| July 14, 2016 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | MarketsWiki Education Hits Interns With Risks, Technology, Volunteerism, Office Space and Bricks
Sarah Rudolph and Spencer Doar - JLN
Tuesday marked the first session of our MarketsWiki Education World of Opportunity series in Chicago. The event drew a standing room only crowd of 160 at the CME Group auditorium. The event kicked off with Rob D'Arco, CEO of Rival Systems, who hammered home the intrinsic advantage the interns have over current industry professionals, as every intern in the room is considered a digital native. Taking advantage of that intrinsic knowledge and then pairing it with a deep understanding of market structure is essential for this coming generation.
goo.gl/5eHAxv
***DA: Today is our second of three Chicago sessions. We will be in the auditorium of Global Premier sponsor CME Group. We wrap it up tomorrow with a session at Trading Technologies, followed by a networking reception at the firm's Tech Tap. All Chicago events have sold out. We still have room next week in New York, where we will hold two sessions at the Nasdaq MarketSite in Times Square. This will be a really cool event so please send this link to any young person, intern, and/or HR person who handles interns. It will be well worth their while. http://goo.gl/KDKCWz
| | | | | | Lead Stories | | | How a Schwab cast-off became a niche custodian for RIAs who like to trade options
Lisa Shidler - RIABiz
MoneyBlock is the new kid on the block and only began actively working with RIAs four years ago. The Chicago-based online broker-dealer for independent reps and advisors emerged in 2012 when the Charles Schwab Corp. announced it was casting off its 400-advisor-strong BrokersXpress division. See: How Schwab may yet reap value from brokersXpress accounts, advisors, staff and assets.
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Options are attractive as La Niña looms
Pericles Anetos - Business Day Live
Agriculture futures on the JSE are likely to reach record heights in the year ahead as the El Niño global weather pattern inverts to La Niña, which is likely to be the opposite of the long, dry, hot spell that tormented the southern hemisphere in the past year.
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****SD: JSE just successfully finished its first T+3 settlement cycle  previously was T+5.
Legislation to impose financial transactions tax introduced
Mark Schoeff Jr. - Investment News
Rep. Peter DeFazio, D-Ore., introduced legislation Wednesday that would impose a tax on stocks, bonds and derivatives trading in an effort to elevate the issue in this fall's election.
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Cover Story: The Future Trader
Phil Albinus - Traders News
When you walk into the offices of TradeCo Global, a window looks out onto a sandy beach under a bright blue sky. Sadly, it's a picture of a beach generated by a color printer. The office of the quant trading firm that four traders call home feels like a breakout room or a conference room where no one will be in danger of daydreaming anytime soon. Why the bare-bones office with desks loaded with multiple screens that display the latest market info? It's simple: TradeCo is the prop shop for futures trading solutions provider Trading Technologies. Founded in roughly 2000, the prop shop was once a loose assortment of investors with seed money - like an "arcade," as one employee recalled - that operated under different names but was always referred to internally as TradeCo. In 2014, TT renewed and rededicated its interest in the prop shop and put options and futures veteran Ari Pine at the helm.
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****SD: Well, at least the image wasn't generated by a black and white printer.
VelocityShares to Launch Additional Volatility-related Exchange Traded Notes
Press Release
Janus Capital Group, Inc., today announced the launch of three Volatility-Strategy exchange traded notes ("ETNs") under its VelocityShares brand - The VelocityShares VIX Variable Long/Short ETN (NYSE:LSVX), The VelocityShares VIX Tail Risk ETN (NYSE:BSWN) and The VelocityShares VIX Short Volatility Hedged ETN (NYSE:XIVH).
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Wizards Of Today's Markets: Blair Hull, Part 2
Rick Lane - Trading Technologies
For Part 1 of this interview between our CEO, Rick Lane, and Blair Hull, Founder of Hull Tactical Asset Allocation, see Wizards of Today's Markets: Blair Hull, Part 1.
jlne.ws/29z1pri
FED Beige Book: We're generally pleased with the economy
Akin Oyedele - Business insider
The Federal Reserve is generally positive about the US economy and says it continues to trudge along, according to its latest Beige Book released on Wednesday.
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****SD: Trudge is a good word  heading onwards but it's hard and no one enjoys it. I think a sure sign of a coming hike would be the phrase "skipping along" found in the FOMC minutes.
Bank of England Signals August Stimulus as Rate Kept at 0.5%
Jill Ward and Scott Hamilton - Bloomberg
The Bank of England left its key interest rate at a record low and signaled it's readying stimulus for August as the economy reels from Britain's decision to quit the European Union.
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****SD: British events caught the trading world flat-footed, again. WSJ - Five Takeaways From the BOE's Policy Meeting
VIX hovers near lows despite Brexit
Ashley Coutinho - Business Standard News
Despite Britain's vote to exit from the European Union last month, the volatility index as measured by India VIX, has seen a steady decline. The gauge, which measures investors' perception about the risk of sharp swings in the market, has been hovering around the 15 levels for almost a month even as the Nifty has surged higher.
jlne.ws/2acKqMn
| | | | | | Exchanges | | | Trading on Singapore Exchange grinds to a halt
Joe McGrath - The Trade
The Monetary Authority of Singapore has confirmed it is monitoring the Singapore Exchange (SGX) after all trading came to a halt on Thursday because of technical issues.
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****SD: Fourth outage in two years.
Singapore Exchange Malfunction Ruins CEO's First Anniversary
Andrea Tan, Kana Nishizawa and Nikita Mathur - Bloomberg
Executions halted at 11:38 a.m. and didn't restart for day
Shares including DBS Group, Singapore Airlines stopped trading
It's safe to say this isn't how Loh Boon Chye pictured his one-year anniversary as chief executive officer of Singapore Exchange Ltd.
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****SD: One year to the day. Ouch.
Theresa May urged to block German takeover of London Stock Exchange
James Burton - This is Money
Theresa May has been urged to block a German takeover of the London Stock Exchange as one of her first acts as Prime Minister. The power-grab by Frankfurt-based Deutsche Boerse will see the 215-year-old British institution come under foreign control.
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****SD: Are they really "secret talks" if you're writing about them and the world knows?
Deutsche Boerse crosses 50 percent approval level for LSE merger
Arno Schuetze - Reuters
Deutsche Boerse has won the backing of the majority of its shareholders for its planned merger with the London Stock Exchange Group (LSE.L) but opposition to the deal increased in other European capitals.
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****JB: Recall a few days ago Deutsche Boerse lowered the LSE merger approval hurdle from 75% to 60%.
Deutsche Boerse passes milestone in LSE merger
Luke Jeffs - Futures & Options World
German exchange cut the tender threshold and extended the deadline on Monday
Deutsche Boerse has passed a milestone in its planned merger with the London Stock Exchange Group by saying it will issue a new class of shares after the transaction, something the exchange is required to do once it secures the approval of half its shareholders. The Frankfurt-based exchange said in a statement late on Wednesday it will replace its current shares with a new tendered share class on Monday July 18 because shareholders with more than 50% of shares have now backed the deal.
jlne.ws/2acSJrs
New SPX Monday-Expiring Weeklys Options To Launch Next Month
VIX Views
CBOE recently announced that it plans to list S&P 500 Index (SPX) Monday-expiring Weeklys options, beginning August 15, pending regulatory approval. With the expected introduction of SPX "Monday Weeklys," CBOE will offer SPX options with Monday, Wednesday and Friday expirations.
jlne.ws/2ad16TY
****SD: In case you missed the news.
| | | | | | Regulation & Enforcement | | | OCC Says Pre-Trade Risk Controls Add Resiliency to Markets
Press Release - OCC
Saying its proposed rule change to the U.S. Securities and Exchange Commission (SEC) on pre-trade risk controls served as a catalyst to spur significant change in the listed equity options market, OCC, the world's largest equity derivatives clearing organization, today said it is withdrawing the proposal.
jlne.ws/2acIBPj
FIA responds to the CFTC supplemental notice of proposed rulemaking regarding exemptions from speculative position limits
FIA
FIA filed a comment letter with the Commodity Futures Trading Commission (CFTC) today in response to the Commission's supplemental notice of proposed rulemaking regarding exemptions from speculative position limits.
jlne.ws/2acWz3G
U.S. broker-dealers may soon have to post more info on routing orders
Lisa Lambert - Reuters
U.S. broker-dealers would be required to post information for the first time on how they route large investors' trading orders under a rule proposed by the Securities and Exchange Commission on Wednesday.
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A Post-Brexit Opportunity Europe Shouldn't Miss
Nicolas Veron - Bloomberg
If there is a silver lining for the world of finance from the Brexit vote it is this: that the departure of Britain offers the European Union a chance to complete much-needed reforms to the Continent's lagging capital markets. If it can do that, the EU might just be able to demonstrate its ability to enhance growth across its member states.
jlne.ws/2acIFid
ESMA Updates Its MAR Q&AS
Press Release
The European Securities and Markets Authority (ESMA) has updated today its Questions & Answers (Q&As) regarding the implementation of the Market Abuse Regulation (MAR).
jlne.ws/2acVKYN
| | | | | | Technology | | | Low-Latency Renaissance? High-Speed Data Tools Aren't Just for High-Frequency Traders
Patrick Flannery - TABB Forum
Many technologically advanced firms compete on their understanding of market microstructure, and the tools are in place for firms of all sizes to query live and historical data as market events are unfolding. To better compete with high-frequency trading firms, many buy-side firms are adopting some of the same sophisticated technology that the HFT firms use.
jlne.ws/29TeXmd
OFR Deputy Director Crowley Discusses the Benefits for Companies and Regulators of Quality Microdata and Financial Data Standards
Richard Berner - Office of Financial Research
Well-designed "microdata" can help companies and regulators monitor risks. OFR Deputy Director Con Crowley presented a paper on the topic this week at a European Central Bank conference.
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6 Things Your Company Needs to Be Big Data Ready
Rajeev Warrier - Finance Magnates
It would take significant effort to still be unaware of the big data phenomenon. Almost every commercial and industrial sector has been affected by dramatic increases in the volume of data that is now available. Across the board, businesses are eyeing up both the challenges of processing all this information and the opportunities that it opens up with varying degrees of confidence.
jlne.ws/2acYHZp
| | | | | | Strategy | | | This bank thinks the S&P 500 stock index could fall 15% this summer
CNBC
Bank of America Merrill Lynch equity analysts are among the most bearish on Wall Street, and they say the S&P 500 could retest its February lows this summer  about 15 percent below current levels.
jlne.ws/2acQQeq
What Trading Crypto has Taught Me about Technical and Fundamental Analysis
Evros Stylianou - Finance Magnates
As a writer you tend to gain a unique perspective on the industries that you work in. You also learn a lot about things that never used to concern you. I can't tell you how many times I've had to write that article, the one that explains the differences between technical and fundamental analysis, in 500 words or less without actually giving you the slightest idea as to how to use either of them.
jlne.ws/2acZbP8
Deutsche Bank Brexit Risk Fading, More SWAPs
Mark Melin - ValueWalk
Deutsche Bank looks around the world to ascertain risk in the middle of a potential $150 billion European bank bailout featuring the German bank, and what does it recommend? More SWAPs trades, of course.
jlne.ws/2acKfk2
****SD: Best subhead: "A leading bank with concerning derivatives exposure recommends derivatives"
Record High S&P 500 And Low VIX: Time To Think About Hedging
Gaudi Schneider - Seeking Alpha
This week's record high in the S&P 500, combined with the VIX closing at 13.04, presents a good opportunity to hedge against a reversal of direction. Especially considering that the low volatility makes hedging 'cheap' when compared historically.
jlne.ws/2acJhEg
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