| October 31, 2018 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
JLN Staff
Happy Halloween from the JLN Staff.~JJL
ICE's third quarter earnings showed net revenues of $1.2 billion, with data and listings generating $642 million of it.~JK
All your life you will be associating with people of other beliefs and customs. It is your duty to respect these people for their beliefs and customs, and to live your own. From the Boy Scout Handbook in 1948.~JJL
The Consolidated Audit Trail NMS Plan participants published the final technical specifications on Tuesday (link is to the full PDF). It's 175 pages. Luckily, the participants also released a 182-page document covering varying reporting scenarios based on the huge array of routing and execution choices available to those in the equity and options worlds.~SD
Appropriate for today (Halloween in the U.S.), Bloomberg reports that chocolate makers such as Mars Inc. are trying to bring millennials into cocoa farming in Indonesia as aging planters, pests and diseases have greatly dampened supply. They aim to attract young people to cocoa cafes with free WiFi. The Internet and chocolate - two great tastes... ~SR
Don Sandburg died on October 6. He was a family friend a long time ago, but he was also the last living member of the original cast of Bozo the Clown on WGN television in Chicago. Sandburg played Sandy the Clown. I own a piece of Bozo memorabilia in the form of a desk my parents bought from Sandburg when he left Chicago and moved to California in 1969.~JJL
The first time I was at WGN television studios was to be in the audience of the Bozo the Clown show, or Bozo Show. The next time I was in the studios of WGN television was for the Weather merit badge class WGN put on as part of Trading Tech 300.~JJL
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UK competition authority gives green light for CME and NEX merger; CME and NEX have received clearance from the UK competition authority, meaning all regulatory and antitrust approvals have been given.
Hayley McDowell - The Trade
US futures exchange CME Group has received the green light from the competition regulator in the UK for its £3.9 billion takeover of NEX Group.
bit.ly/2Q6QzO3
***** See the CME Group press release on this HERE.~JJL
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Rosenblatt Forms Investment Banking Advisory Board
Rosenblatt
Rosenblatt Securities is pleased to announce that it has formed an Investment Banking Advisory Board. Comprised of a distinguished group of financial-technology and capital-markets industry leaders, the Advisory Board will help Rosenblatt's well-respected banking team stay on top of cutting-edge industry developments, expand its network and source transactions.
/goo.gl/c5fuog
***** At the top of the list, mostly because he is tall and has a name that starts with "A," is Thomas Ascher.~JJL
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NFA orders New York, NY swap dealer Mizuho Capital Markets LLC to pay a $900,000 fine
NFA
NFA has ordered New York, NY swap dealer Mizuho Capital Markets LLC (Mizuho Capital) to pay a $900,000 fine. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Mizuho Capital. The BCC found that Mizuho Capital used inadequate processes to assess the risks of its uncleared swaps and back test, benchmark and validate its margin model.
bit.ly/2OYmkMJ
****** Risk on, Fine on.~JJL
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Tuesday's Top Three
People really want to know where Leo Melamed and Pat Arbor are living these days. For the third straight day, news of Leo's new home in the Gold Coast and Pat's new home in the big house topped our most read stories on Tuesday. The Sun-Times article Judge risks 81-year-old Pat Arbor dying in jail, ex-CBOT chief's lawyer says went from the second most read story on Monday to the most read piece yesterday. Second was the Chicago Tribune's piece on Melamed's real estate moves Former Chicago Mercantile Exchange chairman sells contemporary Glencoe mansion, buys Gold Coast condo. Meanwhile, Bloomberg's Stablecoin Battle Is for the Heart of Internet Economy was third.
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MarketsWiki Stats
134,531,359 pages viewed; 23,298 pages; 215,314 edits
MarketsWiki Statistics
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| Lead Stories | U.S. Market-Manipulation Cases Reach Record; CFTC and Justice Department target spoofing and other illegal tactics, helped by data-sharing deal with key exchange
Gabriel T. Rubin - WSJ
Federal regulators have ramped up their pursuit of traders who use a bluffing tactic known as spoofing to manipulate market prices, enforcement officials said, leading to a record number of manipulation cases.
/on.wsj.com/2Q6yCza
**Somewhere, someone at TT is saying, "I can help with that."~JK
Denmark to revamp financial watchdog in wake of Danske Bank scandal: minister
Reuters
Denmark plans to strengthen its financial regulator to make it better able to fight money laundering, its business minister said on Thursday, as the country's largest bank, Danske Bank, is embroiled in a major scandal.
/reut.rs/2QfKjDC
Brexit, banks and clearing: dealing with the risks
Jim Brunsden, Philip Stafford and Caroline Binham - Financial Times
The financial industry has raised a cheer for the EU's decision to address a big potential source of instability in a no-deal Brexit: the issue of access to London's clearing houses.
But banks and other institutions' worries about the consequences of an acrimonious break-up between London and Brussels are far from over as Brexit day approaches. Those concerns are heightened by the two sides' notable failure in recent weeks to strike a divorce deal.
/goo.gl/gPu3P5
Bitcoin Turns 10: Still Not All Grown Up; The digital currency was meant to be a payments network. That isn't exactly what happened.
Paul Vigna - WSJ
It has been a decade since the digital currency bitcoin was born, and in that time it has become a source of fascination for investors, speculators, true believers and skeptics around the world. What it hasn't become, though, is the one thing it was built to be: a payments system.
/on.wsj.com/2Qa4vqv
Deutsche Boerse steps up clearing battle with London ahead of Brexit
Huw Jones - Reuters
Deutsche Boerse has announced plans to intensify competition with rival London Stock Exchange ahead of Brexit, saying it would expand a profit-sharing scheme.
/reut.rs/2QcDsv3
Goldman, JPMorgan Hit Pause on Intern Recruiting 'Madness'; A push in recent years to move up application deadlines isn't bringing in the kinds of candidates the banks need
Liz Hoffman - WSJ
Two Wall Street investment banks are easing up in the race to hire their most junior employees.
/on.wsj.com/2Q9p0Uu
TP ICAP in talks to buy US's Axiom Commodities Group
Philip Stafford - FT
TP ICAP, the UK interdealer broker, is in advanced talks to buy smaller US rival Axiom Commodity Group, in a move that will further bolster its position as the world's largest energy broker.
/on.ft.com/2Q9XjuE
Bunge plans board committee to explore sale; Commodities trader responds to demands from activists Continental Grain and DE Shaw
Gregory Meyer - Financial Times
Bunge, the 200-year-old grain and oilseeds trader, is planning to establish a board committee to explore a sale of the company, in a deal with two activist shareholders including an agricultural investor with an even older grain trading pedigree.
/on.ft.com/2Q6ubo8
****Bloomberg here and WSJ here.
Standardized Approach for Calculating the Exposure Amount of Derivative Contracts
Federal Reserve
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (together, the agencies) are inviting public comment on a proposal that would implement a new approach for calculating the exposure amount of derivative contracts under the agencies' regulatory capital rule. The proposed approach, called the standardized approach for counterparty credit risk (SA-CCR), would replace the current exposure methodology (CEM) as an additional methodology for calculating advanced approaches total risk-weighted assets under the capital rule.
/goo.gl/TSp9Kz
China regulator says will allow wholly-owned foreign banks in China
Reuters
Foreign banks will be allowed to set up wholly-owned banks and branches in China, according to draft rules issued by the banking and insurance regulator on Thursday.
/reut.rs/2Q8R5Lx
Goldman Sachs has customers getting ready to trade its bitcoin derivative, but it's not rushing to push more products
Frank Chaparro - The Block Crypto
Goldman Sachs is onboarding clients for its bitcoin derivatives product; But the firm is not looking into a similar contract for ether, despite some reports
Goldman Sachs, the white-shoe New York investment bank, has been a darling of the cryptocurrency world, with many observers waiting with bated breath for the firm to make a big splash into the market.
bit.ly/2QdZxcE
Closing the Cash Gap With Cryptocurrency; In emerging markets, the shallow reach of traditional money systems means there's less resistance to new financial technology.
Dune Lawrence, Eric Ombok - Bloomberg
At the Sifa Children's Center, shacks made of corrugated metal serve as classrooms for some 300 pupils, circling an expanse of dusty, hard-packed earth that's both playground and meeting space. Beyond the school stretches Gatina, one of the poorest neighborhoods in Kenya's capital of Nairobi. Headmaster Francis Wanjala is standing in an unused classroom studying his phone; he's just learned how to trade a blockchain-based digital token.
/bloom.bg/2Q97oI8
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | NSE-SGX's Gift City foray faces tech glitches; delay of 18 months expected
Shrimi Choudhary - Business Standard News
The potential collaboration between the National Stock Exchange (NSE) and the Singapore Stock Exchange (SGX) for routing trades through Gift City in Gujarat is unlikely to take off anytime soon.
People in the know said the proposed Gift City-connect between the two exchanges could take anywhere between 12 and 18 months to fructify. Both NSE and SGX submitted their initial proposal to their respective regulators  Securities and Exchange Board of India (Sebi) and Monetary Authority of India (MAS)  earlier this month. NSE and SGX are eyeing an arrangement on the lines of the Shanghai-Hong Kong Stock Connect, said the people.
bit.ly/2Q3gM08
Stock Exchanges Need to Find Their Mojo
Mary Leung - CFA Institute Market Integrity Insights
After years of debate, both the Singapore Exchange and the Stock Exchange of Hong Kong have amended their rules to allow the listing of companies with dual-class share (DCS) structures. Their decision to do so was not made lightly and was dogged by controversy.
/cfa.is/2Q3mkaY
Cboe Global Markets Declares Fourth-Quarter 2018 Dividend
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), one of the world's largest exchange holding companies, today announced its Board of Directors has declared a quarterly cash dividend of $0.31 per share of common stock for the fourth quarter of 2018. The fourth-quarter 2018 https://on.mktw.net/2Qa8OCb
Eurex Prepares FX Futures and 360T Upgrades
Victor Golovtchenko - Finance Magnates
The earnings report of Deutsche Börse reveals that the company is working on delivering FX futures to the market. The Frankfurt-headquartered firm announced a set of positive results earlier on Tuesday.
bit.ly/2Q7YFWM
Shanghai exchange to start pulp futures trading on Nov 26
Reuters
The Shanghai Futures Exchange (ShFE) said on Friday it would start trading pulp futures on Nov. 26 after receiving approval for the launch from the China Securities Regulatory Commission.
/reut.rs/2Qe09Pu
Intercontinental Exchange Announces Board Approval of New $2.0 Billion Repurchase Authorization and Fourth Quarter 2018 Dividend of $0.24 Per Share
ICE
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced its Board of Directors has authorized a new share repurchase program and its quarterly dividend of $0.24.
bit.ly/2Q7Qc60
Intercontinental Exchange Reports Third Quarter 2018 ; Third quarter revenues of $1.2 billion, +5% y/y
ICE
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listing services, today reported financial results for the third quarter of 2018. For the quarter ended September 30, 2018, consolidated net income attributable to ICE was $458 million on $1.2 billion of consolidated revenues less transaction-based expenses. Third quarter GAAP diluted earnings per share (EPS) were $0.79. Adjusted net income was $491 million in the third quarter and adjusted diluted EPS were $0.85, up 16% year-over-year. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS, organic data revenue and free cash flow.
bit.ly/2Q6x8F6
HKEX confirms Digital Asset partnership for post-trade blockchain prototype; Digital Asset to provide blockchain-based platform for completion of post-trade allocations and processing for northbound trades under Stock Connect.
Joe Parsons - The Trade
The Hong Kong Exchange and Clearing (HKEX) has confirmed it is partnering with blockchain specialist Digital Asset for a new post-trade platform using the technology.
bit.ly/2Q9lZUf
Deutsche Familienversicherung launches share subscription via the Frankfurt Stock Exchange
Deutsche Börse Group
First day of trading planned for November 14 / Subscription function DirectPlace supports the placement of shares
bit.ly/2Q6zCTW
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | The former dentist uprooting Korea's fintech market wants to go global
Devjyot Ghoshal in Seoul - Quartz
Lee Seung-gun cut his teeth as a dentist before realizing his dream was to be an entrepreneur. So, eight years ago, he put down his drill and jumped into business. There were teething troubles: his initial eight attempts, all mobile services companies, ended in failure.
bit.ly/2Q6t9s8
Cinnober Secures Patent For Real-Time Risk Assessment
Finextra
Cinnober, a global independent provider of exchange and clearing technology, announce today that the U.S. Patent and Trademark Office has granted the company the patent Risk Assessment US 9,959,574 originally filed in 2011.
/goo.gl/wLYCn3
Lack of women 'Stem' students has led to gender 'digital divide'; OECD warns some parity in innovation will be reached only in 2080
Valentina Romei in London - FT
A lack of women and girls studying "Stem" subjects in schools and universities has led to a "gender digital divide" among inventors and software developers in developed economies, according to a new report from the OECD.
/on.ft.com/2Q9qEp8
Robo-adviser Nutmeg launches phone advice
Kate Beioley - FT
Online wealth manager Nutmeg is launching an over-the-phone financial advice service to its customers in a sign that so-called robo-advisers are recognising demand for a more human service than digital-only offerings can provide.
/on.ft.com/2Q8hSaZ
The World's Top Hubs For Islamic Fintech Startups
Forbes
Among the global wave of innovations in financial technology, a growing number of companies are looking to modernize Islamic finance.
Against that backdrop, Malaysia has emerged as the world's top hub for Islamic fintech startups, with 18 companies operating in the sector, according to new findings from the Dubai Chamber of Commerce and Industry, which based its analysis on recent data from IFN Fintech.
bit.ly/2yH0vqK
ADM, Cargill partner in technology jv
Jeff Gelski - World Grain
Archer Daniels Midland Co. and Cargill have agreed to form a technology joint venture called Grainbridge LLC that will provide grain marketing decision support, e-commerce and account management software for farmers in the United States and Canada. The joint venture will develop digital tools to help farmers consolidate information on production economics and grain marketing activities into a single digital platform, at no cost to farmers.
bit.ly/2qsy2kl
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| Cryptocurrencies | | Top stories for cryptocurrencies | Ethereum Faithful Pay Homage at Prague Developers Conference
Camila Russo - Bloomberg
Vitalik Buterin, one of the founders and the public face of the Ether, has had a rough go as of late amid a very public fight with crypto critic Nouriel Roubini.
/bloom.bg/2Q6R1Md
Crypto conferences ain't what they used to be
Jemima Kelly - FT
This week, in the grand surroundings of the Methodist Central Hall in London's Westminster, a conference was convened with a rather noble title: "Blockchain and the Future of Humanity: Economy. Environment. Ethics."
/on.ft.com/2Q8hY2l
Bitcoin's Halloween Birth 10 Years Ago Led to Unimaginable Gains
John McCorry - Bloomberg
Happy Anniversary to Bitcoin! It was Halloween 2008 when Satoshi Nakamoto, which may be a pseudonym for one or more programmers, published a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System.
/bloom.bg/2Qa25YX
Crypto hardware maker looks to capitalise on Chinese demand; France's Ledger expands to Asia eyeing investor appetite for offshore crypto funds
Emily Feng in Beijing - FT
Ledger, one of the world's biggest makers of hardware devices used to store cryptocurrencies, is expanding into Asia-Pacific, looking to capitalise on strong Chinese demand for cryptocurrencies storage despite a ban on such exchanges in China.
/on.ft.com/2Q9ThTc
Becoming "Blockland:" Ohio wants to lead blockchain business
Thomas Gnau - Dayton Daily News
When it comes to the potential of the little understood blockchain technology, Valentina Isakina, financial services managing director for JobsOhio, doesn't mince words.
bit.ly/2qkQ3kw
Cryptocurrency start-up Coinbase valued at $8 billion despite bitcoin's plunge
Kate Rooney - CNBC
Bitcoin's value has dropped drastically this year, but the value of cryptocurrency exchange Coinbase is skyrocketing in the opposite direction.
/cnb.cx/2yH7ShW
25% of 'affluent' millennials hold cryptocurrency: report
Kristin Myers - Yahoo Finance
A full quarter of affluent American millennials are using or holding cryptocurrency. That's among the findings in the Millennials with Money report from Edelman. The survey defines affluent millennials as aged 24-38, making $100,000 in individual or joint income, or having $50,000 in investable assets.
/yhoo.it/2JrDY5D
New Bank of America Patent Hints at Plan to Store Cryptocurrency Keys
Nikhilesh De - Coindesk
Bank of America was awarded a patent for a device that stores cryptographic keys on Tuesday, and the document's details hint at applications for cryptocurrencies. In a patent awarded Tuesday by the U.S. Patent and Trademark Office, the bank outlines a "hardened storage device" for storing private keys - such as those used for blockchain platforms - explaining that, at present, most keys are stored locally protected by nothing more than a password.
bit.ly/2CNCaTj
Former Fed Chair Janet Yellen Is 'Not A Fan' of Bitcoin
Nikhilesh De - Coindesk
Former U.S. Federal Reserve chair Janet Yellen is "not a fan" of bitcoin. Speaking at the Canada Fintech Forum on Monday, Yellen, who served as chairman of the Board of Governors of the Fed between 2014 and 2018, outlined a number of concerns she has with bitcoin in general and the idea of central bank-issued cryptocurrencies specifically.
bit.ly/2Q9dpov
Taiwanese Lawmaker Proposes New Business Category for Crypto Startups
Nikhilesh De - Coindesk
Taiwan's "Crypto Congressman" continued his push for more modernized regulation around the tech by proposing new rules for token sales.
bit.ly/2qhQLyF
UK watchdogs propose regulatory framework for cryptoassets
Finextra
UK financial watchdogs have outlined proposals to adopt a range of measures to bring cryptoassets into the regulatory fold.
bit.ly/2Qa7IX5
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| Politics | | An overview of politics as it relates to the financial markets | 'It's disturbing': Fox News host slams Trump's anti-media rhetoric; Martha MacCallum says it's wrong for the president to label journalists 'the enemy of the people'
Reena Flores - Politico
As President Donald Trump amplifies his attacks on journalists, one Fox News host is calling out the chief executive for his hostile rhetoric. Martha MacCallum, host of the network's prime-time show "The Story with Martha MacCallum," said she took it "personally" when the president applied blanket labels to the news media
/politi.co/2Q8QZDF
Markets aren't struggling because investors fear Democrats
Ben White - Politico
Markets are not hitting turbulence because investors fear Democrats gaining power on Capitol Hill. Instead, blame trade wars and worries about capital investment.
/politi.co/2Q8QTvN
Trump Is Now Bad for the Stock Market; U.S. equity valuations are lower than they were before the election.
Stephen Gandel - Bloomberg
The Trump bump is turning into a significant Trump discount. That's been more than evident of late. The S&P 500 Index fell for the first three days of the week, culminating in a 3 percent plunge Wednesday as worries over China's economy and President Donald Trump's trade-war maneuvers morphed into a general sense of gloom about the global economic outlook. On Thursday stocks rebounded, but the rockiness has added to a growing sense that the market's foundation is less than stable, and that Trump's trade steps are what is testing the cracks.
/bloom.bg/2Q954RF
America's Need for Skilled Immigrants Isn't Going Away; A new book says growth will sputter without more talented foreigners, but the system for admitting them must be reformed.
Noah Smith - Bloomberg
Skilled immigration is good. The U.S. economy depends on it. But the nation's system for admitting educated workers needs major improvements.
/bloom.bg/2Q9PWUa
BlackRock's Merz Joins Race to Succeed Merkel as Party Head
Arne Delfs and Patrick Donahue - Bloomberg
CDU veteran and Merkel antagonist heads German-U.S. group; Leadership showdown shaping up for December party convention
Friedrich Merz, supervisory board chairman of BlackRock Inc.'s German asset management unit, joined the race to lead the country's biggest party as Chancellor Angela Merkel steps down from the post.
/bloom.bg/2Q9W9PO
Dealmakers Worry Anti-Globalization Movement Could Dampen Transactions
Ruth David - Bloomberg
Dealmakers, flush from what could be a record year for mergers and acquisitions, are watching for signs that growing protectionism and anti-globalization movements will dampen some cross-border transactions.
/bloom.bg/2Q95FTp
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | Fed sets October 31 meeting to vote on bank deregulation rules
Pete Schroeder - Reuters
The U.S. Federal Reserve will consider a proposal that would ease rules for all but the nation's largest banks at an Oct. 31 board meeting, the central bank announced on Wednesday.
/reut.rs/2Q6tkni
U.K. Court Makes It Official: Ex-HSBC Trader Won't Be Extradited
Jonathan Browning - Bloomberg
U.S. prosecutors inadvertently disclosed decision last week; Stuart Scott had been charged with front running an FX order
Stuart Scott, the former head of currency trading at HSBC Holdings Plc, won't be sent to New York to face wire-fraud charges after U.K. judges rebuffed a request by American prosecutors.
/bloom.bg/2Qe3HkM
City watchdog weighs new rules on insurance pricing; FCA says it has found 'a number of areas of potential consumer harm'
Judith Evans in London - FT
The City watchdog may impose new rules on home and motor insurance pricing after finding that home insurers failed to ensure fair deals for customers and were possibly practising racial discrimination.
/on.ft.com/2Q7AVC5
The ELP SI Debate
Hayley McDowell - The Trade
As the industry continues to adapt following the implementation of MiFID II, Hayley McDowell sits down with Ben Springett from Jefferies, Matthew McLoughlin of Liontrust & Jonathan Finney from Citadel Securities, to discuss how the buy-side and brokers are interacting with market maker systematic internalisers.
bit.ly/2Q3gXbE
ASIC 2017-18 Annual Report
ASIC
ASIC today published its Annual Report for 2017-18. The report is a record of ASIC's activities and performance for the previous financial year.
bit.ly/2Q8jr8y
ESMA issues clarifications on clearing and trading obligations ahead of 21 December 2018 deadline
ESMA
The European Securities and Markets Authority (ESMA) has issued today a statement relating to the challenges that certain groups, as well as certain non-financial counterparties above the clearing threshold (NFC+), would face on 21 December 2018 to start CCP clearing some of their OTC derivative contracts and trading them on trading venues.
bit.ly/2Q6Rqyf
Notice of ESMA's Product Intervention Renewal Decision in relation to contracts for differences
ESMA
On 23 October 2018, the European Securities and Markets Authority (ESMA) adopted a Decision under Article 40 of Regulation (EU) No 600/2014 to restrict the marketing, distribution or sale of contracts for differences (CFDs) to retail clients. The Decision renews and amends ESMA Decision (EU) 2018/796.
bit.ly/2Q8kKEN
Proposed Rule Change Relating to FINRA Rule 5110 (Corporate Financing Rule - Underwriting Terms and Arrangements)
FINRA
Financial Industry Regulatory Authority, Inc. ("FINRA") is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend FINRA Rule 5110 (Corporate Financing Rule - Underwriting Terms and Arrangements) (the "Rule") to make substantive, organizational and terminology changes to the Rule.
bit.ly/2Q8LF34
FINRA Fines LPL $2.75 Million for Complaint-Reporting and AML Program Failures
FINRA
FINRA announced today that it has fined LPL Financial, LLC $2.75 million for complaint-reporting and AML program failures that spanned a period of more than three years.
bit.ly/2Q8m6PT
Municipal Advisor Regulation
FINRA
This page provides general guidance regarding municipal advisor regulation. Please refer to the SEC Office of Municipal Securities web page and the Municipal Securities Rulemaking Board website for complete information.
bit.ly/2Q6RGxd
FCA launches general insurance market study
UK FCA
The Financial Conduct Authority (FCA) has today set out the issues it will focus on as part of a market study into how general insurance (GI) firms charge their customers for home and motor insurance.
bit.ly/2Q7U6vG
KPMG partner Thomas Whittle pleads guilty to criminal charges in theft of regulatory data
Francine McKenna - MarketWatch
Former KPMG partner Thomas Whittle changed his plea on Monday, according to court records, to guilty from not guilty on all five counts in the case of the alleged use of stolen confidential regulator information to subvert KPMG's regulatory inspection process. The Department of Justice and the Securities and Exchange Commission allege that Whittle, KPMG's then-national partner-in-charge for inspections, was one of three former partners who encouraged former PCAOB professional Jeffrey Wada, new KPMG partner Brian Sweet and former PCAOB executive Cynthia Holder to divulge stolen information to them and others at the firm.
/on.mktw.net/2Q3DwwJ
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | China & Brazil: Currencies on Diverging Paths?
Paula Attie and Bluford Putnam - CME Group
While the US-Mexico-Canada trade war has been settled with the renaming of NAFTA to USMCA, the US-China trade war appears to be entering a worsening phase. At the same time, the Presidential elections in Brazil provided an important change of leadership that may lead to political and financial reforms. And, Brazil is a beneficiary of China redirecting purchases of soybeans and other products away from the US. The net result suggests that the Brazilian real may gain ground against the U.S. dollar in the coming months while the Chinese yuan may challenge resistance levels and remain on a weakening path.
/goo.gl/s9Vkwi
The Value of Research: Combining Capacity & Opportunity
Hamish Preston - S&P Dow Jones Indices
How much should a portfolio manager be willing to pay for research? This is a question any manager has to answer, but it has recently become more pertinent as newly imposed European rules require the costs of investment research to be unbundled from trading. Here is a brief overview of a stylized framework for estimating relative research values across markets and constituents. You can find the full version in our newly-published paper.
bit.ly/2Q8G0tN
MSCI indexes will not ban stocks that deny shareholders a vote
Trevor Hunnicutt - Reuters
Index provider MSCI Inc said on Tuesday it would allow companies that give shareholders unequal voting rights to remain its current equity indexes, backing down from an earlier proposal that would have reduced exposure to such companies.
/reut.rs/2Debvjp
Treasury Expects to Issue Over $1 Trillion in Debt in 2018; Debt issuance this year could be highest since 2010, the Treasury said, as higher
Kate Davidson - WSJ
The U.S. Treasury Department estimates it will issue more than $1 trillion in debt this year as higher government spending and sluggish tax revenues push the deficit higher.
/on.wsj.com/2Qe2U3i
Glencore Is Going to Get Crazy Rich on Coal Next Year
Thomas Biesheuvel - Bloomberg
Dirtiest fuel likely to eclipse copper as biggest earner; Despite talk about EV-focused mines, coal remains king
Glencore Plc's coal mining business will eclipse its copper unit next year and become the world's biggest commodity trader's most profitable operation.
/bloom.bg/2Qe3ePy
When a Death Spiral Takes a Pronounced Breather: Taking Stock
Arie Shapira - Bloomberg
Before diving into Facebook and their ramifications for the wasteland that is tech (OK not really, but it seems like it if you zone in on the past 30 days), I wanted to bring attention to a possible shift in market sentiment across a brush of macro-sensitive sectors.
/bloom.bg/2Q6VhLR
S&P warns no-deal Brexit would spark recession; Rating agency says the risk of UK crashing out of EU is rising
Adam Samson and Chris Giles in London - FT
S&P Global Ratings said on Tuesday that the chances of a no-deal Brexit had increased and warned that such an outcome would spark a long recession and a likely reduction in Britain's credit rating.
/on.ft.com/2Q6w4B6
October's Market Rout Leaves Investors With No Place to Hide; Dual breakdown in stock and bond prices has upended investors' traditional safety tool kit, leaving many with losses
Michael Wursthorn - WSJ
A brutal October selloff across stocks and bonds has tested investors' resolve in a way not seen since the financial crisis.
/on.wsj.com/2Q6yeRe
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Deutsche Bank to hold more liquidity in securities rather than cash -CFO
Reuters
Deutsche Bank is planning to hold a larger portion of its 270 billion euros in liquidity buffers in securities rather than cash as it seeks to increase its profitability, its Chief Financial Officer said.
/reut.rs/2Qe0UYQ
J.P. Morgan replatforms its hedge fund servicing
Jenna Lomax - Securities Lending Times
J.P. Morgan is replatforming its hedge fund servicing business, with 40 percent of its clients now using its new technology platform.
According to J.P. Morgan, the rest of its client base will be able to use the platform by the end of the year.
J.P. Morgan said its initiative was to simplify and upgrade the tech stack, simplify the operating model, and simplify the location strategy.
bit.ly/2QdU0Cw
Deutsche's DWS asset manager names Woehrmann as CEO
Arno Schuetze - Reuters
Deutsche Bank's recently-listed asset manager DWS named Asoka Woehrmann as chief executive on Thursday, replacing Nicolas Moreau a day after reporting heavy client outflows in the third quarter.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Chinese Banks Can't Escape the Country's Gloom for Long; The country's leading banks are on a tricky path to cleaning up their balance sheets amid a deepening economic downturn
Andrew Peaple - Reuters
Downturn, what downturn? China's economy is clearly slowing: The country's all important manufacturing sector is teetering above contraction, with the purchasing managers index for October dropping to a lower-than-expected 50.2 reading. China's leading banks, though, have barely felt the pain, at least judging by third-quarter earnings that showed improved profitability and asset-quality trends across the board.
/on.wsj.com/2Q6Spi3
The America-Free Trans-Pacific Partnership Is a Done Deal; Australia becomes the sixth country to ratify the 11-nation pact, triggering tariff cuts as soon as December
Rob Taylor - Reuters
A trade pact between 11 Pacific Rim nations will come into force this year after Australia became the sixth country to ratify it, nearly two years after President Trump withdrew the U.S. from talks.
/on.wsj.com/2Q93Gyr
Rivals Reap Rewards as China's Monster Money-Market Fund Shrinks; Regulators put the squeeze on Ant Financial's Tianhong Yu'e Bao, and other funds benefit
Stella Yifan Xie - WSJ
Beijing is forcing the world's largest money-market fund to shrink, creating a bonanza for others.
/on.wsj.com/2Q98ALR
This Is How China Keeps a Firm Grip on the Yuan; The Chinese currency: where it's traded, how it's controlled, what it all means
Mike Bird - WSJ
The yuan just hit its weakest point against the dollar in a decade. That puts it and the country's hybrid financial systemÂwhere the state and the market both play big rolesÂback in the spotlight.
/on.wsj.com/2Q8iI7k
Reality Hits Over-Hyped Hong Kong IPOs; The post-listing performance of many IPOs has been lackluster
Joanne Chiu - WSJ
A bumper year for initial public offerings in Hong Kong is shaping up to be a dismal one for the share prices of many newly listed companies.
/on.wsj.com/2Q8vuTz
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | Britain's Lloyds Bank downplays Brexit fears as profits rise
Emma Rumney, Lawrence White - Reuters
Britain's Lloyds Banking Group (LLOY.L) shrugged off fears of a chaotic, no-deal Brexit and pledged to keep pumping credit into the economy regardless of the outcome of negotiations between Brussels and London.
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Bank of England tells banks to build Brexit cash cushions by March
Huw Jones - Reuters
Banks in Britain must hold enough cash to withstand any disorderly Brexit hitting financial markets next March, Bank of England Deputy Governor Sam Woods said on Thursday.
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The Brexit consequences of a post-Merkel era; German chancellor's scope for showing personal flexibility towards UK has been reduced
Tony Barber - FT
What will be the consequences for Brexit of Angela Merkel's announcement that she is to step down as leader of Germany's Christian Democratic Union party and will not seek a fifth term as chancellor?
/on.ft.com/2Qe5l5W
EU pledges access to UK clearing houses in no-deal Brexit; Short-term permission reflects Brussels' fears over financial stability of bloc
Jim Brunsden in Brussels and Philip Stafford in London - FT
Brussels has sought to quell banker jitters over post-Brexit access to London's capital markets by reassuring European traders they will temporarily be able to use crucial UK derivatives clearing services even if Britain crashes out of the EU without an exit deal.
/on.ft.com/2Q9j3ab
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