Hits & Takes
The very last page of Deutsche Boerse‘s 425th anniversary pamphlet covering its chronology from 1585-2010 simply says “Part 2 of this booklet will be published in the year 2435.” Who says the Germans don’t have a sense of humor? ~SD
If you would like to see a man hold a Starbucks coffee cup for an entire presentation of MarketsWiki Education World of Opportunity, check out this 2014 video of former BATS and now MIAX executive Jeromee Johnson.~JJL
The second most common browser language to come into MarketsWiki in the last month, after English, has been Chinese, according to internal JLN analytics. German, French and Japanese are the next three~JJL
Stop stalling, SEC. Approve the Chinese-led purchase of the Chicago Stock Exchange
Did you know that a Chinese company owns Armour hot dogs? As China’s economy grows, investors there have climbed the food chain to acquire valuable American brands such as AMC Theatres, New York’s Waldorf Astoria hotel and Smithfield Foods, parent of Armour, which was founded in Chicago in 1867.
**Stalling? Who staaaaaaling?~JK
Boat Gains Momentum With Catastrophe Risk Modelling Platform
Boat Oasis, a Multi-Peril Catastrophe (Cat) Risk Modelling Platform for the (re)insurance industry, brought to market by Boat Services in January 2017 has added new risk models, increasing customer attraction.
**A well timed announcement.~JK
The Game of Trading – Michael Patak
“If you look at this from a game mentality, you can get trading down. You don’t have to be a Harvard grad or anything like that. You can be a country boy from Nebraska.”
In this video from MarketsWiki Education’s World of Opportunity event in Chicago, Michael Patak, founder of TopstepTrader, analyzes the game of trading and how to find success. After suffering three $30,000 losses while trading during college, Patak retooled his approach and subsequently started TopstepTrader. The simulation platform at TopstepTrader helps new traders learn how to manage risk and maintain discipline. If they can prove they are profitable, TopstepTrader will fund their account. Patak doesn’t want new traders to make the same mistakes he did and sees this as a way to enable talent in markets regardless of background.
Watch the video »
Wednesday’s Top Three
Tuesday’s number two story became the top read piece yesterday, the sad and tragic story from the New York Post, Wall Street recruiter jumps to her death from luxury NYC home. Second went to The Independent’s article Bitcoin Foundation seeks legal protection from US currency regulation. Third went to Reuters’ story Large part of Louis Dreyfus’s grains team leaves company
106,866,237 pages viewed; 22,712 pages; 208,586 edits
NYSE Proposes Delay on End-of-Day Company Announcements; Move is a bid to protect exchange’s closing auctions that determine end-of-day price for thousands of stocks
Alexander Osipovich – WSJ
Besieged by fast-trading robots, the floor traders at the New York Stock Exchange are getting a little help: an exchange-imposed news embargo for listed companies in the minutes after the market’s 4 p.m. close.
Your Trades Will Soon Spend Less Time Stuck in Market’s Plumbing
Annie Massa – Bloomberg
U.S. catches up to Europe, shifting trade clearing to two days; Two days is sluggish given light-speed pace of modern markets
Settling stock and bond trades in the U.S. is about to get a lot faster as regulators cut the after-trade wait to two days from three, freeing up capital that would otherwise be frozen.
**Tzero is not impressed.
Six global banks join forces to create digital currency;’ Utility settlement coin’ aims to launch next year for blockchain settlements
Martin Arnold, Banking Editor – FT
Six of the world’s biggest banks have joined a project to create a new form of digital cash that they hope to launch next year for clearing and settling financial transactions over blockchain, the technology underpinning bitcoin.
Bitcoin Exchange Sees Complaints Soar
Lily Katz and Julie Verhage – Bloomberg
U.S. regulator gets hundreds of complaints about Coinbase; Many customers say they’re not getting funds when promised
The most popular online exchange for trading digital currencies is generating a surge in customer complaints this year even as investors are lured by a dramatic rise in prices.
JP Morgan clears first trades with LCH ForexClear; FX is the latest addition to JP Morgan’s OTC clearing business as it looks to provide a platform across all assets.
Hayley McDowell – The Trade
JP Morgan has cleared its first non-deliverable forward (NDF) trades with LCH ForexClear since the implementation of uncleared margin rules.
Harvey Ripples Through U.S., Global Energy Markets; Record flooding in Texas is straining superhighway of energy trade
Christopher M. Matthews and Alison Sider – WSJ
Tropical Storm Harvey’s crippling of Gulf Coast refineries, ports and pipelines is being felt across the country and even globally, a result of a U.S. energy boom that has made the country and the world increasingly reliant on Texas.
China targets speculative frenzy from ‘initial coin offerings’; Bitcoin fundraising by tech enterprises carries fraud risks, industry group warns
Gabriel Wildau in Shanghai – FT
Chinese regulators have launched a crackdown on sales of cryptocurrency-based fundraising schemes known as “initial coin offerings,” amid concerns that they are fuelling financial risk and outright fraud.
BofA CEO Says He’s Confident Clients Will Pay for Research
By Laura J Keller and Erik Schatzker – Bloomberg
Trading this quarter is ‘solid,’ Moynihan says in interview; Tax reform needed in ‘fight’ to boost U.S. growth to 3% a year
Bank of America Corp. is confident clients will pay as much as $80,000 per user for its research after a European ban on free bundled content goes into effect, Chief Executive Officer Brian Moynihan said.
Rules Relax, Rates Rise and Some New Banks Start Up in the U.S.
Sarah Ponczek – Bloomberg
Three banks opened this year, three more approved by the FDIC; Regulator says ‘we’re open for business’ as process relaxed
This year has brought something the U.S. financial industry hasn’t seen in a while: new banks.
Exchanges, OTC and Clearing
NYSE seeks to delay after-market company announcements
The New York Stock Exchange filed a proposal on Tuesday to delay the release of important company news immediately after official closing time to reduce investor confusion and market disruption.
Report on Initial Public Offering Applications, Delisting and Suspensions
Nasdaq Successfully Lists 90 SPAC IPOs, raising a total of $15.3B
Nasdaq extends market leadership in Special Purpose Acquisition Companies (SPACs) initial public offerings (IPOs) with 90 SPAC IPOs. Since the adoption of new listing rules in 2011, Nasdaq has consistently been the exchange of choice for SPACs, attracting 96% of all SPAC IPOs listing on a national exchange.
Straits Times Index (STI) quarterly review
FTSE Russell announces that there will be one change to the constituents of the Straits Times Index (STI), following the September quarterly review. Jardine Strategic Holdings will join the STI and, as a result, SIA Engineering will leave the index.
France and Sweden’s share of fintech deals has increased since Brexit
France and Sweden’s share of financial technology deals in Europe has grown since Britons voted to leave the EU in June last year, according to research firm CB Insights.
Hong Kong and Dubai Financial Regulators Enter FinTech Pact
The Hong Kong Securities and Futures Commission (SFC) And the Dubai Financial Services Authority (DFSA) have entered a bilateral FinTech agreement toward the development and application of financial technologies.
Database Giant Oracle Joins Hyperledger Blockchain Project
Computer technology multinational Oracle has officially joined the Hyperledger project, the Linux Foundation-led blockchain development initiative.
Vela Technologies Investee BTL Launches Beta Of Blockchain Platform
Vela Technologies PLC on Wednesday noted announcements from investee firm BTL Group Ltd, including the launch of a beta version of its blockchain platform and planned new patent –
**This is Vela Technologies, UK-based investment firm, not Vela Trading Technologies.
It’s About to Become Even Easier to Issue Blockchain-Based Coins
Camila Russo – Blomberg
Polymath says platform to be one-stop shop for token issuers; Venture looks to tap ICO market as sales draw more scrutiny
Startups have been ditching venture capitalists and raising millions of dollars in minutes by issuing digital tokens in what have become known as initial coin offerings. One company says that process is about to become even easier.
How a bank bet on fintech for its digital reboot
Bryan Yurcan – American Banker
When Kevin Karrels first joined the digital team at First Tennessee, he knew a drastic overhaul was in order.
“I inherited a broken and weak digital platform,” said Karrels, senior vice president and digital channel strategy executive at the $29.4 billion-asset bank.
Donald Trump’s debt to Deutsche Bank; As others shied away, the German bank lent money for several projects. But the president and lender face increased scrutiny over their ties
Ben McLannahan, Kara Scannell and Gary Silverman in New York – FT
When Donald Trump sued Deutsche Bank in late 2008, it was “classic Trump”, according to the German bank, which sued him back.
Trump Tax Plan May Free Up Corporate Dollars, but Then What?
Patricia Cohen – NY Times
The tax overhaul promised by President Trump and Republican congressional leaders is lugging a remarkably heavy load. The goal is not only to reduce the tax bills of corporations and small businesses, but also to stimulate investment, create jobs, increase global competitiveness and promote economic growth.
Trump’s Impatience Emerging as Biggest Threat to Nafta Agreement
Eric Martin – Bloomberg
U.S. president has repeatedly raised possibility of withdrawal; Negotiators set to meet in Mexico City to renew talks Friday
President Donald Trump won’t be in the room when negotiations resume on Friday to revise the North American Free Trade Agreement, but his threats to blow up the talks could figure prominently.
Wealth Manager Urges Trump to Pardon Junk King Michael Milken
Max Abelson – Bloomberg
Wealth-management executive David Bahnsen sent a plea to President Donald Trump this week to pardon Michael Milken, one of the most powerful figures in Wall Street history to go to prison.
Robert Mueller Eliminates Trump’s Trump Card
Jonathan Chait – New York Magazine
Donald Trump’s ability to issue presidential pardons has been the ultimate weapon looming over Robert Mueller’s investigation. Trump could potentially pardon himself of any crimes. https://goo.gl/AJ1DCJ
Winter is coming in Donald Trump’s Washington; The administration’s implosion is likely to accelerate amid subpoenas and suspicion
Edward Luce – FT
It is often tempting to think Donald Trump can do no worse. Yet he keeps finding that extra mile. America’s president began the holiday season with a threat of nuclear strikes on North Korea. This week Pyongyang launched its most ominous missile test in years. In between, Mr Trump gave a rocket boost to the Ku Klux Klan and pardoned America’s most racist sheriff in memory.
MIFID II Transparency will leave us in the dark
Chris Barnes – Clarus Financial Technology
We run the SSTI and LIS thresholds over US SDR data. We anticipate that over 80% of EUR swaps will not be subject to pre-trade transparency. Post-trade transparency will not be much better. 75% of the risk traded will remain dark for up to four weeks. We are intrigued to see what the APAs will publish on 3rd January 2018.
Industry pushes CFTC to prioritise cross-border clarity; Approaching Mifid II deadline adds urgency to Giancarlo’s overhaul of Sef rules
Joanna Wright – Risk.net
New European trading rules due to take effect in January 2018 add urgency to an overhaul of the cross-border aspects of US regulation by recently appointed Commodity Futures Trading Commission chairman Christopher Giancarlo, market participants say.
Reminder: Trade Reporting and T+2 Settlement
On Tuesday, September 5, 2017, in accordance with the industry-led shortened settlement cycle from three business days (T+3) to two business days (T+2), FINRA will implement its changes for equity trade reporting. Please refer to Regulatory Notice 16-09 and SR-FINRA-2016-047 for more information on the changes for the trade reporting related to the shortened settlement cycle.
Disaster Planningó5 Things to Put in Your Financial Emergency Kit
Hurricane Harvey’s destruction is a forceful reminder that you rarely have very much advance warning to prepare for natural disasters. For this reason, it’s important to assemble a financial emergency kit now, ahead of a crisis.
Guidance to Members Affected by Hurricane Harvey
This Notice provides guidance to firms with a home office, branch office or other business location affected by Hurricane Harvey. FINRA is providing guidance on a number of regulatory and compliance issues, including emergency office relocations, continuing education requirements for registered personnel, registered personnel engaged in active military duty, regulatory filings and associated fees, regulatory inquiries and customer communications.
SEC Monitoring Market Impact of Hurricane Harvey
The Securities and Exchange Commission is closely monitoring the impact of Hurricane Harvey on investors and capital markets. Chairman Jay Clayton has mobilized agency resources to assist affected investors and market participants.
ASIC extends time for expressions of interest for membership of Financial Services and Credit Panel
The Australian Securities and Investments Commission has extended, to 14 September 2017, the time for expressions of interest from financial services and consumer credit industry participants who are interested in becoming members of the new ASIC Financial Services and Credit Panel.
ASIC reports on how investors decide to invest in IPOs
Based on recent research, ASIC reports that prospectuses are important for investors in considering an investment in an IPO but there is scope for improvement in the usability and credibility of these documents.
DFSA signs fintech development deal with Hong Kong; Agreement signed for greater FinTech cooperation between DFSA and Hong Kong SFC
Dubai Financial Services Authority (DFSA) and the Securities and Futures Commission (SFC) in Hong Kong signed a cooperation agreement this week to further develop financial technology (fintech) in their respective markets.
Investing and Trading
Why European Stocks Can Survive a Stronger Euro
Richard Barley – WSJ
Up goes the euro, down go European stocks. Or do they? To judge by the broad performance of the Stoxx Europe 600, that’s the case. After a promising start to the year, the index has faded since May as the euro has charged higher, and shares are now up just 3.2% for the year, in contrast with continued good economic news from the continent. But the headline is far from the full story.
World’s Biggest Wealth Fund Loses Taste for New Assets
Mikael Holter and Sveinung Sleire – Bloomberg
Wealth fund CEO says infrastructure now not important question; Fund’s sheer size makes finding big enough markets a challenge
The world’s biggest sovereign fund says expanding into new asset classes is now hardly worth the effort.
Why ‘More Europe’ Won’t Solve Europe’s Fiscal Quandary; France favors redistribution and a euro finance minister. This would benefit only Germany.
Pascal-Emmanuel Gobry – Bloomberg
To a certain cast of people, the solution to every problem in Europe is “more Europe” — even, or especially, those problems that have been caused by Europe.
Millennials Really Are Making a Move on Tech Funds
Kaye Wiggins – Bloomberg
European venture capital investment at its highest since 2008; Under-30s on course to be promoted younger, at earlier stages
At the age of 27, Andre de Haes raised 30 million euros ($36 million) for his London-based venture capital fund, Backed VC.
Editorial: Bank-bashing can’t be free-for-all
Darin Tyson-Chan – Financial Observer
It seems the news just goes from bad to worse for Commonwealth Bank of Australia (CBA). In recent times, Australia’s biggest bank has had problems with its financial planning and insurance arms and the latest scandal has revealed a dereliction in its duty to comply with the anti-money laundering and anti-terrorism requirements for financial institutions in this country.
Bank of China Quarterly Profit Surges 23% as Bad Loans Curbed
Bank of China Ltd., the nation’s fourth-largest lender, posted a 23 percent surge in second-quarter profit after curbing bad loans and expanding its lending margin.
Retired stockbroker sues Credit Suisse over US$26m investment losses in 2008
Selina Lum – Straits Times
A retired stockbroker from Malaysia who lost US$26 million (S$35.1 million) in investments with Credit Suisse during the 2008 financial crisis is suing the Singapore branch of the Swiss bank for breaching its duties to manage his private wealth account with care.
Adrenaline-Craving Bankers Are Driving a Surfing Boom in Chile; And turning their backs on golf.
By Javiera Quiroga – Bloomberg
Christian Acevedo has been surfing in Chile for 26 years. Known in the community as El Macha, or “the clam,” because of the amount of time he spends at the ocean and in the rocks, Acevedo is one of Chile’s first certified instructors. He has taught surf camps at Puertecillo, a beach about 110 miles southwest of Santiago, as well as at Pichilemu, a more popular spot 25 miles farther down the coast. While working at Surfers Paradise surf shop in Santiago, he became a mentor to an entire generation of young surfers.
South Asia floods: Mumbai building collapses as monsoon rains wreak havoc; Flooding across India, Nepal and Bangladesh has left parts of cities underwater with storm moving on to Pakistan, lashing port of Karachi
Amrit Dhillon in Delhi – The Guardian
At least 12 people are dead and up to 25 more feared trapped after monsoon downpours that have brought death and destruction to south Asia caused a building to collapse in Mumbai.
Frankfurt to evacuate 60,000 people to defuse British WWII bomb
Around 60,000 inhabitants of Germany’s financial capital Frankfurt will be ordered to leave their homes on Sunday while a large World War Two bomb discovered at a building site is made safe, the police said.
Hong Kong’s new story being written by the young; The power of the tycoons in every sector stifles opportunities for emerging entrepreneurs to build businesses
Ben Bland – FT
Tycoons are as synonymous with the story of modern Hong Kong as founding prime minister Lee Kuan Yew is with Singapore.
India’s landmark privacy ruling marks rebuke to political Hinduism; Decision on ‘right to be left alone’ protects citizens from intrusive nanny state
Amy Kazmin in New Delhi – FT
India’s ruling Bharatiya Janata party has made little secret of its desire to create a society where all Indians, regardless of their personal beliefs or traditions, must abide by rules rooted in conservative Hindu precepts.
India demonetisation fails to purge black money; Blow to Modi as RBI says 99% of high-value banknotes have been exchanged or deposited
Simon Mundy in Mumbai, and Amy Kazmin and Kiran Stacey in New Delhi – FT
India’s central bank has estimated that 99 per cent of the high denomination banknotes cancelled last year were deposited or exchanged for new currency, dashing government hopes that its contentious demonetisation exercise would wipe out huge amounts of “black money”.
French government unveils jobs market liberalisation; Measures are part of Macron’s attempt to attract investment and curb unemployment
Anne-Sylvaine Chassany in Paris – FT
The French government has unveiled contentious pro-business measures to liberalise the country’s dysfunctional jobs market, in a move that will test President Emmanuel Macron’s resolve for reform of the eurozone’s second-largest economy amid sinking approval ratings.
Russia Expands Grip on Wheat Exports as Asia Set to Buy More
Manisha Jha and Anatoly Medetsky – Bloomberg
Droughts curb crops for rival growers Australia, Canada, U.S.; Rising demand from China to India could boost Russian exports
Russia, the world’s biggest wheat exporter, is about to grab even more customers in the fast-growing economies of Asia — a region that normally gets most of its imported grain from somewhere else.
Markets Are About to Find Out What China’s Leadership Reshuffle Means
Twice-a-decade meeting, leadership reshuffle set for Oct. 18; Personnel moves and work report key for China market-watchers
For most of the year, there’s been an oft-repeated refrain among China-watchers. Whispered in private meetings with clients or loudly spoken by confident brokers, it goes something like this: “Don’t worry about the economy or markets in 2017 — Beijing won’t let anything bad happen ahead of the Communist Party Congress.”
Southeast Asian Stocks Post Longest Winning Streak in Five Years
Divya Balji and Livia Yap – Bloomberg
Southeast Asia is giving the rest of the Asia Pacific region a run for its money. North Korea’s missile launches, U.S. President Donald Trump’s “fire and fury” responses and the possibility of further tightening by the Federal Reserve aren’t holding back the equity markets in this part of the world.
Canada Farmers Seen Harvesting Less Wheat, Canola in 2017
Jen Skerritt -Bloomberg
Canadian farmers will probably harvest less wheat and canola in 2017 than a year earlier, according to a survey of five analysts by Bloomberg News.
Sinopec Probed by the U.S. Over Nigeria Payments
Hugo Miller and Tom Schoenberg – Bloomberg
SEC, DOJ efforts focused on alleged bribes paid in California; Payments said linked to unit’s $4 billion dispute with Nigeria
U.S. authorities are investigating China Petroleum & Chemical Corp. over allegations that the state-controlled oil producer paid Nigerian officials about $100 million worth of bribes to resolve a business dispute, according to people familiar with the probe.
Beijing may loosen capital controls as yuan hits 14-month high
Karen Young – South China Morning Post
Both onshore and offshore yuan rose to the highest level in 14 months, which analysts said may herald a loosening of capital controls in the coming months.
China invites five countries as guests for BRICS summit including Thailand, Egypt, Kenya; China has invited Egypt, Kenya, Tajikistan, Mexico and Thailand as guest countries for the upcoming BRICS summit but clarified that the invitation is not an attempt to expand the group under its ‘BRICS Plus’ approach.
China has invited Egypt, Kenya, Tajikistan, Mexico and Thailand as guest countries for the upcoming BRICS summit but clarified that the invitation is not an attempt to expand the group under its ‘BRICS Plus’ approach. China will host the BRICS summit in Xiamen city from September 3 to 5 in which leaders of the five countries will participate, including Prime Minister Narendra Modi.
China’s securities stocks thronged by ‘locusts’; State-backed entities lift stakes in brokers, and eager investors follow
Chinatsu Hayashi – Nikkei
Shares in Chinese securities companies are surging on the Shanghai market as so-called locust investors, who swarm around buy opportunities, react to news that state-affiliated entities have raised their stakes in the brokers.
China’s Financial Sector Risks
Grace Wu, senior director and head of China bank ratings at Fitch Ratings, discusses what to expect from China’s big 4 bank earnings. She speaks on “Bloomberg Markets: Asia.”
UBS Is Said to Be Leaning Toward Frankfurt for EU Trading Hub
Jan-Henrik Foerster and Steven Arons – Bloomberg
Bank said to have talked with regulator on boosting presence; CEO Ermotti had said that Frankfurt was “location of choice”
UBS Group AG is leaning toward Frankfurt for its trading headquarters inside the European Union after Brexit, according to four people with knowledge of the matter
Devil in the Detail: Brexit Talks Are Making Little Progress
Ian Wishart – Bloomberg
From the divorce bill to health care, the two sides disagree; EU’s Barnier, U.K.’s Davis to speak to reporters around midday
The Brexit negotiations are deadlocked.
Brexit Offers U.K. Office-Buying Boon, $95 Billion Fund Says
Emily Cadman and Brett Foley – Bloomberg
Australia’s largest pension fund looking at U.K. real estate; China capital controls may clear the decks for other investors
Bankers may be leaving London, but Britain’s exit from the European Union could still offer opportunities to buy U.K. commercial real estate with the market in flux, according to Australia’s largest pension fund.