First Read

Bits & Pieces
By John J. Lothian

We have added a Brexit section to JLN that will run for the next several weeks. With the referendum vote scheduled for Thursday, June 23, there will be lots of news impacting the markets. The BBC yesterday published a story “The UK’s EU referendum: All you need to know.”

We are full speed ahead with our MarketsWiki Education World of Opportunity series for Chicago and New York, coming up in July. You can sign up your newer employees, interns and anyone interested on the MarketsWiki Education page of johnlothiannews.com

CME Group

Speakers at our Chicago sessions include Walt Lukken (FIA), Gerry Corcoran (RJO), Karen Wuertz (NFA), Peter Nabicht, Julie Holzrichter (CME Group), Kate Maehr (Greater Chicago Food Depository), Rumi Morales (CME Group), JJ Kinahan (TD Ameritrade), Drew Shields (Trading Technologies), David Widerhorn (Neurensic), Lanre Surami (Riskbone) and Jeff Levoff (DRW).

Speakers at our New York sessions include Adena Friedman (Nasdaq) Kristin Boggiano (WIND), Jenny Knott (ICAP), Steve Gibson (Euclid Opportunities), Gary DeWaal (Katten Muchin Rosenman LLP), Bill Harts (Modern Markets Initiative), Neal Brady (Eris Exchange) and Kenny Polcari (O’Neil Securities).

Part of the original concept for the series was to introduce rock stars of the industry to the next generation, the people who helped make the industry what it is today. Another part was to introduce the rock stars of today who are building the industry for the future. We have a great lineup of speakers who are just that.

Don’t let your investment in the future, the interns and young people of today, miss this opportunity.

If you are interested in becoming a sponsor of the series in any of the cities, please contact me. It is not too late to become a sponsor.

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ESMA Updates List of Recognised Third-Country CCPs.
ESMA
The European Securities and Markets Authority (ESMA) has updated today its list of recognised central counterparties (CCPs) based in third countries. Today’s update concerns the recognition of the US Chicago Mercantile Exchange Inc. (CME).
/goo.gl/EFGpbr

***** Just in the nick of time for Brexit.

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Regulator’s Plan to Rein In Trading Risks Raises Concerns
By GINA CHON – NY Times
The Commodity Futures Trading Commission is overreaching in its quest for market safety and soundness. The agency wants the power to obtain access to the source codes of trading companies without a subpoena. Record retention is a worthy goal, but it is unclear whether the strapped regulator can protect such intellectual property. Worse, it may open the door for other officials to ask for the same unusual gateway.
goo.gl/Mn33Jd

****** This is an issue that impacts all of us, whether you believe it or not.

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CBOE to Develop Series of Social Media-Based Strategy Benchmark Indexes; Enters into Exclusive Licensing Agreement with Social Market Analytics
Indexes to Be Based on Data That Tracks Stock-Related Sentiment on Social Media
CBOE
Chicago Board Options Exchange® (CBOE®) announced today that it has entered into an exclusive licensing agreement with Social Market Analytics (SMA) to develop a series of sentiment-based strategy benchmark indexes based on SMA’s social media metrics.
goo.gl/4zPjzq

***** Social Market Analytics Joe Gits was one of our speakers at the first MarketsWiki Education events in 2013 and he spoke at FinTech Exchange 2015

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Algo Trading

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Top Three Stories for Tuesday
The most read stories from yesterday’s JLN were two articles and another worth 1,000 words.
The top piece came from Reuters Former Delta fuel executive, wife banned by CME, about Jon and Ivonne Ruggles, who just recieved lifetime bans for front-running his own employer. And provided another reason to hate the airlines.
Second was more exchange news of the weird, CBOT Trading Floor Golf 2, a picture of a driving range now on the CBOT floor. It’s worth a second look. And if that doesn’t make you go “hmmm” this might: the Wall Street Journal’s The VIX Just Had a Huge Day

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Lead Stories

Upstart IEX Poised for Approval as New Stock Exchange; SEC commissioners will vote on ‘Flash Boys’ exchange on Friday
By DAVE MICHAELS and BRADLEY HOPE – WSJ
IEX Group Inc. is poised to win regulatory approval to launch a stock exchange that slows the pace of trading, according to people familiar with the matter, following a decade when government rules and Wall Street’s technology wizards fostered ever-greater speed.
goo.gl/e7gHfw

Hong Kong exchanges operator HKEX promotes Roger Lee to CEO of its SEHK and HKFE subs
LeapRate
HKEX has announced that its Head of Markets, Kwok Keung (Roger) Lee, has been appointed to replace Romnesh Lamba as Chief Executive of The Stock Exchange of Hong Kong Limited (“SEHK”) and Hong Kong Futures Exchange Limited (“HKFE”), both of HKEX’s direct wholly-owned subsidiaries.
/goo.gl/RDxJ9W

MSCI delays including China A-shares in its indices; Capital controls and trading halts dash China index hopes
by: Jennifer Hughes in Hong Kong and Nicole Bullock in New York
China’s domestic markets were denied entry to international stock benchmarks for the third year in a row, delivering a blow to Beijing and frustrating those investors keen to see the world’s second-largest market included in MSCI’s globally followed indices.
/goo.gl/U527h2

MSCI was right to hold firm on China; Index provider’s decision is justifiable even if it will put pressure on markets
John Authers – FT
If China wants the west’s money to flow into its domestic A-shares market, it has to be prepared to let that money flow out again. That is the brutal but necessary and correct message that MSCI has delivered by delaying once more A-shares’ inclusion in its benchmark emerging markets index.
/goo.gl/mQdBQO

Citadel Mulls Connection To Eris Exchange
By Hayley McDowell – The Trade
Citadel Securities is considering connecting with swap futures operator Eris Exchange as a market maker, following discussions looking into how the two firms can work together.
Head of fixed income, currencies and commodities at Citadel Securities Paul Hamill told delegates at the Fixed Income Leaders Summit in Boston that the firm was ‘hooking up’ to Eris Exchange.
goo.gl/8YIHMl

CFTC Approves Final Rule to Amend Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps
CFTC
The U.S. Commodity Futures Trading Commission (CFTC) today approved a final rule (the Final Rule) that amends existing swaps reporting regulations in order to provide additional clarity to swap counterparties and registered entities regarding their reporting obligations for cleared swap transactions; and to improve the efficiency of data collection and maintenance associated with the reporting of the swaps involved in a cleared swap transaction.
goo.gl/7yCH4N

China won’t come to the LME, so the LME will go to China: Russell
BY CLYDE RUSSELL – Reuters
Some four years after shelling out a top-of-the-market $2.2 billion for the London Metal Exchange (LME), it appears owners Hong Kong Exchanges and Clearing (HKEx) are still battling to make the venerable old Western institution work with China, the new and dominant center for metal demand.
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Delay US non-cleared margin rules, industry tells Congress; “This puts the US banks at a huge disadvantage relative to the European banks,” says CME’s Duffy
Peter Madigan – Risk.net
Market participants are calling on US regulators to postpone new margin requirements for non-cleared derivatives after the European Commission (EC) delayed the implementation date of its rules until mid-2017. At a hearing before the House Committee on Agriculture earlier today (June 14), banks, clearing houses and buy-side firms warned that sticking to the September 1 deadline for large US banks to start posting initial margin on non-cleared swap trades would damage US competitiveness. “We are…
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U.S. court skeptical of lawmaker immunity in trading probe
By David Ingram – Reuters
A federal appeals court fired skeptical questions on Monday at a lawyer for a U.S. congressional committee and a former staffer who argued that Congress is immune from having to cooperate with an insider-trading investigation.
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A rule has been broken on Wall Street, and ‘any banker with a brain’ is now looking for an exit
Portia Crowe – Business Insider
Wall Street banking careers have for decades followed a common pattern.
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Goldman Says Libya Suffering From Buyers Remorse Over Bad Trades
Jeremy Hodges – Bloomberg
Lawyer says LIA a victim of credit crisis, not bank wrongdoing; Text messages from Goldman banker shown to judge by lawyers
The Libyan Investment Authority is using Goldman Sachs Group Inc. as a scapegoat to recover more than $1 billion the sovereign-wealth fund lost during a period when global markets were seizing in the 2008 credit crunch, the investment bank’s lawyer said.
goo.gl/uGIsGv

Andrew Caspersen, Charged in $40 Million Fraud, Had Gambling Addiction, Lawyer Says
By MATTHEW GOLDSTEIN and ALEXANDRA STEVENSON – NY Times
Federal prosecutors claim that Andrew Caspersen ran a Ponzi-like scheme to defraud friends, family and a hedge fund foundation of nearly $40 million over an 18-month period.
goo.gl/iBiA2W

Brexit

Leave camp eyes completion of Brexit by 2019; Chris Grayling sets out timetable for departure but wants change ‘at earliest opportunity’
by: George Parker and Gonzalo Viña in London – FT
Britain would aim to quit the EU in 2019 and be prepared to defy Brussels over immigration laws if it votes to leave the bloc in next week’s referendum, according to a senior government minister campaigning for Brexit.
/goo.gl/YGeVdp

Osborne warns of UK tax hikes, spending cuts if voters shun EU
BY WILLIAM SCHOMBERG – Reuters
British finance minister George Osborne, battling to keep the country in the EU, warned voters that he will take new austerity measures if they decide to leave the bloc in next week’s referendum.
goo.gl/rhKPNX

London Stock Exchange and Deutsche Borse merger ‘could fail in event of Brexit’
Belfast Telegraph
The proposed £21 billion merger between the London Stock Exchange (LSE) and Deutsche Borse could collapse if the UK opts for leaving the European Union, a hard hitting report has warned.
goo.gl/KyCAgZ

Europe’s clearers could hike margins further amid Brexit fears
By Tim Cave – Financial News
Investors in Europe’s equity and derivatives markets are facing the prospect of higher margin calls from the region’s clearing houses, which are readying themselves for shocks if the UK votes to leave the EU on June 23.
goo.gl/lc7tFZ

Brexit: Which Banks Will Be Hit Hardest; The odds are increasing that Britain may quit Europe; that would cost banks dearly in the U.K. and beyond
By PAUL J. DAVIES – WSJ
There’s one bank that may have something to gain if British people vote themselves out of the European Union next week. But in truth it will be disruptive, costly and damaging for all. With polls and betting odds moving toward Brexit, bank shares may still have further to fall.
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Brexit supporters have unleashed furies even they can’t control
Polly Toynbee – The Guardian
A leave vote will not solve people’s problems, and those feeling betrayed will lurch even further into racism and xenophobia
The clutch of England fans in Marseille were unequivocal. “Fuck off Europe, we’re all voting out,” they chanted. I’ve spent the week listening to much the same, politer, but just as fingers-in-the-ears adamant. No fact, no persuader penetrates their certainty – and these were Labour voters. Will Labour’s campaign week, kicked off by Gordon Brown in the face of a dire new Guardian poll, shift many outers?
goo.gl/MdO0qE

Regulatory

CFTC Holds Roundtable to Consider Proposed Regulation AT
Cadwalader, Wickersham & Taft LLP – JDSupra
On June 10, 2016, Staff for the Commodity Futures Trading Commission (“CFTC”) held a public roundtable to discuss its proposed Regulation Automated Trading (“Regulation AT”).1 The CFTC proposed Regulation AT in an attempt to reduce the risk of market disruptions caused by automated trading.
bit.ly/24QvhEd

U.S. appeals court endorses SEC rules for small offerings
Reuters
A U.S. appellate court on Tuesday upheld a Securities and Exchange Commission plan that allows small companies to sell stock to big investors without satisfying tough disclosure rules.
goo.gl/3GgAqR

European funds fightback over Mifid market data rules grows
By Anna Irrera – Financial News
Europe’s asset management industry has ratcheted up its fight against proposed rules setting out how exchanges charge for market data, with a Brussels-based lobby group echoing its UK counterpart in calling for the rules to be rejected.
goo.gl/3EOW2m

Computerworld Names FINRA Among Best Places to Work in IT for 5th Consecutive Year
FINRA
One of the best places to work in information technology happens to be in financial regulation: the Financial Industry Regulatory Authority (FINRA), according to IDG’s Computerworld. This is the fifth year in a row that FINRA has placed in Computerworld’s 100-company list.
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Statement of Chairman Timothy Massad on Final Rule Amending Reporting and Recordkeeping Requirements for Cleared Swaps
CFTC
Regular reporting of data on swaps is a key component of the swaps reforms that were agreed to by the G-20 leaders and codified in the Dodd-Frank Wall Street Reform and Consumer Protection Act. Since taking office, a priority of mine has been to improve data quality and to simplify reporting obligations for market participants. I know that my fellow Commissioners Bowen and Giancarlo share this goal. That is why I am very pleased that today, the Commission has acted unanimously to improve the process for reporting data on cleared swaps.
goo.gl/WiLIj9

CFTC Requests Public Comment on a Rule Amendment Certification Filing by ICE Futures U.S.
CFTC
The U.S. Commodity Futures Trading Commission (CFTC) is requesting public comment on a rule amendment certification filing by ICE Futures U.S. which would clarify that parties to a block trade may engage in pre-hedging or anticipatory hedging of the position that they believe in good faith will result from the consummation of the block trade, except for an intermediary that takes the opposite side of its own customer order. Comments must be submitted on or before July 14, 2016.
goo.gl/wrqOmo

ESMA recognises CME as third-country CCP
FIA
Today, the European Securities and Markets Authority (ESMA) updated its list of recognised third-country central counterparties (CCPs) to include the Chicago Mercantile Exchange (CME).
goo.gl/QCfHN3

Testimony on “Oversight of the U.S. Securities and Exchange Commission” by Chair Mary Jo White, Before the Committee on Banking, Housing, and Urban Affairs, United States Senate
SEC
/goo.gl/jeAKgS

NYSE: Notice of Filing of Proposed Rule Change Amending NYSE Rule 6A to Exclude the Physical Area Within Fully Enclosed Telephone Booths Located in 18 Broad Street From the Definition of Trading Floor (Release No. 34-78057; File No. SR-NYSE-2016-31; June 13, 2016); see also Exhibit 5
NYSE
/goo.gl/MFfSfV

Exchanges & Trading Facilities

LME says reviewing possible use of blockchain technology
Reuters
The London Metal Exchange is reviewing using so-called blockchain technology, its chief executive said on Tuesday.
goo.gl/FYHWBN

Bats Hotspot to Launch Outright Forwards for FX Market
Initiative Launch Planned for the Fall of 2016
BATS
Bats Hotspot today announced plans to offer global trading of outright deliverable forwards contracts, with a launch planned for fall 2016.
goo.gl/dHhMId

TMX Equity Transfer Services Changes Name to TSX TrustA- A+ Print
TMX
TMX Equity Transfer Services today announced it has changed its name to TSX Trust. TSX Trust provides transfer agency and corporate trust services to public and private companies and investors as well as the advisory community in Canada and around the world.
/goo.gl/kkRkU6

CME Group Statement on European Securities and Markets Authority’s Recognition of CME Inc.
CME Group
Today, CME Group Executive Chairman and President Terry Duffy, released the following statement following the European Securities and Markets Authority’s recognition of CME Inc. under EU regulations:
goo.gl/KUWkLY

Change in the Holding of an Executive Office
HKEX
Hong Kong Exchanges and Clearing Limited (“HKEX”) announces that, with a view to rationalising the operating process, Mr Lee Kwok Keung, Roger, HKEX’s Head of Markets, is appointed to replace Mr Romnesh Lamba as the Chief Executive of The Stock Exchange of Hong Kong Limited (“SEHK”) and Hong Kong Futures Exchange Limited (“HKFE”), both being HKEX’s direct wholly-owned subsidiaries. Mr Lamba, HKEX’s Co-head of Market Development, remains as a director of both SEHK and HKFE.
goo.gl/CNZMC5

HIGH-GROWTH POTENTIAL OF EU SMES SHINES THROUGH IN LONDON STOCK EXCHANGE GROUP’S ‘1000 COMPANIES TO INSPIRE EUROPE’ REPORT
London Stock Exchange Group
Report identifies how uniquely critical high-growth private small and medium sized companies (SMEs) are to future European economic growth and job creation
goo.gl/CJsuD6

Technology

UnaVista continues North America expansion to address new regulatory reporting obligations for US firms
London Stock Exchange Group
Industry veteran Neil Giavara joins sales team to bolster efforts, especially in the key US market
European regulations increasingly impacting US firms, many of which are unaware of their full obligations
Recent partnerships with DTCC, Charles River and TowerGroup helping provide critical education on compliance requirements
goo.gl/2j2xlh

Broadridge Expands Securities Financing, Collateral Management Solutions with 4sight Acquisition
Dan DeFrancesco – Waters Technology
4sight was founded in 2003 and has clients in 16 countries.
goo.gl/il992H

Traiana Adds UBS, Barclays to Automated Central Clearing Platform
John Brazier – Waters Technology
Addition of UBS and Barclays to give ‘tremendous boost’ to trade volumes netted on Harmony CCP Connect for Equities platform.
goo.gl/dyLScP

Thomson Reuters Expands OTC Markets Content; The addition of end-of-day prices and other data expands an existing distribution agreement under which Thomson Reuters already carries OTC Markets’ real-time data.
Max Bowie – Waters Technology
Thomson Reuters has begun distributing end-of-day closing bid, offer and trade data from New York-based over-the-counter securities exchange OTC Markets Group’s OTCQX, OTCQB and Pink platforms via the vendor’s DataScope pricing and reference data product suite
goo.gl/CfjXAI

‘Net neutrality’ rules for fair internet access win in court
Sam Hananel And Tali Arbel, Associated Press
A federal appeals court on Tuesday upheld the government’s “net neutrality” rules, preserving regulations that force internet providers such as Comcast and AT&T to treat all online traffic — everything from Netflix and cat videos to games and downloads — equally.
/goo.gl/mzKMgr

Politics

Elizabeth Warren Says She’s ‘More Disappointed Than Ever’ with SEC Chief
WSJ
The Massachusetts Democrat attacked the Securities and Exchange Commission chairman’s record at a congressional hearing Tuesday, saying she believes the SEC is moving “in the opposite direction” of its primary mission of protecting investors.
on.wsj.com/24Qxdwh

Convicted Ponzi schemer: I’ll conduct $50 million marketing campaign for Trump
By HANNA TRUDO and KENNETH P. VOGEL – Politico
A convicted Ponzi schemer on Tuesday filed a curious report with the Federal Election Commission declaring that his super PAC was going to conduct a $50 million digital-media marketing campaign boosting Donald Trump.
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Hedge Funds & Managed Futures

Platinum Partners to shut main hedge fund following arrest of associate
BY LAWRENCE DELEVINGNE – Reuters
U.S. hedge fund Platinum Partners is returning the majority of its assets to clients following the arrest of a longtime associate on allegations he orchestrated a $60,000 cash bribe to secure an investment from a New York city union.
goo.gl/DmGNOq

Crowdfunding sites do battle with VC firms; Fight to invest in early-stage companies raises prospect of consolidation between sectors
by: Hugo Greenhalgh, Wealth Correspondent – FT
Crowdfunding platforms and venture capital firms are going head to head to capture the growing interest in investing in early-stage companies in a move that could spark a round of consolidation between the two.
/goo.gl/Wtqnxj

Who can destroy value the fastest?
by Joshua M Brown – The Reformed Brokers
Are European bankers creating or destroying value for shareholders? The chart below shows percentage gains, including dividends, for some of the largest money center banks in Europe since the summer of Lehman eight years ago. Many of these stocks are revisiting levels not seen since the crisis. Whose fault is it, the macro or the micro?
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Banks & Brokers

Morgan Stanley’s Gorman says bank eyeing $1 billion in FICC trading per quarter
BY OLIVIA ORAN – Reuters
Morgan Stanley (MS.N) is eyeing quarterly revenue of around $1 billion for its fixed income, currencies and commodities trading unit, Chief Executive James Gorman said on Tuesday.
goo.gl/19QNIR

Morgan Stanley Says Fixed Income Capable of $4 Billion Annually
Dakin Campbell – Bloomberg
Gorman calls results from second half of 2015 ‘unacceptable’; Morgan Stanley is done with job cuts in fixed income, CEO says
Morgan Stanley’s fixed-income and commodities business is capable of generating $4 billion in annual revenue after the firm cut the operation in recent years amid an industrywide slump, Chief Executive Officer James Gorman said.
goo.gl/Ns8p6t

J.P. Morgan Is Sticking With Its Trading Revenue Outlook
By EMILY GLAZER – WSJ
The second quarter has suddenly gotten shaky for markets – and banks.
goo.gl/7BmzlY

Quantitative Brokers Algorithm Saves CTA $9.5M In Transaction Costs Over 3-Year Period – According To Comparative Analysis, QB Algo Handily Beat Three Bulge Bracket Bank Algos
Mondovisione
Quantitative Brokers (“QB”), a leading provider of agency algorithms for futures and fixed income markets, has released the findings from a 34-month comparative analysis study by a CTA client. The report showed that QB’s arrival price algorithm, Bolt, consistently outperformed the algorithms offered by three bulge bracket banks.
goo.gl/RlbPEb

Societe Generale bullish in prime brokerage push; Increased regulation has increased the barriers to entry in prime brokerage, forcing some to scale back their client base.
By Paul Walsh – The Trade
Societe Generale is optimistic that top tier banks will remain a dominant player in the prime brokerage market, despite increased regulatory pressures on the business.
goo.gl/NOOojB

Clearing & Settlement

ESMA grants CME Group application for recognition as an EU clearing house
LeapRate
Pan-European financial regulatory body ESMA (European Securities and Markets Authority) announced today that it has accepted the application of Chicago-based CME Group Inc (NASDAQ:CME) to be recognized as a central counterparty (CCP) in the EU.
/goo.gl/IN7nhE

Indexes & Products

MSCI decision tells China it can’t always get its own way
Euromoney
Wednesday’s decision by MSCI to delay membership for Chinese A-shares in the MSCI Emerging Markets Index serves a number of purposes.
goo.gl/SbDoae

MSCI keeps Peru bourse in its emerging markets group
Reuters
Index provider MSCI Inc decided on Tuesday to keep Peru’s stock exchange in its emerging markets group instead of downgrading it to the higher-risk “frontier” category because of low liquidity.
goo.gl/E1lhoC

Why Pakistan got MSCI’s Emerging Markets Index approval and China didn’t
CNBC
China is likely feeling slighted as Pakistan gains entry into one of the world’s most popular emerging markets equity indices while mainland shares were left out. But Beijing could take a few pointers from the South Asian country.
goo.gl/vTIXF7

First Trust, Bullmark and Global X Select Nasdaq as Primary Venue for New ETF Listings
GLOBE NEWSWIRE
Nasdaq (Nasdaq:NDAQ), the single largest U.S. equity exchange by market share, announced five new exchange-traded product (ETP) listings in May, growing the company’s total ETP listings to 264. Three of these new listings include thematic ETFs, which are becoming increasingly popular since they provide immediate access to a basket of securities tracking a current trend.
goo.gl/Nt36oK

The Nasdaq Stock Market® Welcomes Five New ETPs in May
By GlobeNewswire, June 14, 2016, 11:16:00 AM EDT
Vote up AAA

Environmental & Energy

The Global Stakes of a Saudi Aramco I.P.O.
By STEVEN DAVIDOFF SOLOMON – NY Times
It’s hard to get one’s head around it: An initial public offering that would value a company in the trillions of dollars. That’s trillions, with a T.
goo.gl/XjF1rM

Oil industry’s $1tn spending cut raises fears over future supply
by: Ed Crooks in New York – FT
Oil and gas companies will spend $1tn less on finding and developing reserves between 2015-2020 because of the crude price crash, a leading consultancy says, stoking fears about potentially tight supplies towards the end of the decade.
/goo.gl/xQwo5B

Asia-Pacific

MSCI says other issues on China’s share inclusion may arise over time
Reuters
U.S. index provider MSCI (MSCI.N) said on Wednesday existing stock connect schemes promoted by China are not programs that every investor wants to use and it cannot rule out other issues that may arise over time.
goo.gl/mzRL4u

Chin up, China. Just consider Pakistan
Financial Times
Here’s a chart explaining why MSCI just, once again, said no to China entering its emerging market indices club:
on.ft.com/1PtB4ID

Japan’s share market defies global sell-off
BBC
Japan’s benchmark Nikkei 225 index closed up 60.58 points, or 0.4%, at 15,919.58.
The rise came amid the Bank of Japan’s two-day policy meeting, which will finished on Thursday.
However, analysts are not expecting major action by the central bank.
goo.gl/rC2dE8

Hong Kong’s SFC set to issue bank-like liquidity guidelines for funds
South China Morning Post
Alarmed by the ever increasing prospect of bank runs and so-called fire sales in investment funds as their accumulated asset size becomes a source of potential systemic financial risk, Hong Kong’s Securities and Futures Commission is set to introduce bank-like liquidity guidelines for authorised investment funds.
goo.gl/d3GEFO

Obscure Chinese Stock Market Is Bigger Than Shanghai’s: Chart
Bloomberg
Move over Shanghai. The new giant among Chinese stock markets is a small and mid-cap venue based in the southern city of Shenzhen.
bloom.bg/1PtBBdK

Japan says it will continue to watch markets for Brexit impact
Reuters
Japan will continue to closely monitor how financial markets react to the possibility that Britain could leave the European Union, a government spokesman said on Wednesday.
Deputy Chief Cabinet Secretary Hiroshige Seko made the comment in response to a question about whether Japan was willing to cooperate with Britain and the EU to stabilize financial markets.
reut.rs/1PtBD5c

Frontier Markets

How Is Pakistan An Emerging Market And Vietnam Is Still Frontier? – Asia Stocks to Watch
Barron’s
Pakistan’s stock market in Karachi rallied 2.3% today after MSCI included the south Asian nation in its benchmark MSCI Emerging Markets Index.
It is curious that Vietnam, the new Asian Tiger known for for its manufacturing prowess and political certainty, remains solidly in the MSCI Frontier Markets category, whereas Pakistan is now considered an emerging market. Pakistan’s GDP per capita is only $1,275, while the Vietnamese are 50% richer.
goo.gl/TCldqH

Opening the Frontiers: IFC’s Orbit Expands to Ethiopia, Madagascar
Frontera News
A trailblazer for some of the less explored frontier markets, the World Bank’s International Finance Corp. has invested $5.4 billion in private equity funds in emerging markets since 2000. So what does it take for a private fund to partner with the IFC? Frontera’s Managing Editor Gavin Serkin asked Maria Kozloski, chief investment officer of the IFC’s private equity funds group, in our latest
/goo.gl/283DsY

Reserve Bank feels NSEL case heat
Business Standard
The Gujarat High Court on Tuesday issued notice to the Reserve Bank of India on a public interest litigation (PIL) seeking legal action against National Spot Exchange Ltd (NSEL) for operating a payment system without authorisation.
goo.gl/O4Yf6L

Miscellaneous

Cargill’s goal: Help improve more than 1 million people’s lives by 2020; Global food & agriculture company approves $13 million to advance sustainability, food security and nutrition
Cargill
Through a broad set of programs focused on the intersection of food security, sustainability and nutrition, Cargill is awarding more than $13 million in grants that will improve the lives of more than 1 million people in 15 countries around the world.
goo.gl/7boiet

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