| July 01, 2016 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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New & Improved
JLN Staff
We've made some changes to John Lothian News. As of today, we will be rolling our sector-focused newsletters - JLN Financials, JLN Environmental/Energy and JLN Managed Futures - into this, our flagship John Lothian Newsletter (JLN). In addition, we have reworked some of the news categories in JLN to accommodate these topics and enhance our comprehensive look at the markets.
So what happens to these publications? They will be merged into JLN to provide you with the most comprehensive coverage in the financial industry. JLN Financials, JLN Environmental/Energy and JLN Managed Futures will no longer be published daily, although we may put out special reports on those topics when the news or trends dictate it. JLN Options will continue to be published without changes.
We thank you for your readership of those publications. They have been an important part of the growth and evolution of John Lothian & Co. over the years. We will switch over readers to the John Lothian Newsletter, which is a voluntary pay publication.
You will also notice that the newsletter features an elongated column to the right, which will be used for ads, as well as content. If you are interested in more information about advertising in the newsletter, please contact John Lothian at johnlothian@johnlothian.com, or Doug Ashburn at dougashburn@johnlothian.com
We hope you enjoy the new look of the John Lothian Newsletter.
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Let Me Count the Ways: Nasdaq Looks at All the Possibilities for Options, and Beyond, in ISE Acquisition
Jim Kharouf, JLN
With double the number of US equity options exchanges, Nasdaq has some work to do in the coming months. Nasdaq closed the deal today for $1.1 billion with Deutsche Boerse, giving the exchange three options markets: International Securities Exchange, ISE Gemini and ISE Mercury, to go along with Nasdaq Options Markets (NOM), Nasdaq OMX BX and Nasdaq OMX PHLX. Tom Wittman, executive vice president of Nasdaq and global head of equities at Nasdaq, told John Lothian News that the plan is to integrate and migrate the three exchanges onto the Nasdaq platform. That essentially means the technology team at Nasdaq will have to rebuild the ISE exchanges to provide the same functionality and rules that exist today.
jlne.ws/297EMh4
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People on the Move
By JLN Staff
Kevin L. Murphy, managing director at Citi, announced that he is leaving the firm after 33 years. He said he is now working on a major motion picture and finishing his first novel. This should make the life of Kevin T. Murphy of Barclays less confusing.
Molly McGregor, head of communications, said goodbye to ISE colleagues as the sale to Nasdaq closed yesterday and she moved on to a summer leave and a new beginning next fall. We will miss Molly, hopefully only for the summer. She is a talented, class act professional who would be a credit to any organization in our industry.
And Will Acworth of the FIA updated his LinkedIn profile with the title senior vice president, publications, data and research at FIA. This looks to be part of the post-Mary Ann Burns reshuffling. There is still an active posting for the other half of the Burns equation, the global industry operations & technology job, for which today is the last day to apply.
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U.S. Yields Set Historic Lows in El-Erian's Era of Slower Growth
Wes Goodman, Marianna Duarte De Aragao - Bloomberg
Yields have been plunging to all-time lows around the world; Low rates won't last forever, Fed's Bullard warns investors
Yields on 10- and 30-year U.S. Treasuries fell to records as bonds surged around the world -- a move Mohamed El-Erian says points to slower economic growth ahead.
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***** I knew I should not have locked in my new mortgage a month ago.
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LME in the community
LME
The LME aims to supports initiatives that create effective and lasting benefits in society. We hope to achieve this through our corporate philanthropy, by establishing community partnerships and mobilising our employees to participate in volunteer work. The LME's chosen charity partner is Little Havens Hospice. When a family has been told that there's no cure for their child's illness, Little Havens Hospice can help. They are there to make the journey as comfortable as possible, controlling pain and medication, offering respite and caring for children at the end of their lives. Their specialist care is free, for as long as is needed, within the family home and at their hospice.
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***** Good people doing good things.
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Brexit hangover
Steve Grob - Fidessa
I was out fairly late last night at an industry function and almost forgot that I had an internal Brexit briefing here at Fidessa Towers this morning. As the memories of the fine Barolos I'd been served rescinded, I engaged with my dear friend and colleague Dr Voigt on what the whole Brexit thing might mean for our industry. Christian made some good points as usual, including that MiFID et al are actually (or will be) enshrined in UK law and so until a Brexit actually happens our industry will be bound to operate under all its rules. Post-Brexit it's a different story, and at the heart of the issue is the passporting of financial services in Europe. If this pawn was sacrificed in the bigger political negotiations, then the UK might be tempted to start unpicking some of the 'sillier' rules (e.g. the dark pool caps) in order to create a more benign, and therefore more attractive, regulatory environment. I am not sure how Brussels would react to an offshore trading hub that operated this way - would they then start to unwind their own rules and would we see a slow but steady reversal of the regulatory straightjacket our industry operates within?
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***** Brits use the word "hangover" a lot. There could be a trend here.
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Commodity Carnival featured at 150 fairs
Agriview
The Commodity Carnival is appearing at 150 state and county fairs across nine states this year. The interactive program has been designed to teach fair-goers the fundamentals of risk management in agriculture, by way of bringing a hog to market. The game also will continue to be accessible via a mobile companion app, Risk Ranch. The futures exchange organization CME Group and the National 4-H Council are partnering for a fourth consecutive year to offer Commodity Carnival.
goo.gl/xGLtTX
***** I am still waiting for the CME Group's elephant ear swag.
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Thursday's Top Three
Yesterday's top read story was our column, The Battle Rages On: Industry In The Trenches For Talent about which firms are most attractive to university students, and the survey from Universum Global called World's Most Attractive Employers 2016. Second place went to the Bloomberg piece, which is looking at exchanges in the wake of the 3 Red trading case, U.S. Questions Whether Futures Markets Can Police Themselves. And third went to a New York Post story on missing data in emails, Bloomberg admits data has been missing from emails for years. A break from Brexit for readers.
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| Lead Stories | European Cities Battle for London's Finance Crown After Brexit Vote; Paris, Frankfurt and Dublin are looking to lure financial firms away from the British capital
WSJ
European cities are closing in on London's wounded financial hub.
Following the U.K.'s vote to quit the European Union, London's position as the continent's premier financial center is under threat, and officials in Paris, Frankfurt and Dublin aren't wasting time in trying to hasten its downturn.
goo.gl/2bEkfL
Bitcoin Still Not Ready for Prime Time, Citi Says; Cryptocurrency not past 'proof-of-concept' stage, research team concludes
By PAUL VIGNA - NY Times
Bitcoin is an interesting experiment that is no threat to the banking system. That's the conclusion reached by analysts at Citi Research in the latest of their series of reports on the technology behind the digital currency and its potential.
goo.gl/YpGDZo
NYSE Explores Next Move to Compete With Speed Bumps; Thomas Farley again denounces IEX strategy, but IEX says incumbent exchanges pioneered practices
By DAVE MICHAELS - WSJ
The New York Stock Exchange and its sister markets are exploring the introduction of speed bumps to slow some orders in a bid to compete with IEX Group Inc., the upstart that won regulatory approval in mid-June for its plan to slow the speed of trading, according to the Big Board's president.
goo.gl/3tGsjk
Bank of NY Mellon settles $312 million claim tied to Sentinel fraud
BY JONATHAN STEMPEL - Reuters
Bank of New York Mellon Corp has agreed to end eight years of litigation in which it sought unsuccessfully to recoup $312 million it lent a Chicago-area money manager that collapsed in 2007, and whose former chief is now in prison for fraud.
goo.gl/6YXiZd
Majority of LSE Investors Likely to Approve Deutsche Börse Merger; Shareholders controlling well over 75% of LSE shares are said to be in favor of deal
By EYK HENNING - WSJ
The vast majority of shareholders in London Stock Exchange Group PLC have indicated they are voting in favor of the roughly $30 billion merger with Deutsche Börse AG, people familiar with the matter said.
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Nasdaq Completes Acquisition of International Securities Exchange
Nasdaq
Nasdaq (Nasdaq:NDAQ) today announced the completion of its acquisition of International Securities Exchange, an operator of three electronic options exchanges, from Deutsche Börse Group.
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Bats Global Markets Successfully Completes Debt Refinancing Transaction
Creates Additional Capital Allocation Flexibility; Records Pretax Charge of $18 million
BATS
Bats Global Markets, Inc. (Bats: BATS), a leading global operator of exchanges and services for financial markets, today announced the refinancing of the company's outstanding $656 million of term loans and $100 million revolving credit facility (collectively, the "Existing Credit Agreement") with $650 million of new seven-year term loans and a new $100 million three-year revolving credit facility. The company will record a pretax charge of $18 million in the second quarter incurred as a result of a loss on the early extinguishment of the amount outstanding under the Existing Credit Agreement.
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Ex-Nasdaq traders bid to launch new stock exchange in Scotland by 2017; Scotland could have its own stock exchange again by 2017, more than 40 years after the Glasgow stock exchange ceased trading
Helen McArdle, - Herald Scotland
PLANS have been unveiled to launch a new independent stock exchange in Scotland, more than 40 years after the country's last trading floor closed down.
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Why we no longer trust the experts
Gillian Tett - FT
'If we rely on crowd-sourced advice to choose healthcare or holidays, it seems strange to expect voters to listen to experts when it comes to politics'
Last week, I decided to take a gaggle of kids for an end-of-school-year lunch in a New York neighbourhood that I did not know well. I duly began looking for a suitable restaurant. A decade ago, I would have done that by turning to a restaurant guide. In the world I grew up in, it was normal to seek advice from the "experts".
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Kiss Your Domestic Bias Goodbye, Central Bankers of the World
Jeanna Smialek - Bloomberg
BOE, ECB, and Mexico deal with fallout after Brexit vote; Fed's Kaplan says U.S. more vulnerable to global instability
In a globalized world, managing domestic economic conditions requires having one eye focused abroad.
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Seven Years Into the U.S. Recovery and It's Finally Starting to Feel Good; Unemployment has fallen and wages are starting to pick up
Jeanna Smialek - Bloomberg
June 2009 was the end of an era: the most painful downturn since the Great Depression of the 1930s drew to a close, and economic healing got underway. The thing is, for many Americans, the past seven years haven't felt like a time of returning prosperity.
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Bats 'highly likely' to set up in eurozone if Brexit terms remain cloudy
By Tim Cave and Nick Kostov - Financial News
The chief executive of Europe's largest stock exchange said it is "highly likely" to establish a eurozone presence unless the terms of the UK's split from the EU come "early and clear".
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| Brexit | | Financials stories regarding the recent decision of the United Kingdom to leave the European Union | Brexit - What now for the cleared derivatives markets?
FIA
This memorandum focuses on the key areas in which a Brexit is likely to impact the cleared derivatives markets. It is based on the assumption that following the referendum vote (which is technically advisory), the United Kingdom (U.K.) Government will press on with the process of negotiating its withdrawal from the European Union (EU) (as opposed to using the outcome of the referendum vote to seek to re-negotiate more preferential terms or, for example, doing nothing). Thus, the scope of this memorandum is limited solely to the U.K.'s options when considering its on-going relationship with the EU as part of a withdrawal from EU membership. It should be regarded as general guidance only and should not be relied upon as definitive advice
/goo.gl/4uvokz
Paris, Frankfurt Already Jockeying for City's Brexit Spoils
John Detrixhe, Birgit Jennen, Helene Fouquet - Bloomberg
Hollande says EU financial market hubs should 'get ready'; Merkel ally says Frankfurt better destination for clearing
The British seat at the European Union summit had been empty for less than 24 hours before leaders from France and Germany were haggling over one of the U.K. economy's crown jewels: the business that facilitates trading in euro-denominated derivatives
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Huge diamond's failure to sell linked to Brexit, says expert
Toronto Star
A diamond the size of a tennis ball discovered by a Vancouver mining company failed to sell Wednesday, and at least one expert is blaming it on Britain's referendum to leave the European Union.
The 1,109-carat Lesedi La Rona diamond drew a high bid of $61 million (U.S.) at the Sotheby's auction in London, falling short of the minimum Lucara Diamond Corp. was willing to accept.
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The EU single market: How it works and the benefits it offers; Brexit vote has thrown up big questions about future trading
by: Emily Cadman and Gemma Tetlow - FT
Britain's vote to leave the EU has thrown the country's trading relationship with Europe into doubt. That in turn opens up big questions about the future of the British economy, with almost half of all exports going to the bloc.
/goo.gl/g2u6o0
FIA webinar: BREXIT - what now for the cleared derivatives markets?
Eurex
The FIA webinar discussed the near-term consequences for the cleared derivatives industry, following the United Kingdom's vote to leave the European Union.
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Brexit and the City: Europe plots a bank heist
Financial Times
On a rainy June morning in Paris, five dozen men and women gathered in a basement in La Défense, the city's financial district. Over bitter coffee and fluffy croissants, the great and the good of French politics, business and finance had gathered to plot a heist. With two weeks to go before the Brexit vote, they wanted to be ready with a sales pitch to lure the international financial groups based in London, should Britain vote to leave the EU. Now, they reasoned, any company with pan-European aspirations would be compelled to move jobs, business lines, even headquarters out of London.
/goo.gl/zkpzXs
EU Finance Cities Pounce on London After Brexit Vote
WSJ City
European cities are closing in on London's wounded financial hub. Following the UK's vote to quit the European Union, London's position as the continent's premier financial centre is under threat, and officials in Paris, Frankfurt and Dublin aren't wasting time in trying to hasten its downturn.
/goo.gl/Rztb8L
Brexit forex trading bonanza boosts banks; Record day on foreign exchange desks tested stamina and resilience
by: Harriet Agnew and Laura Noonan - FT
Bank foreign exchange desks raked in fees from investors bailing out of sterling as they handled up to 10 times normal volumes on the first day of trading after the UK unexpectedly voted to leave the EU.
/goo.gl/IQmPe6
How the City can survive Brexit to thrive; Next couple of years will be ghastly but we'll learn how to get along
Jonathan Guthrie - FT
Gloria Gaynor, the Nostradamus of disco, described how Remain voters in the City should deal with last week's Brexit vote in her 1978 hit I Will Survive: "At first I was afraid, I was petrified. Kept thinking I could never live without the EU by my side. But then I spent so many nights thinking how I'd got it wrong. And I grew strong. And I learned to get along."
/goo.gl/2svSCZ
Brexit stirs eurozone break-up fears for fund managers; Asset managers are concerned that Britain leaving the EU could trigger the end of the euro
by: Madison Marriage - FT
Britain's shock decision to leave the EU has left the country's fund management industry reeling from intense market turmoil, investor outflows and sharp share price falls for listed asset managers.
/goo.gl/sCeh8p
After 'Brexit,' Finding a New London for the Financial World to Call Home
By JAMES B. STEWART - NY Times
The race is on to be the new London. Unless Britain finds a way to undo its decision to leave the European Union, London's days as the pre-eminent global financial capital, ranked even ahead of New York, may be numbered.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Deutsche Boerse Director Says 'Creative' Answer Needed for LSE
Bloomberg
A senior Deutsche Boerse AG official says the company and its takeover target London Stock Exchange Group Plc need to find a "creative" solution to square mounting opposition to the potentially merged firm's London headquarters.
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Connecting the dots: how DTCC manages contagion risks; DTCC CRO Andrew Gray offers a template for managing the risk of interconnectedness
Andrew Gray - Risk.net
Andrew Gray is a managing director and group chief risk officer at DTCC As the Lehman Brothers bankruptcy in 2008 demonstrated, the failure of one highly interconnected entity can spread rapidly across the global financial system and have a devastating impact on financial stability. The level of financial interconnectedness cannot be overstated. Banks and other financial institutions are linked through intermediation chains that span the globe, creating an elaborate web of mutual interdependencies....
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NYSE explores next move to compete with speed bumps
Financial News
The New York Stock Exchange and its sister markets are exploring the introduction of speed bumps to slow some orders in a bid to compete with IEX Group, the upstart that won regulatory approval in mid-June for its plan to slow the speed of trading, according to the Big Board's president. NYSE Group president Thomas Farley said in an interview; "We will talk with customers and are talking to customers to understand what there is demand for. We're not foreclosing any avenues."
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UBS MTF Trading Notice - Rules Of Engagement Update
Mondovisione
UBS MTF would like to announce an update to our FIX implementation.
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BSE, NSE roll out e-book platform in pvt placement of debt
Economic Times
NEW DELHI: Leading stock exchanges BSE and NSE today launched electronic book platforms for issuance of debt securities worth over Rs 500 crore on private placement basis.
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Japan Exchange Group Trading Overview In June 2016 & First Half Of 2016 (January To June)
Mondovisione
Japan Exchange Group released Trading Overview in June 2016 & First Half of 2016 (January to June).
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| Politics | | An overview of politics during an election year as it relates to the financial markets | Slowdown in Merger Deals Attributed to Political Uncertainty
NY Times
Uncertainty is often a deal breaker. It can be largely blamed for a string of declines in acquisitions announced during the first half of the year in almost every sector, location and size compared with the same period in 2015. Many executives were hesitant to pull the trigger.
goo.gl/Lo5HDd
Cameron Seeks to Reassure Business Leaders on Brexit Transition
Stephanie Baker - Bloomberg
In meeting with executives, Cameron talks up opportunities; Lack of clarity on trade, immigration leaves firms in limbo
With the pound falling and politicians squabbling, Prime Minister David Cameron moved to reassure U.K. business leaders that their voices would be heard as the country prepares to leave the European Union.
goo.gl/A5IsBo
Brexit Means Brexit: Johnson's Fall Reduces Room for EU-Turn
John Follain, Joe Mayes - Bloomberg
Gove and May, new front-runners, seen taking a tougher line; Those picking the new leader were overwhelming in 'Leave' camp
Boris Johnson's dramatic withdrawal from the Conservative leadership race he was favored to win may make it likelier the U.K. will leave the European Union.
goo.gl/eYUzUp
U.K. Bankers Come Through Brexit Fallout to Political Vacuum
Richard Partington, Stephen Morris- Bloomberg
Barclays calls off emergency committee as markets calm down; Bank CEOs said to meet with Bank of England on Brexit impact
The U.K.'s largest banks are switching from crisis response to crisis management as they prepare to face repeated aftershocks from last week's Brexit vote.
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| Investing & Trading | | Today's top stories from fixed income, currencies and commodities (FICC) | Stock Traders Barely Escape Viscious First Half; Bond Traders Cruised; A positive first half for stocks bodes well for second half
By PAUL VIGNA - WSJ
U.S. equities markets manged to keep themselves upright in the first half of 2016, despite some major shock waves. And that bodes well for the second half of 2016.
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Mid-Year Update on Volatility Indexes, and Thirty Years of Price History for Benchmark Indexes
CBOE Options Hub
Nine CBOE benchmark indexes that invest in SPX options (with tickers BFLY, BXM, BXMD, CLL, CLLZ, CMBO, CNDR, PPUT, and PUT) have price histories that begin on June 30, 1986. The CBOE benchmark indexes have facilitated increased use of SPX options by mutual funds and pension funds in recent years. Over the past three decades, all nine of the benchmark indexes had less volatility than key stock indexes such as the S&P 500 and MSCI EAFE, and the CBOE PUT and BXMD indexes also had higher returns than the key stock indexes.
jlne.ws/29laPbv
Intraday data does not improve daily VAR, research suggests; Bids to use bigger datasets give no better loss forecasts, says hedge fund
Luke Smolinski - Risk.net
The use of intraday data in daily value-at-risk (VAR) calculations does nothing to improve the accuracy of risk modelling, according to testing of different VAR models by Ralf Wohrle, portfolio manager at Metzler Asset Management, a Frankfurt-based hedge fund. The appetite for intraday data is thought by data providers to have increased among more sophisticated risk managers as computing power and higher-frequency trading have grown, and the need for intraday monitoring has risen with the risk...
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AQR's managed futures strategy up 5.2 pct on Brexit Friday
Reuters
New York-based investment firm AQR Capital Management's Managed Futures Strategy returned 5.2 percent on June 24 after Britain voted to leave the European Union, an AQR spokeswoman told Reuters.
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Chesapeake Partners to shut hedge fund, cites M&A woes
BY SVEA HERBST-BAYLISS - Reuters
Chesapeake Partners, a $1.4 billion hedge fund that bet on special situations including mergers, bankruptcies and spin-offs, is shutting down after an 18-month stretch of losses, as it blamed government regulation for making investing tougher.
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Slowdown in Merger Deals Attributed to Political Uncertainty
By LESLIE PICKER - NY Times
Uncertainty is often a deal breaker.
It can be largely blamed for a string of declines in acquisitions announced during the first half of the year in almost every sector, location and size compared with the same period in 2015. Many executives were hesitant to pull the trigger.
goo.gl/rqh6I1
British offshore wind projects at risk after Brexit vote
By Karolin Schaps - Reuters
The British offshore wind industry, already bruised by subsidy changes, faces uncertainty after Britain voted to leave the European Union, with investors worried about future government incentives, exchange rates and export duties.
goo.gl/81jaHT
Soyabean and corn planting surges in US; Worse outlook for South American crops prompts farmers to sow more
Gregory Meyer - Financial Times
A spring grain rally has prompted US farmers to plant more corn and soyabeans, raising the prospect of a supply deluge at the end of the year.
/goo.gl/AWSd8t
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Obama Recruits Goldman, Google to Resettle Refugees
Justin Sink - Bloomberg
Policy on Syrians is a flashpoint for presidential contest; The UN has cut food and medicine rations for lack of funding
At least 15 U.S. companies led by Goldman Sachs Group Inc. and Alphabet Inc. have pledged money to help the Obama administration resettle refugees fleeing the Syrian civil war and other international conflicts.
goo.gl/mii2E3
Goldman Sachs Said to Cut About 60 More Jobs in New York, London
Dakin Campbell - Bloomberg
Goldman Sachs Group Inc. dismissed about 60 traders and salesmen in New York and London this week, according to a person briefed on the matter.
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Around 20 banks, unfazed by Brexit, to invest 500 million sterling in Britain: PwC
Reuters
Around 20 startup banks and financial firms have reaffirmed plans to invest a total of up to 500 million pounds ($664.95 million) to open in Britain, consulting firm PwC said on Friday.
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Tidjane Thiam's One-Year Anniversary Gift at Credit Suisse: Brexit Upheaval; CEO's efforts to revamp the Swiss bank face a yet another hurdle: market turmoil sparked by the U.K. vote
By JOHN LETZING - WSJ
A year after he took the helm at Credit Suisse Group AG, Tidjane Thiam's already-fraught attempt to revamp the Swiss bank faces a new hurdle: market turmoil sparked by the U.K.'s Brexit vote.
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Fidelity to shift 100 roles to Dublin but says move not driven by Brexit vote; Part of longer-term strategy
Natalie Kenway - InvestmentWeek
Fidelity International has confirmed it is increasing its presence in Dublin with the relocation of 100 roles from the UK, as part of its longer-term strategy for the funds centre.
goo.gl/KsO12B
Goldman Sachs' Vella Says Bank's Critics Aren't Being Honest
Kit Chellel - Bloomberg
Vella dismisses comments in 'Why I Left Goldman Sachs' book; Bank executive testifies in $1 billion Libya fund lawsuit
Goldman Sachs Group Inc. executive Andrea Vella told a London court that former colleagues who criticized the bank, including the author of a book alleging it mistreated clients, were being dishonest because they wanted to make money.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | JP Morgan Chase Invites Fintech Startups to Work Alongside Bankers
Fortune
Dear fintech hopefuls: Button up.
You might be sitting next to a J.P. Morgan banker soon.
The New York-based investment banking giant announced an "in-residence" program for fintechs (startups working in the financial industry) ThursdayÂjoining a growing number of traditional financial institutions that are partnering with their nimbler competitors in the hopes of learning from their handle over technology and innovation.
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The Age of Artificial Intelligence in Fintech
Forbes
Artificial intelligence (AI) is all the buzz this year. According to CB Insights, as of June 15, this year, more than 200 AI venture financing deals have been completed already totaling $1.5B in dollar volume. If the latter half of the year continues at this pace, 2016 will be a record year. 2015 saw 397 AI venture financings totaling $2.3B. Based on analysis by CB Insights, most of the deals being done are at a series B or C stage, indicating that startups in this space are beginning to see success.
jlne.ws/29lgK0i
Will Fintech Make The World A Better Place?
Forbes
It is striking how quickly we have become reconciled to the disruptive power of information technology. We saw what Amazon did to record shops and booksellers. We are seeing Uber decimate the cab industry. This fate, presumably, awaits every industry and every occupation, and we are resigned to a future in which disruption rather than stability is the new normality.
jlne.ws/29lggXQ
Women in Banking: Cox on Citi Fintech; Post-Brexit Fintech
American Banker
Citi Looks to App Store Model: As the fintech industry has blossomed, a slice of banks' customers have shifted to the fintechs for certain financial services, such as managing their budget or consolidating loans. Now, the banks need to reel them back in. Heather Cox, chief executive of Citi Fintech, thinks she has figured out how to do it - she plans to "fintegrate" what the competition is doing.
jlne.ws/29lh6UC
Group led by State Street, Putnam launches fintech initiative
Boston Business Journal
A group of Boston financial services companies that includes State Street, Fidelity Investments and Putnam Investments is launching a new initiative meant to build up Boston as a hub of financial services technology, or fintech.
The Boston Financial Services Leadership Council and the business consulting group Mass Insight have created Financial Technology Boston, under which they will host networking events and possibly job fairs involving fintech professionals from the corporate, startup, government and higher-education worlds.
jlne.ws/29lhdj6
Three Fintech Reforms the Government Must Champion
American Banker
Recently, the White House invited representatives from the government, nongovernmental organizations and the private sector to discuss how technology and regulation can unite to produce financial services that are more competitive, efficient and fair. I was honored to be in attendance and represent the international money transmitter Remitly.
jlne.ws/29lh1jP
GBST appoints head of EMEA
GBST
GBST (ASX: GBT), which provides software for administration and transaction processing through its GBST Composer®, GBST Syn~® and GBST SharesTM platforms, today announced the appointment of David Simpson to the position of head of Europe, the Middle East and Africa. Mr Simpson will be a member of GBST's executive team, based in London, and will join GBST in July 2016.
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | Wall Street Regulator Finalizes Anti-Terror Rules
NY Post
Wall Street declared victory on Thursday after Maria Vullo, the recently appointed head of the Department of Financial Services, finalized anti-terrorism and money-laundering rules that spared top compliance officers from taking the fall for illegal money transfers.
goo.gl/889jwG
New chief financial regulator faces tough starts to job
Financial Times
The new chief executive of the Financial Conduct Authority starts work on Friday just as the UK faces some of its toughest economic and constitutional challenges. The top job at the financial watchdog is already tough  Andrew Bailey had to be persuaded by the chancellor, George Osborne, to move across from the Bank of England  before last week's seismic vote for Brexit.
/goo.gl/t6Wz19
Bank of NY Mellon settles $312 million claim tied to Sentinel fraud
Reuters
Bank of New York Mellon Corp has agreed to end eight years of litigation in which it sought unsuccessfully to recoup $312 million it lent a Chicago-area money manager that collapsed in 2007, and whose former chief is now in prison for fraud.
goo.gl/6YXiZd
Sebi bars six firms, lets off one in SCORES case; It was alleged that the firms did not obtain SCORES authentication within the mandated timeframe
Business Standard
Markets regulator Sebi on Thursday, barred six companies from the securities market for their failure to comply with the regulator's online complaint redressal system SCORES.
goo.gl/nxoShI
NY enacts tougher anti-terrorism rule
Kevin McCoy, USA
Banks and other companies overseen by New York's top financial regulator starting in January will be required to maintain monitoring and filtering systems to spot suspected money laundering and terrorism funding.
goo.gl/5OdS9Q
ESMA ISSUES OPINIONS ON DANISH PENSION SCHEME TO BE EXEMPT FROM CENTRAL CLEARING UNDER EMIR
ESMA
The European Securities and Markets Authority (ESMA) has today issued an opinion regarding the exemption of a Danish pension scheme from the obligation to centrally clear OTC derivative contracts under the European Market Infrastructure Regulation (EMIR).
/goo.gl/BZNltU
ESMA REMINDS ISSUERS ALTERNATIVE PERFORMANCE MEASURES GUIDELINES COME INTO FORCE ON 3 JULY 2016
ESMA
The European Securities and Markets Authority (ESMA) wishes to remind listed issuers and persons responsible for drawing up prospectuses that its Guidelines on Alternative Performance Measures (APMs) come into force on 3 July 2016 and has prepared a one page summary.
/goo.gl/98q3Ke
POLITICO MORNING EXCHANGE INTERVIEW WITH STEVEN MAIJOOR
ESMA
Watch ESMA Chair Steven Maijoor in his interview with Francesco Guerrera of Politico on 29 June at The University of Chicago Booth School of Business in London.
/goo.gl/nZBptv
New chief financial regulator faces tough starts to job; Brexit fallout top of the agenda as Andrew Bailey takes FCA reins
by: Caroline Binham, Financial Regulation Correspondent - FT
The new chief executive of the Financial Conduct Authority starts work on Friday just as the UK faces some of its toughest economic and constitutional challenges.
/goo.gl/t6Wz19
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Why There Is a Sudden Outflow of Chinese Investors
WSJ
Where are all the buyers of bank stocks? China has no shortage of them.
Investors have widely shunned financials after the U.K. voted last week to leave the EU. China is an exception. Shares of the country's four biggest state-owned banks are actually higher in Shanghai since Friday, including dividends paid in between. Their Hong Kong-listed shares have done even betterÂand part of that is due to buying from the north, too.
jlne.ws/29lhOB4
If London Slips As A Financial Center, Here's How Dubai Could Gain
Forbes
One of the first interviews I did in the Middle East was of Moe Ghashim, the CEO of Shopgo, a firm that helps small businesses set up ecommerce operations. Ghashim talked about his plans and hopes for the company, which was already an early success story in MENA's tech scene. After having founded the company in Amman, Ghashim wanted to open a location in Dubai, and then, quickly thereafter, London. The ultimate aim: an IPO on London's stock exchange.
jlne.ws/29lhFOh
China's Postal Savings Bank files for potential $14b IPO, Business News & Top Stories
The Straits Times
State-owned Postal Savings Bank of China (PSBC), the country's largest bank by number of branches, has filed for a Hong Kong initial public offering (IPO) seeking to raise as much as US$10 billion (S$13.5 billion), Thomson Reuters IFR reported yesterday.
jlne.ws/29lhqCL
UAE merger announcements spur stock markets
The National
Abu Dhabi equities led gains across the Arabian Gulf on Thursday as shares in FGB and NBAD surged.
Share prices soared at the two banks, which last month announced they were in merger talks, following the announcement on Wednesday of a merger between the sovereign investment companies Mubadala and Ipic.
jlne.ws/29lire2
Dubai: a financial oasis in the Middle East turmoil?
Huffington Post
The recent announcement that HSBC Bank Middle East Ltd. moved its incorporation from Jersey to Dubai, under the auspices of the Dubai International Financial Center, sent a powerful message that the regulatory climate and safety of the Emirate is strong enough to take such a drastic decision. The assets of HSBC Middle East amount to 40 billion dollars, making it one of the largest asset transfers to Dubai. It is a strategic move for HSBC as it provides the bank with an address that is more legitimate and suitable to its Middle East business activities.
jlne.ws/29liCpC
Singapore bank suspends loans for London properties after Brexit
Dailytimes
A top Singapore bank said Thursday it has suspended loans to anyone wanting to buy property in London, citing uncertainty from Britain's vote to quit the EU and dealing a blow to investors looking to make the most of the weak pound.
jlne.ws/29liHcO
Asian Stock Markets Take Big Hit in First Half
WSJ
While the fallout from the U.K.'s vote to leave the European Union continues to grip investor attention, Asia still holds an unenviable crownÂthe region is home to some of the world's worst-performing stock markets this year.
jlne.ws/29lic2v
SME financing ramps up in Egypt
Oxford Business Group
In a bid to help improve inclusive growth and employment, Egypt's central bank has taken aggressive steps to help expand commercial lending to the country's SMEs.
Small and medium-sized enterprises (SMEs) are already a mainstay of the Egyptian economy, accounting for 80% of GDP and employing a majority of the country's workforce.
goo.gl/MC3059
Emerging markets lead return to calm after Brexit storm- Nikkei Asian Review
Nikkei Asian Review
Stock markets in emerging nations are showing dramatic signs of recovery one week after the British public voted to leave the European Union.
Financial markets are regaining calm across the globe, but some trouble spots remain. Germany's DAX is still roughly 6% below where it was June 23, before the Brexit referendum results. The Nikkei Stock Average here has recouped only about half of the 1,286-point meltdown suffered June 24, even after four straight days of gains.
jlne.ws/29lic2K
Huge Japan pension fund sees worst loss since financial crisis
Yahoo News Australia
Japan's mammoth public pension fund has suffered its biggest annual loss since the global financial crisis, an official said Friday, risking criticism of its move to a stocks-focused strategy.
jlne.ws/29ligzA
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| Miscellaneous | | Stories that don't quite fit under the other sections | All of the World's Money and Markets in One Visualization
Comparing the world's money and markets
jlne.ws/29laAwV
Americans With More Education Have Taken Almost Every Job Created in the Recovery; Division between "college haves" and "college have-nots" part of greater shift in makeup of labor force
Lisa Du - Bloomberg
As the U.S. recovery lumbers into its eighth year, Americans with at least some higher education have fared especially well in the labor market. The less-schooled, however, have found a much grimmer reality.
goo.gl/xcc7IX
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