Bangladeshi capital. It’s nothing new – for generations Dhaka has been a magnet for those escaping rural poverty – but now climate change is accelerating the race to the city
Parul Akter travelled across Bangladesh to escape the flood waters, but they seem to have followed her. The shack she shares with her husband and four children in Dhaka, the nation’s capital, sits on the edge of the sprawling Korail slum – next to a lake. When it rains, dank water sloshes into their shelter. Only the bed, raised up on bricks, stays dry. “This room is all we have, so we need to stay here no matter what happens,” said Akter.
jlne.ws/1IzCJcm

A Path for Climate Change, Beyond Paris
By JUSTIN GILLIS – NY Times
The pledges that countries have signaled they will make in Paris over the next two weeks to cut emissions will inevitably fall short of what is needed to solve the problem of climate change.
jlne.ws/1LL9kMm

Asia-Pacific

How China Plans to Blacklist Financially Unstable Citizens
by Caren Morrison – Fortune
China has a problem. No, not Donald Trump trying to savage it any time he comes within three feet of a microphone. It’s that enormous social shifts in recent years—like the forcible relocation of 250 million people from rural areas to urban environments—have transformed the country, in the words of its Academy of Social Sciences, from “a society of acquaintances into a society of strangers.”
jlne.ws/1O0sFLl

Shanghai takes command in metals markets
By Henry Sanderson – FT
Over the summer the surge of Chinese retail investors into equities alarmed global markets. Now the same is happening in commodities, as metals become a favourite tool to bet on a slowing Chinese economy.
jlne.ws/21rJyZ1

Signs of froth in China’s debt market
FT.com
It is tempting to believe that investors in the Chinese markets might have learnt a few lessons from the huge correction in the stock market this summer. Some have but many more seemingly have not.
jlne.ws/1LLbM5i

Chinese currency’s inclusion in IMF basket a ‘historic opportunity’ for Hong Kong
South China Morning Post
Hong Kong can play a pivotal role in facilitating the use of the yuan as a currency for international settlement, leveraging its unique position to become a leading offshore trading hub, according to the city’s de facto central bank chief.
jlne.ws/1LLc10u

China joins IMF currency basket: Why it matters
News OK
The addition of China’s yuan to the select basket of currencies used as a yardstick by the International Monetary Fund is a sign, experts say, that the yuan may one day become as recognizable as the dollar or euro.
jlne.ws/1LLcj7m

Small-caps rescue Singapore’s struggling stock market
Singapore Business Review
Small-caps have come to the Singapore Exchange’s rescue this year. While large firms have largely shied away from listing on the SGX, small and medium enterprises have been extremely eager to launch their shares on the local bourse.
jlne.ws/1LLcpvQ

Citic Securities Would Face Takeover in Daiwa’s `Worst Case’
Bloomberg News
Analysts lay out 4 potential developments for top China broker
Brokerage’s `crisis’ could lead to restructuring: Daiwa
Citic Securities Co., China’s biggest brokerage, may be acquired by a rival in a regulator-driven transaction if its woes deepen beyond existing management “turmoil” and regulatory and legal probes, according to Daiwa Securities Group Inc.
jlne.ws/1lsiurJ

Frontier Markets

Introduction of system-driven disclosures in Securities Market
SEBI
jlne.ws/1jwYDGw

Sebi proposes framework for public issue of convertible bonds; Lack of detailed framework has prevented these fund raising instruments from being as popular as IPOs or rights issue
BS Reporter
Capital market regulator Securities and Exchange Board of India (Sebi) on Tuesday proposed a framework for public issuance and trading of convertible securities by both listed and unlisted companies. Such securities are debt instruments that can be converted into equity at a later date.
jlne.ws/1YES9VO

‘Fit & Proper’ criteria for exchange shareholders diluted; Sebi lays onus of small shareholders ‘fit and proper’ status on listed exchange, doesn’t allow self listing
Jayshree P Upadhyay – Business Standard
The Securities and Exchange Board of India (Sebi) has diluted the provisions of ‘Fit & Proper’ and laid onus to examine the criteria for small shareholders on the stock exchanges. This decision was made in the quarterly Sebi board meeting held on November 30 in Mumbai.
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Miscellaneous

Cargill launches a unique starch enabling a minimum of 50% fat reduction in yoghurt; New n-OSA waxy starch allows for ultimate fat reduction while ensuring great mouthfeel and creaminess
Cargill
Dairy manufacturers can now achieve the optimal balance between healthier profiles and sensorial indulgence when reducing fat in yoghurt, a core food in most European consumers’ diets.
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Millennials cheer as boomers retire
By JILLIAN BERMAN – MarketWatch
Tales of baristas with college degrees may soon become more of a rarity.
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