Virus is Becoming a Global Political Risk

Feb 25, 2020

First Read

Hits & Takes
By JLN Staff

Congratulations to Maureen Downs on being elected as chair of the board of directors of the National Futures Association. Don Thompson of JPMorgan Chase & Co. was elected to serve as vice-chair. With Downs’ election, the Mike Dawley NFA chairman era ends. Thank you to Mike for all your hard work for the industry at the NFA and FIA through the years.~JJL

The FCA had a data breach on their website. A freedom of information request was posted to their website that may have included some personal information. Here is the FCA statement about the breach.~JJL

CME Group traded a record 1 billion options contracts in 2019. ONE BILLION!~JJL

CME Group announced that John Pietrowicz, its chief financial officer, will present at the Credit Suisse 21st Annual Financial Services Forum at The Ritz-Carlton Key Biscayne in Miami on Thursday, February 27, 2020, at 2:40 p.m. ET. The presentation will also be available for livestreaming on CME Group’s investor website at http://investor.cmegroup.com.~SR

How bad is the coronavirus? So bad that the filming of ‘Mission: Impossible’ was halted in Italy due to coronavirus.~JJL

There is a post by the very secretive Jump Capital about why they invested in Eventus Systems. The post is by Peter Johnson.~JJL

Here is the agenda for tomorrow’s CFTC Technology Advisory Committee meeting in Washington, DC.~JJL

Via The Block, the Simpsons’ latest episode explains blockchain and cryptocurrency. They even use a cartoon version of the actor Jim Parsons to explain it.~JJL

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The WILD Growth of Cathey Curley – Part Two
JohnLothianNews.com

In part two of JLN’s interview with Cathey Curley, she talks about her career starting as a recent high school graduate who took a job in downtown Chicago for $6 per hour, which was big money back then. Curley was one of the first employees of what became Citadel and has worked for some of the biggest firms in the markets, including Hull Trading, CME Group, Newedge and Citadel. Today she is a lead business analyst with Nuveen, where she learned a lot about what she did not know.

Watch the video »

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NFA’s Board of Directors elects Maureen C. Downs to serve as Chair
NFA
At its February meeting, NFA’s Board of Directors elected Maureen C. Downs, Phillip Capital, Inc., to serve a one-year term as Chair. The Board also elected Don Thompson, JPMorgan Chase & Co., to serve as Vice-Chair.
bit.ly/2v4JHf4

***** This is a big honor for Maureen Downs and Phillip Capital.~JJL

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Japan’s Aging Population Breathes New Life Into a Centuries-Old Investment Idea; Tontines, which had their heyday over 300 years ago, are enjoying a revival among those who fear they will outlive their savings
Yuka Hayashi – WSJ
A controversial centuries-old investment arrangement, often used as a plot device in murder mysteries, is experiencing a resurgence in Japan as a savings vehicle designed for the era of longevity. Tens of thousands of older Japanese have flocked to insurance products called “tontine pensions” in recent years, worried about outliving their savings and lured by the promise of steady streams of income as long as they live.
/on.wsj.com/3c6fcFX

*****Whoever lives the longest wins in more ways than one.~JJL

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Europe’s banks need to up their game in talent race; Lenders should nurture a new generation of bankers to take over
The editorial board – FT
It is all change at the top of Europe’s big banks. HSBC and ING are looking for new chief executives. Barclays is poised to join the hunt as the British lender seeks candidates to replace Jes Staley. UBS, Credit Suisse and Royal Bank of Scotland have all recently appointed new people to the top job.
/on.ft.com/2wJCSjj

***** Here comes the Thirty Something reboot.~JJL

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The mogul, the villa and the feud that launched a rape case
Kim Barker, Catherine Porter, Grace Ashford – New York Times via Chicago Tribune
The Bahamian pleasure palace featured a faux Mayan temple, sculptures of smoke-breathing snakes and a disco with a stripper pole. The owner, Peter Nygard, a Canadian fashion executive, showed off his estate on TV shows like “Lifestyles of the Rich and Famous” and threw loud beachfront parties, reveling in the company of teenage girls and young women. Next door, Louis Bacon, an American hedge fund billionaire, presided over an airy retreat with a lawn for croquet. Bacon preferred hunting alone with a bow and arrow to attending wild parties, and if mentioned at all in the press, was typically described as buttoned-up.
bit.ly/2T1edzH

*****Don’t get between two rich guys in a feud. It gets messy.~JJL

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Monday’s Top Three
Our most read story Monday was Drug dealer loses $58M in bitcoin after landlord accidentally throws codes out, from Cnet. Maybe cannabis and cryptocurrency don’t go so well together after all. Second most read was another story about losing money, The Wall Street Journal’s Losing $450,000 in Three Days: Hackers Trick Victims Into Big Wire Transfers. Third was another Wall Street Journal story, Ken Griffin Adds Calvin Klein’s Hamptons Compound to Collection of Luxury Homes.

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Lead Stories

Virus is Becoming a Global Political Risk
Rosalind Mathieson – Bloomberg
The world is finding out that China’s problem is everyone’s. The coronavirus is spreading further beyond China’s borders, with clusters in Italy, South Korea, Japan and Iran, and cases topping 80,000 globally. While the outbreak isn’t yet a pandemic, the challenges for governments are rising.
/bloom.bg/2PoGzkU

A decade on, did Man Group’s $1.6bn bet on GLG pay off? The deal created a hedge fund giant but the transformation did not go as planned
Laurence Fletcher – FT
In spring 2010, two of the most powerful figures in the European hedge fund industry unveiled one of the biggest deals in the sector’s history. Peter Clarke, the chief executive of Man Group, and Manny Roman, co-CEO of GLG Partners, announced that Man Group would buy GLG for $1.6bn.
/on.ft.com/3a6ZGbo

U.K. FCA Accidentally Puts ‘Confidential’ Information on Website
Colin Keatinge – Bloomberg
The U.K.’s Financial Conduct Authority said confidential information may have been made accessible on its website, according to a statement from the regulator today. The FCA said it was recently made aware that, in a response to a Freedom of Information Act request published on its website in November, certain “underlying confidential information may have been accessible.”
/bloom.bg/2PomxY1

Coronavirus Puts Europe’s Company Bond Market In Deep Freeze
Hannah Benjamin and Alice Gledhill – Bloomberg
Only two new corporate deals are braving Europe’s debt market; Week had been expected to see at over $22 billion in new sales
Global borrowers shunned Europe’s corporate debt market for a second day as a cluster of new coronavirus cases in Italy sent yields sharply higher, bringing sales of new bonds to a near standstill.
/bloom.bg/2Te5oRN

Banks fear Ion/Broadway deal will push up forex fees; Acquisition allows group to build bigger share of the $6.6tn-a-day market
Philip Stafford and Eva Szalay – FT
Ion Group’s takeover of US rival Broadway Technology has created a potential headache for banks working to reduce their reliance on Ion, a provider of financial-markets software.
/on.ft.com/2Viaijn

Japan to Expand Exemptions to Tighter Foreign Investment Rules
Min Jeong Lee and Emi Urabe – Bloomberg
Japan plans to further loosen restrictions on foreign investors seeking to buy shares in companies related to national security, a person familiar with the matter said.
/bloom.bg/2VlFhev

CME’s TriOptima sets up custodian connectivity through SWIFT automation; TriOptima’s triResolve Margin collateral management service can connect clients to the SWIFT custody network for cash transfers and securities settlement.
Joe Parsons – The Trade
CME Group’s TriOptima, a provider of collateral management and post-trade infrastructure services for OTC derivatives, has established connectivity to custodians and tri-party agents by joining the SWIFT network.
bit.ly/37SKI7a

Breaking contracts over coronavirus is harder than it sounds; The rules around force majeure are murky and complicated by government actions
Jingzhou Tao – FT
The coronavirus outbreak in Wuhan, one of central China’s most important industrial cities, has so far resulted in the quarantine of hundreds of millions of people and more than 2,600 deaths worldwide. Countries are closing their borders or tightening checks on travellers from China, Italy, Iran and South Korea, which have been hit hardest by the illness. But so far the World Health Organization has said it is not a pandemic.
/on.ft.com/3a53RV6

Thomson Reuters Names Former Nielsen Executive as CEO; Steve Hasker will take over March 15
Dave Sebastian – WSAJ
Thomson Reuters Corp. TRI -1.11% has named former Nielsen Holdings NLSN -2.15% PLC President and Chief Operating Officer Steve Hasker as its chief executive and president and Mike Eastwood as its finance chief, among other management changes effective March 15.
/on.wsj.com/2SZhLC8

Gina Miller calls for Chancellor to review Andrew Bailey’s appointment at BoE; ‘Regulatory failures’ during FCA tenure
Beth Brearley – Investmentweek
Gina Miller has published a report highlighting the “regulatory failures” in the UK financial services sector during Andrew Bailey’s tenure as CEO of the Financial Conduct Authority (FCA), calling for Chancellor Rishi Sunak to review Bailey’s appointment as the new Governor of the Bank of England.
bit.ly/2uz0EOs

A Good Ponzi Needs Some Luck; Also bank heists, fake accounts, insurance and metaphors.
Matt Levine – Bloomberg
The basic problem with a Ponzi scheme is that it keeps getting worse. You raise money from people promising them large returns, then you have to raise more money from more people to pay the first people their returns, but then you have to raise even more money to pay off the second set of people, etc. You can’t just do a little bit of Ponzi and be on your way. It keeps snowballing. You need some dramatic event to end it in a satisfying, you-don’t-go-to-prison sort of way.
/bloom.bg/2SVYHos

Physician Facebook Group Used in Alleged Multimillion Dollar Fraud
Marcia Frellick – Medscape.com
A Facebook group called the Physician Dads’ Group was one of the avenues used to recruit investors into an alleged multimillion-dollar hedge fund scheme, according to details of an investigation by the Southern Investigative Reporting Foundation.
/wb.md/38TLDpf

Exchanges, OTC and Clearing

TriOptima Expands triResolve Margin to Offer SWIFT Payment Infrastructure
CME Group
TriOptima, a leading infrastructure service that helps to lower costs and to mitigate risk in OTC derivatives markets, today announced that it is extending its award-winning triResolve Margin collateral management service to support automated SWIFT payment capabilities.
bit.ly/2SYd1Nu

CME Group Chief Financial Officer to Present at Credit Suisse Conference
CME Group
CME Group announced today that John Pietrowicz, Chief Financial Officer, will present at the Credit Suisse 21st Annual Financial Services Forum at The Ritz-Carlton Key Biscayne in Miami on Thursday, February 27, 2020, at 2:40 p.m. (Eastern Time).
bit.ly/2HWg0iS

Liquidity Provisioning: Changes in the General Supplement, the parameter files for quotation requirements and spread classes
Eurex
The Management Board of Eurex Deutschland and the Executive Boards of Eurex Frankfurt AG and Eurex Clearing AG took the following decisions:
bit.ly/2T0ZRiJ

MGEX Reports a Pair of Top-25 Records
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), welcomes Friday, February 21st into the record book as the 20th best day in total volume with a total of 23,341 contracts traded.
bit.ly/2Te9cCu

Hemp data company launches legal battle over ‘benchmarks’ moniker
Hemp Industry Daily
Two companies that provide data and analytics to the hemp industry – New Leaf Data Services and PanXchange – are in a trademark dispute over the phrase “hemp benchmarks.” New Leaf sued PanXchange earlier this month in federal court in Connecticut, claiming trademark infringement of its “Hemp Benchmarks” service.
bit.ly/2HRrl3O

Fintech

Credit Suisse and Instinet go live with Paxos blockchain settlement system; In launching the service, the platform will allow for the simultaneous exchange of cash and securities between broker-dealers to settle US listed-equities trades.
Jon Watkins – The Trade
The broker-dealer businesses of Credit Suisse and Nomura have become the first two firms to go live on a new blockchain-based securities settlement platform for select US-listed equity trades.
bit.ly/3902qH5

genesis adds global sales head amid expansion; genesis has appointed Felipe Oliveira as its new global head of sales and marketing in line with expansion strategy.
Kiays Khalil – The Trade
Trading and markets software company genesis has hired a new global head of sales and marketing as it continues to see increased adoption of its platform and automated workflow.
bit.ly/32qBqhz

London Fintech Startup Revolut Valued at $5.5 Billion
Amy Thomson – Bloomberg
U.K.-based company raises $500 million in round led by TCV; Firm to focus on expansion, ‘striving towards profitability’
Revolut Ltd. has raised $500 million in a funding round that values the London financial-technology firm at $5.5 billion, making it one of Europe’s most valuable fintech startups despite still being loss-making.
/bloom.bg/39Xy2NI

Cryptocurrencies

Over 3.1 billion transactions have been processed across 24 crypto networks in the past decade: researchers
Celia Wan – Coindesk
More than 3.1 billion transactions were broadcast across two dozen cryptocurrency networks during the past ten years, a company that tracks the Ethereum transaction mempool has found. The research, conducted by San Francisco-based Blocknative, shows that the twenty-four blockchains together have facilitated over $4.6 trillion in aggregate transfer value from 2009 to 2019, 96% of which occurred between 2017 to 2019.
bit.ly/2Vh3cf0

U.S. House subcommittee to host hearing on digital currencies next month
Michael McSweeney – The Block
Congress is set to host its latest hearing on digital currencies late next month. The U.S. House Committee on Financial Services Subcommittee on National Security, International Development, and Monetary Policy will host a hearing on “A Review of Domestic and International Approaches to Digital Currencies” on March 24 at 2 p.m. ET, according to a notice published on Feb. 21. The subcommittee is chaired by Rep. Emanuel. No other information has been published about the hearing, including witnesses or areas of potential inquiry. A request for comment sent to the U.S. House Committee on Financial Services Democrats was not returned by press time.
bit.ly/3c1rpfj

CoolBitX Raises $16.7M to Make Crypto More Bank-Friendly
Leigh Cuen – Coindesk
Asian companies are accelerating the crypto industry’s push to make exchanges work more like traditional banks. The crypto wallet and security startup CoolBitX raised $16.7 million in a round led by Japanese financial group SBI Holdings, with participation from the National Development Fund of Taiwan, Korean crypto exchange BitSonic and Japanese financial firm Monex. In 2020, the startup’s focus is on new products and features that comply with new rules from the Financial Action Task Force (FATF) that require businesses to collect and pass information about customers when transferring funds between firms.
bit.ly/3a0WPk3

Potanin Forges Ahead on Tokens for Metals and Air Tickets
Yuliya Fedorinova – Bloomberg
Russians may soon be able to use digital tokens to buy metals, book air tickets and transfer ski passes from Vladimir Potanin’s businesses after the billionaire got the go-ahead for his blockchain platform. Potanin has long signaled plans to start crypto tokens for metals, but can now expand the project to the consumer side of his empire after getting central bank approval last week. The aim of the platform is to speed up transactions and reduce paperwork and interaction between customers and companies.
/bloom.bg/2PoshB3

Diginex Steps Closer to Backdoor Nasdaq Listing as SEC Approves Merger
Danny Nelson – Coindesk
Blockchain services firm Diginex is closer to listing on Nasdaq after the Securities and Exchange Commission (SEC) approved its bid to merge with publicly traded 8i Enterprises Acquisition Corp. on Friday. The $276 million deal will now be put before 8i’s shareholders for approval at a March 20 special meeting, according to a press release. If accepted, the merger will allow Diginex, a private company based in Hong Kong, to bypass many of the usual regulatory barriers associated with launching an initial public offering and be listed on the Nasdaq Stock Market in what’s known as a backdoor listing.
bit.ly/3a75rpw

Chief technical counsel for blockchain analytics firm Chainalysis returns to FinCEN
Yilun Cheng – The Block
Michael Mosier has returned to the Financial Crimes Enforcement Network (FinCEN) after a stint as chief technical counsel for blockchain analytics firm Chainalysis. Mosier had previously worked at FinCEN as the agency’s chief of strategic advancement before joining Chainalysis in June 2019. Besides FinCEN, he also held government positions at the Treasury’s Office of Foreign Assets Control, the Department of Justice’s Money Laundering & Asset Recovery Section, and the White House National Security Council.
bit.ly/32oZ7XC

Japanese Asset Manager SBI Adds to Stake of Crypto Security Firm
Eric Lam – Bloomberg
Japanese financial conglomerate SBI Holdings Inc. has led a group of investors participating in a Series B $16.75 million funding round for CoolBitX, a Taiwanese blockchain security company offering services to help crypto exchanges comply with more stringent international standards for collection of user information. With the latest funding round, CoolBitX is now valued at $91 million, Chief Executive Officer Michael Ou said in an interview.
/bloom.bg/3a66Fku

Boerse Stuttgart Lists 21Shares’ Inverse Bitcoin ETP
Arnab Shome – Finance Magnates
Boerse Stuttgart, Germany’s second-largest stock exchange, announced on Tuesday the listing of 21Shares-developed exchange-traded product (ETP) that tracks the inverse value of Bitcoin and can be traded against euro. This is the second stock exchange this product has been listed as, last month, Swiss stock exchange SIX already listed the inverse Bitcoin ETP. The inverse ETP allows traders to short on the prices of the underlying asset, meaning they can earn profits as the price of Bitcoin goes down. Moreover, the inverse ETP is reset at the end of each day, and the performance is not rolled over to the next day which makes it ideal to capture short term price movements of Bitcoin.
bit.ly/38ZlBku

Singapore Court Rejects Quoine’s Appeal over Crypto Dispute
Arnab Shome – Finance Magnates
Singapore’s Court of Appeals has ruled against the crypto exchange Quoine in a legal dispute against market maker B2C2 for wrongfully reversing seven Bitcoin trades. Reported by The Straits Times, the ruling on Monday was made on an appeal by the exchange on a court’s decision against it last March. B2C2 first moved to court in mid-2017 against the reversal of seven trades by Quoine, which happened to be the first crypto-related legal dispute in Singapore.
bit.ly/2vgrHOD

Crypto market maker B2C2 wins case against Quoine over multimillion-dollar bitcoin trade reversal
Yogita Khatri – The Block
Crypto market maker B2C2, which sued crypto exchange operator Quoine in 2017 over bitcoin trades worth millions that were reversed, has just won the case. In a landmark judgment, Singapore’s apex court, the Court of Appeal, has ruled in favor of B2C2, The Straits Times reported Monday. Per the ruling, Quoine, the operator of Japanese crypto exchange Liquid, is required to pay damages to B2C2 for wrongfully reversing seven trades on its platform.
bit.ly/37XtuFF

Catlin Long Pushes to Form Crypto-Native Bank in the US
Arnab Shome – Finance Magnates
Caitlin Long, a former Wall Street executive and blockchain legislation advocate, is taking steps to set up the first crypto-focused bank in the United States. Announced by Long on Twitter, the bank will be named Avanti, meaning “forward” in Italian. She is now preparing to apply for a special purpose depository institution (SPDI) charter with Wyoming’s division of banking.
bit.ly/2vhyKGR

Launch window for decentralized storage network Filecoin pushed back amid more testnet work, coronavirus concerns
Yilun Cheng – The Block
Decentralized storage network Filecoin’s expected mainnet launch window has been moved back amid continuing software work and a delay in its testnet schedule. Developed by Protocol Labs, Filecoin is built on top of the peer-to-peer data storage network InterPlanetary File System (IPFS) and lets users buy and sell unused storage on an open market.
bit.ly/32s5WYg

Crypto-friendly fintech firm Revolut raises $500M at a $5.5B valuation
Yogita Khatri – The Block
Crypto-friendly investing app provider Revolut has raised $500 million in a Series D round that values it at $5.5 billion.
bit.ly/38XTguZ

Warren Buffett says he will ‘never’ own any cryptocurrency
Yogita Khatri – The Block
Berkshire Hathaway chairman and billionaire investor Warren Buffett has reiterated his aversion to cryptocurrencies.
bit.ly/2T1baYh

Politics

Market plunge over coronavirus fears underscores political risk to Trump; Trump says coronavirus is ‘very well under control’ in U.S.
Toluse Olorunnipa and Robert Costa – Washington Post
As President Trump spent Monday sightseeing in India, the U.S. stock market plunged amid growing concerns about a deadly virus spreading quickly across continents — a split screen that brought into stark relief how the coronavirus is testing the White House and undercutting Trump’s central reelection message.
/wapo.st/2SV5hvo

Warren Buffett says ‘I’m a Democrat,’ and would have ‘no trouble’ voting for Bloomberg
Jonathan Stempel – Reuters
Warren Buffett, the chairman of Berkshire Hathaway Inc and one of the world’s most admired investors, said on Monday he is a Democrat, and would have “no trouble” voting for fellow billionaire Michael Bloomberg for U.S. president.
/yhoo.it/390vq1o

Trump Allies’ Battle Over Senate Seat Prompts Republican Jitters
Billy House – Bloomberg
President Donald Trump so far hasn’t been able to head off a drawn-out Republican brawl for a U.S. Senate seat in Georgia that pits two candidates he’s praised against each other and triggered jitters within the party about potentially losing the seat in November.
/yhoo.it/32xvQu0

Regulation

Former investment analyst pleads guilty to insider trading in securities of Big Un Limited
ASIC
Mr Michael Ming Jinn Ho, 32, of Lilyfield, New South Wales, today appeared in the Downing Centre Local Court and has pleaded guilty to insider trading and communicating inside information.
bit.ly/2SVtDp0

SEC Rethinks Approach to Conflicts Among Bond-Rating Firms; Agency is seeking industry input on how to combat rating inflation as 2010 fix falters
Cezary Podkul – WSJ
The Securities and Exchange Commission’s top official overseeing credit-rating firms said Monday the agency is rethinking its post-crisis effort to improve the quality of bond ratings, a tacit acknowledgment that the decade-old program has been a failure.
/on.wsj.com/2wDMr3d

SEC Probes Owner of Chicago Apartments After Bond Default
Martin Z Braun – Bloomberg
Probe of $170 million of bond deals disclosed in bankruptcy; Better Housing Foundation issued bonds through Illinois agency
The U.S. Securities and Exchange Commission is investigating a non-profit that defaulted on $170 million of municipal bonds issued to finance the acquisition of about 1,800 low-income apartments in Chicago and its suburbs.
/bloom.bg/3aeWgDx

FINRA Systems Availability
FINRA
Member firms may experience difficulty logging in to FINRA systems, including Firm Gateway and CRD.
Operations teams are aware of the issue and are working quickly to restore service.
bit.ly/37V8rn5

FINRA Termination of CTCI Protocol for Reporting Trades to TRACE and ORF
FINRA
This is a reminder that beginning Monday, March 16, 2020, FINRA will no longer support the reporting of transactions to its TRACE and OTC Reporting Facility (ORF) products via the CTCI protocol.
bit.ly/37XspO7

SEC Updates List of Firms Using Inaccurate Information to Solicit Investors; Enhanced Website Improves Main Street Investor Experience
SEC
The Securities and Exchange Commission today announced that it updated its Public Alert: Unregistered Soliciting Entities (PAUSE) list by adding 25 soliciting entities and four fictitious regulators. Additionally, the SEC is announcing enhancements to the PAUSE website, where the SEC provides the list of entities that falsely claim to be registered, licensed, and/or located in the United States, as well as entities that impersonate genuine U.S. registered securities firms and fictitious regulators, governmental agencies, or international organizations. This will allow Main Street investors to better inform themselves and avoid being victims of fraud.
bit.ly/2SYrAk3

CFTC 2019 Enforcement Report — Lessons for Private Fund Managers
Schulte Roth & Zabel LLP
The Commodity Futures Trading Commission’s Enforcement Division released its second annual report on Nov 25, 2019, disclosing higher penalties and more parallel criminal cases. The number of actions brought in 2019 (69) was slightly lower than in 2018 (83), but it is noteworthy that a supermajority of this enforcement activity took place following Chairman Heath Tarbert’s assumption of office two-thirds of the way through the 2019 fiscal year.
bit.ly/38XSWwh

FCA sets trading venues March deadline to meet Mifid II data rules; Intervention underlines the ongoing struggle across the EU to enforce the rulebook’s vast data requirements
Samuel Agini – Financial News
The City watchdog has given London’s trading venues a hard deadline to make information on stock trades free to the public, as regulators continue to battle over the cost and accessibility of key market data.
bit.ly/2HZYpGJ

US swap dealers would report uncleared margin under plan to give CFTC a window into systemic risk
Neil Roland. – Mlexmarketinsight.com
Derivatives dealers would have to report the margin posted for uncleared transactions under a US Commodity Futures Trading Commission proposal that aims to improve identification of financial-stability threats.
bit.ly/39ZnIER

CFTC to Hold Open Commission Meeting in Kansas City on March 31; First CFTC Commission Meeting Held Outside of Washington, D.C. in Nearly 25 Years
CFTC
Commodity Futures Trading Commission Chairman Heath P. Tarbert today officially announced the CFTC will hold an open commission meeting in Kansas City, Mo. on Tuesday, March 31, 2020. The meeting—which is the first to take place outside of Washington, D.C. since 1997—will be held at the Federal Reserve Bank of Kansas City at 2:00 p.m. (CDT).
bit.ly/2HShqLy

SEC Data Proposal: It’s a Start
Terry Flanagan – MarketsMedia
The U.S. Securities and Exchange Commission hit a straight shot down the fairway. The regulator’s Feb. 14 proposal to modernize the data infrastructure that underpins institutional trading has been generally well-received by market participants, who note among other things that the plan would bring much-needed improvements to the Securities Information Processor, the industry data utility.
bit.ly/3ceXnVw

Investing and Trading

Investors Retreat From Oil Firms in Sign of Rising Skepticism; Major oil companies, pressed to cut carbon emissions, are shunned in markets as they mull greener future
Sarah McFarlane – WSJ
Major oil companies are working hard to articulate a vision for their future, but the energy sector’s poor performance shows that many investors aren’t buying it.
/on.wsj.com/2PpMZAt

This Stock Has Returned 4,100% Since the Housing Crash; Owners of mobile-home parks have trounced the broader market thanks to soaring house prices, nimbyism and tenants that can’t move out
Ryan Dezember – WSJ
One of the best-performing investments since last decade’s housing crash: trailer parks.From the March 2009 stock-market bottom, shares of big mobile-home park owners Sun Communities Inc. SUI -1.16% and Equity LifeStyle Properties Inc. ELS -0.70% have returned a tech-like 4,141% and 1,205%, respectively, counting price changes and dividend payments. The S&P 500’s return has been 520%.
/on.wsj.com/2Pr9GUW

Winemakers tackle climate change and labour shortages with tech; Digital apps, robots and GPS-fitted sniffer dogs are part of the new smart vineyard
Emiko Terazono – FT
When Oli Madgett moved from the UK to Australia in 2014, little did he predict that the digital skills he had used in his old job, developing interactive voting systems for TV programmes such as The X Factor, would come in handy in his next venture: winemaking.
/on.ft.com/3a70hd8

World Bank’s pandemic bonds sink as coronavirus spreads; Investors dump debt designed to pay out when developing nations face serious outbreaks
Anna Gross – FT
Investors are betting that a special pandemic bond issued by the World Bank will pay out relief funds to countries affected by the coronavirus, as the death toll from the outbreak continues to mount.
/on.ft.com/2ThGz7B

Rout Lops $139 Billion From World’s Top Fortunes, Led by Arnault
Sophie Alexander – Bloomberg
The world’s 500 richest people lost a combined $139 billion Monday as markets buckled amid fears that the coronavirus will hammer the global economy. It’s the biggest wealth drop for the group since the Bloomberg Billionaires Index began tracking that figure in October 2016. The S&P 500 and Dow Jones Industrial Average each dropped more than 3% on the day, the most in more than two years, as authorities struggled to contain the virus.
/bloom.bg/2TkqWfM

Companies Need to Double Low-Carbon Spending to Reach EU Goal
Alastair Marsh – Bloomberg
Companies in the European Union need to increase their expenditures and their ambitions if they’re to reach the bloc’s target of net-zero emissions by 2050.
/bloom.bg/3a52gi0

BP’s Bold Climate Plan Doesn’t Add Up to Net Zero
Akshat Rathi – Bloomberg
After months of planning, BP’s new CEO Bernard Looney made his big green pitch: Europe’s second-largest oil company will cut its emissions to net zero by 2050, he said earlier this month. Many thought that made BP the world’s first supermajor to take responsibility for all its emissions.
/bloom.bg/2VrVWx3

ETFs’ Quick Asset-Gathering Pace Nears $100B YTD
Cinthia Murphy, Managing Editor, ETF.com
Markets may be roiled, but ETF investors continue to steadily add fresh dollars into U.S.-listed ETFs. So far this year, the ETF asset-gathering pace is about 10 times that of last year’s, with year-to-date net inflows now nearing $100 billion—up from only about $10 billion in net creations by this time last year.
bit.ly/2utR67j

Institutions

Liontrust expands partnership with BNY Mellon to automate investment operations; Latest agreement follows Liontrust’s move to outsource its fund services operations to BNY Mellon in 2018.
Joe Parsons – The Trade
UK investment firm Liontrust Asset Management has implemented a new investment operations platform from BNY Mellon, making it the first end-to-end client to use the service.
bit.ly/37U6TtP

Asset managers seek refuge in each other’s arms; Increasing scale in a tighter sector is tempting, but few past deals stand out as clear success stories
Robin Wigglesworth – FT
Like two drunks supporting each other as they stumble home, Franklin Templeton and Legg Mason last week decided to lock arms. Unfortunately, the history of asset management combination is littered with more accidents than a hospital emergency ward on a Saturday night.
/on.ft.com/3a4Ozj3

JPMorgan Sees a Mortgage Revival After Years of Quiet Losses
Michelle F Davis – Bloomberg
Originations lost $850 million in 2018, broke even last year; Home-loan business has struggled under regulation, competition
A year ago, JPMorgan Chase & Co. had just set a U.S. banking profit record, but the leaders of one of its most quintessential businesses were far from riding high.
/bloom.bg/2ThZT4s

Scotiabank Beats Estimates in Revival of Capital-Markets Unit
Doug Alexander – Bloomberg
Bank of Nova Scotia’s capital-markets division is showing signs of a turnaround. The unit had long been the weakest link for the Toronto-based lender, with growth in quarterly profit only once in the past two years. The division appears to have turned a corner in the fiscal first quarter, reporting an 11% increase in income, helping the bank post results that beat analysts’ estimates.
/bloom.bg/2PpOU7U

JPMorgan to Halt Lending to Some Coal Plants and Arctic Drillers
Michelle F Davis – Bloomberg
JPMorgan Chase & Co., the biggest U.S. bank, tightened its policy on fossil-fuel financing as the banking industry responds to growing pressure from activists.
/bloom.bg/2Pm19Cu

Two Swiss Too-Big-to-Fail Banks Fail Emergency Planning Test
Hugo Miller and Catherine Bosley – Bloomberg
Raiffeisen and PostFinance don’t make the cut: Finma; Credit Suisse and UBS have ‘effective’ plans: regulator
Two of the five Swiss banks deemed by the country to pose a risk to the financial system in a major crisis don’t have an effective emergency plan in place, the country’s banking regulator found.
/bloom.bg/3a4DG0K

This Hedge Fund Made 43% Returns Last Year—the Hard Way
Matthias Wabl – Bloomberg
Firm’s European equity fund posted return of 43% last year; Ex-Goldman banker Umek targets institutional, retail clients
Former Goldman Sachs Group Inc. investment banker Klaus Umek has a simple strategy for his hedge fund: seek out complex investments.
/bloom.bg/2w0TiDE

BNP Paribas and JetBlue Partner to Close First Sustainability-Linked RCF for the Airline Industry
GlobeNewswire
BNP Paribas, a premier global bank, today announced that it has closed a sustainability-linked loan (“SLL”) with JetBlue Airways (“JetBlue” or the “Company”), via an amendment to its existing Senior Secured Revolving Credit Facility (“RCF” or the “Facility”).
/yhoo.it/2Ta2oGc

Regions

Death of Frontier oil sands project highlights Canada dilemma; Teck Resources scrapped development in Alberta as government wavered over climate impact
Derek Brower – FT
The cancellation of a C$20bn (US$15bn) oil sands project has highlighted Canada’s awkward attempts to combat climate change while digging up dirty fuels. It has also helped prime minister Justin Trudeau dodge a political problem.
/on.ft.com/3c08jpI

China Cities Curb Travel From Other Countries in Virus Turnabout
Bloomberg News
Outbreaks prompt restrictions on Japan, South Korea arrivals; Governments seek to keep virus from coming back from overseas
Some Chinese cities have begun to restrict arrivals from overseas, as growing coronavirus outbreaks elsewhere prompt the country to enact curbs similar to those facing its own travelers.
/bloom.bg/2PnIXbL

Trudeau’s Carbon Tax Ruled Unconstitutional by Alberta Court
By Kevin Orland – Bloomberg
Canada’s federal carbon tax is unconstitutional, an Alberta court ruled, handing a legal victory to opponents of the plan.
/bloom.bg/390xfvg

Brexit

The UK should diverge on domestic financial services; It is time to revisit inherited EU rules to help the sector adapt to new technology
Norman Blackwell – FT
Negotiating the future relationship between the EU and the UK for financial services is often portrayed as an adversarial contest — not just between Britain and the bloc but also between those in the UK who favour close regulatory alignment and those who prefer to diverge.
/on.ft.com/3a7WKLz

Post-Brexit trade talks: what are the next steps?
Lisa O’Carroll – The Guardian
Brexit negotiations to secure the future relationship between the UK and the EU start next Monday. What’s next? European affairs and foreign affairs ministers meet in Brussels to rubber-stamp the negotiating goals approved in Brussels on Monday. At the same time Boris Johnson is to convene a meeting on Tuesday of the UK’s exit strategy team (XS) to discuss the EU paper and finalise the UK’s own mandate, which will be published on Thursday.
bit.ly/2upUW14

Brexit: EU ministers agree UK trade talks mandate
BBC
Ministers from the EU have approved their mandate for post-Brexit trade talks with the UK. The document – approved by the EU General Affairs Council on Tuesday – will be the basis for the negotiations, to be carried out by Michel Barnier. It says that EU standards should serve as “a reference point” in any future trade deal. Meanwhile, UK ministers have agreed the government’s mandate for the negotiations, which begin on Monday.
/bbc.in/2SX4nP1

Brexit: ‘No border between NI and GB’ – NI secretary
John Campbell – BBC
The Brexit deal will not mean a new border between NI and the rest of the UK, the NI secretary has insisted. Brandon Lewis said: “We always said there will not be a border down the Irish Sea, there’ll be unfettered access for business.” Earlier Downing Street said the deal would mean “limited changes” to trade between GB and NI. The Irish government and the EU have urged the UK to honour all the terms of the Brexit deal.
/bbc.in/38YHyQJ

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