Hits & Takes
John Lothian News is pleased to announce that R.J. O’Brien & Associates has agreed to become the exclusive sponsor of the JLN Weekend Update. The twelve month sponsorship starts with the next edition. Thank you to Gerry Corcoran, Matt Rees and the team for their support for this well received new product.~JJL
We encourage you to register for and attend the 6th Annual Joint NIBA/DePaul University Symposium, a one day program for derivatives professionals on Thursday July 11, 2019 at DePaul University’s Loop Campus. There is a great lineup of speakers for this event, including an armchair discussion with former NFA CEO Dan Roth.~JJL
A panel on the state of managed futures will feature Mark Shore, Adjunct Professor of Finance, DePaul University; Ryan Hart, Director of Research, Coquest Managed Futures; Greg Taunt, Vice President, IASG; and Jon Cummings, Director of Research, RCM Alternatives.~JJL
An issue briefing panel will feature Andrew Strasman, Totem Asset Group; Blake Brockway, Assistant General Counsel, National Futures Association; Mark Omens, Executive Director Retail Sales at CME Group; and Skip Shean, Founder & CEO at 16 Wells, LLC.~JJL
And of course, the definition of a symposium is a drinking party or convivial discussion, so don’t miss the FREE rooftop cocktail reception and networking event following the symposium that is part of your registration.~JJL
WGN TV held a Trading Tech 300 weather merit badge clinic on Saturday and weatherman Demetrius Ivory taught the badge in spectacular fashion in WGN Studio 2.~JJL
I wore my seersucker suit to the CFTC’s farewell reception for outgoing Chairman Chris Giancarlo. The only other seersucker was John Sodegreen of Scudder Publishing Group LLC and ENELYST.COM, who had a jacket. Summer style was mostly absent from the gathering.~JJL
We have added Andrew Busch to our list of speakers. He is the former chief information officer of the CFTC and the leader of their podcast efforts. This, of course, means I need to add one more woman to our list of speakers. Ideas?~JJL
Xi Jinping and Donald Trump’s meeting on Saturday in Osaka, Japan – in which the leaders agreed to take a pause on escalating the trade war – lasted 80 minutes. In other China news, the nation’s National Development and Reform Commission released a revised list of industries that encourage foreign investment. ~SD
The State of the Options Industry: Great, But Not 2018 Great
In this video, Trade Alert President Henry Schwartz talks about trends in the listed options industry, from an increase in FLEX and alternative ETF options to the plight of market participants caught wrong-footed at the end of 2018.
Watch the video »
Banks need to get ahead of climate change, or else; Real economy cannot meet sustainability goals without help from financial sector
Ben Caldecott – FT
Banks are where the financial system and the real economy meet. The UN’s Sustainable Development Goals and the Paris climate change agreement will be unattainable unless banks finance solutions to these massive social and environmental challenges. Nor can we have efficient, fair and resilient financial and economic systems if banks fail to manage and reduce environment-related risks for themselves and their clients.
*****War. That is what will happen if we all don’t get ahead of climate change.~JJL
Interns’ Job Prospects Constrained by Noncompete Agreements;Legal pacts can limit résumé content and employment options
Harriet Torry – WSJ
As a junior in college, Delaney Dunne took an internship for class credit and $10 an hour at co-working company TekMountain in Wilmington, N.C. On graduation day this year, she received a letter from TekMountain’s parent asking about her employment status and reminding her she had signed a noncompete agreement with TekMountain in November 2017 that restricted her employment options.
*****There is just something wrong with this picture. Internships are supposed to help you find a job, not stop you from getting one.~JJL
Wash Sales; Another Spoofing Settlement
Gary DeWaal – Bridging the Week
A trading firm agreed to settle charges brought both by the Commodity Futures Trading Commission and the Chicago Board of Trade that trading activities it engaged in during pre-opening market periods constituted wash sales. The firm was apparently trying to neutralize the risk of pending orders it was not permitted to withdraw or amend by exchange rule when it saw that the indicative opening price was moving in an adverse direction. Separately, a subsidiary of a major bank agreed to pay US $36.5 million to settle charges by the Department of Justice and the CFTC related to spoofing activity.
Friday’s Top Three
Our top story of the day on Friday was John Lothian’s JLN piece A Look Back at Manipulation in the Metals Markets. Second was Bloomberg’s Tramp Club at Heart of Walid Choucair’s Insider-Trading Scandal. Third was the announcement Cboe Futures Exchange and American Financial Exchange Announce Planned Launch of AMERIBOR® Futures
157,717,565 pages viewed; 23,830 pages; 220,427 edits
Top US regulator in the frame for Mark Carney’s job
David Wighton – Financial News
Christopher Giancarlo, the high-ranking US financial regulator, has emerged as a surprise candidate for the top job at the Bank of the England, Financial News has learnt.
The chairman of the US Commodity Futures Trading Commission has expressed interest in the job of governor at the UK central bank, according to a person with knowledge of the process. The news comes as the race to succeed Mark Carney has been thrown open by Theresa May’s resignation as prime minister.
UK regulator makes CFD crackdown permanent; Retail consumers can face large losses from risky type of derivatives trade
Cat Rutter Pooley – FT
The UK financial watchdog has made a temporary crackdown on a risky type of derivatives trade permanent, heavily restricting the sale and marketing of contracts for difference to retail consumers who could rack up large losses.
*****HERE is the official UK FCA statement.~JJL
G20 deeply divided on trade and climate change; Communique warns risks to the global economy ‘remain tilted to the downside’
Robin Harding, Alex Barker and Demetri Sevastopulo – FT
The G20 has staged a show of unity by signing up to a unanimous communique but only by papering over deep divisions on trade and climate change.
Swiss Stocks Trade Smoothly on Day One Without EU Recognition
Catherine Bosley and Albertina Torsoli – Bloomberg
Ban on trading Swiss shares in the EU took effect on Monday; Switzerland and EU are at odds over a bilateral political pact
Stocks from Nestle to Swatch Group traded without a hitch on Monday as Switzerland’s never-before-tested provisions to safeguard liquidity kicked in following a showdown with the European Union.
Switzerland’s Stock Market Has Been Taken Hostage; The EU’s use of threats over market access to get its way politically is becoming worryingly common. There’s a warning for Brexit Britain here.
Lionel Laurent – Bloomberg
An unnecessary and misguided economic split at the heart of Europe, driven by populist politics and trade spats. Nope, this isn’t Brexit, it’s the bitter diplomatic standoff between Switzerland and the European Union.
Deutsche Bank Considers Up to 20,000 Job Cuts; Job losses would likely take place over more than a year, with the pain and costs spread across regions and businesses
Jenny Strasburg – WSJ
Deutsche Bank AG is weighing whether to cut 15,000 to 20,000 jobs, or more than one in six full-time positions globally, according to a person familiar with high-level discussions about the latest attempts to turn around the struggling financial giant.
Deutsche Bank board to meet July 7 to decide on job cuts: sources
Deutsche Bank’s (DBKGn.DE) supervisory board will meet on July 7 to discuss a major restructuring that may result in as many as 20,000 job cuts, four people with knowledge of the matter said.
Weekends Are the Wild West for Bitcoin, But Nobody Knows Why
Vildana Hajric – Bloomberg
Saturday, Sunday surges account for more than a third of gains; Everything from FOMO to futures cited for driving momentum
Thinking of jumping into Bitcoin? If this week’s boom and bust trading didn’t scare you away, you might want to do so on a Saturday or Sunday.
Blockchain is no silver bullet against the black market; More technology is needed to link the product purchased with the record on the ledger
Jemima Kelly – FT
LVMH is set to launch a blockchain-based system to authenticate goods and satisfy the trend for conscious consumerism by giving customers the “life story” of their products.
EU-based traders caught in Swiss ‘equivalence’ spat; Breakdown in talks leaves investors in cross-border limbo
Mehreen Khan and Philip Stafford – FT
EU-based banks and fund managers face the threat of imprisonment in Switzerland from Monday if they flout a ban on trading hundreds of Swiss stocks following the breakdown of talks between Brussels and Bern.
The World Needs Shock Therapy; The only way the leaders gathered at the G-20 are going to revive growth is through radical and painful restructuring.
Satyajit Das – Bloomberg
While any global meeting that involves Donald Trump has the capacity to surprise, one thing is virtually certain about this weekend’s G-20 summit in Osaka, Japan: The gathered leaders will issue a pious call to work together to shore up growth, trade and the global financial system. The challenge they face is much bigger than that, however. And good intentions aren’t going to solve it.
G20 stops short of denouncing protectionism, warns of global slowdown
Leika Kihara – Reuters
Leaders of the Group of 20 major economies warned on Saturday of growing risks to the global economy but stopped short of denouncing protectionism, calling instead for a free, fair trade environment after talks some members described as difficult.
It’s Time to Fire Up All Engines to Boost World Growth, BIS Says
Catherine Bosley and Anna Andrianova – Bloomberg
Bank for International Settlements says governments must act; Ultra-low interest rates mean central-bank room is now limited
Governments must step in to boost their economies and redress policy imbalances that have forced central banks to use up most of their firepower, according to the Bank for International Settlements.
Europe’s heatwave burns on, but eases from record highs
Gus Trompiz, Joan Faus – Reuters
A four-day heatwave across western Europe that killed seven people began to ease slightly on Sunday, as temperature alerts were cut back and wildfires slowly brought under control.
Central bank plans to create digital currencies receive backing; Market may evolve ‘sooner than we think’ says Agustín Carstens
Claire Jones – FT
Global central banks may have to issue their own digital currencies sooner than expected, the general manager of the Bank for International Settlements has said, after Facebook recently unveiled plans to create its own stablecoin.
Has bitcoin joined the ranks of classic haven assets?; Rally coincides with a jump in the yen, Swiss franc and gold and Fed dovishness
Eva Szalay – FT
Bitcoin is back. But it is a bumpy ride. Since the beginning of June, prices for the cryptocurrency have rushed 50 per cent higher — a resurgence that followed a year of lacklustre trading after the price bubble at the end of 2017 popped.
US energy independence could prove to be an illusion; Shale boom took energy security off political agenda, but that may not last
Ed Crooks – FT
Energy independence is a complex concept that is often reduced to a very simple calculation. Daily oil production 20m barrels, daily oil consumption 19.9m barrels, result: independence.
H2O, Woodford and GAM crises highlight liquidity risk; Fund industry expert warns investors should know they cannot have something for nothing
Jennifer Thompson – FT
A well-known financier. Concern over liquidity. Panicked clients yanking capital. Sounds familiar? The crisis engulfing H2O Asset Management over its investments in illiquid bonds carries an echo of the drama that exploded at Neil Woodford’s investment group barely a fortnight ago. The episodes shine a light on the holdings of funds that, in theory, should allow customers to withdraw and deposit money daily.
Assets plummet at what was once Europe’s largest mutual fund; Standard Life Aberdeen’s Gars down 78% to EUR13.2bn since 2015 as investors pull cash
Attracta Mooney – FT
Assets in Standard Life Aberdeen’s Gars fund have plummeted by more than three-quarters from a high of EUR60bn to EUR13.2bn in just three-and-a-half years as investors worldwide flee what was once Europe’s largest mutual fund.
Bitcoin, Facebook and the End of 20th Century Money
Michael J Casey – Coindesk
There is never a dull moment in the world of blockchains and cryptocurrencies. The two earth-shattering stories of the past two weeks – the launch of the Libra project and the wild swings in the bitcoin market – might seem like unrelated topics. And, for the most part, the causal impact of the former on the latter is probably not much greater than that of another oft-noted bitcoin price correlation: the avocado chart.
Exchanges, OTC and Clearing
Scottish stock exchange project buoyed by two recruits
Greig Cameron – The Times
A company trying to open the first Scottish stock exchange in decades has appointed two senior members of staff. Elaine Morton joins Project Heather as its chief regulatory and compliance officer with Helen Webster hired as its chief operating officer. The previous Scottish Stock Exchange merged with its London counterpart in 1973. Attempts to re-establish a Scottish bourse have not borne fruit.
Terry Duffy, Chairman and CEO of CME Group: ‘We want to grow our presence in Europe’
Benoît Menou – Asset News
Euronext’s takeover of the Oslo Bors is one example of many recent mergers between exchange operators – including your acquisition of NEX in 2018. Do you see consolidation as necessary?
Trading Overview in June 2019 & First Half of 2019 (January to June); Japan Exchange Group released Trading Overview in June 2019 & First Half of 2019 (January to June)
Cash Equity Market – In the first half of 2019, the daily average trading value for the TSE 1st Section (domestic common stocks) was JPY 2.5555 trillion.
Derivatives Market – In the first half of 2019, total derivatives trading volume was 172,432,174 contracts.
DGCX Sees Gold Futures Trading Surge as Investors Flock to Safe-Haven Assets
The Dubai Gold & Commodities Exchange (DGCX) saw a surge in trading on its flagship Gold Futures product last month, as increasing geopolitical tensions across the globe drove investors towards safe-haven assets. The product recorded month-on-month (M-O-M) average daily volume growth (ADV) of 507.4%, and year-on-year ADV growth of 225.5%, while also registering M-O-M Average Open Interest (AOI) growth of 90.7%.
Deutsche Börse introduces cleared RFQ block trading via Xetra; Xetra EnLight provides cleared RFQ block trading in equities, ETFs and ETPs, with market makers such as Flow Traders already supporting the service.
Hayley McDowell – The Trade
Deutsche Börse has gone live with a new service that allows for block trading outside of the order book through request for quote (RFQ) workflow on Xetra.
Liquidnet joins SIX Swiss Exchange as trading member; Liquidnet Europe has become the second new trading participant to join SIX Swiss Exchange in 2019.
Hayley McDowell – The Trade
SIX Swiss Exchange has extended its list of trading members with the addition of institutional trading network Liquidnet.
SIX Welcomes New Trading Participant – Liquidnet Europe Limited Joins The Swiss Stock Exchange, The Largest And Most Liquid Trading Venue For Swiss Securities
Today, the Swiss stock exchange is pleased to welcome Liquidnet Europe Limited as its second new trading participant in 2019. At present, 97 participants enjoy the outstanding order book quality as well as the technologically leading and reliable trading infrastructure of the Swiss stock exchange.
Boerse Stuttgart Records June Turnover Of EUR 5 Billion – Bonds Show Increase In Trading Volume Compared With May Figures
Based on the order book statistics, Boerse Stuttgart generated turnover of around EUR 5 billion in June 2019. Securitised derivatives made up the largest share of the turnover. The trading volume in this asset class was more than EUR 2.1 billion. Leverage products generated around EUR 1,2 billion. Investment products contributed over EUR 930 million to the total turnover.
Update: Connection fee rebates for new Trading Members affiliated with existing Trading Member
To support new Trading Members with an affiliated existing Trading Member, Eurex Frankfurt AG will offer a temporary rebate on the connection fees of new Trading Members effective from 1 October 2018 to 31 October 2019 (initially 30 June 2019).
Xetra EnLight now enables cleared RFQ block trading; CCP clearing reduces settlement and counterparty risks / Available on all stocks, ETFs and ETPs on Xetra / Leading market makers welcome introduction
Deutsche Börse Group
On Xetra, Europe’s leading trading venue for ETFs and German equities, a new functionality has been introduced today that enables large volume block orders to be traded outside the order book via a request for quote (RFQ) workflow.
16th Consecutive Nasdaq Closing Cross Sets Record for Number of Shares Traded During 2019 Russell US Indexes Reconstitution
Nasdaq (Symbol:NDAQ) today announced the Nasdaq Closing Cross had a record day as it was used for the 16th consecutive year to rebalance Nasdaq-listed securities in the entire family of Russell U.S. Indexes, part of leading global index provider FTSE Russell, during their annual reconstitution.
Enhancing Corporate Governance
Tokyo Stock Exchange (TSE) requires every listed company to prepare a report on corporate governance (“Corporate Governance Report”), which provides investors with information on corporate governance in a comparable format.
Africa’s Fintech Ecosystem Raised $320m And Grew 60% In Two Years
Toby Shapshak – Forbes
Africa’s fintech companies have raised $320 million in funding since January 2015 and the ecosystem has surged 60% in the last two years.
World’s central banks tackle technology with innovation hub
John Miller – Reuters
Central banks grappling with fast-changing financial technology and companies like Facebook (FB.O) moving into finance will aim to work together more closely through an innovation hub approved on Sunday by the Bank for International Settlements.
BIS Starts FinTech Hub as Central Banks Look Into Crypto
Catherine Bosley – Bloomberg
The Bank for International Settlements is setting up shop to help officials embrace financial technology, who may need to speed up developing their own digital currency.
Japan Curbs Exports to South Korea, Hitting Global Chip Makers; Japanese exporters will need to apply for permission to ship some materials used in semiconductors and smartphones
Mayumi Negishi in Tokyo and Eun-Young Jeong in Seoul – WSJ
Japan tightened controls on exports to South Korea in an unexpected blow to the global technology supply chain that also marks a new low point in relations between the two U.S. allies.
Austrian Banks Defend Themselves in First Cyber Attack War Games
Boris Groendahl – Bloomberg
Austrian banks were found to be “by and large” well prepared to defend themselves from hacker attacks after the country’s financial regulator staged its first cyber war game.
Billions to Trillions: Crypto Assets and the Inevitability of Digitization
Ami Ben David – Coindesk
Ten years after the invention of bitcoin, the general market is starting to realize – with a big push from Facebook – that digital money using blockchain technology is coming.
Facebook’s Libra Crypto Code Draws Critiques and Clones
Christine Kim – Coindesk
The early-access code for Facebook’s Libra cryptocurrency hit GitHub two weeks ago — and in that time, critics and would-be trollers have taken aim at the project.
Bitcoin Mining Puts Pressure on Iran’s Power Grids
Golnar Motevalli – Bloomberg
Producing one bitcoin costs about $2,700 in subsidies: Mehr; Crypto mining blamed for electricity consumption surge in June
The electricity-intensive process used to create units of the digital currency Bitcoin has led to a surge in Iranian energy consumption, putting unprecedented pressure on power grids and forcing officials to cut off supplies to so-called mining farms, according to state media.
Will Facebook’s New Cryptocurrency Enable Foreign Election Meddling?
Jonathan Berr – Forbes
Facebook is trying to convince U.S. regulators that it is ready to fight efforts by foreigners to interfere with the 2020 Presidential Election while at the same time promoting its Libra cryptocurrency that may make it easier to do just that. The social media giant says it will accept the cryptocurrency anywhere where it takes payments and at least for now won’t rule out allowing it to be used to buy political ads.
The winners and losers of Facebook’s Libra
Matthew De Silva – Quartz
When Facebook announced its new digital currency, Libra, on June 18, the company changed the conversation about the viability of cryptocurrencies. It immediately surmounted one of the most important obstacles: users. With 2.7 billion customers across its platform (that includes Instagram, Messenger, and WhatsApp), Facebook has a user base like no other. Unlike most crypto projects, Facebook doesn’t have to convince people to sign up: It has them, and Libra will be integrated into apps that are already a part of their daily lives.
Bridging the Gap Between Bitcoin and Global Regulators
Shin’ichirio Matsuo – Coindesk
Since 2015, when bitcoin became an issue for regulators like the state of New York, the regulation of cryptocurrency (the G20 now calls it as a crypto asset) has been discussed in many places, mainly at bodies like the Financial Stability Board (FSB) and the Financial Action Task Force (FATF).
Metronome Now Lets Users Move Tokens Between Blockchains
Daniel Kuhn – Coindesk
MET token holders now have the option to choose their blockchain, a feature that was first announced a year ago at launch but only rolled out last week. The developers of the Metronome project announced activation of the cryptocurrency’s cross-blockchain capability following successful test transfers of MET tokens from the ethereum blockchain to the ethereum classic blockchain and back. Cross-chain hops allow holders to pick the ledger that suits their risk profiles and requirements for stability and governance.
Facebook’s crypto plans look a lot like the ones the SEC is trying to stop; The SEC suit against cryptocurrency hopeful Kik adds to already considerable regulatory uncertainty for tokens
Francine McKenna – MarketWatch
Sheryl Sandberg, chief operating officer of Facebook, speaks during the Digital-Life-Design (DLD) conference on January 20, 2019 in Munich, southern Germany.
A bold plan to launch a new cryptocurrency by Facebook and partners looks a lot like the plans of another firm the Securities and Exchange Commission is now suing to stop.
Goldman Sachs could create digital coin
Goldman Sachs could follow JPMorgan Chase in creating a digital coin, CEO David Solomon has revealed in an interview in which he also dismissed the threat of tech giants such as Facebook moving beyond payments into deposits.
Facebook’s Libra is spurring central banks’ interest in issuing cryptocurrency
Ephrat LivniJune – Quartz
The Bank for International Settlements (BIS) in Basel, Switzerland is the bank for global central bankers. It’s the stodgiest of stodgy institutions, in other words, and it’s been slow-moving when it comes to cryptocurrency. Now it appears to be picking up the pace, however, spurred by Facebook’s announcement this month that it plans to issue a digital currency called Libra.
Deutsche Börse’s Xetra Exchange Lists First Blockchain Firm
Daniel Palmer – Coindesk
Xetra, a Deutsche Börse-operated trading venue for financial assets such as stocks, bonds and funds, has just listed its first blockchain company. As reported by DGAP.de on Monday, shares in the firm, Advanced Blockchain AG, will be tradeable on Xetra from today. The news comes after the same company launched on the Frankfurt Stock Exchange in January.
Bitcoin’s second coming makes Wall Street think again on crypto; Sharp rise in the price of digital currencies renews interest among institutions
Eva Szalay – FT
After bitcoin fizzled and popped early last year, Wall Street seemed to lose interest. Goldman Sachs went quiet on plans to open a desk trading digital assets as the price of the cryptocurrency plummeted, falling as much as 80 per cent. In October last year JPMorgan Chase chief Jamie Dimon doubled down on his initial scepticism, saying he did not “give a shit” about bitcoin at a conference.
Monero and Zcash Conferences Showcase Their Differences (And Links)
Leigh Cuen – Coindesk
Last weekend, two privacy coin conferences heralded the future of cryptocurrency governance: the hybrid startup model versus grassroots experimentation.
Black Poverty Is Rooted in Real-Estate Exploitation; A new study in Chicago shows how the dream of homeownership was converted into a poverty trap.
Mark Whitehouse – Bloomberg
One question is — or should be — central to any assessment of the state of America: Why, more than a century and a half after slavery ended, does the typical black family remain so much poorer than the typical white family?
Trump’s Making the World Safer for Autocrats
Karl Maier – Bloomberg
For some of the world’s most authoritarian leaders, the Group of 20 summit was a time to shine — thanks in large part to Donald Trump.
Currency warrior: why Trump is weaponising the dollar; Businesses in countries such as Russia are testing the power of the reserve currency but it could benefit from any global instability
Sam Fleming – FT
In an industry long dominated by the dollar, it was a move that carried obvious symbolic weight. Last summer Russian diamond miner Alrosa tested a new system for selling its rocks in roubles to clients in countries such as China and India, as an alternative to the US currency.
Iran warns Opec ‘might die’ due to Russia-Saudi domination; Oil group to extend cuts but Tehran laments growing influence of Moscow and Riyadh
David Sheppard and Anjli Raval – FT
Iran’s oil minister has warned that the future of Opec is in jeopardy over the growing dominance of Saudi Arabia and Russia in the cartel’s affairs.
Trump Consultant Is Trolling Democrats With Biden Site That Isn’t Biden’s
Matthew Rosenberg – The New York Times
For much of the last three months, the most popular Joseph R. Biden Jr. website has been a slick little piece of disinformation that is designed to look like the former vice president’s official campaign page, yet is most definitely not pro-Biden.
Fed’s Barkin Warns of Chill Over Business Investment From Trade Uncertainty; ‘Emotions have gotten far out in front of the data,’ says president of Federal Reserve Bank of Richmond
Nick Timiraos – WSJ
Uncertainty over trade policy could weaken business sentiment and chill investment, raising new risks for an otherwise stable U.S. economy, Tom Barkin, president of the Federal Reserve Bank of Richmond, said in an interview with The Wall Street Journal.
UK crypto scene set for boost as London firm poised for FCA approval
Hasan Chowdhury – Telegraph
A UK cryptocurrency firm is expected to receive approval from the Financial Conduct Authority on Monday to become a large-scale asset manager, in a move that could accelerate London’s ambitions to become a global hub for the digital currency scene.
St Tropez polo club owner rejects insider trader’s bribery claims; Court heard allegations that Alshair Fiyaz ‘paid off’ sources at UK NCA and FCA
Caroline Binham – Ft
A flamboyant multimillionaire trader bribed an employee at the UK’s serious crime-fighting agency and potentially compromised a criminal investigation by the financial watchdog, it was alleged by a convicted insider trader before his jury trial.
Carmignac Gestion pays EUR30m to settle French tax investigation; One of France’s best-known asset managers was investigated over a Luxembourg-based subsidiary
Harriet Agnew – FT
Carmignac Gestion, one of France’s highest-profile asset managers, has agreed to pay a EUR30m fine to authorities to settle an investigation into allegations of tax evasion.
New regime for corporate whistleblower protections commences today
From today, whistleblowers who report misconduct about companies and company officers can access stronger rights and protections in the Corporations Act 2001.
CFTC Orders Commodity Trading Firm to Pay Penalty for Wash Sales and Improve its Internal Controls
The Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Respondent, Eagle Market Makers, Inc. (Eagle), an Illinois firm, for engaging in wash sales and noncompetitive transactions which were traded on the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange, Inc. (collectively, CME). The Order requires Eagle to pay a $350,000 civil monetary penalty and implement and improve its internal controls and procedures.
CFTC Extends Public Comment Period for Proposal to Amend Derivatives Clearing Organization Regulations
The Commodity Futures Trading Commission (CFTC) announced today that it is extending to September 13 the comment period for the proposed rulemaking to amend certain regulations that apply to derivatives clearing organizations under Part 39 of the CFTC’s regulations.
Investing and Trading
America’s Greatest Bull Market Rages on Against the Dying Light
Samuel Potter, Ksenia Galouchko, and Justina Lee – Bloomberg
Risky assets defy data, doubters and death to surge in 2019; Investors weigh late-cycle bets on rampant stocks and bonds
The reasons to bet against the rally across risk assets are numerous, serious, and almost exactly what they were before this year’s blistering melt-up.
U.S. Oil Companies Find Energy Independence Isn’t So Profitable; A Parsley Energy production tank east of Midland, Tex. The company has tripled output over the last three years, but its shares have tumbled.
Clifford Krauss – NY Times
For decades, elected leaders and corporate executives have chased a dream of independence from unstable or unfriendly foreign oil producers. Mission accomplished: Oil companies are producing record amounts of crude oil and natural gas in the United States and have become major exporters.
Why Goldman Sachs Could Be a New Safety Stock; Once known as a top trading house, the Wall Street titan now features a heftier dividend
Gunjan Banerji – WSJ
Goldman Sachs, once one of the fiercest trading houses on Wall Street, is becoming a stock for widows and orphans.
Lakefront Futures Launches Derivatives Group Focused on the Trucking & Freight Shipping Sector
Business Wire Business WireJune 19, 2019
Lakefront Futures & Options, LLC
Lakefront Futures & Options, LLC announces that Gary T. Saykaly has joined Lakefront Futures & Options, LLC as a Senior Vice President to manage their derivatives platform focused on the trucking and freight sector.
Banks announce billions in share buybacks after Fed approval
The nation’s largest banks are rewarding shareholders by spending tens of billions raising their dividends and buying back stock after getting the green light from the Federal Reserve.
BIS Warns of Overreliance on Central Banks to Boost Economies; Consortium of central banks says fiscal policies, structural reforms must play greater role
Brian Blackstone – WSI
The Bank for International Settlements warned Sunday that central banks are bearing too much of the burden in fostering economic expansion, and that other policies need to play a greater role in raising the growth potential of economies around the world.
Preserve your ammunition, BIS urges top central banks
Marc Jones – Reuters
Bank for International Settlements (BIS) chief Agustin Carstens has urged top central banks to preserve their ammunition for more serious economic downturns rather than deplete it chasing higher growth.
Deutsche Bank in wealth management hiring spree
Sinead Cruise, Simon Jessop – Reuters
Deutsche Bank plans to hire 300 more relationship and investment mangers for its wealth management business by 2021, as part of a plan to bulk up in areas the German lender hopes will bring steadier revenue streams.
ECB’s Draghi Grows Bolder as His Tenure Nears End; The president of the European Central Bank is doubling down on a tried-and-tested strategy in an attempt to guard the bloc against too-low inflation
Tom Fairless – WSJ
Mario Draghi is teeing up some of the boldest policy moves of his eight-year term as European Central Bank president only four months before he steps down, potentially binding the hands of his successor for years.
TP Icap’s European head to depart; Long-serving executive is leaving the interdealer broker
Clare Dickinson – Financial News
Frits Vogels, who has led the European business at TP Icap since its creation through a merger of two City brokers, is leaving the firm.
Monte dei Paschi ends debt collection deal to sell 3 billion euros in bad loans
Monte dei Paschi di Siena (BMPS.MI) said on Sunday it had been forced to end early a 10-year bad loan management contract so that it could have more freedom in selling off bad debts in a worsening economic environment.
Katrina Sherrerd: welcome the godmother of smart beta and diversity; New CEO comes out of Rob Arnott’s shadow to take the wheel at Research Affiliates
Jennifer Thompson – FT
Katrina Sherrerd has big shoes to fill. Rob Arnott, the previous chief executive at Research Affiliates, founded and headed the business for 16 years and was dubbed “the godfather” for his approach to investing.
Goldman Sachs’s Italian job sparks anger at hedge fund get-together
Tom Teodorczuk – MarketWatch
The curtain has fallen on another Goldman Sachs GS, +2.65% symposium. Every year the bank hosts its hedge fund conference, connecting hedgies with investors, at the Rome Cavalieri hotel in Italy’s capital. But attendees are crying foul at Goldman Sachs placing chips in their conference lanyards that allowed the bank to track their whereabouts in Rome during the event. “It is outrageous,” says an attendee, speaking anonymously. “Rather than take it on trust that we showed up to meetings with hedge-fund managers and leave us to our own devices, Goldman Sachs monitored our movements to ensure we remained inside the Cavalieri.”
Woodford Raises $379 Million by Selling Down Company Stakes
Carla Canivete and Suzy Waite – Bloomberg
Stock picker froze his flagship fund after run of poor results; Disposals include shares in BCA Marketplace, NewRiver REIT
Embattled U.K. fund manager Neil Woodford raised at least 300 million pounds ($379 million) in June by selling down some stakes in smaller companies held in his frozen flagship fund.
Can Goldman’s Trading ‘Rainmaker’ Bring Back the Glory Days?
Sridhar Natarajan – Bloomberg
Ashok Varadhan is the last of Lloyd Blankfein’s trading chiefs; Famous mathematician’s son and Coach K pupil overcame tragedy
He’s the last link to another era at Goldman Sachs, to the time when the traders ruled.
Why the UK’s biggest fund supermarket stayed so loyal to Woodford; Hargreaves Lansdown executives in spotlight over links to stockpicker Neil Woodford
Kate Beioley – FT
The longstanding loyalty of two Hargreaves Lansdown executives towards investor Neil Woodford has raised questions about the balance of power at the UK’s most influential broker.
DriveWealth Partners with Sigma Securities and Trove Technologies to Launch First Digital U.S. Equities Trading Product in Nigeria
DriveWealth, LLC, a U.S. based leader in global digital trading technology, today announced a new partnership withSigma Securities Limited, a leading Nigerian brokerage firm, and Trove Technologies, a cutting-edge Africa-based financial app developer. The DriveWealth platform is the engine for the new offering, which is launching today, giving Nigerian investors their first seamless digital access to the U.S. equity markets.
Wildfires and power cuts plague Europeans as heatwave breaks records
Gus Trompiz, Joan Faus – Reuters
Hundreds of firefighters brought wildfires under control in southern France on Saturday as a stifling heatwave brought record-breaking temperatures to parts of Europe, killing at least six people.
Too darn hot: Bakerloo line lives up to its name in the summer; It feels like an oven down there because it is — London clay is cooking us on our commutes
Miranda Green – FT
During last summer’s heatwave in London, I couldn’t shake off the sensation that, in the 20 minutes I spent travelling to work each morning on the Tube’s Bakerloo line, my brain was gradually being cooked. And it turns out I was right.
Cold-war spy photos reveal ‘doubling’ of glacier ice loss in Himalayas
Daisy Dunne – Carbonbrief.com
The rate of glacier retreat in the Himalayas has doubled since the late 20th century, a new study finds. By comparing modern-day satellite data to declassified film taken by US spies during the cold war, researchers have built the most complete picture yet of how ice levels in the world’s “third pole” have changed over the past 40 years.
Asset managers focus on Asia as profits leap; International groups relish fast-growing market but there are challenges ahead
Chris Flood – FT
Asia presents asset managers with the most exciting prospects of any region but traditional fund houses face a complex mix of strategic, operational and regulatory challenges that could slow down or even wreck their expansion plans.
Swine fever toll in China may be twice as high as reported, industry insiders say
Dominique Patton, Hallie Gu – Reuters
As many as half of China’s breeding pigs have either died from African swine fever or been slaughtered because of the spreading disease, twice as many as officially acknowledged, according to the estimates of four people who supply large farms.
‘Is That a Typo?’ Australia Recoils at Record-Low Yields
Michael Heath and Adam Haigh – Bloomberg
Bank profits will get walloped if RBA cuts to 0.5%: Goldman; Country has potential advantages if it has to take the QE road
Australia is about to reach its last percentage point of interest-rate ammunition, dragging the country’s economy and markets deeper into the low-yield world that’s already engulfed many of its developed-world peers.
Singapore to issue up to five digital bank licences; Monetary authority becomes latest Asian regulator to modernise
Stefania Palma – FT
Singapore will issue up to five digital bank licences in a move that will further modernise what is already one of the most advanced financial centres in the world.
Aging Japan gives birth to first 50-year corporate bond; Insurers and pension fund managers buy Mitsubishi Estate’s superlong debt
Hirofumi Takeuchi, Shunsuke Ushigome – Nikkei
Corporate bond maturities are rising in Japan as insurers and pension fund managers look to align their portfolios to some of the world’s longest life spans.
India considers more powers for cenbank to regulate shadow banks
The Indian government is considering giving more powers to the central bank to regulate the struggling shadow banking sector, Finance Minister Nirmala Sitharaman informed the Parliament on Monday.
An investigation into how India dismantled its main defence against drought
Aarefa Johari & Nithya Subramanian- Quartz
At the height of the June summer in Madhya Pradesh, Mannubai Chamariya heaved boulders from the banks of a dry stream to a site where other workers arranged them in a tiled wall, filling the gaps with cement.
HSBC tells China it is not to blame for arrest of Huawei’s CFO; Bank seeks to distance itself from diplomatic spat between Beijing and Washington
David Crow, Henny Sender and James Kynge – FT
HSBC has launched a lobbying effort to convince the Chinese government that it was not responsible for the arrest of Huawei’s finance director, as the bank tries to distance itself from the diplomatic row over China’s top telecoms equipment maker.
JPMorgan faced with 33% premium to control Chinese asset manager; Price sets an expensive precedent for foreign groups racing to tap $5tn market
Hudson Lockett – FT
JPMorgan’s asset management arm will have to pay a 33 per cent premium to take control of its Chinese joint venture, setting an expensive precedent for other international fund managers as foreign institutions race to tap China’s $5.3tn market.
Jeremy Hunt would allow no-deal Brexit ‘with heavy heart’; Leadership candidate attempts to burnish credentials with Eurosceptic Conservatives
Robert Wright – FT
Jeremy Hunt is willing to countenance a no-deal Brexit “with a heavy heart”, and on Monday will set out a detailed 10-point plan for mitigating the disruption of crashing out of the EU.
Lib Dem leadership: The candidates trying to stop Brexit
A great deal of attention is focused on the Conservative Party as it chooses the next prime minister, but the Liberal Democrats are also busy picking a new leader. The outcome could have an impact on what happens with Brexit.
Tory leadership: Jeremy Hunt sets 30 September ‘no-deal deadline’
Jeremy Hunt has said he will decide by the end of September whether there is a “realistic chance” of reaching a new Brexit deal with the EU. The Tory leadership contender said he would deliver a provisional “no-deal Brexit budget” in early September and then give the EU three weeks. He vowed to abandon talks after that if there was no “immediate prospect” of progress and move to a no-deal footing. His rival Boris Johnson has vowed to leave “come what may” by 31 October.
A stock exchange for sneakers is now worth $1 billion and it just hired a former eBay exec as CEO
Anjali Sundaram – CNBC
StockX has officially reached a $1 billion valuation after its most recent funding round, co-founder Josh Luber told CNBC on Wednesday.
Connecticut billionaire Paul Tudor Jones wants to save Africa with new nonprofit
John Aidan Byrne – NY Post
Billionaire hedge fund manager Paul Tudor Jones wants to save Africa. The Greenwich, Conn.-based tycoon and philanthropist is one of the largest money men behind the recently formed nonprofit African Community & Conservation Foundation (ACCF), which is behind a campaign to safeguard vast tracts of land and wildlife that stretches from Zambia to South Africa.
It Took Only 16 Minutes for Thieves to Swipe a Million-Dollar Gold Coin; The Big Maple Leaf and the inside job.
Benedikt Kammel, Karin Matussek – Bloomberg
In 2007 the Royal Canadian Mint had a wild idea—create the world’s first million-dollar coin. It would be 99.999% pure gold, 220 pounds, and as tall as a car tire. Five so-called Big Maple Leaf coins were purchased by investors. —Illustration by Eleanor Davis