| May 31, 2018 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Q&A With Don Ross: Can Equity Markets Benefit From Auctions? Ross Looks To Disrupt The Markets With On-Demand Auctions For Stocks, Just Like The Good Ole Days
Jim Kharouf - JLN
CODA Markets has been pounding a steady beat for on-demand auctions since launching CODA Block, a 30-second block auction program in 2017. With a new study from ViableMkts of the auction system, data shows CODA Block generally did not create adverse market moves when initiating an auction. CODA Markets CEO Don Ross spoke with JLN's Jim Kharouf about the study and his view on auctions throughout the trading day.
Q: You have been a proponent of auctions in securities and feature an auction mechanism on your CODA Markets platform. Why such a big fan?
The biggest problem in the market today is that there is no way for an individual or institution who desires more size to figure out where the market is or the size they want to trade without hurting themselves. There's hasn't been a way to do it until CODA Block and that's our goal.
And what does it mean to "hurt yourself?" There are basically two ways. One is, I didn't get the trade done and the market moved away from me. They call that information leakage. But when you initiate an auction, there is no evidence that it has an impact on the movement in the market.
To read the rest of the interview, go here.
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Hits & Takes
JLN Staff
We are looking for some people interested in contributing to the development of CryptoMarketsWiki.com. We are doing this in a couple of ways.
First, anyone can volunteer to become a contributor. We will be glad to teach you how to do it and coach you along the way.
Secondly, we are establishing Academic Sponsorships for institutions who will organize students to contribute to the wiki as part of their studies. Contact me if you are interested in learning more.
Finally, we are offering Chicago firms with interns hired for the summer the opportunity to send them over to our office for a day of training on how to contribute to the wiki. We will teach them how to wiki and feed them some lunch. By the end of the day, they will be full fledged wiki researchers and writers and will be able to dig further into the crypto world.~JJL
WFE's Magazine, Focus, is out.~JJL
About one third of Cumberland's crypto trades come from its Singapore desk.~SD
Next week is IDX. Our video team is filling up their dance card, but if you have some news please contact us. Also, if you just want to update us off the record, please reach out to me to set up a meeting.~JJL
Mark Ibbotson is up to 47% of his goal for the FIA Gala Kilt challenge. Thank you to all who have donated and to those who are donating right now. Yes, YOU!~JJL
The word of the day is excommunication.~JJL
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Vela's Plans Post-Acquisitions
JohnLothianNews.com
In this video from the 36th annual Options Industry Conference (OIC) in Amelia Island, Fla., Vela CEO Jennifer Nayar talks about where the company sees opportunity after its acquisition of OptionsCity and Object Trading in the summer of 2017.
Watch the video here »
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Regarding the Pope and Credit Default Swaps
James M. Falvey, Contributing Editor - John Lothian News
I once made the mistake of asking a Jesuit Priest what university he attended. The Jesuit, Father Phil, put down his pen and pad of paper, rubbed his hand over his forehead and back over his shiny scalp, grabbing onto the few grey strands left.
"Do you really want to know?" Phil asked me.
"Yes, absolutely," I said.
"Okay. Which one?"
"You went to more than one school?" I asked, sensing that there was not a quick and easy answer to my question.
"Yep. Around ten."
Father Phil had a couple of doctorates, a law degree and an MBA. Jesuits like education. A lot. It is key to their mission as priests.
I thought back on my experience with Father Phil when I recently read that Pope Francis, the first Jesuit to ever serve as the Holy Father, spoke out against credit default swaps or "CDSs." I did a double take when I saw the headline. "The Pope has an opinion on credit default swaps?" I asked no one in particular. As a derivatives attorney and part-time financial journalist, I was shocked that he even knew what they were; most people in the world don't know what a CDS is. Then I remembered the Jesuit adoration of education. Of course, he knows and understands the ins and outs of a credit default swap, I thought. He was probably shorting housing stock in 2008 because he knows everything! He's a Jesuit!
To read the rest of this commentary, go here
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Mark Thornberry was told he'd be dead by March but plans to run 145 miles; Mark Thornberry is attempting to raise funds to fund the early detection of liver cancer
By Thomas Johnson
A man with liver cancer who was told he would likely be dead by March is about to run 145 miles to raise funds for vital research into early detection of the disease.
/jlne.ws/2spzkgc
***** Truly an inspiration.~JJL
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Wednesday's Top Three
Yesterday's top three were led by Crain's Chicago Stock Exchange sale price rose in bidding war. Second went to Bloomberg's piece on those who are bailing on banks in Traders With Pockets Full of Crypto Quit Wall Street. Third was a Bloomberg piece on Ed Yardeni in There Will Be Another Financial Crisis
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MarketsWiki Stats
126,917,791 pages viewed; 23,129 pages; 213,221 edits
MarketsWiki Statistics
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| Lead Stories | The Largest U.S. Cannabis Company Finds a Home on a Canadian Exchange; MedMen is now selling shares on the Canadian Securities Exchange. Here's why it still isn't possible for the $1.65 billion company to list in its home country.
Kinsey Grant - The Street
Weed Companies Need to 'End Prohibition' Before They Can List Shares in the U.S.
MedMen Enterprises Inc. was the first $1 billion cannabis company in the United States. It operates exclusively in California, New York and Nevada and its headquarters are outside Los Angeles.
/jlne.ws/2kEt54Y
***** Would you be willing to participate in a roundtable discussion about cannabis investing and trading on an anonymous basis from which we would produce a white paper?~JJL
Itiviti appoints executive management team following merger with ULLINK; Combined entity will operate under the Itiviti corporate brand.
Itiviti
Itiviti today announced the appointment of a new executive management team, following the recent merger of Itiviti and ULLINK. With annual sales exceeding $200 million, 1,000 employees and local presence in major financial markets across Europe, Asia-Pacific and the Americas, Itiviti has evolved into a full-service technology and infrastructure provider for global and regional financial institutions.
/jlne.ws/2kCjf3j
Why Wall Street Traders Aren't Rejoicing (Yet) Over Volcker Rule
Yalman Onaran - Bloomberg
Proposed tweaks to ridiculed rule seen easing compliance costs; Yet traders still can't place big bets with their firms' cash
Wall Street has long derided the Volcker Rule, complaining it's so complex that traders would need to be psychoanalyzed to comply.
/jlne.ws/2J1ODHa
Big Banks to Get Reprieve from Volcker Rule
Emily Flitter and Alan Rappeport - NY Times
Federal bank regulators on Wednesday unveiled a sweeping plan to soften the Volcker Rule, opening the door for banks to resume some trading activities restricted as part of the 2010 Dodd-Frank law. The changes would give the largest banks significant freedom to engage in more complicated  and possibly riskier  activities by largely leaving it up to Wall Street firms to determine which trading is permissible under the rule and which is not.
/nyti.ms/2xt8Z6J
US regulators begin to ease Volcker rule; Changes will make it easier for banks to conduct 'market-making' trades for clients
Barney Jopson in Washington and Robin Wigglesworth in New York - FT
US regulators have begun an easing of the Volcker rule on bank risk-taking, proposing to give institutions much greater freedom to trade by cutting back a centrepiece of post-crisis reforms.
/jlne.ws/2J0CTF0
'Flash boys' exchange IEX hits back at Nasdaq lawsuit
Francine McKenna - MarketWatch
IEX Group Inc., the nascent exchange known for its attacks on high-frequency trading made famous by Michael Lewis's book "Flash Boys," hit back at Nasdaq Inc. on Wednesday, asking a federal court in New Jersey to dismiss a lawsuit alleging it infringed on Nasdaq's patented processes to support stock exchange operations.
/jlne.ws/2kBBGoX
This Financier Became a Fed Power PlayerÂFrom the Inside and Outside
Jeanna Smialek , Craig Torres - Bloomberg
John Williams has fans at the Hutchins Center on Fiscal and Monetary Policy, part of the Brookings Institution think tank in Washington. When news leaked in March that he was the front-runner to lead the Federal Reserve Bank of New York, the group's director, David Wessel, immediately lauded the potential move in an emailed reply to a reporter.
/jlne.ws/2J18YfV
U.S. Plans to Hit EU With Steel, Aluminum Tariffs
William Mauldin,Bojan Pancevski and Vivian Salama - WSJ
The Trump administration, unable to win concessions from European Union counterparts ahead of a Friday deadline, is planning to make good on a threat to apply tariffs on European steel and aluminum, according to people familiar with the matter.
/on.wsj.com/2LL1AmD
What Makes $1 Billion a Year and Oils the Global Economy While Rebuilding Its Reputation?
Andy Hoffman, Javier Blas - Bloomberg
It's a quiet scene, but there's more to it than meets the eye. The Estia, a 751-foot-long oil tanker, is loading gasoline on a breezy afternoon at port in Vadinar, a town in northwest India. The Bahamas-flagged ship has journeyed from Singapore to this hulking dock on the Arabian Sea, where a relentless afternoon sun bakes the concrete jetty. Through pipes connected to loading arms reaching some 66 feet high, the Estia is taking on 55,000 tons of gasoline from one of Asia's largest and most modern oil refineries.
/jlne.ws/2kEZNmO
The Digital Future In Financial Services Comes One Step Closer: Digital Asset Group And GMEX Group Form A Strategic Alliance
Mondovisione
A new partnership between GMEX Group (GMEX), an established provider of services in financial markets, and the Digital Asset Group (DAG), one of the most disruptive financial service providers in the digital space, shows that the digital world is rapidly coming of age. The Joint Venture (JV) will be the first fully-integrated financial group servicing this emerging sector; bringing together the practices of regulated banking, finance and exchanges with emerging innovation and a digital world enabled by Blockchain, Distributed Ledger and Artificial Intelligence technologies.
/goo.gl/wq2Quu
Satoshi Nakamoto was weird, paranoid, and bossy, says early bitcoin developer who exchanged hundreds of emails with the mysterious crypto creator
Zoë Bernard - Business Insider
Ten years after murmurs of the world's first cryptocurrency appeared online, there's still no definitive clue as to the identity of its creator, the pseudonymous Satoshi Nakamoto.
/jlne.ws/2kAM3ZY
R.J. O'Brien Limited Relocates Two Offices into One Premier Space in City of London
R.J. O'Brien & Associates
R.J. O'Brien & Associates (RJO) announced that its London-based affiliate, R.J. O'Brien Limited (RJO Limited), has moved into new office space in the centre of the City of London. The move to the 100 Cheapside building brings together staff from two distant locations for the first time since the company's acquisition of The Kyte Group in 2015.
/jlne.ws/2IYoRU9
Deutsche's US business put on federal problem bank list; Move adds to issues facing the troubled German lender as it scales back American operations
Ben McLannahan in New York and Olaf Storbeck in Frankfurt - FT
The US subsidiary of Deutsche Bank has been added to a federal list of institutions with weaknesses serious enough to threaten their survival, in a move that will add to the issues facing the German lender as it scales back its North American operations.
/jlne.ws/2srBZGo
SGX heads for arbitration with NSE amid Nifty dispute; S'pore bourse points to "uncertainty" caused by court action; MAS urges speedy resolution to row
Jamie Lee - Business Times
The Singapore Exchange (SGX) will head for arbitration in India to thrash out its ongoing dispute with the National Stock Exchange of India (NSE), with NSE fighting to stop SGX from launching new derivatives products meant to address SGX's impending loss of Nifty 50 futures contracts.
/jlne.ws/2souCzs
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | The Ties That Bind: Market Connectivity Continues to Increase Despite Opposing Rhetoric
Larry Thompson, DTCC
Whether it is geopolitical tensions in North Asia, the UK's exit from the European Union or new U.S. trade policies, globalisation would appear to many to be in retreat in many regions of the world. Wherever one looks, social, political and economic boundaries appear to be isolating nations, reversing a trend that only a few years ago seemed all but unstoppable.
/jlne.ws/2kE2Dsg
Global Stakeholders Discuss Role Of Exchanges & CCPs In Preserving Market Integrity At WFE London Meeting
WFE
The World Federation of Exchanges ("WFE"), the global industry group for exchanges and CCPs, is today hosting a panel focused on the role of its members in preserving market integrity, for stakeholders from the global market infrastructure sector.
/jlne.ws/2J3STGo
Nasdaq & Cboe question SEC's legal authority on rebate proposal; Debate over controversial maker-taker pricing continues in the US as comment letters are published on regulator's proposed transaction fee pilot.
Hayley McDowell - The Trade
Major US exchange operators Nasdaq and Cboe Global Markets have challenged the US financial authority's proposed changes to fee-and-rebate pricing models for stock exchanges.
/jlne.ws/2srIeKr
IEX seeks dismissal of Nasdaq's 'baseless' lawsuit; Legal battle between Nasdaq and IEX heats up as IEX looks to dismiss Nasdaq's patent infringement claims.
Hayley McDowell - The Trade
The Investors Exchange (IEX) has hit back at a lawsuit filed earlier this year by Nasdaq and is seeking dismissal of the patent infringement claims.
/jlne.ws/2sotnjM
ASX Investment in Sympli - May 2018; ASX invests in a new electronic property settlement business
ASX
ASX Limited (ASX) has partnered with Australian Technology Innovators Pty Limited (ATI), the parent company of InfoTrack, Australia's leading provider of Conveyancing technology and services, to enter the national electronic property settlement market.
/jlne.ws/2H4L1yp
HKEX Markets Operate Smoothly On Day of Milestone Index Rebalancing; MSCI adds A-share stocks to key benchmarks in latest rebalancing, while net weighting of Hong Kong-listed shares to rise
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) markets operated smoothly today (Thursday) as a milestone index rebalancing was conducted by global index compiler MSCI, which for the first time is including A shares to some of its key benchmarks, while increasing the net weighting of Hong Kong-listed stocks in its indices.
/jlne.ws/2sv3izx
Adjustment of Country Garden Structured Products, Futures and Options
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to Country Garden Holdings Company Limited (Country Garden) structured products, futures and options to account for Country Garden's spin-off and separate listing of Country Garden Services Holdings Company Limited (CG Services) by way of a distribution in specie.
/jlne.ws/2ssc3uc
The GEM Listing Committee censures Mr Gangkhuyag Chultemsuren, a former executive director of IR Resources Limited (stock code: 8186), for breaching the Director's Undertaking
HKEX
/jlne.ws/2H6weD6
SGX reprimands Jason Holdings Limited and its former Executive Director and Chief Executive Officer, Mr Jason Sim Chon Ang; Public Reprimand: Breaches of Catalist Rules
SGX
Singapore Exchange ("SGX") reprimands Jason Holdings Limited ("JHL" or the "Company" and together with its subsidiaries, the "Group") and Mr Jason Sim Chon Ang ("Mr Sim"), the Company's former Executive Director and Chief Executive Officer, for breaches of the Catalist Rules.
/jlne.ws/2H79lQ0
Straits Times Index (STI) quarterly review June 2018
SGX
No change to the constituents of the STI
FTSE Russell announces that there will be no change to the constituents of the Straits Times Index (STI), following the June quarterly review.
/jlne.ws/2sviI6Q
Delaware Board of Trade Holdings, Inc. Announces New Advisory Board; The Advisory Board will consist of Leading Industry Executives from Wall Street and the Blockchain Community
DBOT Holdings Inc
DBOT Holdings Inc is delighted to announce the formation of the new Advisory Board. The company operates DBOT ATS LLC an alternative trading system that is a blockchain ready platform that supports a funding portal, (pending approval) for securities offering under Regulation D, CF and A+ and an automated trading facility for Over-the-Counter (OTC) equity securities.
/jlne.ws/2sA3PR1
In Rare Move, Big Pensions Band Together To Take on Stock Exchanges
Julie Segal - Institutional Investor
Major public plans including CalPERS and Ontario Teachers have written to the stock market's regulator supporting a proposal aimed at ending controversial rebates to brokers.
/jlne.ws/2stSYaX
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | RCM-X Execution Algorithm Strategies Now Available on the TT Platform
Trading Technologies
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, and RCM-X, a provider of trading technology and risk management services for the professional trading and investment management space, today announced the availability of RCM-X's full suite of next-generation automated execution algorithms on Trading Technologies' TT trading platform.
/goo.gl/qCgc5r
World's Biggest AI Startup Raises $1.2 Billion in Mere Months
Bloomberg News
Fidelity, Tiger lead another round for China's SenseTime; The outfit says the latest funding values it at $4.5 billion
SenseTime Group Ltd. has raised $620 million at a valuation of more than $4.5 billion just months after scoring a similar amount from investors led by Alibaba Group Holding Ltd. and Singapore's state investment firm.
/jlne.ws/2kDTDTZ
For Google, all roads lead back to search; Alphabet is closing in on $1tn valuation thanks to a new growth spurt in the core business
Richard Waters in San Francisco - FT
Once their revenues reach $100bn, most companies are destined for comfortable maturity. The law of large numbers kicks in.
/jlne.ws/2IYiZdE
Asia Pacific Exchange goes live with Cinnober tech at the core
Finextra
On May 25th, Asia Pacific Exchange Pte Ltd (APEX), a new derivatives exchange and clearinghouse, based in Singapore, went live with core functions operating on technology from the Cinnober Group.
/jlne.ws/2kBzQEt
Barchart Awarded Best Market Data Newcomer Product and Best Real-Time Market Data Initiative at the 2018 Inside Market Data Awards
Barchart
Today, Barchart, a leading provider of financial market data and technology, has announced that it has been named Best Market Data Newcomer for its new cryptocurrency data feed and Best Real-Time Market Data Initiative at the 2018 Inside Market Data Awards. Hosted on May 23, 2018 in New York City, the Inside Market Data Awards recognize industry excellence within market data, reference data and enterprise data management.
/jlne.ws/2IZdY4C
Rise of The Neo-Banks: Hong Kong Issues New Guidelines for Virtual Banks
FintechNews.hk
The Hong Kong Monetary Authority (HKMA) published today a revised Guideline on Authorization of Virtual Banks (the Guideline) following the completion of a public consultation.
/jlne.ws/2IZBmPq
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| Cryptocurrencies | | Top stories for cryptocurrencies | Crypto Wallet That Lured $35 Billion in a Year Wins IDG Backing
Yuji Nakamura - Bloomberg
It pays to be early, especially when it comes to cryptocurrencies.
Take ImToken Pte., a Chinese startup that developed one of the first cryptocurrency wallet apps to support the Ethereum blockchain. The free software has attracted 4 million users, who've used it to stash $35 billion of crypto assets over the past year, more than at big-name competitors including Coinbase Inc.
/bloom.bg/2Jh6N7f
Asus made a crypto-mining motherboard that supports up to 20 GPUs
Stefan Etienne - The Verge
Asus announced the H370 Mining Master motherboard today, which is specifically designed for cryptocurrency mining. It supports up to 20 graphics cards  yes, 20  along with streamlined connectivity by allowing USB riser cables to plug directly into the PCB over PCIe.
bit.ly/2LLbyV6
CEX vs. DEX: Which Crypto Exchange Model is Best?; New TABB Group Research Examines Traditional versus New Decentralized Models
Tabb Group
With institutional investors wary of risks inherent to centralized exchanges (CEXs), attention is returning to decentralized exchange (DEX) models, says TABB Group in "Crypto Exchanges: Returning to Bitcoin's Decentralized Roots," new research that examines current crypto exchange models, technology and market landscape, the second in a series of TABB reports covering the role of institutional players in the cryptocurrency trading markets and the execution platforms vying for their business.
/jlne.ws/2kF1LUe
Deutsche Börse Deploys Massive Overhaul to Invest in Blockchain, Other Technologies
Anatol Antonovici - Cryptovest.com
Frankfurt-based Deutsche Börse, the company behind the world's ninth largest stock exchange, wants to invest 270 million euro in projects and tools related to blockchain, artificial intelligence, big data analytics, cloud computing, and robotics. The move is part of its Roadmap 2020 strategy, which was presented on Wednesday. To achieve this, the company will cut 350 jobs. Currently, Deutsche Börse has over 5,200 employees.
bit.ly/2Jl2hoi
Biggest Cryptocurrency Exchange in Poland to Move to Malta; BitBay has been thrown out of a Polish bank for the last time.
Simon Golstein - Finance Magnates
Polish cryptocurrency exchange BitBay is moving to Malta because it can't open a bank account in its homeland.
/jlne.ws/2kBBiqp
Police, suspected scams, and mayhem: Here's what went down at a cryptocurrency influencer award ceremony
Zoë Bernard - Business Insider
"This is the sketchiest thing I've ever been a part of," says YouTuber Siraj Raval, midway through an awards ceremony billed as an event to honor both himself and other online influencers in the cryptocurrency space.
/jlne.ws/2kAM4Nw
Bitcoin's influence over cryptocurrency prices could end soon, says Ripple CEO; Cryptocurrency prices have been highly correlated with bitcoin, falling in lockstep for the first half of 2018.
Kate Rooney - CNBC
Cryptocurrency prices have been highly correlated with bitcoin, the first and most famous out of thousands that exist. But that could end soon as markets start to acknowledge the differences between these assets, according to Ripple CEO Brad Garlinghouse.
/jlne.ws/2kEtW5G
Bitcoin could be extinct by 2118: Yale's Robert Shiller
Stephanie Landsman - CNBC
Nobel Prize-winning economist Robert Shiller is drawing parallels between the world's leading cryptocurrency and the dinosaurs. According to the Yale professor, bitcoin could go extinct within the next 100 years.
/jlne.ws/2IZi10O
Forget Airline Miles. Crypto Coins Are Coming to Reward Programs
Olga Kharif - Bloomberg
Retailers, car rental companies look to shift incentives; Tokens can often be converted to cash, digital currencies
Rene Konrad earns bonus miles from four airlines, plus loyalty points from six retailers and credit cards. But the one loyalty program he is most excited about now offers him something different: digital coins.
/jlne.ws/2IZtOvV
CLS makes R3 blockchain investment; FX settlement firm CLS has invested $5 million in blockchain consortium R3.
Hayley McDowell - The Trade
Foreign exchange (FX) settlement and market infrastructure specialist CLS has made a $5 million strategic investment in blockchain software consortium, R3.
/jlne.ws/2H6uPwJ
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| Politics | | An overview of politics as it relates to the financial markets | Navarro Rebukes Mnuchin for Declaring China Trade War 'On Hold'
Jenny Leonard and Rich Miller - Bloomberg
White House trade adviser Peter Navarro criticized Treasury Secretary Steven Mnuchin for declaring the U.S.-China trade war was on hold, calling the remarks an "unfortunate sound bite" and acknowledging there's a dispute that needs to be resolved.
/bloom.bg/2LISgQd
Trump Shows How Not to Be a Protectionist; Tariffs are better than quotas and other lessons in how to do protectionism well
Greg Ip - WSJ
Free trade, for all its virtues, isn't an easy sell. Every country applies some level of protectionism out of economic or political necessity. But protectionism can be done well or done badly. Done well, it minimizes costs to taxpayers and consumers, maximizes benefits to domestic industry, and discourages bad behavior by trade partners. President Donald Trump routinely does protectionism badly, using the wrong tools on the wrong behavior and the wrong countries.
/jlne.ws/2IWghFs
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | David Lynn - Leading Securities and Corporate Governance Attorney - Rejoins MoFo's Corporate Group; Renowned authority in securities law and corporate governance and former Chief Counsel of the SEC's Division of Corporation Finance returns to firm as a partner
Morrison & Foerster
Morrison & Foerster, a leading global law firm, is pleased to announce that former partner David Lynn is rejoining the firm's Corporate Department and Corporate Finance group; he will be based in the Washington, D.C. office. Mr. Lynn, a market leader in securities, corporate governance and public company counseling, previously served as the Chief Counsel of the U.S. Securities and Exchange Commission's Division of Corporation Finance. At the SEC, Mr. Lynn led the SEC's efforts to implement and interpret the rules adopted by the SEC following passage of the Sarbanes-Oxley Act of 2002. Mr. Lynn also led the SEC's rulemaking team that drafted amendments to the SEC's executive compensation and related party disclosure rules in 2006.
/jlne.ws/2kE1LUe
CFTC Commissioner Behnam to Provide Keynote at the Blockchain for Impact Global Summit
CFTC
/jlne.ws/2xsmeV
Weakened Volcker Rule marks big win for Wall Street; Regulators watered down one of the Obama administration's key financial reforms. Here's why banks are happy about it
Aaron Elstein - Crain's New York Business
Today, the Federal Reserve approved changes to the Volcker Rule, an Obama-era reform that ranks high on Wall Street's list of most hated regulations. A short primer on what this means:
/jlne.ws/2kEu4SI
US regulators begin to ease Volcker rule; Changes will make it easier for banks to conduct 'market-making' trades for clients
Barney Jopson in Washington and Robin Wigglesworth in New York - FT
US regulators have begun an easing of the Volcker rule on bank risk-taking, proposing to give institutions much greater freedom to trade by cutting back a centrepiece of post-crisis reforms.
/jlne.ws/2J0CTF0
Ex-Goldman Sachs Banker Sues Federal Reserve Over Lifetime Ban
By Bob Van Voris - Bloomberg
A former Goldman Sachs Group Inc. banker facing a possible lifetime ban from the banking industry sued the Federal Reserve, claiming the regulator is taking too long to reach a final decision in his case.
/jlne.ws/2kBv2Pm
Major changes affecting reported net assets and profit, and other focuses for 30 June 2018 reporting
ASIC
Announcing its focus areas for 30 June 2018 financial reports of listed entities and other entities of public interest with many stakeholders, ASIC has called on companies to focus on new requirements that can materially affect reported assets, liabilities and profits.
/jlne.ws/2IWeH6u
ASIC gives disclosure relief during transition to AFCA
ASIC
ASIC has announced it will give financial firms, including superannuation trustees, transitional relief until 1 July 2019 to allow them time to update mandatory disclosure documents and periodic statements with the contact details of the Australian Financial Complaints Authority (AFCA).
/jlne.ws/2H4X6U5
SEC Charges Long Island Investment Professional in $8 Million Scam Targeting Long-Standing Brokerage Customers
SEC
The Securities and Exchange Commission today charged a former registered representative with defrauding long-standing brokerage customers in an $8 million investment scam.
/jlne.ws/2stPbuw
FCA publishes outcome of high-cost credit review
UK FCA
The Financial Conduct Authority (FCA) has announced new proposals designed to protect millions of people who use overdrafts and high-cost credit.
/jlne.ws/2H6H78i
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | We Asked Risk-Parity Practitioners If We Should Worry About It
Brandon Kochkodin - Bloomberg
Market crash with no obvious culprit? Struggling to identify systemic risks? Unforeseen asset rotation? Blame risk parity. You won't be the only one to do so.
The portfolio strategy made famous by Ray Dalio has ballooned in popularity over the past two decades to an estimated $175 billion of assets. Check out Bridgewater Associates LP's account of developing the company's All Weather strategy, and you'll see the attraction. By identifying "timeless and universal" laws of investing, namely that markets tend to go up and that diversification mitigates risk, risk parity can provide equivalent returns with lower risk than a traditional 60-40 portfolio.
/bloom.bg/2LJuLX3
Internet advice may have cost this GE investor $500K right before his retirement;
John Flannery, president and chief executive officer of GE.
Shawn Langlois - MarketWatch
While there are certainly morsels of investment wisdom to be gleaned from unlikely corners, seeking critical retirement advice from the internet's peanut gallery can be hazardous to your financial health. Just ask one Reddit user by the name of "quantforce."
/jlne.ws/2J01GsT
Exxon CEO urges New York prosecutor to rethink climate change probe
Ernest Scheyder - Reuters
Exxon Mobil Corp's chief executive said on Wednesday he hopes the new attorney general in New York "comes to a different conclusion" than predecessor Eric Schneiderman on a climate change probe into the world's largest publicly traded oil producer.
/jlne.ws/2kDe3MP
US housebuilder calls off 'manufactured default'; Hovnanian will make credit payments after Blackstone's GSO settles lawsuit with Solus
Joe Rennison in New York - FT
A "manufactured default" of a US housebuilder that caused uproar in the credit derivatives market has been called off, after Blackstone-backed hedge fund GSO and Solus Asset Management settled a legal dispute over the trade.
/jlne.ws/2kFtAf0
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Surprise! Hedge-funder who charges a 44% performance fee tops list of richest investors; James Simons, founder of Renaissance Technologies.
Shawn Langlois - MarketWatch
"When everyone is running around like a chicken with its head cut off, that's pretty good for us." That's a quote from hedge-fund legend James Simons back in the days of the dot-com bubble in November 2000, but it still applies today.
/jlne.ws/2kBvMnC
Bill Gross Was Wide Awake During His Nightmare; His Janus fund was positioned for a strong bear market, even though he predicted just a mild one.
Brian Chappatta - Bloomberg
Bond guru Bill Gross had a really bad day on Tuesday. In fact, it was the steepest loss for his $2.1 billion Janus Henderson Global Unconstrained Bond Fund since its inception in 2014.
/jlne.ws/2kE3Dg0
Bond Legend Bill Gross Had a Nightmare Day Yesterday
Charles Stein , Luke Kawa , and John Gittelsohn - Bloomberg
His Janus fund posted its biggest one-day loss since inception; Other bond funds soared thanks to the steep drop in yields
Bill Gross had his worst day in almost four years yesterday. For other bond managers, it was more like Christmas in May.
/jlne.ws/2kBFh6o
Bill Gross's bond fund suffered worst day since launch; Decline of over 3 per cent occurred as Italian crisis rocked fixed income markets
Robin Wigglesworth in New York - FT
Bill Gross's fund at Janus Henderson suffered its worst day since its inception on Tuesday, plunging over 3 per cent in value as bond markets were rocked by Italy's financial crisis.
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Morgan Stanley's CEO calls Soros' prediction of a global crisis 'ridiculous'
Lucy White - City AM
Gorman was scathing of Soros's pessimistic outlook (Source: Getty)
The chief executive of Morgan Stanley, James Gorman, has hit out at doom-mongering comments which billionaire investor George Soros made earlier this week.
/jlne.ws/2kGYGTH
The 200-Plus China Stocks That Are About to Join MSCI's Indexes
Kristine Servando - Bloomberg
China's yuan-denominated shares will be added after the close; Pricey picks on list include AI company and metal miner
More than 200 Chinese companies will officially be inducted into MSCI Inc.'s equity indexes after the market close on Thursday, opening up the world's second-largest equity market -- with its big swings and unique idiosyncrasies -- to global investors.
/jlne.ws/2kEo4Jm
Five key points about MSCI's China listings launch; Index provider is adding 233 mainland-listed companies to its flagship EM group
Emma Dunkley - FT
Index provider MSCI has included more than 200 Chinese mainland-listed companies in its flagship Emerging Markets index for the first time. MSCI on Thursday brought 233 so-called A-shares into the benchmark, which is used to underpin about $1.6tn of assets globally.
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Jamie Dimon Tops List of Highest-Paid Finance CEOs; JPMorgan's chief executive made $28.3 million in 2017, up 4% from a year earlier
Theo Francis - WSJ
The highest-paid banking and finance chief executive in the S&P 500 is no surprise. It is James Dimon, head of JPMorgan Chase & Co., the biggest U.S. bank by assets and market capitalization.
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Fitch Branches Out More From Ratings, Buys Data Provider; Fulcrum Financial Data owns LevFin Insights and CapitalStructure, publications that focus on leveraged and distressed debt markets
Gunjan Banerji - WSJ
Fitch Group has agreed to buy information provider Fulcrum Financial Data from private-equity firm Leeds Equity Partners, its latest move to expand beyond credit ratings.
/jlne.ws/2su3TBw
Deutsche Bank shares slip after US unit placed on problem bank list
Adam Samson in London - FT
Deutsche Bank's stock came under pressure on news that the German lender's US unit has been added to a key American regulator's list of banks with serious weaknesses that threaten their survival.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | They're Whispering the D-Word in Asia's Junk Market; China's high-yield sales, and defaults, are climbing.
Shuli Ren - Bloomberg
Country Garden Holdings Co. has a message for Asian debt junkies  the party's over.
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EU plans EUR30bn fund to help crisis-hit eurozone countries; Loan scheme for single currency members is less ambitious than idea proposed by Macron
Jim Brunsden and Mehreen Khan in Brussels - FT
Brussels is to propose a EUR30bn loan plan for countries hit by economic shocks, as it responds to French calls for a eurozone crisis-fighting budget.
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China emerges as Asia's surprise leader on data protection; Europe's GDPR rules prompt work to improve regulation across the region
Louise Lucas in Hong Kong - FT
China has dedicated itself to collecting information on its citizens but the country is now emerging as a surprise leader in Asia on data privacy rules.
/jlne.ws/2J2MPOp
Italy Ain't Over Till the Bond Vigilantes Sing; They're more worried about a spending free-for-all than Italy leaving the EU.
Mark Gilbert - Bloomberg
"Italy's fate does not lie in the hands of financial markets," European Commission President Jean-Claude Juncker said this week. The bond vigilantes might have something to say about that.
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | Hammond says UK will have to stick with new EU privacy rules; Chancellor responds to criticism of GDPR by US commerce secretary on Silicon Valley tour
Hannah Kuchler in San Francisco - FT
Philip Hammond, the UK chancellor, says the country will have to stick with EU privacy rules even after Brexit, despite the US finding the new data protection regime "uncomfortable".
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