First Read

Battle Fronts
Doug Ashburn – JLN

In his famous axiom, Von Clausewitz (a Prussian general and military theorist) called war “the continuation of policy by other means.” In the great global exchange war, it seems to be working the other way, with policy serving as a new battle front.

The latest salvo? The U.K.’s Competitive Markets Authority yesterday announced it may be undertaking an enhanced review of last fall’s acquisition of energy trading platform Trayport by Intercontinental Exchange. According to the CMA, the acquisition could become detrimental to competition, such as by raising prices or lessening the quality of service on Trayport, thereby diverting business onto its exchange. CMA has given ICE until May 5 to address what it refers to as “extensive third-party concerns.” (Scroll down to the “Leads” section for more on the story).

And now the conspiracy theorist in me has emerged. Who are these “third parties?” Are they Trayport users, or are they, maybe, rival exchange groups entrenched in a war over global dominance? As Deutsche Boerse Group continues its planned “merger of equals” with the London Stock Exchange Group, while ICE contemplates a counteroffer, the CMA review could not have come at a more critical time. It’s bad enough that the merger war is heating up just as Britain is gearing up for a June referendum on its future with the EU.

At LSEG’s annual meeting earlier this week, chairman Donald Brydon said a possible “Brexit” would have “no effect” on the proposed merger. But in the court of public opinion and among certain UK and German politicians, it matters.

Meanwhile, exchange giant CME Group which, by all counts, appears to be sitting this one out, just announced record earnings, lending some credence to the idea of organic growth as the best strategy.

Back to Trayport. LSEG CEO Xavier Rolet has had to walk back recent statements made about ICE’s possible interloping into the merger. He called ICE’s period as Euronext parent “a disaster” and referred to the Atlanta-based exchange group as a “slash-and-burn” organization. But the real comment, and the one that raised my hackles, is this one, as quoted in the FT: “Our American futures friends have kept increasing fees every year, in 2009, 2010, when everybody was on their back bleeding to death. Total cost of trading is too high, so it’s going to change.”

That message is consistent with what the CMA said yesterday, and it makes me think of another famous axiom, from W.T. Sherman – “War is hell.”

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JPX taps Cinnober for Risk Monitoring
Cinnober
Next step in the Japanese Exchange’s Next Generation Clearing System Project
JPX, one of the world’s largest financial marketplaces, has chosen Cinnober for risk monitoring across the entire Japanese market of equities, bonds, futures, options, CDS and IRS. This follows an announcement earlier this year where JPX selected Cinnober for the clearing of the exchange’s listed derivatives market.
goo.gl/R1DrsH

***** Another win for the Cinnober team, coming on the heels of the February deal with JPX on real-time clearing for listed derivatives, as featured in a MarketsWiki Spotlight in the March 1 JLN HERE

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CME Group Inc. Reports Strong First-Quarter 2016 Financial Results
Press Release
Total average daily volume reached a record 16.9 million contracts in first-quarter 2016, achieving quarterly records in energy, total options and electronic options; Record first-quarter 2016 revenue of $934 million increased 11 percent compared with first-quarter 2015; Record first-quarter 2016 adjusted net income and record adjusted diluted earnings per share increased 18 percent and 17 percent, respectively
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Wednesday’s Top Three: You Are Not The Only One
At the the top of the leaderboard in yesterday’s JLN was the career advice story from eFinancialCareers, “I wake up 3 times a night to check the Bloomberg”. See, you aren’t the only one doing it. Second prize goes to, surprise surprise, another Igor Oystacher story from Bloomberg. Rounding out the top three was the announcement of Steve Trimble as the newest addition to the lineup at Wedbush.
GMI-Blockchain Conference
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Lead Stories

Wall Street watchdog has unfinished business with bad brokers
BY SUZANNE BARLYN – Reuters
The head of a brokerage industry watchdog says he will leave behind at least one piece of unfinished business when he retires this year: improving access to data so that regulators can more quickly halt problem brokers, and investors can avoid them.
goo.gl/t4116n

US renews push for monitoring equity market
Robin Wigglesworth, US markets editor – FT
US regulators are renewing their ambitious push for a vast computer system to monitor the $23tn US stock market in real time after nearly six years of delays undermined the project.
goo.gl/D8GL5g

ICE’s $650m Trayport deal set for lengthy probe
Philip Stafford – FT
Intercontinental Exchange faces a lengthy delay to integrate its $650m purchase of Trayport, an electronic energy trading platform, as UK antitrust regulators are set to open an in-depth investigation into the deal.
goo.gl/oN2u7T

UK regulator sets outs plans to improve debt markets
Caroline Binham, Financial Regulation Correspondent – FT
The UK’s financial watchdog has pledged to become more streamlined and “user-friendly” for participants in the debt market as part of an overhaul of the country’s capital markets.
goo.gl/tXx5xf

Nasdaq mulls new exchange to ease trading in illiquid ETFs – CEO
BY JOHN MCCRANK – Reuters
The acquisition of U.S. options exchange operator ISE from Deutsche Boerse AG was approved by the U.S. Department of Justice last week, Robert Greifeld, Nasdaq’s chief executive officer, said on a call with analysts.
goo.gl/jpOkKZ

Daniel Loeb warns of hedge fund ‘killing field’
Mary Childs and Stephen Foley in New York – FT
One of the most powerful US hedge fund managers believes that the industry is in “first innings of a washout” after a string of disastrous market calls inflicted steep losses on many funds.
goo.gl/e9MSUp

Prime brokerage reassessed as banks seek growth and stable earnings
Laura Noonan – FT
Hedge fund servicing business is expected to grow strongly after period of uncertainty
Slash and burn were the words of the moment on a March morning when Credit Suisse announced the latest plans to restore the fortunes of its investment bank. But, buried among all the drastic measures, was a little-noticed decision to reinvest in a business that the Swiss bank was believed to have consigned to the scrap heap.
goo.gl/n9U3Pf

LSE says merger with Deutsche Boerse ‘compelling’ as revenues rise
Marion Dakers – Telegraph
London Stock Exchange Group has defended its “compelling” merger with German peer Deutsche Boerse and reported rising revenues as it faced shareholders at its annual meeting.
goo.gl/3qvw8F

Deutsche Boerse Takes Aim at Local Opposition to London Merger
John Detrixhe, Angela Cullen – Bloomberg
German CEO sees LSE deal linking Frankfurt to tech, funding; London headquarters among reasons for negative views locally
Deutsche Boerse AG’s plan to take over London Stock Exchange Group Plc has been facing objections at home, forcing the company to strike a difficult balance between shareholders and locals as it seeks to create a European industry powerhouse.
goo.gl/mQwipL

Regulatory

SEC Seeks Public Comment on Plan to Create A Consolidated Audit Trail
SEC
The Securities and Exchange Commission today voted to publish for public comment a proposed national market system (NMS) plan to create a single, comprehensive database that would enable regulators to efficiently track all trading activity in the U.S. equity and options market. The plan for the database, known as the consolidated audit trail (CAT), was submitted jointly by the self-regulatory organizations (SROs) as required by Rule 613 of Regulation NMS.
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Exempt market requirements – AMF proposes revocation of section 37.2 of Securities Regulation
AMF
On April 7, 2016, the Autorité des marchés financiers (the “AMF” or the “Authority”) published the Regulation to amend Regulation 45-106 respecting Prospectus Exemptions. In connection with the publication, the AMF also published, for comment, a draft Regulation intended to revoke section 37.2 of the Securities Regulation This link will open in a new window.
goo.gl/vpIyXz

FX: Fund managers awake to Mifid II
By: Paul Golden – Euromoney
With the Markets in Financial Instruments Directive II (Mifid II) on the horizon, the regulation is likely to impact FX market structure – indirectly.
goo.gl/K2uLKw

CMA threatens ICE with full competition probe into Trayport deal
By Huw Jones – Reuters
Britain’s competition watchdog said on Wednesday it is to open an in-depth investigation into Intercontinental Exchange’s (ICE.N) takeover of commodities trading software house Trayport unless the exchange can offer undertakings within five days.
goo.gl/8n8w32

IEX exchange bid should be judged on its own merits -FINRA chief
By John McCrank – Reuters
A proposal to let U.S. stock exchanges delay order responses by less than a millisecond will likely move ahead, paving the way for “Flash Boys” heroes IEX Group to become an exchange, the head of Wall Street’s self-funded watchdog said on Wednesday.
goo.gl/SrCh5R

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

    • Bats BZX: Notice of Filing of a Proposed Rule Change to Rule 14.11, Managed Fund Shares, to List and Trade Shares of the Pointbreak Agriculture Commodity Strategy Fund of the Pointbreak ETF Trust (Release No. 34-77723; File No. SR-BatsBZX-2016-09)
    • Bats BZX: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Extend the Pilot Period for the Exchanges Supplemental Competitive Liquidity Provider Program (Release No. 34-77721; File No. SR-BatsBZX-2016-11); see also Exhibit 5
    • ISE Mercury: Notice of Filing of Proposed Rule Change Relating to Preferenced Volume (Release No. 34-77716; File No. SR-ISEMercury-2016-09; April 26, 2016); see also Exhibit 5
    • NASDAQ OMX BX: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Update Public Disclosure of Exchange Usage of Market Data (Release No. 34-77719; File No. SR-BX-2016-022)
    • NMS: Joint Industry Plan; Notice of Filing of the National Market System Plan Governing the Consolidated Audit Trail by BATS Exchange, Inc., BATS-Y Exchange, Inc., BOX Options Exchange LLC, C2 Options Exchange, Incorporated, Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., International Securities Exchange, LLC, ISE Gemini, LLC, Miami International Securities Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The NASDAQ Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc. (Release No. 34-77724; File No. 4-698)
    • OCC: Notice of Designation of Longer Period for Commission Action on Proposed Rule Change Related to the Adoption of an Options Exchange Risk Control Standards Policy (Release No. 34-77720; File No. SR-OCC-2016-004)

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Exchanges & Trading Facilities

Deutsche Börse Reports Profit Decline, Says LSE Merger on Track; Exchange CFO upbeat on reaching profit-growth target for the year
By ULRIKE DAUER – WSJ
German exchange operator Deutsche Börse AG late Wednesday reported a 7.6% decline in net profit for the first quarter, on higher costs for integrating recent acquisitions, and said merger plans with London Stock Exchange Group PLC were on track.
goo.gl/f7BmEL

Futures market operator CME Group’s profit rises 11 pct
Reuters
CME Group Inc, the world’s largest futures market operator, reported an 11.3 percent rise in quarterly profit as a rout in the energy markets boosted trading volume.
goo.gl/zlNoA2

Nasdaq reports strong Q1 amid falling FICC revenues; CEO, Bob Greifeld, said strong performance was down to “relentless focus on applied technology, innovation, and resiliency.”
By Hayley McDowell – The Trade
Nasdaq’s first quarter earnings revealed a 5% increase in overall net revenues, as earnings for fixed income, currency and commodities (FICC) fell.
goo.gl/er2Q64

ICE highly likely to offer LSE counterbid, says Credit Suisse analyst
By Joe Parsons & Hayley McDowell – The Trade
IntercontinentalExchange (ICE) is highly likely to launch a much higher counterbid for the London Stock Exchange Group (LSEG), according to Credit Suisse analysts.
goo.gl/K5CO4F

SIX Annual Report 2015 – Now Available
Mondovisione
SIX had an exceptional financial year. The Annual Report 2015 shows how SIX is driving innovation with ideas, collaborations and technologies for tomorrow – in picture and sound.
goo.gl/2BxsRt

Moscow Exchange Proposes Two Additional Members to its Executive Board
MOEX
Moscow Exchange’s new Supervisory Board met for the first time on 27 April 2016 following its election at the Company’s AGM. The new Board is comprised of 12 Directors, of which five are independent.
goo.gl/AIiLek

Japan Exchange Group: Notice Of Partial Amendment To The Articles Of Incorporation
Mondovisione
At the meeting of the Board of Directors held on April 28, 2016, Japan Exchange Group, Inc. resolved to propose the “Partial Amendment to the Articles of Incorporation”, as below, for resolution at the 15th Annual General Shareholders Meeting to be held on June 21, 2016.
goo.gl/LguP18

Nasdaq Welcomes Yintech Investment Holdings Limited (Nasdaq: YIN) to The Nasdaq Stock Market Nasdaq
Nasdaq
Yintech is the largest online provider of spot commodity trading services in China by customer trading volume in both 2014 and 2015, according to Euromonitor. The company facilitates the trading of silver, gold and other precious metals and commodities for retail investors on three leading exchanges, namely the Shanghai Gold Exchange, the Tianjin Precious Metals Exchange and the Guangdong Precious Metals Exchange, which were the three largest spot commodity exchanges in China in terms of trading volume in 2015, respectively. Yintech provides their customers with comprehensive services, including account opening, investor education, market information, research, live discussion boards and real-time customer support.
goo.gl/hN9TZV

Politics

President Obama Weighs His Economic Legacy; Eight years after the financial crisis, unemployment is at 5 percent, deficits are down and G.D.P. is growing. Why do so many voters feel left behind? The president has a theory.
By ANDREW ROSS SORKIN
Two months ago, across an assembly-room table in a factory in Jacksonville, Fla., President Barack Obama was talking to me about the problem of political capital. His efforts to rebuild the U.S. economy from the 2008 financial crisis were being hit from left, right and center. And yet, by his own assessment, those efforts were vastly underappreciated. “I actually compare our economic performance to how, historically, countries that have wrenching financial crises perform,” he said. “By that measure, we probably managed this better than any large economy on Earth in modern history.”
goo.gl/o5umuF

Hedge Funds & Managed Futures

Libya fund accuses Goldman Sachs of breaching its own rules
By Jane Croft – FT
The brother of a top Libyan official who secured an internship at Goldman Sachs was paid a pro-rata salary of £36,000 plus a housing allowance — soon after the US bank carried out lossmaking trades on behalf of Libya’s sovereign wealth fund.
goo.gl/PmP4F8

Fed to Markets: Nothing to See Here
By BEN EISEN – WSJ
The Federal Reserve’s message to investors on Wednesday was clear: Nothing to see here.
goo.gl/6CbtKB

UBS cancer treatment development fund raises $470m
By Brian Blackstone, The Wall Street Journal
UBS said on April 27 that it has raised nearly $500 million for a fund aimed at investments in developing new cancer treatments, tapping into growing interest in cancer research.
goo.gl/1Kd5Pu

Pension funds cut FX costs
By: Paul Golden – Euromoney
Execution management systems (EMSs) are playing a key role in enabling pension funds to lower their FX costs. Print Order Pension fund clients have unique challenges in ensuring they are engaging the FX markets in the most effective ways to minimize their costs.
goo.gl/3OJyRJ

Loeb’s Third Point Says Hedge Funds in ‘Catastrophic’ Period
Saijel Kishan, Joshua Fineman- Bloomberg
Hedge funds in first innings of ‘washout,’ firm says in letter; Increasing complexity in markets is here to stay, firm says
Third Point, founded by Dan Loeb, said hedge funds are in the first stage of a “washout” after “catastrophic” performance this year.
goo.gl/uxXwH1

The World Needs More U.S. Government Debt
By Narayana Kocherlakota – Bloomberg View
Are government-imposed restrictions holding back the U.S. economy? In a way, yes: The federal government is causing great harm by failing to issue enough debt.
goo.gl/19Qpkb

Bank of Japan Stuns Markets by Holding Its Fire; Japanese yen gains as much as 3.2% against the U.S. dollar following the BOJ’s decision
By GREGOR STUART HUNTER – WSJ
Bank of Japan Gov. Haruhiko Kuroda hasn’t lost his ability to shock—even when he sits on his hands.
goo.gl/NQCc55

Banks & Brokers

Citigroup trader claims unfair dismissal for whistleblowing
BY STEVE SLATER – Reuters
A former senior interest rate trader at Citigroup, Marco Arosio, is suing the US bank for unfair dismissal, including being fired for whistleblowing.
goo.gl/nquswv

BGC PARTNERS REPORTS FIRST QUARTER 2016 FINANCIAL RESULTS
BGC Partners
BGC Partners, Inc. (NASDAQ: BGCP) (“BGC Partners” or “BGC” or “the Company”), a leading global brokerage company servicing the financial and real estate markets, today reported its financial results for the quarter ended March 31, 2016. Unless otherwise stated, the financial results and other metrics for the Company’s division, GFI Group Inc. (“GFI Group” or “GFI”), are consolidated with those of BGC for all periods from February 27, 2015 onward./default.aspx#sthash.dUbDlJpi.dpuf
goo.gl/aLRPVU

Deutsche Bank Profit Down 58 Percent Amid Challenging Markets
By CHAD BRAY – NY Times
LONDON — Deutsche Bank said on Thursday that its profit fell 58 percent in the first quarter compared with a year earlier, as challenging conditions in the financial markets at the beginning of the year and its decision to exit some businesses weighed on its results.
goo.gl/V4mUok

Liquidnet Europe Announces Appointment Of Non-Executive Director To Board – Thierry Sciard Brings Over 30 Years Of Fixed Income Expertise
MondoVisione
Liquidnet, the global institutional trading network, today announced the appointment of Thierry Sciard as a non-executive director to the board of Liquidnet Europe. In his new role, Thierry will draw from more than thirty years of experience in the fixed income markets to assist the continued growth of Liquidnet’s fixed income trading platform which currently has over 160 global buy-side Members and six sell-side traders signed-up.
goo.gl/Dv0bqr

Prime brokerage reassessed as banks seek growth and stable earnings
Laura Noonan – FT
Hedge fund servicing business is expected to grow strongly after period of uncertainty
Slash and burn were the words of the moment on a March morning when Credit Suisse announced the latest plans to restore the fortunes of its investment bank. But, buried among all the drastic measures, was a little-noticed decision to reinvest in a business that the Swiss bank was believed to have consigned to the scrap heap.
goo.gl/myJm9S

Lloyds profits tumble as bond buyback costs weigh; Lloyds’ profits were cut in half by a major bond buyback, which should reduce its interest payments in the coming years
Tim Wallace – Telegraph
Lloyds profits fell by half in the first three months of the year as the cost of a major bond buyback hit the bottom line, and the bank also missed out on the profits from TSB as it sold its stake in the spin-off lender last year.
goo.gl/oUsoKw

Charles Schwab to Cease Selling Load Mutual Funds; These type of funds require investors to pay a commission
By SARAH KROUSE and JASON ZWEIG – WSJ
Charles Schwab Corp. plans to stop selling share classes of mutual funds that require investors pay a commission to brokers, the latest hit to the business of paying people to manage money.
goo.gl/gRlJo6

Clearing & Settlement

LSE clarifies clearing cost savings comments
Financial News
The London Stock Exchange Group has been forced to admit it has not yet worked out potential capital savings to users from its proposed merger with Deutsche Börse – the second clarification related to the deal it has had to make this week.
goo.gl/rSQRR1

Canadian Payments Association moves to ISO 20022
Banking Technology
The Canadian Payments Association (CPA) has adopted ISO 20022, as it looks to modernise Canada’s payment system. Gerry Gaetz, president and CEO of the CPA, says ISO 20022 will “enable the Canadian financial community to provide better service, both domestically and across borders, to their customers”.
goo.gl/wpm9iW

Nasdaq shares hands-on experience of capital markets and blockchains
International Business Times
Nasdaq stands apart from the vast majority of people looking at blockchains and finance because they have actually built something. During a fireside chat with Consult Hyperion’s David Birch, Nasdaq’s vice president of blockchain Fredrik Voss talked about what his team had learnt from the experience. The talk took place yesterday at the European Blockchain Congress, being held in London Docklands on April 26 and 27.
goo.gl/DTb9NH

Indexes & Products

Russell 2000 Recon: Banding results in lower turnover
FTSE Russell
Come the end of June, the constituents of all Russell indexes – and the ETFs and passive funds that track them – will be updated during the annual index reconstitution. While the Russell recon effectively keeps our indexes in line with their stated objectives, some observers fear that it could lead to unnecessary losses to passive investors from opportunistic “front-running” by traders during the reconstitution process. Over the 2003-2007 period Russell implemented several changes to its transparent reconstitution process in order to reduce unnecessary trading and to achieve a better balance between liquidity supply and demand. Russell 2000 numbers demonstrate these measures have been successful in reducing index turnover.
goo.gl/NZJxZy

STOXX Limited Wins “Most Innovative ETF Index Provider Europe” Award For The Seventh Time
Mondovisione
STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today announced that it has been named “Most Innovative ETF Index Provider Europe” in 2015 by exchangetradedfunds.com. This is the seventh consecutive year that STOXX has received this award, which was presented at the 12th Annual ETF Global Awards Dinner and Workshop hosted by exchangetradedfunds.com in New York on Apr. 21. Award winners were determined by votes cast in the industry and statistical rankings conducted by well-known ETF analysts, making the results an accurate representation of the views of the industry.
goo.gl/NMRomh

All grown up: In just six months, our Mini-DAX® Futures have made quite a name for themselves!
Eurex
Our Mini-DAX® Futures are available since 28 October 2015, and they are performing impressively: More than 2.4 million contracts have been traded since launch.; The most recent trading record of 47,900 contracts was set on 9 February.; A total of 154 Trading Participants, i.e. half of those active in DAX® Futures, trade the Mini-DAX®; 70 have been active since launch.; Two new Market-Making programs were introduced on 1 April 2016 to further enhance competitiveness versus CFDs; the bid/ask spread has continually improved since introduction.
This development comes as no surprise. Our Mini-DAX® Futures allow for simplified trading of the DAX®. The contract value of EUR 5 per index point makes up a mere fifth of the DAX® Futures and equals the DAX® Options. And Eurex Clearing guarantees the fulfilment.
goo.gl/LczREk

Euronext Expands ETF Activity to London
Euronext
Euronext has extended its range of ETF listing and trading venues to London, enabling ETF issuers to access the UK investor base alongside its existing Eurozone trading and distribution network. Further benefits to issuers include competitive pricing, superior European cross listing efficiency and reduced time to market. Lyxor today listed the first two ETFs on Euronext London, the Lyxor UCITS ETF FTSE EPRA/NAREIT Global Developed and the Lyxor UCITS ETF Euro Stoxx Banks .
/goo.gl/YX43u1

Why You Need Smart Beta Funds Now, And What You Should Ask
NASDAQ.com
Successful investing in ETFs hinges on asking the smart questions. That is true even when exchange traded funds promise to do the smart thinking for you. So-called smart beta funds continue to see extraordinary growth. These strategies don’t just replicate the benchmark. They focus on factors such as value, volatility or momentum to try to beat traditional, passive funds.
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Technology

Get off our patch – no room for fintech fakery
Banking Technology
A search for fintech now returns nearly ten million results – astounding, when you consider the first searches were recorded in 2005. But how many of those results focus on, or indeed are sourced from fintech innovators in the truest sense of the word, asks Philippe Gelis, CEO and co-founder Kantox.
goo.gl/cZLUdR

Robo-advice impact evident but is it all positive?
Money Management
An overwhelming majority of investment professionals around the world believe automated financial advice tools, or robo-advice will have a positive effect on advice costs, while 70 per cent of respondents said mass affluent investors will enjoy lower costs, improved access to advice and enhanced product choices.
goo.gl/RaA6on

Fintech group Quint explores sale options
By William Louch – Financial News
Quint Group, which was listed as the Sunday Times Tech Track’s fastest-growing fintech business of 2013, has appointed Cavendish Corporate Finance to explore options to sell a minority stake in the business, according to people familiar with the matter.
goo.gl/kn78JK

Email privacy bill unanimously passes U.S. House
BY DUSTIN VOLZ – Reuters
The U.S. House of Representatives voted unanimously on Wednesday to require law enforcement authorities to get a search warrant before asking technology companies to hand over old emails.
goo.gl/ZoBZli

Enforcement

Ex-banker in Singapore faces two more charges in 1MDB-linked case
Reuters
Singapore charged a former wealth manager at Swiss-based private bank BSI with cheating and obstructing justice on Thursday in a case related to a money laundering investigation linked to Malaysia’s embattled 1MDB investment fund.
goo.gl/wttNEc

Jacob Wohl Who Claimed Sharpe Ratio Of 7.87 Apparently On Regulator Radar
By Mark Melin – ValueWalk
Self-proclaimed “hedge fund guru” Jacob Wohl has apparently caught the eye of regulators. A regulatory complaint confirmation letter reviewed by ValueWalk, as well as apparent promotional materials and statements from a former employee, could point to a troubled road ahead. This all comes as Wohl might become an industry legend one way or another. On March 19 ValueWalk had highlighted the adventures of Jacob Wohl, who had received significant media attention, and we then asked “is regulatory trouble ahead.” The 18-year old wunderkind might now be headed for a direct confrontation.
goo.gl/9wkW6F

Japan’s Financial Services Agency: Information Sharing Of Cases Regarding Unauthorized Use Of Bank Accounts
Mondovisione
The FSA provides information regarding unauthorized use of bank accounts to relevant financial institutions and law enforcement authorities.
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Environmental & Energy

U.K. Must Seek 57% Carbon Dioxide Cut by 2030, Lawmakers Say
Alex Morales – Bloomberg
Panel recommends cutting CO2 per unit of power to 100 grams; Britain must replace dirty power stations with cleaner energy=
The U.K. government should adopt the advice of its climate-change adviser and seek to cut carbon dioxide emissions by 57 percent in the four decades through 2030, a panel of lawmakers said.
goo.gl/JxINHm

FTSE Russell: Innovative New Index Supports Investors Seeking To Divest Fossil Fuels And Invest In The Green Economy
MondoVisione
FTSE Russell, the global index provider, has launched an innovative new index that reduces exposure within the index to companies associated with fossil fuels while also increasing exposure within the index to companies engaged in the transition to a green economy. To gain this exposure, the FTSE Divest-Invest Developed 200 Index incorporates data captured by FTSE Russell’s innovative new green revenue data model, called LCE, which is set to launch publicly in the coming months. BNP Paribas has licensed the new index to create swaps and structured products.
goo.gl/KQTjCd

EU Carbon Drops Most in Two Months as Ruling Sparks Uncertainty
Bloomberg
Permits to emit greenhouse gases under the European Union cap-and-trade program had the biggest drop in two months after the region’s top court told regulators to correct mistakes in the way they calculate the allocation of free allowances to companies.
bloom.bg/26wTxi8

Cap-and-trade best way for Canada to reduce emissions
Toronto Star
Over the last decade, in the absence of federal leadership, Canadian provinces have gone their own way on carbon pricing. Alberta chose a unique carbon pricing system, British Columbia implemented a carbon tax, and Quebec launched a cap-and-trade system which Ontario will soon join. Others are waiting in the wings, either weighing their options or vehemently opposed. As a result, Canada’s environmental standing fell and full economic potential went untapped.
on.thestar.com/26wTEuc

Asia-Pacific

Asia export boom hinges on tax hurdle
Financial Review
Funds managers hope for an “export boom” to Asia under an international agreement and new legal structures in next week’s federal budget but want the government to go further and abolish withholding taxes for foreign investors. Assistant Treasurer Kelly O’Dwyer joined representatives from Japan, South Korea and New Zealand on Thursday to sign the final memorandum for the so-called Asia Region Funds Passport.
goo.gl/20VTkI

Iron ore price dives 5.6pc on Chinese curbs
Elizabeth Redman – The Australian
The iron ore price has dropped sharply, falling for the third straight day and suggesting moves in China to curb speculative trading may be starting to take effect.
goo.gl/PY9xNv

LME Head Says China Traders Don’t Know What They Buy in Boom
Jasmine Ng – Bloomberg
`I don’t think most people who trade it know,’ says Jones; Volumes in China’s commodity futures `phenomenal,’ CEO says
The head of the world’s largest metals exchange said while volumes in China’s commodity futures markets have become phenomenal, it’s possible some traders don’t even know what it is they are buying or selling.
goo.gl/sTfrvz

China Trades Enough Cotton in One Day to Make Jeans for Everyone
Alfred Cang – Bloomberg
Futures volumes jumped amid wider surge in commodity liquidity; Exchanges raise fees, reduce hours to curb speculative trading
It’s not just metals caught up in China’s commodity fever.
goo.gl/ecxTYk

Shenzhen-HK stock link ‘likely in second quarter’: UBS
China.org.cn
The Chinese mainland will likely announce the launch of the much-anticipated stock trading link between the Shenzhen and Hong Kong exchanges in the second quarter of the year, further opening the mainland’s stock market to overseas investors, a senior analyst at UBS Securities said on Wednesday.
on.china.cn/26wTNOi

Frontier Markets

Sebi defers scheme related disclosures for MFs; Against May 1 deadline, it will now be effective from 30th June
Chandan Kishore Kant – Business Standard
In a move to give some relief to India’s mutual fund industry, the Securities and Exchange Board of India (Sebi) has deferred the deadline for ‘enhancing scheme related disclosures’.
goo.gl/VhXFFW

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