Shares on China tech exchange surge up to 520% in debut; Citadel Puts Clout Behind Effort to Safeguard U.S. Treasuries

Jul 22, 2019

First Read

Hits & Takes
JLN Staff

Our friend and industry legend David Setters noted the 3rd Annual City MND Cricket Day at the HAC in London tomorrow, July 23, 10 am with the final at 5:30 pm. Teams competing include: LME, INTL FC Stone, Interxion, Euronext, KRM22 & Intertrader. Great event to raise money for the MND Association.~JK

I am off to Scout camp this week at Camp Freeland Leslie in Oxford, Wisconsin. We have ten girls and ten boys this week at camp. This is the girls’ first camp and they are full of Scout spirit~JJL

Four of our boys from Troop 117B are off to the World Scout Jamboree in West Virginia where 40,000 Scouts from around the world are expected for the next 10 days. My daughter Katherine is there on the staff for the summer.~JJL

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The Spread – A SPIKE in Volume
JohnLothianNews.com
MIAX’s SPIKES options offering saw renewed activity this week. In this week’s episode of “The Spread” we look into that as well as bad big bank trading, $100,000 strike bitcoin options and the strange legal case of former CBOE director Alvin Wilkinson.
Watch the video »

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Acuiti Derivatives Insight Report: Revenues Up But Confidence Declines Across The Global Derivatives Market
Acuiti
Proprietary trading groups across Europe experienced strong revenue growth contributing to a continued improvement of performance in the derivatives market in June, the latest Acuiti Derivatives Insight Report found.
bit.ly/2O52RKx

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High-Brow Coffee Is More Popular Than Ever While Growers Are in Crisis
Shruti Singh and Marvin G Perez – Bloomberg
Jose Guillermo Alvarez’s family has harvested coffee plants at the foothills of El Salvador’s Santa Ana volcano for four generations. Their farm, the Malacara estate, gained such prestige that it was highlighted in a 1944 National Geographic feature about the country. Today, its premium beans are renowned for their notes of brown sugar, chocolate and blackberries.
With global demand for specialty brews booming, Malacara should be enjoying a renaissance. But Alvarez is unsure that the family legacy will live on. After a rout in coffee prices, his 27-year-old son has little interest in taking over the business.
/bloom.bg/2GkPVd1

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TradeStation Expands its Suite of Advanced Trading Offerings with FuturesPlus
PRNewswire
TradeStation, a Monex Group company and award-winning online broker-dealer and futures commission merchant, has unveiled TradeStation FuturesPlus, powered by Trading Technologies International, Inc. (TT). The new trading platform provides traders access to premium options-on-futures tools and robust visualization and analysis capabilities, as well as the fast and reliable execution to which TradeStation’s traders have become accustomed.
/prn.to/2YhSyXo

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Robert Morgenthau, Longtime Manhattan District Attorney, Dies at 99
Robert D. McFadden – NY Times
Robert M. Morgenthau, a courtly Knickerbocker patrician who waged war on crime for more than four decades as the chief federal prosecutor for Southern New York State and as Manhattan’s longest-serving district attorney, died on Sunday in Manhattan. He was 99.
/nyti.ms/2Z7dwp0

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Bridging the Week: July 15 – 19, and July 22, 2019 (Misvaluations for Higher Bonus; Failure to Supervise; New Eligible Block Trade Participants)
Gary DeWaal – Navigating Bridges
The Commodity Futures Trading Commission and the Securities and Exchange Commission brought separate enforcement actions against the portfolio manager of a hedge fund for mismarking valuations of interest rate swaps in order to gain a higher bonus. In doing so, the CFTC relied on a controversial provision of law currently under attack in a federal appeals court in California. Separately, two principals of an introducing broker and two futures commission merchants settled charges brought by the CFTC related to the IB’s placement of orders for certain customer, proprietary and discretionary accounts. The FCMs were charged with failure to supervise.
bit.ly/2Y3H5GE

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Friday’s Top Three
Our top read story of the day on Friday was Bloomberg’s Wall Street Trading Costs to Surge as New Rules Hit Derivatives. Second was the MarketsWiki page on David J. Westcott, who died on July 16. Third was The Wall Street Journal’s op/ed piece The SEC Wants to Give Public Investors a Fair Shot about fees.

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MarketsWiki Stats
159,760,401 pages viewed; 23,843 pages; 220,607 edits
MarketsWiki Statistics

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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.

Recently Updated Pages

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Lead Stories

Shares on China tech exchange surge up to 520% in trading debut; Star Market billed as Shanghai’s answer to Nasdaq as Beijing grapples with trade war
Hudson Lockett – FT
Shares rocketed by as much as 520 per cent on the first day of trading for Shanghai’s science and technology-focused equities market in what the Chinese government will hope is a further sign of its resilience in the face of its trade war with the US.
/on.ft.com/2Ze97kh

Citadel Puts Clout Behind Effort to Safeguard U.S. Treasuries
Liz McCormick – Bloomberg
Ken Griffin’s $32 billion hedge fund is backing efforts to make the Treasury market safer and sounder through the backstop of a central clearinghouse.
Citadel last month became the first firm to clear both a Treasury and repurchase agreement through a new Depository Trust & Clearing Corp. platform. In March, DTCC changed its rules so more companies like Citadel that aren’t members of its clearinghouse can get trades processed there by going through a member firm.
/bloom.bg/2LvdVOR

SEC to extend Mifid exemption for US brokers’ research; Banks will not have to register as investment advisers under EU rules
Richard Henderson – FT
The Securities and Exchange Commission has indicated it will extend an exemption that allows US brokers to sell research to European fund managers under the EU’s Mifid II regime that came into force last year.
/on.ft.com/2GluBUU

The FCA and its labyrinthine rulebook need a serious shake-up; Slow, inefficient and high-handed are all epithets flung at the UK financial watchdog
Jonathan Ford – FT
Here’s a small vignette from the latest report of the financial services complaints commissioner that says a lot about the prevailing culture at the UK’s main regulator, the Financial Conduct Authority.
/on.ft.com/2GAMkI7

China Is Opening Markets That Investors Shouldn’t Enter; China’s State Council is inviting more overseas involvement in some of its riskiest and most politically sensitive assets
Mike Bird – WSJ
Western investors have spent years hankering for China to open its financial markets to outside investment. Now, Beijing is offering broader access to some of the country’s most risky and politically sensitive assets, which the vast majority of would-be buyers would be wise to avoid entirely.
/on.wsj.com/2Z2QjEt

Activists become wolves in sheep’s clothing; They will say it’s governance when really it’s strategy, and it’s getting personal too
Attracta Mooney – FT
When Elliott Management revealed in December that it had taken a stake in Pernod Ricard, the activist investor partly blamed poor governance and the Ricard family’s outsize influence for what it said was underperformance at the world’s second-biggest spirits maker.
/on.ft.com/2Z6RySQ

Cathy Gibson: Building a diverse desk
John Brazier – The Trade
In February 2018, Cathy Gibson joined Royal London Asset Management (RLAM) in London to establish and lead its new centralised dealing desk, covering all asset classes, but primarily focused on equities and fixed income. The move marked a significant shift in scale for Gibson, having previously headed up the fixed income UK business for DWS (Deutsche Asset Management).
bit.ly/2YZYdyh

MSCI: Seven UCITS funds in danger of Woodford-style liquidity crisis
Breaching SEC rules; Is there another Woodford?
David Brenchley – Investment Week
Seven European-domiciled UCITS funds could be at risk of a liquidity crisis due to holding too many illiquid assets, research from MSCI has found.
bit.ly/2Go1qQZ

Earth sizzles with hottest June on record, July may follow
AP
The heat goes on: Earth sizzled to its hottest June on record as the climate keeps going to extremes.
The National Oceanic and Atmospheric Administration Thursday announced that June averaged 60.6 degrees, about 1.7 degrees warmer than the 20th century average.
bit.ly/2XUJubr

Investing in the age of deglobalisation
Financial Times
Warren Buffett once told me that his favourite investments were not so much bets on the US as bets on the ability of American companies to continue exporting capitalism around the world.
/on.ft.com/2JYctkC

Bridgewater fund caught off-guard by market bounce
Financial Times
Bridgewater’s flagship fund suffered one of its worst first-half performances in two decades this year after being wrong-footed by rebounding markets.
The $150bn hedge fund group founded by Ray Dalio saw its Pure Alpha fund, which tries to surf macroeconomic trends, lose 4.9 per cent in the six months to June as global equity and bond markets bounced on hopes of looser monetary policy.
/on.ft.com/2Z0Nkw6

Exchanges, OTC and Clearing

Changes in Liquidity Provider Schemes in selected products and amendment of the General Supplement to the Liquidity Provider Agreement
Eurex
Eurex Circular 075/2019 Changes in Liquidity Provider Schemes in selected products and amendment of the General Supplement to the Liquidity Provider Agreement
bit.ly/2Z7fxl4

Euro-BuxlÆ Futures: Amendment of quotation requirements in the “Product Specific Supplement for German Euro-Fixed Income Futures during Asian trading hours” to the Liquidity Provider Agreement
Eurex
Eurex Circular 074/2019 Euro-BuxlÆ Futures: Amendment of quotation requirements in the Product Specific Supplement for German Euro-Fixed Income Futures during Asian trading hours” to the Liquidity Provider Agreement
bit.ly/2Z4jzdN

GPW Launches the GPW Growth Programme
Warsaw Stock Exchange
The Warsaw Stock Exchange (GPW) is launching one of the #GPW2022 strategic initiatives: GPW Growth, which is a comprehensive programme of support for small and mid-sized companies based on identified needs of enterprises.
bit.ly/2Z3LzOI

Fintech

Crosslake Fibre Selects BSO Networks As Exclusive Commercial Partner For Low Latency Services On New Lake Ontario Route
Mondovisione
Crosslake Fibre, a developer of unique subsea and terrestrial fibre networks, is pleased to announce that they have chosen BSO Networks (BSO), an award-winning Ethernet network, cloud, and hosting provider, as its exclusive partner to deliver Crosslake’s Velocity – a new ultra-low latency network service between Toronto and New Jersey for the financial services market.
bit.ly/2YiIKMy

Technology and the Buy-Side Liquidity Chase
Campbell Peters – Tabb
For the first time since August 2015, the U.S. equity market in 2018 saw brief yet sustained spikes in volatility. In 2018, the VIX closed above the 2016-2017 peak of 28.14 on 10 trading days. This includes four trading days in February 2018 and six consecutive trading days in December 2018. Traditionally, spikes in volatility have been associated with diminishing liquidity as market makers widen their spreads in response to the increased risk involved in each trade. While selloffs can create buying opportunities, heightened volatility adversely impacts natural block liquidity, as portfolio managers are faced with greater uncertainty with regards to investment opportunities.
bit.ly/2YjziIX

Digital Wallet Spend In Europe & North America To Increase By 40% In 2019, Juniper Research Study Finds
Mondovisione
Consumer spend via digital wallets across Europe and North America will increase by 40% this year to nearly $790 billion, according to a new study from Juniper Research. It argued that the largest growth in 2019 would come from instore payments, with mobile contactless payments more than doubling across these regions.
bit.ly/2YhPjiy

Equifax Settlement in Data Breach Will Cost at Least $650 Million
Stacy Cowley – NY Times
The credit bureau Equifax will pay at least $650 million and potentially significantly more to end an array of state, federal and consumer claims over a data breach two years ago that exposed the sensitive information of more than 148 million people. The breach was one of the most potentially damaging in an ever-growing list of digital thefts.
/nyti.ms/2Z6or1Y

Cryptocurrencies

Fidelity’s Crypto Branch Files for a New York Trust License: Report
Cointelegraph.com
Fidelity’s crypto arm Fidelity Digital Assets Services (FDAS) has reportedly applied for a license to operate as a trust in New York State.
bit.ly/2JTNrDr

Are Institutional Investors Behind Bitcoin’s Rise?
Crypto Briefing
Changpeng Zhao, the CEO of Binance and a leading voice in the crypto community, has poured cold water on the idea that institutional investors are driving bitcoin’s price action. While some data suggest that legacy investors are finally entering the crypto space, Zhao (affectionately known as CZ) recently reaffirmed that the latest price movements are led by retail investors, suggesting that large-scale financiers have yet to join the market.
bit.ly/2JZc3uo

Libra’s Biggest Problem
Michael J Casey – Coindesk
Among the barrage of commentary accompanying the Libra circus on Capitol Hill last week was a single short tweet from lawyer Marco Santori that summed up the core problem confronting Facebook’s cryptocurrency project – and, for that matter, any corporate-led effort of its kind.
bit.ly/32DcOC5

Meet the ‘charismatic’ 26-year-old woman behind Libra, Facebook’s own cryptocurrency
Salvador Rodriguez – USA Today
Morgan Beller is one of three people, all Facebook employees, listed as a co-creator of the proposed Libra digital currency, alongside Vice Presidents David Marcus and Kevin Weil. Beller is head of strategy for Calibra, Facebook’s digital wallet that will be used to store Libra. Beller was previously a partner at Andreessen Horowitz and part of the corporate development team at Medium.
bit.ly/32Db8sh

Crypto Exchange QuickBit Confirms Data Breach That May Impact 300,000 Users
John Biggs – Coindesk
QuickBit, a Swedish cryptocurrency exchange listed on the NGM Nordic MTF market, allegedly leaked 300,000 customer records via an unprotected MongoDB database. The exchange confirmed the event in a series of updates on their investor relations board. The leak, detailed by security researcher Paul Bischoff, first dame to light after security aggregator Shodan noted the existence of the open database. QuickBit said that an outside contractor left the data unprotected while attempting a security upgrade.
bit.ly/32I9gyr

This Former Disney Executive Is Delivering A Next-Generation Blockchain Network
Forbes
Platforms like Cosmos and Tezos, hailed as scalable alternatives to Ethereum, have launched to much fanfare in recent months, and Polkadot’s mainnet launch is scheduled for later this year. I had a chance to speak with Chris Wang, the former Founder of Disney’s Playdom gaming social network, about the broader industry’s state amid his ongoing work with ThunderCore, another rising “next-generation” blockchain network — of which he is the CEO.
bit.ly/2JV54Tr

A Suspect Crypto Site Stole My Identity – and I’m Furious
Daniel Palmer – Coindesk
This week, I was hurled into the ranks of the unfortunate people who have had their identities stolen by a dodgy crypto enterprise – and, as the above headline indicates, I’m pissed. As I was informed by a well-wisher via an email this week, I am being advertised as an “advisor” to a supposed cryptocurrency project called “US Veteran Token” (USVT) that insinuates that it in some way supports the men and women that have admirably served their country in the military. But it appears to all be a ruse. A big fat fake.
bit.ly/2Y70VRh

Israeli Hacker Indicted For $1.75 Million Cryptocurrency Theft
John Vibes – CryptoGlobe
A hacker from Tel Aviv named Eliyahu Gigi was recently indicted for his alleged role in stealing roughly NIS 6.1 million (or $1.75 million) in cryptocurrencies from people in numerous different countries, including Germany, Belgium and the Netherlands. According the indictment filed this week, Gigi operated numerous scam websites that infected computers with malware that would steal cryptocurrencies that were stored on the devices.
bit.ly/2OqIkjN

Tether’s Trouble With New York Attorney General ó Will Crypto Cope?
Simon Chandler – Cointelegraph
Are Bitfinex and Tether in trouble? Maybe, but the thing is, we don’t know just how much trouble, because the stablecoin issuer has challenged the New York State Office of the Attorney General’s (OAG) case against them. In claims filed in April, Attorney General Letitia James asserted that Bitfinex defrauded its customers, having lost $850 million in client and corporate funds, and then having attempted to cover up this loss by secretly helping itself to around $900 million of Tether’s cash reserves.
bit.ly/2M4yW2k

Caplin Adds Cryptocurrencies to Multi-Asset Trading Platform
Caplin
Caplin, the specialist provider of desktop and mobile e-trading technology, today announced the addition of cryptocurrencies to its range of technology components for multi-asset trading.
bit.ly/2GiXHnN

BitMEX Bitcoin Volume Slumps 33% After CFTC Investigation
Martin Young – NewsBTC
It was recently revealed that the US Commodity Futures and Trade Commission was beginning a month long investigation of the BitMEX crypto exchange over its high leverage Bitcoin trading options and the legality of allowing US citizens to access the platform. Bloomberg originally broke the story that the US exchange would be coming under scrutiny from regulators. NewsBTC covered the events yesterday which appear to be linked to comments from senators regarding the crypto industry at two hearings last week on Facebook’s Libra project.
bit.ly/2GosUpo

Politics

Mueller report shows evidence Trump committed crimes, House Judiciary chairman says
Reuters
The top Democrat on the U.S. House Judiciary Committee said Sunday he believes there is “substantial evidence” that President Donald Trump committed high crimes and misdemeanors, and he plans to ask former Special Counsel Robert Mueller to present those facts at a congressional hearing on Wednesday.
/reut.rs/2K8WSiD

Rajan Signals Brexit Politics Deterred Him From Seeking BOE Job
Simon Kennedy – Bloomberg
Ex-RBI governor confirms to BBC he didn’t apply for position; Central banking has become ‘much more political,’ Rajan Says
Former Reserve Bank of India governor Raghuram Rajan has indicated the political challenges posed by Brexit were the reasons he didn’t apply to head up the Bank of England.
/bloom.bg/2Z5FscO

EU Puppet-Master Walks Away, Leaving Behind Enemies and Intrigue; Friend and foe agree Martin Selmayr’s departure will leave a hole in EU machinery
Ian Wishart – Bloomberg
On an early spring evening in the French city of Strasbourg, behind the familiar faces of U.K. Prime Minister Theresa May and European Commission President Jean-Claude Juncker, walked the man the Germans call the puppet-master.
/bloom.bg/2GpPTAz

A New Leader Won’t Save Most-Shunned Market From Brexit’s Grip
Bloomberg
23% of global investors are underweight U.K. in BofA survey
Getting deal through Parliament is impossible task: Fidelity
/bloom.bg/2JUwfhd

Regulation

ASIC acts against SMSF auditor misconduct
ASIC
ASIC has acted to disqualify or add conditions to the registration of a number of auditors of self-managed superannuation funds (SMSFs).
bit.ly/2ZebELj

FINRA Extends Deadline for Firms to Report Crypto Activity
Daniel Palmer – Coindesk
Amid the kerfuffle last week over Facebook’s Libra cryptocurrency project and its potential regulation, the U.S. Financial Industry Regulatory Authority (FINRA) quietly extended its deadline for firms to report their crypto activity. The self-regulatory body for brokerages and exchanges had last year requested (it says “encouraged”) that member companies inform their regulatory coordinator informed if the firm or associated individuals or affiliates, “engaged, or intended to engage, in activities related to digital assets.” The request included “digital assets that are non-securities” – that is, cryptocurrencies like bitcoin.
bit.ly/2xZAcLS

ESMA publishes its annual peer review report on EU CCPs supervision
ESMA
The European Securities and Markets Authority (ESMA) has today published its annual peer review report on the overall supervision of EU Central Counterparties (CCPs) by National Competent Authorities (NCAs).
bit.ly/2Z76gJA

FINRA Reminds Firms of Their Obligations Regarding TRACE Reporting
FINRA
FINRA is issuing this Notice to remind members of their obligation to have systems or processes in place to determine whether a transaction in a TRACE-Eligible Security has occurred and is, therefore, reportable, even if it was not included on the TRACE security master list at the time of the transaction. In those circumstances, members should contact Market Operations to add the TRACE-Eligible Security to the security master list and report the transaction to TRACE.
bit.ly/2Z8yKTm

Notice of Annual Meeting of FINRA Firms and Proxy
FINRA
FINRA will conduct its Annual Meeting of firms on Monday, August 19, 2019, at 9:00 a.m. Eastern Time in the FINRA Visitors Center at 1735 K Street, NW, in Washington, D.C. The purpose of the meeting is to elect individuals to fill one small firm seat and one large firm seat on the FINRA Board of Governors (FINRA Board).1
bit.ly/2Z6rqYe

SEC Charges Engine Manufacturing Company Executives With Accounting Fraud
SEC
The Securities and Exchange Commission today charged the former chief executive officer of a Chicago-area engine manufacturing company and two former senior sales executives for their roles in an accounting fraud that allegedly overstated the publicly-traded company’s revenues by almost $25 million.
bit.ly/2Z8zgkg

Federal Court Orders Defendant to Pay More Than $2.9 Million in Connection with a Social Media-Based Forex Fraud Scheme
CFTC
The Commodity Futures Trading Commission (CFTC) today announced that U.S. District Court for the Southern District of Texas entered judgment against defendant Kelvin Ramirez of Houston, Texas in a CFTC enforcement action that found that he had fraudulently solicited and misappropriated funds from clients in a forex trading scheme.
bit.ly/2Z1hTC0

The FCA and its labyrinthine rulebook need a serious shake-up
Financial Times
Here’s a small vignette from the latest report of the financial services complaints commissioner that says a lot about the prevailing culture at the UK’s main regulator, the Financial Conduct Authority.
/on.ft.com/2GAMkI7

Investing and Trading

How a Persian Gulf Conflict Could Impact Commodities Markets
Bloomberg
/bloom.bg/2XWLNLg

DealBook Briefing: Chinese Investment in the U.S. Drops 90%; A Chinese trade delegation visiting a Missouri farm last year.
Sometimes the chill has helped U.S. companies. Last month, UnitedHealth bought the health care start-up PatientsLikeMe after American national security regulators worried about the company’s then-owner, a Chinese business.
/nyti.ms/2GkuvMX

Hot or Not? Corn Traders Get Whipsawed Trying to Predict Weather
Michael Hirtzer – Bloomberg
Late-planted U.S. crop is now vulnerable to heat, dryness
A spring deluge that delayed U.S. planting sparked a big run higher in the corn market this year. Now traders are trying to determine how the crop might be affected by more wild weather.
/bloom.bg/2Z3Rq6B

Divorce Is Destroying the Finances of Americans Over 50
Ben Steverman – Bloomberg
Research shows splitting in middle age is especially damaging; Getting a so-called gray divorce is ‘a major financial shock’
In one sense, Amazon.com Inc. founder Jeff Bezos and his ex-wife, MacKenzie Bezos, are nothing special.
/bloom.bg/2Z8w4oM

ESG investing is a term that is too often misused; Fund managers must take greater care when promising socially responsible products
Joe Rennison – FT
It’s a bit of a mouthful, isn’t it, the BlackRock iShares JPMorgan ESG $ EM Bond UCITS ETF.But for a fund with ESG in the title ó a catch-all term for investments that meet all sorts of objectives in the environmental, social and governance arenas ó it has some eyebrow-raising holdings.
/on.ft.com/2Z7cjxY

Tumbling bond yields kindle investor demand for gold; Metal seen as solid hedge against equities weakness and slowing growth
Henry Sanderson – FT
Colleagues used to ask Jim Luke why he had so much faith in gold ó a metal that just sits in portfolios, offering no income. “People involved in gold often get accused of being ‘goldbugs’, or being cranks or eccentrics,” mused the Schroders fund manager, based in London. “I’ve had people ask me, ‘isn’t it odd to have such faith in an inert metal that gives you no yield and has little functional value?’.”
/on.ft.com/2Gp5KiZ

Proxy advisers sign up to tougher scrutiny; Sector under siege over conflicts of interest and lack of transparency
Attracta Mooney – FT
Big proxy advisers in Europe have agreed to greater independent scrutiny as the sector scrambles to respond to allegations that it wields too much power.
/on.ft.com/2Gkqloj

Institutions

Julius Baer Slowest Flows in Years Caps End of CEO’s Tenure
Patrick Winters – Bloomberg
Last earnings for CEO Hodler before Rickenbacher takes over; His appointment likely to signal step back from fast growth
Julius Baer Group Ltd. reported the lowest inflows in at least seven years, leaving outgoing Chief Executive Officer Bernhard Hodler’s successor with plenty to fix.
/bloom.bg/2GpQ3YH

Former Berenberg Bond Trader Team Resurfaces Under a New Roof
Stephan Kahl – Bloomberg
Ex-Berenberg bankers completed first deals at Bank Burgenland; Berenberg had closed Vienna branch, blaming MiFID regulation
The Vienna-based fixed-income team that left German lender Joh. Berenberg Gossler & Co. last year has returned under a new roof in a bid to reclaim old business.
/bloom.bg/2Go5oZJ

Man GLG expands credit business with double hire; Duo join London team
Investment Week
Man GLG has hired Patrick Kenney and Santiago Pardo as portfolio managers within its credit business.
Based in London, they will focus on global (non-US) stressed, distressed and opportunistic credit, and report into Simon Finch, CIO of credit at Man GLG.
bit.ly/2Z3LdYo

UK funds with small-cap weighting at higher risk of liquidity shock; Eight funds assessed as exceeding the SEC’s 15 per cent cap in MSCI study
Owen Walker – FT
UK funds are among the most vulnerable to a liquidity shock, especially large products that invest in small companies, according to a wide-ranging analysis of Europe’s asset management industry.
/on.ft.com/2Gkqqs7

Bridgewater fund caught off-guard by market bounce; Pure Alpha suffers 4.9% fall in year to June as equities and bonds rise
Ortenca Aliaj and Robin Wigglesworth- FT
Bridgewater’s flagship fund suffered one of its worst first-half performances in two decades this year after being wrong-footed by rebounding markets.
/on.ft.com/2Z0Nkw6

The cost of investing £1m with St James’s Place . . . nearly £1m; The firm’s charges are far higher over 20 years than its best-known rival’s
Ali Hussain – The Times
Investors who put large sums of money into St James’s Place (SJP), Britain’s largest wealth manager, could see almost half their profits eroded by the company’s charges over 20 years.
bit.ly/2Gr44FI

Finance Michigan Announces $50 Million in Financing for New Quantix Commodities Account
Finance Michigan, Inc.
Finance Michigan, Inc. today announced the launch of a $50 million account managed by Quantix Commodities, LP. Quantix is a commodities-focused asset manager run by an experienced team with a proven track record at Goldman Sachs, where they helped pioneer enhanced index investing, managing one of the largest commodity index platforms in the industry. Quantix trades a broad spectrum of commodities, capitalizing on inefficiencies across different contract months, roll-timing and commodity weights, which are created by price inelastic market participants such as index funds
~NOLINK

Regions

Swiss policymakers caught in crossfire over franc; Alpine nation faces a difficult choice ó allow currency to strengthen or intervene
Eva Szalay in London – FT
The adage in financial markets is ‘do not fight the central bank’. But can central banks fight the US president? The Swiss National Bank may be about to find out.
/on.ft.com/2GoofUq

Kent’s pension advisers criticised over role in Woodford saga; Questions raised why council fund did not have a segregated mandate and pulled cash in one go
Owen Walker – FT
Two of the most influential pension scheme advisers have been criticised over their role in run-up to the demise of Neil Woodford’s investment empire.
/on.ft.com/2GodVfo

Bunge and BP form Brazil sugar-ethanol business
Anjli Raval and Neil Hume – FT
US agricultural trader Bunge and UK energy major BP and have agreed to form a sugar cane ethanol joint venture in Brazil, the companies announced on Monday.
/on.ft.com/2Gog1vT

Brexit

Brexit May Have Already Triggered U.K. Recession, Niesr Says
David Goodman and Olivia Konotey-Ahulu – Bloomberg
The U.K.’s planned exit from the European Union may have already pushed the U.K. into a technical recession, according to the National Institute of Economic and Social Research.
/bloom.bg/2GnVPKt

Brexit Nightmare Looms for U.K. Lawyers Forced Out of EU Courts
Stephanie Bodoni – Bloomberg
U.K. attorneys face ban on representing clients in EU courts’ Lawyers get warning letter urging them to take necessary steps
U.K. lawyers with lucrative careers in European Union law are fighting to save their jobs after the bloc’s top courts warned that a no-deal Brexit would forbid them from representing clients.
/bloom.bg/2GnhAKy

Rod Liddle wants blockchain 4 Brexit too
Jemima Kelly – FT
Remember blockchain for Brexit? That wonderfully terrible idea that seems to get trotted out every couple of months or so, almost as if it were designed simply to bait us block-pained folk here at FT Alphaville?
/on.ft.com/2Z4iQt5

EU to scrap financial market access for some countries in Brexit warning shot
Huw Jones, Francesco Guarascio – Reuters
The European Union is set to block some countries from accessing parts of the bloc’s financial market for the first time, an EU document seen by Reuters showed, a step that will ring alarm bells in Britain in the run up to Brexit.
/reut.rs/2y01vFQ

UK Finance Minister Hammond to resign on Wednesday over no-deal Brexit
CNBC
Finance Minister Philip Hammond said on Sunday he would resign if Boris Johnson became Britain’s new prime minister because he could not support a leader happy to take the country out of the European Union without a deal. Hammond’s decision underlines the strength of feeling in parliament against a no-deal Brexit, which some lawmakers and many businesses say would be catastrophic for the economy.
/cnb.cx/2Z4xlgL

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Food groups’ fight over wheat manipulation re-erupts

Get a FREE 90 day trial of John Lothian Newsletter First ReadHits & TakesJLN StaffThe CFTC Kraft/Mondelez Global announcement is not worth two bits. Claiming to win the case, without clarity of the specific actions that were manipulative,...

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