| August 02, 2017 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
By JLN Staff
John Lothian News and John Lothian Productions are teaming up for a value-laden offer to become a sponsor of MarketsWiki at the Friend level. A Friend Level sponsorship is normally $2000 and a 2-3 minute production video can cost from $2000 to $3500, depending on the inputs. For $3000 we will give you both a Friend Level sponsorship of MarketsWiki with 25 pages with your logo and banners on them and a 2 to 3 minute production video. If you are interested, please contact John Lothian.~JJL
Do you like table tennis? Ping Pong? Then get ready for the latest charitable tournament to support the Chicago Tech Academy. T4Youth, which created the tournament, was founded in 2014 by Objective Paradigm, SPR Consulting and 3Points Communications to raise money and support future generations of technologists. Their goal is to raise $175K this year. Find details here.~JJL
We are releasing the second video from our MarketsWiki Education series. Our debut video of former NYSE Euronext CEO Duncan Niederauer ran yesterday. Today's video is a great talk about the importance of basis from Commodity Markets Council President Gregg Doud. One tidbit from Doud's talk that he mentioned in the context of risk management: Did you know that Outback Steakhouse buys its meat once a year?~SD
All of the videos from the MarketsWiki Education World of Opportunity series, dating back to 2013, are available on the www.marketswikieducation.com website.~JJL
Yesterday we announced an October 16 MarketsWiki Education World of Opportunity event that is tied to recruiting of interns for the upcoming summer season. If you are interested in learning more, please contact John Lothian.~JJL
The 13th Annual FIA Operations Americas Chicago Golf Outing will be on September 25 at the Arrowhead Golf Club in Wheaton, IL. Click here for details and to register.~JJL
And if you want to practice your golf before then, you can attend the Securities Traders Association of Chicago's golf outing Monday, August 21 at the Ridgemoor Country Club in Chicago. Here are the details.~JJL
One other video note: There was a hiccup with the audio in Monday's video of Brian Peterson of DV Trading. Here is the corrected link. ~SD
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CBOE and Gemini Enter Into Exclusive Global License Agreement to Use Bitcoin Market Data
CBOE
Multi-year license will allow both firms to explore bitcoin derivatives opportunities; Pending regulatory review, the collaboration begins with plans to launch cash-settled bitcoin futures on CBOE Futures Exchange (CFE) by the fourth quarter of 2017; Agreement builds on the existing relationship between the CBOE family and Gemini; Trading volume of the bitcoin market has grown substantially in the last two years
CBOE Holdings, Inc. (BATS: CBOE | NASDAQ: CBOE) and Gemini Trust Company, LLC (Gemini) today announced an agreement that provides Chicago Board Options Exchange, Incorporated (CBOE) and its affiliates with an exclusive global license to use Gemini's bitcoin market data for bitcoin derivatives and indices.
(NOLINK)
***** According to the CBOE: The multi-year license will allow both firms to explore bitcoin derivatives opportunities, pending regulatory review; the collaboration begins with plans to launch cash-settled bitcoin futures on CBOE Futures Exchange (CFE) in the fourth quarter of 2017 or early 2018; this agreement builds on the existing relationship between the CBOE family and Gemini; over the last five years the total value of all bitcoin outstanding (i.e., "market capitalization") has grown from less than $1 billion to nearly $50 billion. The total value of all cryptocurrency tokens outstanding is now approximately $100 billion. ~JJL
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London's gold amount revealed in transparency move; Almost 7,500 tonnes worth nearly $300bn sitting in city vaults, industry body confirms
Neil Hume and David Sheppard - FT
Traders have speculated for decades how much physical gold is stored within the Greater London area. They have an answer after new data revealed almost $300bn worth of bullion was sitting in vaults in and around the city, including those controlled by the Bank of England.
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***** The disbelievers will not be satisfied.~JJL
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CME sees dollars in data sales, but struggles to grow
John McCrank - Reuters
CME Group Inc, the world's biggest exchange operator by market value, is looking to the lucrative business of selling data to boost revenue, spawn new financial products, and change the way many futures contracts trade.
/goo.gl/uvinYy
****** Growing a big exchange is a bigger and bigger challenge.~JJL
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The Concept of Basis - Gregg Doud
Education.MarketsWiki.com
"The beauty of this industry is, I don't care how much artificial intelligence or how many algorithms you use, you're still going to have to have somebody that understands where stuff is supplied, where it comes from and where it goes and the trade flows associated with it."
In this video from MarketsWiki Education's World of Opportunity event in New York, Gregg Doud, president of the Commodity Markets Council, discussed the concept of basis and how it applies to the financial industry. According to Doud, basis is a fundamentally important concept in the world today. Doud also talked about Dodd-Frank and how it affects commodity markets.
Read the rest and watch the video »
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Tuesday's Top Three
Yesterday's top story came from the WSJ and delved into one big bank's trading struggles - Inside Goldman's Struggle to Climb Out of Last Place in Trading. In second was a handy guide to bitcoin's split - Bitcoin's Civil War: What You Need to Know. In third was a piece from MarketWatch - Opinion: The stock market has about 12 mini flash crashes a day  and we can't prevent them.
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MarketsWiki Stats
105,410,048 pages viewed; 22,657 pages; 207,458 edits
MarketsWiki Statistics
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| Lead Stories | Indexers Push Back Against Wall Street; S&P says companies with multiple share classes won't be allowed in its marquee indexes, a blow to tech IPOs, stock exchanges and investment banks
Ken Brown - WSJ
Give a small cheer to the index nerds at S&P. Their decision to ban companies that have different classes of stock is a rare instance of Wall Street protecting investors.
/goo.gl/6KUtTk
Virtu Is Said to Explore Sale of Fixed Income Unit BondPoint
Matthew Monks and Annie Massa - Bloomberg
Virtu Financial Inc. is exploring a sale of debt-trading services provider BondPoint, according to people familiar with the matter, as the high-speed trading firm exits certain businesses linked to its takeover of rival KCG Holdings Inc.
jlne.ws/2vqxGzd
Fledgling quant funds seek to disrupt Wall Street; High-tech advances entice new wave of scientists and programmers to financial markets
Robin Wigglesworth - FT
A host of emerging investment managers imbued with a solid grounding in science and algorithms represent the cutting edge of disruption on Wall Street.
/goo.gl/N512Kx
Wall Street Is Mapping Stock Trades for a Post-Bond Bubble World
Elena Popina and Lu Wang - Bloomberg
It may be time to pare down high-momentum stocks, ISI says; BofA's Subramanian says look for companies with yield growth
Alan Greenspan says don't kid yourself, if the bond market blows up the collateral damage to equities could be extensive. But does that mean you need to bail from the market completely?
/goo.gl/WDZPdi
Court upholds partial claims in swaps antitrust
Helen Bartholomew - Reuters
A US District Court judge has given the go-ahead for investors to pursue partial claims against some of Wall Street's largest banks over allegations they conspired to limit competition in the US$368trn over-the-counter interest rate derivatives market.
jlne.ws/2vpZfbB
Crypto currencies are mirroring pre-crash banking systems
Izabella Kaminska - Financial Times
When bitcoin, the crypto currency, first arrived on the scene in 2009 it sold itself on a simple principle.
Unlike central bank money, the supply of which could be expanded on the whim of a non-democratically elected committee, bitcoin's supply would remain capped at 21 million coins at any cost. This would be effected by way of a decentralised protocol, making it theoretically impossible for any single authority to override or control it.
jlne.ws/2wiPUPt
Wall Street's Fear of the Computer Drops in Bond Market Survey
Matthew Leising - Bloomberg
Among the few constants on Wall Street such as bonus season and empty desks in August add this: with every year that passes, traders are getting more comfortable buying and selling corporate bonds electronically.
jlne.ws/2vqvO9y
Bitcoin Slide Looks Limited Even After Cryptocurrency Splits
Camila Russo and Lily Katz - Bloomberg
Bitcoin might be dividing into two separate blockchains, but its downward slide has so far been contained, signaling confidence the biggest cryptocurrency will come out of the split unscathed.
jlne.ws/2wiEueo
London trading centres put Brexit plans into action
Philip Stafford - Financial Times
Even as Philip Hammond, UK chancellor, pushes the case for a transitional deal after Britain leaves the EU, some of London's biggest trading venues are stepping up their Brexit back-up plans.
jlne.ws/2vql7DQ
The Great Escape: How Credit Raters Ducked Reform; After the subprime crisis, rules-tightening didn't hit S&P, Moody's, and Fitch as hard as the banks.
Sid Verma - Bloomberg
There's a revealing scene in the film version of Michael Lewis's The Big Short. It's 2007; the subprime mortgage crisis has yet to unfold. Two hedge fund managers visit a Standard & Poor's executive in her office on Water Street in Manhattan. One asks the exec to name a time in the past year when the company didn't give a bank the AAA rating it was seeking. She demurs. "If we don't work with them," she says, "they will go to our competitors. It's not our fault. It's simply the way the world works."
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Hong Kong Exchange plans blockchain-based share market
Finextra
The Hong Kong Stock Exchange is planning to launch a new private market to provide early stage companies with a blockchain-based share registration and transfer platform for the conduct of pre-IPO financing off-exchange and clear of the regulatory remit of the Securities and Futures Ordinance.
/goo.gl/yJnck2
From Debilitating to Devastating - The Senate Needs to Act
Bart Chilton, Former CFTC Commissioner - TABB Forum
To say the US Congress hasn't done much this year would be a great understatement. However, the inaction is going from bad to worse. One of the unsung victims could be financial market oversight regulation, which could be crippled in the not-too-distant future.
jlne.ws/2wi7lPV
The Fixed-Income Dealer Evolution
Kevin McPartland - Greenwich Associates
Bond-dealing desks are different than they once were. Phones are used less, computers more, and compliance requirements are now handled with the highest priorityÂall while technology budgets and headcounts have been reduced. But as we edge closer to the 10-year anniversary of the credit crisis, global and regional dealers alike are finding their place in the new market structure.
jlne.ws/2wj05n2
US Corporate Bond Market Reform Remains Elusive
Anthony Perrotta - TABB Group
In September 2014, BlackRock, the world's largest asset manager, issued a proclamation on US corporate bond market structure reform. Three years forward, despite tremendous industry debate, very little progress has been made toward implementing any of BlackRock's recommendations. What now?
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | OCC Cleared Contract Volume up Two Percent in July
OCC
OCC, the world's largest equity derivatives clearing organization, announced today that cleared contract volume in July was 324,718,888 contracts, up two percent from the July 2016 volume of 317,045,566 contracts. OCC's year-to-date average daily cleared contract volume is also up two percent with 17,045,133 contracts in 2017.
jlne.ws/2wiOhB1
CME Group Reached Average Daily Volume of 14 Million Contracts in July 2017
CME Group
'CME Group, the world's leading and most diverse derivatives marketplace, today announced that July 2017 average daily volume (ADV) reached 14 million contracts, down 1 percent compared with July 2016. CME Group July 2017 options volume averaged 2.9 million contracts per day, down 8 percent versus July 2016, with electronic options averaging 2 million contracts per day, up 21 percent over the same period last year. Open interest at the end of July was 113 million contracts, up 9 percent from the end of July 2016.
/goo.gl/4hCa2h
CME expects competition in new interest rate market; CME announced it will launch futures and interest rate swaps based on the Treasury repo financing rate, an alternative reference rate for pricing securities and loans in the US.
Joe Parsons - The Trade
CME Group expects competition from rival exchanges for new, US interest rate derivatives markets based on alternative benchmarks to the Libor rate.
/goo.gl/8oqFky
OCC securities lending activity increases significantly
Securities Lending Times
OCC's securities lending central counterparty (CCP) activity was up 27 percent in new loans last month.
The CCP saw 183,210 transactions pass through its books in July, well ahead of the number of trades it reported in the same month in 2016.
Year-to-date stock loan activity was also up 21 percent from 2016 with approximately 1.33 million new loan transactions in 2017.
The average daily loan value cleared by OCC in July was approximately $151.9 billion.
jlne.ws/2w5JWSw
Deutsche Boerse implements Risk Focus' system for reporting; Deutsche Boerse's regulatory reporting hub allows firms to meet reporting requirements through a single platform.
Hayley McDowell - The Trade
linkedin buttonlinkedin button
Risk Focus and its subsidiary RegTek Solutions is to provide its software services to Deutsche Boerse's regulatory reporting hub for OTC instruments ahead of MiFID II.
/goo.gl/hKQfJ5
Regulatory Reporting Hub of Deutsche Börse cooperates with Reg.Tek.Solutions and RiskFocus for MiFID II
Deutsche Börse
The Regulatory Reporting Hub of the Deutsche Börse Group has established a cooperation with RiskFocus and its software subsidiary Reg.Tek.Solutions, which is based in New York. RiskFocus will provide key system components for the regulatory reporting hub to report OTC trades (OTC Trade Reporting), including the Validate.Trade product from Reg.Tek.Solutions.
/goo.gl/ALGpEu
Eurex passes global fire drill with excellent results
Eurex
Eurex Clearing has once again demonstrated the reliability and quality of its default management process. During the last week of April, Eurex Clearing, LCH Swapclear and CME simulated the default of a major participant - based on the Brexit market conditions as of 24 June 2016.
/goo.gl/x6cYyk
T. Rowe Price Selects ICE Data Services' Best Execution for Enhanced Fixed Income Transaction Cost
ICE
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that T. Rowe Price will use ICE Data Services' Best Execution service to evaluate trade execution quality to support best execution and enhance its transaction cost analysis (TCA) for fixed income securities.
/goo.gl/d58nhU
LCH users weigh early exit as fears grow of EU ban; Two CCPs report interest from LCH customers; banks expect first book transfers in early 2018
Luke Clancy - Risk.net
European users of LCH are speaking to at least two rival clearing houses as they consider leaving the London-based venue before a potential ban can trigger a mass exodus.
/goo.gl/T5HcBV
The Acceleration of Emerging Market Swap Clearing
Jack Callahan - OpenMarkets
As cost pressures continue to mount in the bilateral swap market, market participants have increased their voluntary clearing of OTC products. Since 2014, interest rate swap clearing in G4 currencies has increased 51 percent, while clearing in the 15 currencies outside of the G4 has soared 118 percent across the industry from $79 billion per day in daily notional cleared to $171 billion per day in 2017.
jlne.ws/2vpIjCl
July Sees Numerous Records Fall at MGEX
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), announces multiple records being broken during the month of July. Total volume for the month was the second best recorded in the history of the Exchange at 301,607 contracts which is more than double July 2016's volume
jlne.ws/2vk0yZ4
JPX Market Updates
JPX
TSE; Revisions to Guidelines for Preparing Corporate Governance Reports Concerning Information Disclosures about Retired President/CEOs Holding Advisory Positions (Sodanyaku, Komon, etc.)
TSE; Addition of Reason for Designation of Securities Under Supervision (Confirmation): GO Iron Works Co.,Ltd.
TSE; Announced Broadening of Daily Price Limits to be Cancelled: TOIN CORPORATION
OSE; Last trading day for Index Futures & Options - August 2017 contract
TSE; Matching Mechanism for the First Day of Listing: SHARINGTECHNOLOGY.INC
/goo.gl/5HCHn2
Tokyo Commodity Exchange Adopts Delivery By Physicals For Precious Metals Market
MondoVisione
The Tokyo Commodity Exchange, Inc. (TOCOM) announced today Precious Metals Market rule changes for Declared Delivery and Customized Delivery. The new rules allow settlement through the delivery of bars instead of warehouse receipts where there is consent between buyer and seller. The updated rules took effect on August 1 and are applicable to the August 2017 contracts onward.
/goo.gl/g6cyMz
OCC securities lending activity increases significantly
OCC's securities lending central counterparty (CCP) activity was up 27 percent in new loans last month.
/goo.gl/SJQTqU
Shenzhen Stock Exchange And Chinese Academy Of Sciences Forging Strategic Cooperation To Nurture New Growth Drivers For The Economy
MondoVisione
On 28 July, 2017 Shenzhen Stock Exchange (hereinafter as "SZSE") and the Chinese Academy of Sciences (hereinafter as "CAS") signed the Agreement on Strategic Cooperation in Shenzhen. Present at the signing ceremony included vice chairman of SZSE Zhang Ying, vice general manager of SZSE Jin Liyang, secretary general of CAS Deng Maicun, chairman of the board of CAS Holdings Wu Lebin, and general manager of CAS Holdings Suo Jishuan.
/goo.gl/E4ikWa
July turnover at Boerse Stuttgart in region of EUR 6 billion; Investment products and debt instruments show year-on-year increase in trading volume
Boerse Stuttgart
Based on the order book statistics, turnover at Boerse Stuttgart in July 2017 was around EUR 6 billion.
/goo.gl/cjvHvz
EPEX SPOT power trading results of July 2017; July volumes increase year on year
Belgian Intraday grows by 67%, Dutch Intraday by 61%
EEX
In July 2017, a total volume of 44.1 TWh was traded on EPEX SPOT's Day-Ahead and Intraday power markets (July 2016: 43.8 TWh).
/goo.gl/QwJcRC
DGCX sees Single Stock Futures Grow While Enhancing its Position in the UAE Amongst National Entities
DGCX
The month of July proved to be an eventful one for DGCX, the largest and the most diversified derivatives bourse in the region, as it inked pacts for greater collaboration with two leading Abu Dhabi based entities - the Abu Dhabi Securities Exchange (ADX) and Abu Dhabi Global Market (ADGM). The Exchange's recent regulatory recognition and ties with the prominent National entities not only corroborates its unique range of trading and clearing capabilities but also marks a step towards DGCX strengthening its presence in the UAE and wider regional financial markets.
/goo.gl/zHfnG1
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Exploring agricultural drones: The future of farming is precision agriculture, mapping, and spraying
Andrew Meola - Business Insider
Agricultural drone technology has been improving in the last few years, and the benefits of drones in agriculture are becoming more apparent to farmers. Drone applications in agriculture range from mapping and surveying to crop dusting and spraying.
jlne.ws/2wiMDja
Barchart Names Bryant Sheehy as Head of Institutional Sales
Barchart Market Data
Today, Barchart, a leading provider of financial market data and technology, announced that Bryant Sheehy has been named Head of Institutional Sales. Sheehy will be responsible for expanding Barchart's institutional reach into financial services, commodities, media and technology. Sheehy will focus on three core product lines: data feeds, managed web solutions and software. Each of these core product lines are powered by an extensive ecosystem of Barchart market data and information.
jlne.ws/2vkjkzf
How Two Brothers Turned Seven Lines of Code Into a $9.2 Billion Startup; Now, Stripe's Patrick and John Collison are teaming with Amazon to grab even more control over the global flow of commerce.
Ashlee Vance - Bloomberg
That figure has roughly doubled in the past five years, according to the Department of Commerce, and it's likely to double again in the next five as the internet continues to devour traditional retail.
/goo.gl/c47jdL
Fintechs Join Forces to Compete
Frank Drost, Katharina Schneider - Handelsblatt
Several fintechs in Germany are switching gears from collaborating with banks to tackling them head on in their core retail and commercial operations.
/goo.gl/B4dPxM
FIS Reports Second Quarter 2017 Results; Raises full-year 2017 guidance; Announces share repurchase authorization of $4 billion; Diluted EPS from continuing operations was $0.40, and Adjusted EPS was $1.02
FIS
FIS, a global leader in financial services technology, today reported that second quarter GAAP revenue increased 1.5 percent to $2,341 million from $2,305 million in the prior year quarter. Operating income increased to $359 million for the quarter, from $283 million in the prior year quarter, while operating income margin was 15.3 percent. Net earnings from continuing operations attributable to common stockholders was $132 million for the quarter, or $0.40 per diluted share, compared to $0.36 per diluted share in the prior year quarter.
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| Politics | | An overview of politics as it relates to the financial markets | Trump close to decision on addressing Chinese trade practices
Steve Holland- Reuters
U.S. President Donald Trump is close to a decision on how to respond to what he considers China's unfair trade practices, a senior Trump administration official said on Tuesday.
/goo.gl/NZsSR4
Full transcript: Trump's Wall Street Journal interview; The president sat down with the Journal's editor-in-chief Gerard Baker in the Oval Office on July 25.
Josh Dawsey and Hadas Gold - Politico
President Donald Trump called his son-in-law a "good boy" while thanking Wall Street Journal editor-in-chief Gerard Baker for a positive editorial about Jared Kushner and said the leader of the Boy Scouts told him his jamboree speech was "the greatest speech ever made to them."
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Debt-ceiling talks between White House, Senate break up with no progress
Damian Paletta - WSJ
Talks between the White House and the Senate's top Republican and Democrat broke up Tuesday with no progress on raising the country's debt ceiling, an impasse that threatens a financial crisis if left unresolved.
jlne.ws/2vqi2nl
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | ISDA 2017 OTC Equity Derivatives T+2 Settlement Cycle Protocol
Mondovisione
The ISDA 2017 OTC Equity Derivatives T+2 Settlement Cycle Protocol is designed to assist market participants in amending the terms of certain trading confirmations to address the change for certain equity derivative transactions from a T+3 to a T+2 settlement cycle for securities for which the exchange is located in the United States, Canada, Mexico and Peru. This transition to a two-day settlement cycle is scheduled to take place on September 5, 2017.
jlne.ws/2wiYxt4
Government worker in New York City fined for mining bitcoins on his work computer
Quartz
A computer-systems manager at New York City's Department of Education has been fined for using his work computer to mine bitcoins, the city's Conflicts of Interest Board announced Monday.
jlne.ws/2vqa25C
SEC Asks Twitter Why It Doesn't Disclose Daily User Number
Sarah Frier - Bloomberg
Company says rate of growth more important than actual metric; Twitter's monthly user number stagnated in the second quarter
The Securities and Exchange Commission has asked Twitter Inc. a question that many investors also have: why not disclose your number of daily active users?
/goo.gl/eUsU1z
Sebi sets up panel to curb insider trading, improve market surveillance
Business Standard News
Market regulator Securities and Exchange Board of India (Sebi) said on Tuesday it set up a committee to suggest measures to improve market surveillance and help prevent insider trading and market manipulation.
jlne.ws/2wj1aLo
Bitcoin exchange operator sued in Singapore
Straits Times
Singapore's first legal dispute involving the cryptocurrency bitcoin has erupted over trade proceeds worth around US$3.78 million (S$5.1 million).
An electronic market maker is suing Quoine, one of the world's major bitcoin exchange operators, over trades that were allegedly wrongfully reversed, which resulted in proceeds being deducted.
jlne.ws/2vqvYha
US regulator moves to loosen Volcker rule; OCC to seek public comment on changing Obama-era ban on proprietary trading
Barney Jopson - FT
A bank regulator appointed by President Donald Trump will on Wednesday take a first step towards loosening the Volcker rule banning banks from placing market bets with their own capital, targeting a post-crisis prohibition that is reviled on Wall Street.
/goo.gl/xgBLeM
FCA study highlights dark trading cap problems; Dark trading negatively affects the market at 11% and 17% of market turnover, yet MiFID II's proposed dark pool caps are set at 4% and 8%.
Hayley McDowell - The Trade
The UK's financial watchdog has found dark trading begins to negatively affect market quality between 11% and 17% of market turnover, much higher than MiFID II's proposed dark pool caps.
/goo.gl/y7YZU9
JP Morgan joins ESMA's systematic internaliser database; The EU financial regulator's systematic internaliser database is seemingly growing as the MiFID II deadline looms.
Hayley McDowell - The Trade
JP Morgan is the latest investment bank to show up on the EU regulator's database of systematic internalisers (SI) ahead of MiFID II.
/goo.gl/DjSUa2
Esma adviser says position limits to be published in November; Task force member warns of market "disorder" in tight window before Mifid II goes live
Michael McCaw - Risk.net
The European Securities and Markets Authority (Esma) will announce position limits on commodity derivatives in November, an adviser to the regulator has told Risk.net, flagging possible fire sales of contracts to comply with rules that come into force on January 3, 2018.
/goo.gl/pavbw2
SIPC and FINRA Streamline Reporting Process for Broker-Dealers; Firms Will File Just Once to Report to Both Agencies
FINRA
The Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority (FINRA) have announced a services agreement designed to ease reporting burdens and compliance costs for member firms. The new, simplified filing process will also reduce inconsistent or incomplete filing of annual audited financial statements and supplementary reports.
/goo.gl/ahEdmL
ISDA 2017 OTC Equity Derivatives T+2 Settlement Cycle Protocol
ISDA
The ISDA 2017 OTC Equity Derivatives T+2 Settlement Cycle Protocol is designed to assist market participants in amending the terms of certain trading confirmations to address the change for certain equity derivative transactions from a T+3 to a T+2 settlement cycle for securities for which the exchange is located in the United States, Canada, Mexico and Peru. This transition to a two-day settlement cycle is scheduled to take place on September 5, 2017.
/goo.gl/wgA9TF
China's FX regulator joins fight to shut problematic offshore M&A; Safe stops short of ban on use of domestic assets to secure offshore loans
James Kynge in London, Don Weinland in Hong Kong and Lucy Hornby in Beijing - FT
Beijing is investigating fraudulent declarations of domestic assets made to obtain overseas loans, regulators said on Wednesday, as part of a broader crackdown on capital outflows.
/goo.gl/pR3wvk
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Paul Tudor Jones Clients Pull 15% From Main Hedge Fund
Saijel Kishan - Bloomberg
Paul Tudor Jones' investors are increasingly deserting him.
The billionaire macro manager who helped give rise to the hedge fund industry saw clients pull about 15 percent of their assets from his main fund in the second quarter, according to investors who asked not to be identified discussing private information. That's left client assets at about $3.6 billion, almost half the value a year ago.
jlne.ws/2vqfSnG
A Stock Market Paradox: Investors Love Earnings, Punish Companies Reporting Them; Shares of U.S. companies have fallen 0.78% on average on the day they've reported profits
Jon Sindreu
Investors are bidding up U.S. stocks as companies post bumper profits, yet funds are often selling on the day these firms publish their results. That may say a lot about investors' increased caution over U.S. equity valuations, which remain high by historical standards, analysts say.
/goo.gl/GiPDHM
Passive investing has made hitting earnings more crucial than ever
Joe Ciolli - Business Insider
Falling short during earnings season is never good news for a company. But the miss can be even more painful if the firm has passive investors battening down the hatches.
Over the past seven quarters, stocks with high passive ownership that missed on both earnings and revenue have lagged those with low passive exposure by 1.5 percentage points the following day, according to data compiled by Bank of America Merrill Lynch. And that gap has only widened over time.
jlne.ws/2wiVCkp
Energy Posts Its Best July Since 2004
Jodie Gunzberg - S&P Dow Jones Indices
The S&P GSCI Energy Total Return gained 8.1% in July, the most for a July in 13 years, led by petroleum that was up 9.2%. Finally the fundamentals may be showing the oil market is starting to rebalance with the rest of the commodities. The S&P GSCI Total Return had its best month this year, gaining 4.6%. lessening its year-to-date loss to -6.1%, while the Dow Jones Commodity Index gained 3.5% for a year-to-date loss of -2.1%.
jlne.ws/2wiNyzN
Investors hedge against sharp stock market correction; Money flows increase last month into ETFs tied to Vix and bond funds excel this year
Dan McCrum and Nicole Bullock - FT
Money last month poured into funds and securities that offer some protection against a sharp correction in the US stock market, the latest sign of cautious behaviour from both professional and retail investors in response to equities at record levels.
/goo.gl/udYbNS
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Credit Suisse Plans to Spin Out a $1 Billion Quant Hedge Fund
Donal Griffin, Patrick Winters and Vincent Bielski - Bloomberg
Credit Suisse Group AG's asset management business plans to spin out a $1 billion quantitative hedge fund later this year, according to a person familiar with the matter.
/goo.gl/XM7ZJB
US bank stocks hit post-crisis high; Investors chase sector to record level on hopes for deregulation
Nicole Bullock, Eric Platt and Joe Rennison in New York - FT
US financial stocks closed at the highest level in nearly 10 years on Tuesday as hopes for deregulation of banks grow and investors ditch technology stocks for the previously unloved banking sector.
/goo.gl/MgE2hV
Mizuho Bank deploys AI for derivative contracts process; The Japanese bank approached Nomura Research Institute to develop a proof-of-concept using artificial intelligence.
Hayley McDowell - The Trade
Mizuho Bank has completed a project with Nomura Research Institute using artificial intelligence to eliminate certain derivative contract procedures.
/goo.gl/MP8zV3
Societe Generale share price falls as French bank reports profits fall after booking EUR300m Libyan legal costs
William Turvill - City AM
SocGen reported at the same time as Natixis and after BNP Paribas (Source: Getty)
Societe Generale's share price tumbled four per cent this morning after the French bank reported a large fall in profits after being hit by legal costs.
/goo.gl/cQM5ox
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China Inc.'s Next Debt Headache Is $580 Billion of Put Options Coming Due
Bloomberg
Surge in yields means some 82% of such notes 'in the money'; China has already seen a default after puts were exercised
Chinese companies battling to cope with the government-induced tightening in funding markets are bracing themselves for the next shoe to fall: a wave of early bond redemptions.
jlne.ws/2wioysL
Global Traders Have Little to Fear in China Hints of Freer Yuan
Justina Lee - Bloomberg
Chinese media carry articles calling for greater flexibility; Move would have little impact amid subdued volatility: RBC
When China blindsided traders in August 2015 with the steepest yuan devaluation on record, the reaction in global markets was swift and painful: Emerging-market equities collapsed into a bear market, oil plunged and the S&P 500 Index began a slide that would spiral into its worst month in three years.
jlne.ws/2vqR12Z
Russia's Banks Get Serious About Digital Currencies
Ilya Khrennikov and Jake Rudnitsky - Bloomberg
Modified ethereum blockchain platform to speed safe payments; Distributed ledger cuts costs, creates virtual currency
With Russia looking to cure its economy of a hydrocarbon addiction, a consortium of the country's biggest banks is proposing that it explores a different kind of gas for the answer.
/goo.gl/Rcquv6
OPEC's Game-Theory Dilemma; Cartel members are being pushed to seek ever-broader coalitions to secure an orderly influence on oil prices.
Mohamed A. El-Erian - Bloomberg
Over the last few years, producers belonging to the Organization of Petroleum Exporting Countries have had mixed success at winning the price-setting "game" for oil. To stand a better chance of regaining durable control, they must do a much better job of working together, and, importantly, they need to do so in a much broader and more institutionalized manner.
/goo.gl/LZhn7h
Hedge Fund of Swedish Industry Titans Thrives on Disruption
Jonas Cho Walsgard - Bloomberg
Adrigo fund has delivered 82% return since 2006 on low risk; Fund has long positions in Carlsberg, Telia, Securitas
Paying more attention to transformation than valuation when picking stocks has helped Sweden's Adrigo Asset Management deliver an 82 percent return over the past decade.
/goo.gl/CdpkyB
Hedge funds jostle for cut-price Venezuela bonds, eye post-default gains
Maiya Keidan and Sujata Rao - Reuters
Venezuela's dollar-denominated bonds, which have fallen to trade as low as a third of their original value after pricing in the likelihood of default, are attracting the interest of hedge funds jostling to take advantage of any future debt swap.
jlne.ws/2wj1Xwd
How to fix Hong Kong's markets
Chris Wright - Euromoney Magazine
Everyone has a complaint about how Hong Kong's markets are run, whether it is cornerstones, regulation, secret orders, or simply poor performance. How does HKEx get the environment right when everyone has a different idea of what is wrong?
jlne.ws/2vqoyue
Switzerland's First-World Problem: What to Do With $750 Billion; The Swiss central bank keeps its massive reserves in foreign assets. Some want a piece of that kept home.
Brian Blackstone - WSJ
Thanks to its efforts to weaken the franc, the Swiss central bank has amassed $750 billion in stocks, bonds and cash.
/goo.gl/nFKuGx
India's Real Interest Rates Compared With Other Asia Economies
Arijit Ghosh - Bloomberg
The RBI cut the repo rate today, as forecast by most economists in the Bloomberg survey. This is where India's real interest rates now stand, compared with other central banks in large Asian economies, after the decision to cut borrowing costs to the lowest in seven years.
/goo.gl/Qft3Mh
A License to Invest
Michael Maisch - Handelsblatt
Germany's top bank may apply for a full license in China to tap into the country's drive to open up its financial markets, the bank's head of Asia told Handelsblatt.
/goo.gl/ALvfK3
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | Deutsche Bank Expects to Move 4,000 Jobs to EU After Brexit
Steven Arons and Jan-Henrik Foerster - Bloomberg
Bank 'base case' said to foresee transfer of 4,000 positions; Lender just signed agreement to lease new London headquarters
Deutsche Bank AG envisions shifting almost half its U.K. positions to the European continent over coming years as the lender's Brexit plans take shape, people briefed on the matter said.
/goo.gl/Jq6wRw
Cities Bidding for EU Regulators Tout Spa and Paintball Options
Alexander Weber and Nikos Chrysoloras - Bloomberg
Eight cities applied to host the EBA when it leaves London; European Commission says a decision will be made in November
The European Union's top bank regulator is feeling the love.
/goo.gl/qmc2xy
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| Miscellaneous | | Stories that don't quite fit under the other sections | Purdue Agricultural Economics Report
Purdue
Here are the results of the 2017 Purdue Farmland Values Survey. The rate of decline in farmland values and cash rents slowed in 2017. In fact, some land values and cash rents were higher. See the changes for your area of the state and land quality.
jlne.ws/2tWp7rj
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