Trading Technologies to Add Chief Operating Officer and a Chief Growth Officer to Management Team; Intercontinental Exchange launches bond ETF platform

Oct 29, 2019

First Read

Hits & Takes
By JLN Staff

The petition for Justice for Jitesh has jumped over 1000 signatures all the way to more than 1130 as of this morning. We have begun to attract a larger audience in support of justice for Jitesh and responding to the larger risks to innovation and technology development costs posed by this case. Have you signed yet? There is no time like the present to add your name to the list.~JJL

Some firms are very good at helping us prepare for interviews. They may suggest subjects, or have their PR firms do so. Then there are firms that go above and beyond and create a special page about what is new at their firm, as our friends at CQG did. If you want to know what is new at CQG, as we do, check it out at https://www.cqg.com/fia2019~JJL

This year had the least number of free FIA EXPO hall ticket offers of any year that I can remember. I am wondering how many people are showing up, or if I hang out with the wrong crowd.~JJL

In the latest Bcause bankruptcy hearing on Monday, the court heard how they have to go about removing the mining computers at Bcause’s Virginia Beach data center. The miners themselves, housed on racks up to 10 feet high, belong to various Bcause clients. To search for a miner, someone has to climb a ladder, detach the miner from the shelf, and check its identifying number on the back or underside. This has slowed down physical liquidation at what one creditor’s attorney reminded the court is a “state-of-the art” facility. The trustee notes that there is a $150,000 shortfall in cash which might or might not be found. The auction of Bcause’s spot market continues, but the trustee wants any sale to result in cash returning to the estate. Net cash out to creditors was not part of the incumbents’ proposal. The other, Fred Grede-led proposal continues to be negotiated, and the trustee has been working with a third potential bidder as well. The trustee reported that Bcause’s trading software provider, Nasdaq, reserves the right to conduct due diligence on any acquirer that is not the current inside crowd. (One wonders if Nasdaq, which Bcause owes about $800,000, will apply the same rigor to new applicants that they earlier used to vet Bcause.) The next hearing is Wednesday, November 6. ~Thom Thompson

I have a couple of different apps to be able to buy coffee. Now it seems I need an app to be able to buy coffee from Starbucks using bitcoin. Or so I am told. Matt Leising of Bloomberg has a story “App to Literally Buy a Cup of Coffee With Bitcoin Set for 2020.“~JJL

Among the offerings at FIA Expo this Wednesday and Thursday, you can visit Expo Learning Lab in the Blue Hall for special programming that includes a Performance Mindset Workshop; an interview conducted by FIA President Walt Lukken of RJO CEO Gerry Corcoran and his son Patrick, the business manager for Chance the Rapper; talks on blockchain and spoofing; and a WILD panel on creating more balanced corporate boards. Access to the Learning Lab is open to anyone with an Expo badge.~SR

Have you paid your 2019 John Lothian News subscription yet this year? Today is a great day to take care of that. We greatly appreciate all our loyal subscribers who support our ability to do things like cover EXPO with more reporters than any other news organization present at the event.~JJL

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The Spread: All is Vanity

JohnLothianNews.com

Short vol trades, CME’s response to the notorious Vanity Fair articles, bitcoin options competition, and Cboe decommissions its legacy physical port connectivity for Cboe Futures and Cboe Options.

Watch the video »

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ADMIS Hires Veteran Sales & Capital Introduction Professional in Global Futures
ADMIS
ADM Investor Services (ADMIS) has hired Michael Boss, a seasoned Capital Introduction/Sales veteran. Mr. Boss brings broad and deep experience in derivative based Hedge Fund Strategies to ADMIS. Mr. Boss’s strategy expertise encompasses Momentum, Global Macro, Quantitative Macro, Volatility Arb and Discretionary Commodity. Boss’s working history with Institutional investors includes Pensions, Endowments, Sovereign Wealth and Fund of Funds who he has assisted over decades in bringing these alternative strategies into their portfolios.
bit.ly/2NfDule

***** Michael Boss is BOSS!~JJL

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Barchart Launches the cmdty Pricing Network to Make Ag Markets More Transparent
PR Newswire
Barchart, a leading provider of data and solutions for commodity markets, announces the creation of the cmdty Pricing Network (CPN), a price contributor network designed to increase transparency in agricultural markets.
/yhoo.it/2PtweF6

***** It would not be FIA EXPO week without a press release from Barchart.

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How Jim Simons Built the Best Hedge Fund Ever; The former code breaker and math professor figured out how to do one thing very well in markets.
Barry Ritholtz – Bloomberg
Every now and again, a book comes along that is so compelling, filled with so many fascinating characters and new information, that it demands a review.
/bloom.bg/2PreM4g

*****Best ever or Bestest?~JJL

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Monday’s Top Three
Our top read item from Monday was the CME’s CME Group Response to Allegations at LaSalle Street Protest. The rumor has it, it was worse than a couple of people spitting on protesters. Second was The Trade’s Virtu Financial begins onboarding clients to outsourced trading desk. Third was a top three piece from Friday, Bloomberg’s Vanity Fair’s Trump Trade Story ‘Nonsensical,’ Exchange CEO Says, where CME’s Terry Duffy called the story ”the most irresponsible thing I’ve ever seen in my entire life.” The reporter, William Cohen, stands by his story.

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Lead Stories

Trading Technologies to Add Chief Operating Officer and a Chief Growth Officer to Management Team; Russ Cotton and Craig Mohan to address operational and development priorities for the company
Trading Technologies International, Inc.
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, today announced the hiring of two new executives: Russ Cotton as chief operating officer and Craig Mohan as chief growth officer. Both hires will start work next month.
bit.ly/2PzlJjX

Intercontinental Exchange launches bond ETF platform; Hub goes live in push towards greater automation of fixed income markets
Philip Stafford – FT
Intercontinental Exchange has launched a new hub for pricing bonds in the $3.9tn US exchange traded funds market, hoping to steal a march on rivals and accelerate a move towards greater automation in fixed income.
/on.ft.com/2BU8BOg

Libra threat has central banks eyeing faster payments
Claire Jones – FT
A former colleague once described the payments departments of central banks as the sort of place staff were sent when they had done something really bad. Facebook probably didn’t foresee when it was dreaming up Libra that it would change all that. But Alphaville suspects a renewed interest in the ways in which money — public and private — changes hands will be one of the most important unintended consequences of the tech giant’s power grab.
/on.ft.com/2MV54VX

SEC Fix for Conflicts of Interest at Credit-Ratings Firms Has Failed; Postcrisis plan enabled unsolicited ratings, meant to limit bond issuers’ ability to exert influence over ratings firms. Few, if any, such ratings have been published.
Cezary Podkul – WSJ
After the financial crisis, Washington focused on the credit-ratings firms and the conflict of interest that made them “essential cogs in the wheel of financial destruction,” according to the federal government’s report on the crisis.
/on.wsj.com/31X1DTd

China’s Blockchain Revolution Won’t Set Investors Free; While Beijing is obsessed with controlling flows of information and capital, bitcoin is designed precisely to avoid government control and surveillance
Nathaniel Taplin – WSJ
Chinese President Xi Jinping on Thursday elevated blockchain, the encrypted digital ledger technology, to “core” technology status in China, virtually guaranteeing significant investment. Prices for blockchain technology companies and the popular blockchain-based cryptocurrency bitcoin leapt, with the latter up by around 30%. Is this the next big Chinese technology investment opportunity?
/on.wsj.com/34fWw1J

China to ease foreign investments curbs, won’t force tech transfers: vice minister
Reuters
China will eliminate all restrictions on foreign investments not included in its self-styled “negative lists”, a vice commerce minister said on Tuesday, signaling upcoming directives.
/reut.rs/2NnbZqc

Paxos Gets SEC Nod to Use Blockchain to Settle Stock Trades
Matthew Leising and Matthew Monks – Bloomberg
Credit Suisse and Societe Generale among early adopters; Service represents direct challenge to dominance of DTCC
Paxos Trust Co., a blockchain company that caters to financial institutions, has been given the green light to settle stock trades in near real-time in a direct threat to the Depository Trust & Clearing Corp.’s half-century equity market dominance.
/bloom.bg/2qPdllO

Paxos looking to upend a massive corner of Wall Street; Credit Suisse on board for pilot
Frank Chaparro – The Block Crypto
Paxos is looking to disrupt a multiple quadrillion dollar corner of Wall Street, and it’s convinced two financial services heavy hitters to get behind it.
bit.ly/2PDtSnx

The Men Who Would Be King of Glencore Move Into the Spotlight
Jack Farchy – Bloomberg
Contenders for the biggest job in commodity trading, the head of Glencore, will be on parade this week. Outgoing CEO Ivan Glasenberg wanted his successor to look “like me,” and the main aspirants do.
/bloom.bg/2MWu0wA

Saudi Aramco to launch its IPO on November 3; Long-awaited partial privatisation is core to Prince Mohammed’s push to reshape kingdom’s economy
Andrew England, Simeon Kerr and Ahmed Al Omran and Anjli Raval – FT
Saudi Aramco is to launch its initial public offering on November 3, as the kingdom’s Crown Mohammed bin Salman pushes ahead with a long-awaited listing of the world’s most profitable company, people familiar with the matter have said.
/on.ft.com/2BTnsIA

‘Davos in the desert’ begins as Saudi Arabia seeks to put aside Khashoggi affair; Heavy-hitters to attend flagship gathering after several executives boycotted event last year
Andrew England and Simeon Kerr – FT
Five presidents and the heads of some of the world’s biggest banks and weapons makers are among those beating a path to Riyadh this week as Saudi Arabia uses its financial clout to lure heavyweights to its “Davos in the desert” conference.
/on.ft.com/31X7HLn

African trade finance group delays London listing in blow for bourse; African Export-Import Bank cites ‘unfavourable market conditions’ as it postpones IPO
Myles McCormick – FT
The African Export-Import Bank blamed “unfavourable market conditions” as it put the brakes on its plans to raise $250m through a London flotation in a blow to the UK stock market, which has been struggling with low levels of new listings.
/on.ft.com/2q55XCl

How ASX’s blockchain will change finance; Developers are planning on using the ASX’s blockchain to bring registries in-house, automate proxy voting and mutualise KYC.
James Eyers – AFR
Technological change is unsettling for incumbents making big profits from the status quo. In the case of financial markets, managing complex processes which often involve messy information has been a great business for intermediaries like the big share registries.
bit.ly/346046K

The Always Exhilarating, Sometimes Lucrative Lives of Brexit Currency Traders; Riding along with two FX traders as they bet on a slow-motion car wreck.
Kit Chellel, Gavin Finch – Bloomberg
You can tell a lot about a country by watching its money. Currency remains a barometer for a nation’s prospects. A strong dollar, for example, is a sign of economic power. Stability is also prized, a sign of steady, predictable growth. Only a handful of countries can claim both. Britain used to be among them.
/bloom.bg/2JxSn1g

Exchanges, OTC and Clearing

DTCC names information chief to lead tech re-platforming; DTCC is undergoing a strategic re-platforming of its IT infrastructure and technology that supports clearing and settlement.
Joe Parsons – The Trade
DTCC has appointed a new chief information officer (CIO) to oversee the re-platforming of its post-trade technology infrastructure.
bit.ly/32U1FfW

ICE launches ETF ecosystem to standardise marketplace; ICE ETF Hub is an open architecture platform designed to standardise the ETF primary market where shares ETFs are created and redeemed.
Hayley McDowell – The Trade
US exchange operator ICE has made moves to support the ongoing growth in exchange-traded funds (ETFs) with the launch of a technology-powered ecosystem to create and redeem ETF orders.
bit.ly/31QH1Mg

Intercontinental Exchange Launches ICE ETF Hub Enabling and Supporting the Next Phase of Growth in ETFs
Technology-enabled ecosystem aims to bring efficiency and standardization to the ETF primary market. New protocols for creating and redeeming ETF orders
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced the launch of ICE ETF Hub, a new platform that is designed to enable the next phase of growth in the ETF market. ICE ETF Hub is an open architecture platform designed to bring efficiencies and standardization to the ETF primary trading market, where shares of ETFs are created and redeemed.
bit.ly/32XqM1p

Euronext Growth becomes an EU ‘SME Growth Market’; Euronext listed small and mid-caps to benefit from simplified market processes for raising capital or issuing bonds
Euronext
Euronext today announces that Euronext Growth[1] – its pan-European MTF dedicated to small & mid-caps – has been officially registered as “SME Growth Market” for both shares and bonds by the competent authorities in Belgium, France, Ireland and Portugal[2]. This status, introduced under MiFID II, has been designed to facilitate access to capital markets for European SMEs by further developing qualified markets to cater to the specific needs of small and medium-sized companies.
bit.ly/32WetSJ

Eurex KOSPI derivatives: Changed trading hours on 14 November 2019
Eurex
Due to the South Korean Exam Day on 14 November 2019, changed starting times for Pre-Trading and Continuous Trading will apply on that day for trading of the Eurex KOSPI derivatives (FMK2, OKS2).
bit.ly/2WmqVZL

Deutsche Börse achieves strong growth in Q3 / 2019
Deutsche Börse
Net sales rose by 13 percent to EUR 734 million in Q3 / 2019. / The adjusted consolidated profit for Q3 / 2019 was EUR 283 million. / Adjusted earnings per share increased 18 percent to EUR 1.54 in Q3 / 2019. / Net revenues for the first nine months of 2019 increased 7 percent and adjusted net income for the period increased 12 percent to EUR 863 million. / In view of the positive development over the course of the year, the company confirms its targets for 2019.
bit.ly/31Vs8Z1

HKEX Enhances Guidance for Overseas Companies Seeking to List in Hong Kong
HKX
Publish alternative procedures for U.S. ‘Domestic Issuers’ within the meaning of the U.S. Securities Act with an offering of a security subject to Regulation S; Publish standardised template for first movers from jurisdictions new to listing in Hong Kong; Simplify CCASS related information, provide Frequently Asked Questions and revised CCASS admission forms on HKEX website
As part of the strategic focus to improve access to the Hong Kong markets and to facilitate the application process, The Stock Exchange of Hong Kong Limited (the Exchange) and Hong Kong Securities Clearing Company Limited (HKSCC), both wholly-owned subsidiaries of Hong Kong Exchanges and Clearing Limited (HKEX), today (Tuesday) announced enhancements to guidance materials for overseas companies seeking to list in Hong Kong.
bit.ly/2WnCvUe

Virgin Galactic Makes NYSE Debut; Richard Branson’s firm becomes first publicly traded space tourism company
Sarah E. Needleman – WSJ
Virgin Galactic Holdings Inc. made its trading debut Monday on the New York Stock Exchange, giving public investors their first chance to buy a piece of the space-tourism company founded by British business mogul Richard Branson.
/on.wsj.com/36clWPM

Fintech

Vela and PlusWealth collaborate to extend Metro trading platform access to NSE; Enabling traders to easily access Indian markets
Vela
Vela, a leading independent provider of trading and market access technology for global multi-asset electronic trading, and PlusWealth Capital Management LLP, the stock broking business of proprietary trading firm Plus Wealth, today announced the addition of the National Stock Exchange of India (NSE) to Vela’s automated trading platform, Metro. The availability of NSE access is an extension of existing support provided by Vela to Plus Wealth’s proprietary trading business.
bit.ly/2pWHwas

Buy-side portfolio analytics provider StatPro acquired for £160 million; Confluence Technologies has acquired StatPro to form a provider of front, middle and back-office services to the buy-side.
Hayley McDowell – The Trade
Cloud-based portfolio analytics and data services provider StatPro has been acquired by investment data automation specialist Confluence Technologies for just over £160 million.
bit.ly/2oq7cf2

The ‘Underbanked’ Is The Next Trillion-Dollar Opportunity in Fintech
Will Yakowicz – Forbes
It’s expensive to participate in the mainstream financial system if you’re poor. Overdraft penalties and banking fees prevent billions of people from accessing the most basic financial tools like savings accounts and lines of credit. This has created the greatest market opportunity in fintech—low-cost, high-tech financial services for the underbanked, said Angela Strange, a general partner at Andreessen Horowitz, during a panel at the Forbes Under 30 Summit in Detroit on Monday.
bit.ly/2NssFN8

JPMorgan Chase plucks fintech specialists from rivals
Jon Prior – American Banker
JPMorgan Chase has made four hires to expand the part of its corporate banking team that caters to financial technology clients. The largest bank in the U.S. by assets says it is bolstering the team’s presence in technology hubs like San Francisco and Austin, Texas. The new executives will be arranging treasury, lending and investment banking offers to fintech firms.
bit.ly/348mLY7

Australian regulator files privacy suit against Google alleging location data misuse
Byron Kaye – Reuters
An Australian regulator has filed a lawsuit against Alphabet Inc’s Google, accusing it of misleading smartphone users about how it collected and used personal location data, advancing a global crackdown on the world’s biggest tech firms.
/reut.rs/2qUsYIP

Cryptocurrencies

Credit Suisse and Societe Generale adopt blockchain settlement platform for US equities; Paxos has been given the green light to launch its blockchain-based settlement service for certain broker-dealers, including Credit Suisse and Societe Generale.
Hayley McDowell – The Trade
Credit Suisse and Societe Generale will be the among the first users of a blockchain-powered settlement system, after the platform was given the go-ahead by the US securities regulator.
bit.ly/2MTR7rx

Bakkt to launch consumer app in first half of 2020; will test product with Starbucks
Steven Zheng – The Block Crypto
Bitcoin derivatives provider Bakkt plans to launch a cryptocurrency consumer app and merchant portal in the first half of 2020, the firm announced in a blog post on Monday. In the blog post, Bakkt chief product officer Mike Blandina states, “we’ll be launching a consumer app to make it easy for consumers to discover and unlock the value of digital assets, as well as ways in which they can transact or track them. Merchants gain access to a broader set of customers with expanded spending power.”
bit.ly/2Nld7L1

OKEx Launches Crypto Futures Settled in Tether Stablecoin
William Foxley – Coindesk
Cryptocurrency exchange OKEx is to launch a range of cryptocurrency-based futures contracts settled in the stablecoin tether (USDT). The exchange will support USDT pairs including bitcoin (BTC), ether (ETH), bitcoin cash (BCH), EOS, XRP, bitcoin SV (BSV) and Tron (TRX) with leverage between 1 and 100x when trading commences on Nov. 6, according to a press release issued Tuesday.
bit.ly/32RFMxH

Update: Binance charged Blockstack $250,000 prior to listing Stacks, but both say it’s not a listing fee
Frank Chaparro – The Block Crypto
What’s in a name? Is a listing fee by any other name still a listing fee? Maybe not, according to two cryptocurrency companies. As per a recent filing, Blockstack paid cryptocurrency exchange Binance 833,333 STX tokens (~$250,000) to list its Stacks token on the venue. Binance is the first marketplace to support trading of Stacks. Blockstack raised $23 million in a RegA+ and RegS.
bit.ly/2JqG0UT

Anybody Can Now Bet on Bitcoin $100,000 With New Call Options
Olga Kharif – Bloomberg
LedgerX says its institutional clients have asked for the option; ‘Dozens and dozens’ of users say Bitcoin could hit that value. The most bullish of Bitcoin backers can now bet on the largest cryptocurrency soaring to $100,000. U.S.-regulated derivatives exchange LedgerX unveiled a call option that pays off if Bitcoin surpasses that price by December 2020. Such a move implies a 10-fold increase in the digital token from Tuesday’s price and would take Bitcoin’s market cap toward $2 trillion.
/bloom.bg/2YVAPSr

Top Bitcoin Miner Engulfed in Power Clash as Co-Founder Ousted
Zheping Huang – Bloomberg
Wu Jihan declares his fellow co-founder has left Bitmain; World’s top crypto-mining rig maker is tied to Bitcoin prices
Bitmain Technologies Ltd.’s billionaire founder Wu Jihan announced Tuesday the resignation of his co-founder, a surprise ouster that appeared to resolve a struggle for control of the world’s largest crypto-mining startup.
/bloom.bg/2MY7H9Q

What’s Blockchain Actually Good for, Anyway? For Now, Not Much
Gregory Barber – Wired
In early 2018, Amos Meiri got the kind of windfall many startup founders only dream of. Meiri’s company, Colu, develops digital currencies for cities—coupons, essentially, that encourage people to spend their money locally. The company was having some success with pilot projects in the UK and Israel, but Meiri had an idea for something bigger.
bit.ly/2BTnxfm

China’s Blockchain Revolution Won’t Set Investors Free
Nathaniel Taplin – The Wall Street Journal
Chinese President Xi Jinping on Thursday elevated blockchain, the encrypted digital ledger technology, to “core” technology status in China, virtually guaranteeing significant investment. Prices for blockchain technology companies and the popular blockchain-based cryptocurrency bitcoin leapt, with the latter up by around 30%. Is this the next big Chinese technology investment opportunity?
/on.wsj.com/34fWw1J

Top Bitcoin Miner Engulfed in Power Clash as Co-Founder Ousted
Zheping Huang – Bloomberg
Bitmain Technologies Ltd.’s billionaire founder Wu Jihan announced Tuesday the resignation of his co-founder, a surprise ouster that appeared to resolve a struggle for control of the world’s largest crypto-mining startup. Micree Zhan Ketuan, who started Bitmain with Wu six years ago, no longer holds any position at the Beijing-based company effective immediately, Wu said in an internal memo obtained by Bloomberg News.
/bloom.bg/2BOsTZv

The Shady Cryptocurrency Boom on the Post-Soviet Frontier
Hannah Lucinda Smith – Wired
Dodgy energy deals, loose regulation, and dubious characters—with links to the Hillary Clinton email hackers—are fueling a burgeoning crypto industry that could provide an end run around US sanctions.
bit.ly/32WoHmj

Uber pushes into payments with Uber Money; Ride-hailing group unveils initiatives including digital wallet and overdraft protection
Patrick McGee – FT
Uber announced on Monday it was launching a series of financial services under the name Uber Money, part of a new payments push intended to help its 4m drivers manage their finances while positioning the ride-hailing company as an emergent player in the payments space.
/on.ft.com/31YNiFI

Politics

Paul Tudor Jones Warns of Stocks Tanking 25% on Warren Victory
Katia Porzecanski – Bloomberg
S&P 500 would drop 20% if Sanders prevails, billionaire says; Hedge fund managers sounding alarms on Democratic contender
Billionaire Paul Tudor Jones joined hedge fund managers Rob Citrone and Jeff Vinik in warning that the stock market would tank over the prospect of an Elizabeth Warren presidency.
/bloom.bg/2pWBy9r

Army Officer Says He Raised Flags About Trump’s Ukraine Call
Billy House and John Harney – Bloomberg
Witness prepared a narrative for House impeachment inquiry; He says Trump aides demanded Ukraine investigation of Biden
A U.S. Army officer who works for the White House National Security Council said he listened in on the telephone call between President Donald Trump and Ukraine’s president and was so disturbed by the content that he reported his concerns to the NSC’s legal counsel.
/bloom.bg/2MUXxGG

US begins deploying troops to secure oil-rich region of Syria; Pentagon positioning forces following killing of Isis leader Abu Bakr al-Baghdadi
Aime Williams – FT
The US has begun deploying forces to north-east Syria as the Pentagon reaffirmed its commitment to securing the oil-rich region following the death of Isis leader Abu Bakr al-Baghdadi.
/on.ft.com/31VRDJZ

House will vote on impeachment procedures Thursday to ‘ensure transparency,’ Democrats say
Felicia Sonmez, John Wagner and Brittany Shammas – The Washington Post
House Democrats said Monday that the House will vote Thursday to formalize procedures for the next phase of the impeachment inquiry into President Trump. Democrats said the move would “ensure transparency and provide a clear path forward” as the inquiry continues. The White House responded by taking a swipe at Democrats. Press secretary Stephanie Grisham accused them of “conducting an unauthorized impeachment proceeding” and declined to comment fully until the text of the resolution is released.
/wapo.st/2WxwULv

Former Bush Economist Mankiw Says He Quit ‘the Party of Trump’
Brendan Murray – Bloomberg
Greg Mankiw, who served as chief economist to former President George W. Bush, said he quit the Republican party because too many of its members are ignoring Donald Trump’s “misdeeds,” pledging to help Democrats to pick a moderate candidate to defeat him in the 2020 election.
/bloom.bg/2qTVfiI

Anthony Scaramucci Plans to Announce Anti-Trump PAC in January
Manus Cranny – Bloomberg
Former White House communications director Anthony Scaramucci said he’s visiting two swing states a week as he prepares to launch a political action committee in January to prevent the re-election of U.S. President Donald Trump.
/bloom.bg/343PfCi

Regulation

Trader in Insider Plot Detained, One Suspect Lost to Blunder
Franz Wild, Gaspard Sebag, and Eddie Spence – Bloomberg
El-Khouri denied bail, faces extradition in wide-ranging case; Taylor released after U.S. bureaucratic error, Monaco says
A securities trader facing extradition on U.S. insider-trading charges was denied bail by a London judge, even as authorities in Monaco revealed that a banker arrested in the same plot walked away as the U.S. was seeking to bring him to New York.
/bloom.bg/32XdUbA

Banker facing insider trading charges in US had past UK arrest; Court records show former Centerview employee Darina Windsor was investigated in 2016
Kadhim Shubber and Jane Croft, Cat Rutter Pooley and Kate Beioley – FT
An investment banker charged with insider trading in the US was previously arrested in the UK three years ago in connection with a similar investigation, according to a person familiar with the matter and UK court records.
/on.ft.com/2Wlxrjg

ASIC extends relief for portfolio holdings disclosure
ASIC
ASIC has amended ASIC Class Order [CO 14/443] to provide legal certainty about the first reporting day for portfolio holdings disclosure, given the regulations setting out the required disclosures have not yet been made.
bit.ly/2WlXM0A

SEC and Fordham University School of Law to Host Conference on Combating Community-Based Financial Fraud
SEC
The Securities and Exchange Commission’s New York Regional Office and Fordham University School of Law will host a conference on November 1 on combating community-based financial fraud. The conference will focus on fraudulent and manipulative schemes that target potential victims based on race, ethnicity, religion, gender, age, and other associations. Conference participants from the SEC, Department of Justice, Federal Bureau of Investigation, Financial Industry Regulatory Authority (FINRA), North American Securities Administrators Association (NASAA), and New Jersey Bureau of Securities will discuss effective strategies for detecting, preventing, and combating community-based financial fraud.
bit.ly/2PDr6i7

Federal Court Orders Florida Company to Pay More Than $15 Million in Monetary Sanctions for Fraud and Illegal Transactions
CFTC
The U.S. Commodity Futures Trading Commission today announced that the U.S. District Court for the Southern District of Florida entered a default judgment against defendants Aviv Michael Hen of New York, and Omega Knight 2, LLC, as well as a consent order against Erez Hen of Florida, for fraud and illegal, off-exchange precious metals transactions and failing to register with the CFTC.
bit.ly/2NnsS3P

CFTC Commissioner Stump Announces New GMAC Subcommittee on Margin Requirements for Non-Cleared Swaps; Global Markets Advisory Committee Seeking Subcommittee Membership Nominations
CFTC
U.S. Commodity Futures Trading Commission Commissioner Dawn Stump today announced the Commission has voted to establish a Subcommittee on Margin Requirements for Non-Cleared Swaps under the Global Markets Advisory Committee (GMAC). Commissioner Stump, sponsor of the GMAC, is seeking nominations for membership on the new subcommittee through a request in the Federal Register. The deadline for the submission of nominations is November 12, 2019.
bit.ly/2Pq9VAa

CFTC to Hold an Open Commission Meeting on November 5
CFTC
U.S. Commodity Futures Trading Commission Chairman Heath P. Tarbert today announced the CFTC will hold an open meeting on Tuesday, November 5, 2019, at 10:00 a.m. EST at its headquarters in Washington, DC to consider the following:
bit.ly/2Psg1QL

Swedish, Estonian regulators advance Swedbank probe
Johan Ahlander, Colm Fulton – Reuters
Swedish and Estonian financial regulators have opened sanction cases into Swedbank (SWEDa.ST) over anti-money laundering controls at its Baltic operations, they said on Tuesday, a formal step in an ongoing investigation that could lead to a financial penalty.
/reut.rs/2JxDvQJ

Investing and Trading

These Are the Charts That Scare Wall Street
Luke Kawa – Bloomberg
Terrifying trade talks, skeletal earnings spook analysts; ‘Fear of Fear’ rise spurs nightmares of ‘Volpocalypse’ sequel. Halloween’s around the corner, with investors treated to fresh all-time highs in U.S. stocks and nary a trick in sight. But as any scary movie aficionado will tell you, the most formidable frights begin when you’re the most complacent.
/bloom.bg/2MTFeSq

Rich millennials push to put family wealth into impact investments; Young urge elders to back ESG-linked projects instead of traditional philanthropy
Sarah Murray – FT
When 31-year-old Brazilian entrepreneur Fernando Scodro set about persuading his parents to adopt impact investing as the primary strategy for their family office, he took a radical step. He gathered all the materials from a course he had taken on the subject — “Impact Investing for the Next Generation”, run jointly by Zurich and Harvard universities. Then, in what turned into a three-month endeavour, he translated them into Portuguese so he could teach the same course to his parents. “My family speak English, but it is not their native language,” says Scodro. “I figured that for me to get buy-in from my parents, I had to speak to them in a language they understood.”
/on.ft.com/31YMj8u

Murray Energy Files for Bankruptcy, Casualty of Coal’s Decline; Robert Murray, the last U.S. coal baron, couldn’t convince the Trump administration to bail out the industry
Alexander Gladstone and Soma Biswas – WSJ
Murray Energy Corp., the coal producer led by outspoken Trump administration ally Robert Murray, has filed for chapter 11 protection, a stark example of coal’s diminished role in the U.S. energy sector.
/on.wsj.com/32Wdsdn

Why Palladium Is Suddenly the Most Precious Metal
Eddie van der Walt and Ranjeetha Pakiam – Bloomberg
Palladium is now the most valuable of the four major precious metals, with an acute shortage driving prices to a record. A key component in pollution-control devices for cars and trucks, the metal’s price doubled in little more than a year, making it more expensive than gold.
/bloom.bg/2Psuigf

Efficiency Is Ruining Hedge Funds
Matt Levine – Bloomberg
Efficiency
What if the stock market was solved? Like what if someone made a robot that could just tell you the right price for any public stock at any time? Presumably a lot of people would invest their money with the robot, and the robot would buy and sell stocks until they reached the right price, and then the prices would be right. People would be able to invest in the stock market and get a stable return on their investment corresponding to the long-term growth of the economy; companies with good projects would be able to finance those projects while companies with bad projects wouldn’t. No one would get super rich by buying stocks at the wrong price, because the robot would make sure all the stocks had the right price.
/bloom.bg/36jeClE

Institutions

BGC Partners Announces Launch Of Exchange Offer For Its 3.750% Senior Notes Due 2024
Press Release
BGC Partners, Inc. (NASDAQ: BGCP) (“BGC”), a leading global brokerage and financial technology company, today announced an offer to exchange up to $300 million aggregate principal amount of its outstanding 3.750% Senior Notes due 2024 (the “Old Notes”) for an equivalent amount of its 3.750% Senior Notes due 2024 registered under the Securities Act of 1933, as amended (the “Exchange Notes”).
/prn.to/2JtFO7j

Nomura Pledges More Cost Cuts as Retail Slump Clouds Recovery
Takashi Nakamichi, Takako Taniguchi, and Russell Ward – Bloomberg
Retail must rebound to ensure stable income, S&P analyst says; Japanese brokerage hasn’t finished business overhaul: CFO
Nomura Holdings Inc. vowed to continue cost cuts in the face of a shrinking domestic retail business that has increased reliance on volatile global operations.
/bloom.bg/2BSGLC4

Nomura Could Use a Fresh Twist on an Old Story; Faced with an aging society, Japan’s biggest investment bank should forge ahead in China and invest in newer technologies.
Nisha Gopalan and Andy Mukherjee – Bloomberg
After stumbling badly for two years, Nomura Holdings Inc. has finally regained its footing. But can the Japanese bank succeed in the race to capture market share in China and avoid tripping over a demographic hurdle at home?
/bloom.bg/31TGKYX

Efficiency Is Ruining Hedge Funds
Matt Levine – Bloomberg
What if the stock market was solved? Like what if someone made a robot that could just tell you the right price for any public stock at any time? Presumably a lot of people would invest their money with the robot, and the robot would buy and sell stocks until they reached the right price, and then the prices would be right. People would be able to invest in the stock market and get a stable return on their investment corresponding to the long-term growth of the economy; companies with good projects would be able to finance those projects while companies with bad projects wouldn’t.
/bloom.bg/2or8HJX

Regions

One Million Pesos May Be Raffled Off in Philippine Prize Bonds
Andreo Calonzo and Ditas B Lopez – Bloomberg
The Philippines is getting closer to offering prize bonds to encourage investment in a nation with among the lowest savings rate in Asia.
/bloom.bg/2BOMvMW

Pig Disease Means China Will Struggle to Meet U.S. Import Target
Bloomberg News
Nomura says importing $50 billion of U.S. farm goods difficult; Nomura economists argue that fewer hogs will hurt feed demand
President Donald Trump touted China’s promise to buy as much as $50 billion in agricultural goods over two years in a trade deal, a boost to Midwest soybean farmers suffering from the current slump in trade. But a deadly disease in China has killed off many of the pigs who would have eaten those American soybeans, possibly putting that target out of reach.
/bloom.bg/2WnXSox

Chinese Companies Are Rushing to List on Wall Street
Julia Fioretti – Bloomberg
The U.S. and China may be locked in a prolonged trade war but that’s not stopping Chinese companies from trying to list on Wall Street.
/bloom.bg/31X8FHA

Treating Plastic as Currency Helps Keep It Out of the Ocean; Plastic Bank helps bring people into the financial system via recycled bottles.
Sheridan Prasso – Bloomberg
Nyoman Dartini used plastic to pay for temple offerings she made for a summer full moon celebration on the Indonesian island of Bali. She plans to use plastic again to buy food and make more offerings during Galungan, a Hindu celebration marking the victory of good over evil.
/bloom.bg/2Wo52Jn

China pulls back on setting tough ethanol fuel content standards; Policymakers struggle with lack of demand and resistance from oil companies
Sun Yu in Beijing – FT
China is likely to miss a deadline for enforcing the mandatory use of ethanol-blended petrol nationwide by 2020, after a backlash from energy firms and local governments thwarted a crucial part of Beijing’s effort to clean up the environment.
/on.ft.com/2BUuEnK

Brexit

U.K. Set for December Election to Break Impasse: Brexit Update
Kitty Donaldson, Tim Ross, and Alex Morales – Bloomberg
The U.K. is set for its third general election since 2015 as political leaders attempt to resolve the Brexit crisis paralyzing the country.
/bloom.bg/2MZ37YZ

Brexit is now entirely hostage to electoral calculations; It would be naive to think any party is indifferent to a vote, but the degrees of enthusiasm tell us a lot
Robert Shrimsley – FT
The doorsteps of December look set to be darkened by election campaigners. The Brexit debate has crystallised into this single and simple question. Is the UK election coming before or after Brexit? Look what Santa’s brought you, children.
/on.ft.com/32XnLy7

EU delays Brexit to Jan. 31; Johnson election bid fails
Jill Lawless and Samuel Petrequin – Associated Press
Britain got Brexit breathing space but no clarity on Monday when the European Union granted a three-month delay to the U.K.’s departure from the bloc, postponing it until Jan. 31. British politicians immediately began using the extra time to do what they have done for more than three years: bicker about Brexit. Prime Minister Boris Johnson pushed for an early election as a way of breaking the political deadlock over the country’s stalled departure from the EU, only to be rebuffed by lawmakers.
bit.ly/2BTVk8a

Labour to back early general election
BBC News
The UK looks set for a December general election after Labour leader Jeremy Corbyn announced his party was ready to fight the “most radical campaign ever”. Mr Corbyn said his condition of taking a no-deal Brexit off the table had now been met after the EU agreed to extend the deadline until 31 January 2020. Prime Minister Boris Johnson can only hold an election with the support of MPs – who have blocked it three times. The PM will make a fresh attempt to get their backing in Parliament later. The government bill published ahead of the Commons debate is for an early election on 12 December.
/bbc.in/31RFEgd

Miscellaneous

Employees Stressed Over Possibility Of 401(k) Loan Defaults, New Study By Custodia Financial And Greenwald & Associates Shows
Custodial Financial (PR Newswire)
While employees appreciate being able to take 401(k) loans in case of financial emergency—20 percent of all 401(k) participants currently have loans outstanding1—the possibility of not being able to repay those loans is stressing employees out, according to a new independent study released today by Custodia Financial, the financial technology innovator whose mission is to prevent loan defaults, and Greenwald & Associates, a third-party market research firm with unique industry expertise in financial services, employee benefits, and healthcare.
/prn.to/34lIH2b

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Asset allocation specialists are the new snake oil salesmen

Asset allocation specialists are the new snake oil salesmen

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