First Read

The 2015 Managed Futures Pinnacle Award Winners, from CME and BarclayHedge, were held last night. Here are the winners.

2014 Best Emerging CTA
Ebullio Capital Management

Best Options Strategy
Doherty Advisors LLC

5-year Best Options Strategy
Global Sigma Group

Best Multi-advisor Futures Fund
AC Investment Management

5-year Best Multi-advisor Futures Fund
Abbey Capital Limited

2014 Best Single Sector CTA
Tanyard Creek Capital

5-year Best Single Sector CTA
Kottke Commodity Capital

3-year Best Hybrid CTA
Esulep Management

3-year Best Discretionary CTA
H20 AM

3-year Best Systematic CTA
Mondiale Asset Management

2014 Best Diversified CTA ($500 Million + AUM)
Two Sigma

2014 Best Diversified CTA (Less than $500 Million AUM)
Quantmetrics Capital Management

5-year Best Diversified CTA ($500 Million + AUM)

5-year Best Diversified CTA (Less than $500 Million AUM)
Mondiale Asset Management

Pinnacle Achievement Award
Cliff Asness, Managing and Founding Principal, AQR Capital Management


CME Group Delays Closure of Open Outcry Futures Trading in Chicago and New York
CME Group
Due to a technical revision to its filing with the CFTC, CME Group today announced that it will delay the closing of its futures pits in Chicago and New York. Previously scheduled to take place on Thursday, July 2, the last day for most open outcry futures trading is now expected to take place on Monday, July 6, pending expiration of CFTC review periods. During its review, the CFTC could further delay the closure for up to 90 days.

***** An outcry of floor traders is bound to confuse the regulators and delay the process. There are whispers of a protest and perhaps a lawsuit from members to derail the closing in the name of hurting the price of the A shares as a result.


New report confirms Stockholm as Europe’s no. 2 FinTech city
Over the past five years, companies in Stockholm received 18 percent of venture capital inflows to European FinTech companies, according to a fresh report from the Stockholm School of Economics (SSE). That establishes Stockholm as Europe’s No. 2 FinTech city, after London.

***** If only Stockholm had the Blackhawks and the best deep dish pizza in the world, I could live there.


Wedbush Futures Names Thomas Anderson Senior Vice President, PTG Services
Wedbush Futures
Wedbush Futures, a division of Wedbush Securities Inc. and a full-service futures commission merchant (FCM) providing futures execution and clearing services, today announced that Thomas P. Anderson has joined the company as SVP, Head of Proprietary Trading Group Services. In this role, Anderson will be responsible for growing Wedbush’s PTG offerings across multiple asset classes, and helping existing PTG customers achieve their trading objectives.

***** The business and the parties at Wedbush just got better.


What’s Really Warming the World? Climate deniers blame natural factors; NASA data proves otherwise

**** First the Pope, now NASA. Faith and reason are winning the battle against ignorance and self-interest.


U.S. Bancorp unit to pay $44.5 mln in Peregrine settlement
By Dena Aubin, Reuters
A unit of Minneapolis-based U.S. Bancorp has agreed to pay $44.5 million to settle a class action brought by former customers of brokerage Peregrine Financial Group, which failed in 2012 after its funds were siphoned off in a long-running fraud.

***** My bank gets right with the futures crowd.


LiquidityEdge Wants to Help Little Guy in U.S. Treasuries Market
by Matthew Leising, Bloomberg
A new market for trading U.S. Treasuries says it’s looking out for the little guy in the $12.6 trillion business.

***** This should definitely help the $1 billion lot trader.


Hedge Fund ‘War Games’ in Monaco Predict No Greek Euro Exit
by Will Wainewright, Bloomberg
Hedge-fund managers and investors expect Greece to remain in the euro area after they “war-gamed” the crisis in a 90-minute role-playing exercise at an industry conference in Monaco.

****** Do you want to play……


Alexander the Great: Why Hamilton Deserves His Spot-Alone-on the Ten Spot
Streetwise Professor
Last week the Treasury Department announced that in a redesign of the $10 bill, Alexander Hamilton would be replaced, joined, or supplemented by a Historical American Woman to be Named Later. Considering that Jackson, Grant, McKinley, and Cleveland also grace US Federal Reserve Notes, the decision to replace Hamilton of all people is lamentable in the extreme. Even overlooking his, to put mildly, controversial career, as a hater of paper money, assassin (and proud of it!) of the predecessor to the Fed, and an economic imbecile, Jackson in particular is a dubious choice to grace a greenback.

***** My preference is for Hamilton to stay right where he is, in the graveyard of Trinity Church.



MarketsWiki Page of the Day
London Stock Exchange Group plc

MarketsWiki Recent Updates


Richard Heckinger; Rick Tomsic; Richard Johnson; Michael S. Harris; Blair Hull; Andrew Brenner; Andrew Coffey; Andrew Coyne; Charles D. Hamill; Andrew D. Kolinsky; Andrew DeSouza

Companies, Organizations and Groups

Dalian Commodity Exchange; GAIN Capital Group; Campbell & Company, LP


64,537,571 pages viewed, 8,217 articles, 192,554 edits
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Lead Stories

Singapore Exchange Reveals Cause of Trading Outage; SGX promises to boost technology investment to prevent a repeat of disruption
Singapore Exchange said Wednesday it would invest 20 million Singapore dollars (US$14.9 million) in its technology infrastructure and apologized for a power outage late last year that halted trading in its securities and derivatives markets for more than two hours.

Singapore’s SGX to spend S$20m on technology after outage
Philip Stafford, FT
The Singapore Exchange has been heavily criticised for its communications with the market over an outage last year and cannot increase its fees until S$20m of technology improvements have been made to the regulator’s satisfaction, an investigation has concluded.

Inside Wall Street’s Most Enduring Rivalry; The CEOs of Goldman Sachs and Morgan Stanley are leading their firms in opposite directions.
by Michael J Moore, Bloomberg Business
One grew up in Brooklyn public housing, the son of a postal worker, and shared a bedroom with his grandmother. The other was born half a world away, in Australia, the son of an engineer and the sixth of 10 children in a comfortable Melbourne household.

Hasenpusch replaces Betsill as CEO of CME Clearing Europe
CME Clearing Europe has announced that Tina Hasenpusch will replace Lee Betsill as chief executive officer, following Betsill’s decision to return to Chicago as managing director of global clearing operations at sister company CME Clearing.

Legal Action Heats Up in Swaps Suit
Allegations that banks and two swaps industry groups colluded against would-be competitors in the credit-derivatives market are rippling through the investment world again.
Three swaps participants, BlueMountain Capital Management LLC, Citadel LLC and Pacific Investment Management Co., or Pimco, received subpoenas in recent months under an investor lawsuit alleging anticompetitive practices by the banks and industry groups, according to people familiar with the matter. No wrongdoing is alleged on the part of the firms receiving the subpoenas.

HKEx faces uphill battle with China commodities ‘connect’ plan
By Melanie Burton and Lawrence White, Reuters
HKEx wants to be gateway to China’s vast commodities markets; HKEx bought; the London Metal Exchange in 2012; Analysts say emulating “Stock Connect” success will be tough
Hong Kong Exchanges & Clearing (HKEx) is eager to wring value from its $2.2 billion purchase of the London Metal Exchange but the chances of it emulating in metals its success in connecting with stock traders on the mainland may be slipping away.

Slack Is Getting Ready for Wall Street. But Is Wall Street Ready for Slack?; Regulatory compliance tries to mix with GIF-happy chatrooms
by Rebecca Greenfield, Bloomberg
Imagine there’s another financial scandal and digital communications between co-workers once again become courtroom evidence. In the era of office chatroom services such as Slack and Hipchat, the evidence will read a little differently than the usual e-mails. A running group chat that concerns federal prosecutors will almost inevitably be interlaced with links to a random click-bait quiz—Do you belong in NY or SF?—followed by scattered arguments between colleagues about the relative merits of bagels and burritos. Try to imagine stern attorneys puzzling over transcripts that descend into a stream of sarcastic animations made by Slack’s built-in GIF generator. Will the judge be ready to rule about chatroom memes?

As U.S. Probes $12.7 Trillion Treasury Market, Trader Talk Is a Good Place to Start
The U.S. federal probe that ended last month with guilty pleas and $6 billion in fines from global banks began with an open secret — that currency traders there could talk to each other to coordinate trades.

U.S.-Canadian man charged with $300 million fraud
A dual U.S. and Canadian citizen was arrested on Tuesday and criminally charged with allegedly manipulating the stocks of numerous publicly traded U.S. companies, and laundering about $300 million of profit through at least five offshore law firms.

A Layover Ends in Penny-Stock Scheme Arrest
A man suspected of being the mastermind of a $300 million penny-stock trading scheme is in federal custody because the international flight he was traveling on from Canada to Mexico made a brief stop in Phoenix.

Barclays sued by California utility over alleged electric market manipulation
A California water utility filed a class action lawsuit on Tuesday to recoup losses in the electric market that it blames on Barclays Bank Plc [BARCR.UL], which the U.S. government fined $453 million in 2013 for manipulating electricity prices.

Kurdistan bond debut not for the faint-hearted
The semi-autonomous Iraqi state is set to be the latest sovereign issuer despite its geopolitical quagmire – posing an allocation dilemma for yield-hungry institutional investors.


EU regulators charge 5 lead recyclers for taking part in cartel
European Union antitrust regulators charged five companies on Wednesday for taking part in a car battery recycling cartel in Belgium, France, Germany and the Netherlands over a four-year period starting from 2009.

Binary Options – AMF Issues New Warning
The Autorité des marchés financiers (“AMF”) is reminding Québec consumers to be cautious about schemes by unregistered foreign companies encouraging them to invest in binary options via on-line trading platforms.

SEC Freezes Assets of China-Based Trader for Suspicious Trades on Qihoo; The regulator cites suspicious timing and size of trades ahead of a $9 billion buyout offer
The U.S. Securities and Exchange Commission obtained a court order Tuesday to freeze the assets of a China-based trader for suspicious activity ahead of a $9 billion buyout offer for a U.S.-listed Chinese Internet company last week.

Exchanges & Trading Facilities

CME Clearing Europe Appoints Tina Hasenpusch As CEO
CME Group
CME Clearing Europe, CME Group’s European multi-asset class clearing house, today announces the promotion of Tina Hasenpusch to Chief Executive Officer. Hasenpusch will replace Lee Betsill, who will be returning to Chicago as Managing Director, Global Clearing Operations at CME Clearing.

CME Group says futures pit closure delayed until July 6 or later
CME Group said on Tuesday that it will delay the closure of its open-outcry futures markets by at least one trading day due to a technical revision in its filing with the Commodity Futures Trading Commission.

Findings and recommendations of the SGX Board Committee of Inquiry into the breakdown on 5 November 2014
The Board of the Singapore Exchange (SGX) regrets the market disruption and inconvenience caused by the breakdown on 5 November 2014 and has accepted the Board Committee of Inquiry’s (BCOI) recommendations. The power outage, which was triggered by a voltage sag in both power lines to the SGX Primary Data Centre, was caused by a combination of a faulty component in the emergency backup power supply generator and the inability of downstream switches to cope with this malfunction. The BCOI notes that the key cause of the power outage has been addressed, and that the power design has been independently verified by experts to be robust. SGX has also committed to make further improvements beyond the root cause to enhance overall resiliency and incident management. These include enhancing processes and resources to improve business continuity, incident management and the timeliness and effectiveness of crisis communications.

SGX sets aside S$1.5m to support SME fund-raising platform
Channel News Asia
The S$1.5 million grant will be used to support CapBridge, a fund-raising platform for early-stage small- and medium-size enterprises, over three years.

Aequitas to compete on listings with new platform
The Trade News
Newly launched Canadian exchange Aequitas NEO has launched its listing platform today, putting it head-to-head in competing for IPO business with the country’s incumbent TMX Group.

London Stock Exchange To Wave Admission Fees For Retail Charity Bonds
London Stock Exchange
Two successful retail charity bond issues in the last 12 months, raising £38 million; Builds on launch of Retail Charity Bonds platform, an initiative from Allia, supported by London Stock Exchange and Canaccord Genuity; More than £4.6 billion raised on ORB since launch
London Stock Exchange today confirmed that it will waive admission fees for charity bonds that list on its Order book for Retail Bonds (ORB). ORB offers a transparent, electronic platform for the trading of retail bonds and more than 50 dedicated issues have raised £4.6 billion since its launch five years ago.

Hong Kong Exchanges and Clearing face tough fight on China commodities connect plan
South China Morning Post
Hong Kong Exchanges & Clearing (HKEx) is eager to wring value from its US$2.2 billion purchase of the London Metal Exchange but the chances of it emulating in metals its success in connecting with stock traders on the mainland may be slipping away.

HKEx Announces Temporary Holiday Risk Management Arrangements
Hong Kong Exchanges and Clearing Limited (HKEx) has announced the following holiday risk management arrangements.

The Listing Committee criticises Opes Asia Development Limited (Stock Code: 810) and a number of its former directors for breaching the Exchange Listing Rules and/or the Director’s Undertaking

Osaka Exchange: New Products And Trading Rule Revisions With Launch Of Next Generation Derivatives Trading System
We are pleased to announce listing new products and revisions to the trading rule at the Next Generation Derivatives Trading System (Next J-GATE).

GMEX Joins Swiss Futures And Options Association
Global Markets Exchange Group Limited (GMEX) announced today that it has become a member of the Swiss Futures and Options Association (SFOA). GMEX is authorised and regulated by the UK Financial Conduct Authority (FCA) to operate GMEX Exchange. GMEX is a wholly-owned subsidiary of GMEX Group.

Twenty Years Of Evolution And Innovation For JSE’s Commodity Derivatives
The Johannesburg Stock Exchange is celebrating the 20th anniversary of its Commodity Derivatives Market.

Nasdaq Migrates Disaster Recovery to Equinix’s Chicago Data Center; Utilizes Best-in-Class Technology to Offer a Cost-Effective and Secure Facility
Nasdaq (Nasdaq:NDAQ) and Global Access Services, the exchange group’s market solutions provider for the financial services community, and Equinix, the global interconnection and data center company, today announced that Nasdaq is moving its Disaster Recovery (DR) site for the US equities and options markets in a phased approach from Ashburn, Virginia to Chicago, Illinois beginning in August 2015. The new DR will be located in the Nasdaq Point of Presence (Nasdaq POP) within the Equinix Chicago data center (CH4) located in 350 E. Cermak on the 8th floor. The recently launched Nasdaq POP in Chicago, along with the Nasdaq POP in Equinix’s Secaucus, New Jersey campus, allows customers to connect directly to any of the Nasdaq market systems from remote financial data centers.

Nasdaq and Chain to Partner on Blockchain Technology Initiative; Nasdaq Private Market Will be First Project at Nasdaq to Use Chain’s Technology; Chain Will be Inaugural Client on Nasdaq Private Market to Leverage Blockchain Technology
Nasdaq (Nasdaq:NDAQ) today announced a new partnership with Chain, the leading blockchain infrastructure provider to financial institutions and enterprises, to leverage the blockchain platform to facilitate the secure issuance and transfer of shares of privately-held companies. Chain, currently privately-held, plans to be the inaugural company to use the blockchain technology on Nasdaq Private Market.

Clearing & Settlement

Moody’s to reassess clearing house risks
Joe Rennison, New York, FT
The credit quality of clearing houses involved in derivatives and whether they are a potential source of systemic risk is triggering a reassessment of the industry by Moody’s, the rating agency.

LCH.Clearnet launches financials CDS clearing
Capital City | IFRAsia
LCH.Clearnet SA has expanded its credit default swap clearing service to include financial indices.
The Paris-based clearing house said it would clear the full range of 29 iTraxx Senior Financials indices, alongside single names, as it continues its bid to take on ICE Clear Europe in the space.

Hedge Funds & Managed Futures

MPC member says investors should prepare for UK rate rise
Laura Dew, Investment Week
Interest rates in the UK could rise as early as August in response to a tightening labour market, according to Monetary Policy Committee member Martin Weale.

Wealth Adviser: The Growing Popularity of Direct Investments
Advisers note a new trend emerging among their wealthy clients: More want to handle parts of their investments on their own by directly investing in real estate and privately held firms. For sure, some are seeking greater returns, but Geller Family Office Services CEO Joe Calabrese says others are thinking of ways to get their heirs into the wealth-creation process. “Some families take anywhere from 5 to 10% of their total worth to make direct real-estate investments or investments in businesses with the view of getting the next generation involved in the running of those properties or businesses,” he tells Wealth Adviser at Other advisers say they help such clients by assessing the risks and how the investments fit in their financial plans.

Bill Gross Love Affair With Mexico Endures Long After Pimco Exit
by Brendan Case, Bloomberg
Bill Gross is no longer running the world’s biggest bond fund, but one thing hasn’t changed: his love for Mexico.

BOE’s Rule Says Simpler Asset-Backed Bonds Will Lure New Buyers
by Alastair Marsh, Bloomberg
The exemption of some asset-backed bonds from the toughest capital rules will promote the creation of simpler securitizations and attract more investors, according to the Bank of England.

Indians Buy Gold as Chinese Shift to Stocks; New Delhi removes bottlenecks in market; Shanghai rally encourages investment in shares
The rapid run-up in Chinese shares this year is dimming the allure of another popular investment: gold. Luckily for fans of the metal, demand is looking healthy in India, the other big retail market in Asia.

The Shocking Truth Mutual Funds Don’t Want You To Know
The vast majority of mutual funds have more in common with one-hit wonders than they would want you to know. The shocking truth is that most mutual funds that rank in the top performance quartile one year don’t do it again the next year nor the following year. And no funds stay in the top quartile over five years. Even worse, about a third of mutual funds die or get merged with another after five years.

Hedge Funds Score Big Gains; After several lackluster years, money managers are raking in profits, fueled in part by booming M&A
Some of Wall Street’s biggest investors are outrunning markets for the first time in years, riding gains from bets on instability in Europe and a wave of mergers.

Scholes-inspired fund from Janus discards notion of “average”
By Ross Kerber and Richard Leong, Reuters
Janus Capital Group said on Tuesday it launched a total return fund that invests across global stock and bond markets, the first product it has rolled out that draws on research from Nobel Prize winner Myron Scholes since the firm hired him last year.

Banks & Brokers

Julius Baer shares hit record high on U.S. tax probe news
Julius Baer (BAER.VX) stock jumped nearly 6 percent to an all-time high on Wednesday after the Swiss private bank said it would book an initial $350 million for an expected settlement in a U.S. tax probe, far less than the market had expected.

Julius Baer takes $350m settlement charge
James Shotter in Frankfurt, FT
Julius Baer is to take a $350m charge as it edges towards a settlement with US authorities over a long-running probe into whether the Swiss private bank helped clients evade taxes.

Bankers Face Decade Bonus Clawback in BOE Misconduct Rule
by Jim Brunsden, Suzi Ring, Bloomberg
Senior bankers found guilty of misconduct by regulators could be forced to pay back bonuses as long as 10 years after they were awarded under new Bank of England rules.

What’s in Capital One’s CEO’s Wallet? An $800 Million Fortune
by Elizabeth Dexheimer, Bloomberg
It’s after midnight and Richard Fairbank steps off the ice in a sweat. As teammates trudge toward the locker room, he unlaces his skates and explains how he never planned to take up hockey, let alone join an amateur league.

U.S. Bancorp’s Bond Coup Comes at a Cost; U.S. Bancorp is racking up profits with a bond-market maneuver that is pinching some investors holding high-yielding investments.
U.S. Bancorp is racking up profits with a bond-market maneuver that is pinching some investors holding high-yielding investments.

Banks Caught Between Immovable Interest Rates And Irresistible Compliance
It looks ever more likely that when the Federal Reserve starts raising interest rates, the pace will be slow and uneven. So the chances banks will see net interest margins improve quickly are slimmer. The result: banks have focused on cost cutting to improve performance. Yet that too looks ever more challenging given banks are still having trouble meeting regulatory requirements. Witness last week’s reprimand of six banks by the Office of Comptroller of the Currency over mortgage servicing.

Ex-UBS trader asks U.S. judge to dismiss Libor scheme case
A Manhattan federal judge on Tuesday questioned why a former UBS AG trader’s bid to dismiss a criminal case accusing him of scheming to manipulate the Libor rate should even be considered when the U.S. government calls him a fugitive.

RBS chairman admits surprise at size of regulatory penalties
Emma Dunkley, FT
Royal Bank of Scotland’s outgoing chairman has admitted that the bank had not expected to take £10bn-worth of charges for multiple “business failings”, and cause the government to sell its stake at a loss to the taxpayer.

Indexes & Products

Japan Exchange Group to launch Mothers Index futures in mid-2016
The Japan Exchange Group said on Wednesday it will launch futures trading for the Mothers Index in mid-2016.

China’s MSCI inclusion to drive Hong Kong market
Drew Wilson- Portfolio Adviser
“That sounds large but against the backdrop of $240bn in daily turnover on the A-share market, $50bn is only a few hours of turnover,” Zhu said at the firm’s China briefing in Hong Kong.
However, as China’s weighting on the index goes up incrementally and underweight widens accordingly, fund managers will make up the A-share shortfall by allocating to Hong Kong, she said.
The Hong Kong market still only trades about $10bn per day versus $240bn per day for A-shares.

Etisalat inclusion in MSCI index possible this year after opening up to foreign ownership
The National
Etisalat could be included in the influential MSCI Emerging Markets Index as early as August after the UAE’s biggest listed company was opened up to foreign investment.
The Federal Government’s decision to allow foreign investors to own its shares sent the stock soaring 15 per cent yesterday – the maximum allowed in a single trading session and the biggest one-day gain for the telecoms company in a decade.

Lion Biotechnologies to Join Russell Global Index Nasdaq:LBIO
Lion Biotechnologies, Inc. (Nasdaq:LBIO), a biotechnology company that is developing novel cancer immunotherapies based on tumor-infiltrating lymphocytes (TIL), today announced that it will join the Russell Global Index on June 26, according to a list of final additions posted June 19 on the FTSE Russell website.

Nikkei hits 18-year high, breaches peak reached in 2000
Japan’s Nikkei share average rose 0.4 percent in morning trade on Wednesday, surpassing its peak hit in 2000 to reach its highest level since 1997.


Innovate Finance dubs UK a fintech diversity hub
Clare McDonald –
The UK is one of the best places for financial technology startups and shows great diversity across the fintech sector, according to Innovate Finance.
The members’ organisation announced the winners of its recent Diversity Challenge competition and hailed fintech startups in the UK for tackling the challenge of introducing diversity into the workplace.

Doubts over UK’s “Fintech” in Age of Cyber War
Resource Investor
Banks’ “archaic technology systems” are unable to cope with the demands of modern online banking according to the Financial Times. The claim was made over the weekend in an Finantial Times article discussing the latest fintech glitch suffered by Royal Bank of Scotland last Tuesday in which payments of 600,000 customers “went missing.”
It would follow that these same “archaic” systems would not stand up very well in the face of a concerted cyber-attack from hostile terrorists or indeed nation-states.

Stockholm firms bag a fifth of European fintech investments since 2010
London may well hold the title for the fintech capital of the world but Stockholm is keen to compete, according to a report out today.
The Stockholm School of Economics report, An overview of the FinTech sector in the greater Stockholm Region, highlights that the Swedish capital accounted for 18.3 percent of all fintech investments over the last five years.

Credit Karma raises $175m as hedge funds look to fintech sector
Financial Times
Technology start-up Credit Karma has raised $175m, valuing the company at $3.5bn, as hedge fund investors pour money into private financial services companies.
The seven-year-old San Francisco company, which provides 40m US customers with free access to their credit scores, attracted almost double the amount it has raised to date.


Rogue trader Kweku Adoboli out of prison
Lindsay Fortado, FT
Britain’s costliest rogue trader is out of prison after serving about half his seven-year sentence. Kweku Adoboli, who lost $2.3bn at UBS through unauthorised trading, was released last week from Maidstone prison in Kent, England. He spent nearly nine months behind bars awaiting trial and has served an additional two and a half years since his fraud conviction in November 2012.

FCA statement on Quindell PLC
The Financial Conduct Authority (FCA) notes the statements issued this morning by Quindell PLC. The FCA can confirm that it has commenced an investigation into Quindell PLC under the Financial Services and Markets Act 2000 in relation to public statements made regarding Quindell’s financial accounts during 2013 and 2014.

Quindell and the FCA
Dan McCrum, FT
Shares in what is left of Quindell — the former technology, garage, solar panel installation, law firm and physiotherapy conglomerate — were suspended on Wednesday morning, as the company announced an investigation…

SEC Obtains Asset Freeze Against China-Based Trader for Suspicious Activity Last Week
The Securities and Exchange Commission today obtained an emergency court order to freeze the assets of a trader in China who profited by more than $1 million after trading in a U.S. brokerage account in advance of last week’s public announcement that China-based Qihoo 360 Technology Co. Ltd. had received a buyout offer at a significant premium from its CEO and a consortium of other affiliates.

SEC Charges Microcap Promoter With Illegally Selling Penny Stock Shares
The Securities and Exchange Commission today charged a microcap promoter with illegally selling more than 83 million penny stock shares that he secretly obtained through at least 10 different offshore front companies.

SEC Charges Unregistered Brokers in EB-5 Immigrant Investor Program
The Securities and Exchange Commission today charged two firms that illegally brokered more than $79 million of investments by foreigners seeking U.S. residency. The charges are the first against brokers handling investments in the government’s EB-5 Immigrant Investor Program and follow earlier SEC actions against fraudulent EB-5 offerings.

ASIC takes civil action against Padbury Mining and two directors
ASIC has started civil penalty proceedings against Padbury Mining Limited (Padbury) and two of its directors regarding Padbury’s announcement last year of a multi-billion dollar funding deal for the Oakajee port and rail project, in Western Australia.

Environmental & Energy

Gas leak raises fears over China network
Lucy Hornby, FT
A brand new natural gas pipeline operated by China National Petroleum Corp in the southwestern province of Yunnan has sprung a leak, raising worries again about the safety of the nation’s vast network of oil and gas pipes.

The Shale Brothers: Whether Fracking or Hunting Gators, Sibling CEOs Go All In
The Lawlers, both energy company CEOs, take on oil, gas, alligators—and each other.
by Bradley Olson, Bloomberg
Here’s a question most brothers might have answered with the gun option: Do you jump on that 9-foot alligator or do you do the more sensible thing and shoot it in the head, given that it weighs a few hundred pounds and could bite you with the force of, say, 12 pit bulls? If you’re the Lawler brothers, who did not get to be two of the hardest-nosed CEOs in the oil industry by making easy decisions, there was only one answer: Jump on it!

The Way Humans Get Electricity Is About to Change Forever; These six shifts will transform markets over the next 25 years
by Tom Randall, Bloomberg
The renewable-energy boom is here. Trillions of dollars will be invested over the next 25 years, driving some of the most profound changes yet in how humans get their electricity. That’s according to a new forecast by Bloomberg New Energy Finance that plots out global power markets to 20401.

Climate Change Calls for Science, Not Hope
Eduardo Porter, NY Times
Is the American approach to combating climate change going off the rails?

China puts $6 trillion price tag on its climate plan
It will cost China over $6.6 trillion (41 trillion yuan) to meet the greenhouse gas reduction goals it will lay out later this month in its strategy for United Nations climate negotiations, the country’s lead negotiator for the talks said Tuesday.

DOE Study Finds Elevated Greenhouse Gas Emissions From Canadian Crude; Findings add ammunition to critics of country’s surging production, opponents of Keystone pipeline
A new peer-reviewed study funded by the U.S. Department of Energy says oil extracted from Canada’s oil sands produces greenhouse-gas emissions that are an average 20% higher than for conventional U.S. crude.


China treasury bond auction failure raises concerns on debt plan
Gabriel Wildau, FT
China’s finance ministry failed to sell out a bond auction on Wednesday for the first time in nearly a year, raising concerns about whether the market can absorb the huge wave of government paper coming this year.

Macquarie: Chinese Margin Debt has Much, Much More Room to Run
China’s margin debt could reach 3 trillion yuan.
by Julie Verhage, Bloomberg
Margin debt in China has been on a tear as the Shanghai Composite Index has surged nearly 130 percent this year.

China Moves to Scrap Rule Limiting Bank Loans to 75% of Deposits
China’s cabinet moved to scrap a rule that caps lending by commercial banks at 75 percent of their deposits, a measure that will increase the supply of cash in the financial system.

What’s going on with China’s stock market?
Financial Post
China’s stocks look to be falling back down to reality.
After an epic rally that saw the Shanghai Composite index climb more than 40% this year and the tech-heavy Shenzhen Composite rise a world-leading 90%, a correction — or maybe worse — looks to be in the works.

Is China really so … Japanese?
For a couple years running now, economists and financial journalists alike have been drawing comparisons between the bursting of Japan’s 1980s bubble and the current situation in China.
Both involve the collapse of sky-high property prices. Both involve a breakneck climb for stocks. And just as Japan suffered a “lost decade” or two due to crushing deflation, so too is China facing a drumbeat of downward prices.

Frontier Markets

When Will India’s BSE Go Public?
As CEO of BSE, formerly known as Bombay Stock Exchange, Ashish Chauhan has dramatically increased trading speeds, revived market share in stocks and derivatives, launched a mutual-fund trading platform, signed a strategic partnership with the S&P Dow Jones indexes to promote the benchmark Sensex, and made it easier for smaller Indian companies to raise capital.

Banks should focus more on capacity building, says Gandhi; Gandhi said the process of capacity building involved more than just training
Business Standard
Reserve Bank of India (RBI) Deputy Governor R Gandhi has stressed on the importance of capacity building by improving human resource (HR) management practices and improving training methodologies and intervention.

Bond buying in vogue among banks, fund houses and insurers; After rising to 8.11% on June 12, yield on 10-year benchmark government bond fell 23 bps in the week ended June 19
Neelasri Barman, Business Standard
Bond yields, which had been heading north since the Reserve Bank of India (RBI)’s second bi-monthly policy review, got some relief from the US Fed’s statement along with the monsoon picking up, allaying fears of a spike in food prices. At the policy review, RBI had taken a hawkish stance despite a rate cut.

Qatar Petroleum cuts staff, to exit non-core areas
By Reem Shamseddine, Reuters
Qatar Petroleum, the state-owned oil and gas giant, has reduced its staff numbers in a restructuring and decided to exit all non-core businesses, chief executive Saad Sherida al-Kaabi said on Tuesday.


Top tips for finance students
As part of our annual special report on financial training, Jacques Olivier, programme director of the MS Finance at HEC Paris, shares his advice to students, accompanied by Gareth Howells, executive director of the MBA and MiF programmes at London Business School and Paul Smith, chief executive of the CFA Institute.

World’s kitchens brace for olive oil shock
Emiko Terazono, FT
Foodies brace yourselves. The world is facing an oil shock — of the extra virgin olive sort.

Amazon Pays Writers to Keep Readers’ Attention
By Megan McArdle, Bloomberg
Books were the original “sharing economy”; Ben Franklin founded the first American lending library before there was even a United States to found it in. But Amazon has brought this into the 21st century with Kindle Unlimited, a service that lets you borrow and read a certain number of books at a time. Authors who participate in the program are paid out of the pool of subscription funds (about $3 million last month) according to how popular their books are.

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