| July 21, 2016 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Fine tuning: How CME Clearing Europe Brings New Efficiencies to the Market
John Lothian News
Tina Hasenpusch, CEO of CME Clearing Europe, is focused on many things as the head of the European clearing facility - regional banks, buy side participants, multiple asset clearing services and innovative ways to deliver new and valuable cost reducing services. John Lothian News spoke with her at the FIA IDX conference in London last month to get her thoughts about where CME Clearing Europe is going.
bit.ly/2avj6sI
***** This is an interview Jim Kharouf conducted during IDX.
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ICAP plc announces that Gil Mandelzis has decided to step down as CEO of EBS BrokerTec
ICAP
ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services, announces that Gil Mandelzis, CEO of EBS BrokerTec, has decided to step down from his position and will be leaving the company in due course.
goo.gl/QbYv13
***** Big blow to ICAP, an organization of many changes.
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C.E.O.s Meet in Secret Over the Sorry State of Public Companies
By ANDREW ROSS SORKIN - NY Times
Warren E. Buffett quietly walked through the lobby of JPMorgan Chase's headquarters on Park Avenue in Manhattan last summer and was ushered up to the 49th floor by a security guard, trying to avoid drawing too much attention. Laurence D. Fink, chairman of BlackRock, the world's largest money manager  with more than $4 trillion  soon was also escorted upstairs. Abby Johnson, the chief executive of Fidelity (which invests more than $2 trillion), and Frederick William McNabb III, chief of Vanguard ($3 trillion), were also shepherded to the elevator.
goo.gl/YFo6BW
****** Public companies meet in private?
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FIA's Walt Lukken on Reg AT and the 2016 Agenda
JohnLothianNews.com
Walt Lukken, president and CEO of the FIA, spoke with JLN about what issues the FIA is working on for the remainder of the year. The trade organization is focusing on Reg AT, the BASEL leverage ratio rules and the ramifications of Brexit.
A big concern for the FIA is the CFTC's desire to get and store, without a subpoena, firms' proprietary algorithms, which have enormous intellectual property value for the firms. As for BASEL, the FIA is worried about the negative impact current rules have on clearing. The surprise Brexit vote added another issue to the FIA's plate and, despite a one-year reprieve, MiFID looms in the background.
Watch the video »
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| Sponsored Content |
JPX-Osaka Exchange's new derivatives trading system "New J-GATE" launched!
- Trading hours extended
>From July 19, OSE market is open until 5:30am (JST), i.e. 3:30pm in Chicago, 4:30pm in NY, and 9:30pm in London. Also, its day session opens at 8:45am, 15 minutes earlier than before.
- New products debuted
In addition to OSE's representative Nikkei 225 Futures/Options and TOPIX Futures, TSE Mothers Index Futures, TAIEX Futures, FTSE China 50 Index Futures, and JPX-Nikkei 400 Index Options were added in OSE's product lineup.
- New functions are available
Powered by Nasdaq OMX Genium INET Trading, the New J-GATE brings you: ITCH protocol for multicast market data distribution, OMnet API for lower-latency order entry and TradeGuard for enhanced risk management.
For more information, please visit our website.
Sponsored
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I thought I was clever enough to not get caught
Tayloe Draughon, Neurensic, via LinkedIn
My plan was to show that I was better than the machine. In doing so, we could use my trading to improve Neurensic's machine learning trade surveillance tool. To keep this above reproach, this scheme would be implemented in a fictitious market, the Jelly Bean Exchange, and would trade a fictitious product.
/goo.gl/TIUcxu
***DA: One of the biggest unknowns regarding the CFTC's rules on market manipulation is how one goes about proving "intent." Is machine learning the answer?
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How Traders Use Front-Running to Profit From Client Orders
By LIZ MOYER - NY Times
About $5.3 trillion changes hands daily in the foreign exchange market. When banks make trades in currencies on behalf of customers, similar to when they trade other securities like stocks or bonds, they are supposed to put the client's interests ahead of their own. But that's not how it always works out. In a case announced on Wednesday, prosecutors say two HSBC employees used information they had gotten about a pending client transaction to trade ahead of it, turning a profit for the bank in the process.
goo.gl/1BldD4
***** If employees are front-running for the organization they work for, they are turning it into a criminal enterprise.
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Nations of the World Confront the Pokémon Menace
By KAREN ZRAICK - NY Times
Pokémon Go, the wildly popular augmented-reality smartphone game, expanded officially into 26 more countries this week, even as some security and religious authorities around the globe expressed alarm. In Saudi Arabia, clerics renewed an existing fatwa against Pokémon, calling it "un-Islamic."
goo.gl/wN6yyC
***** A true global threat?
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Wednesday's Top Three
We had a close race for yesterday's top three. Out in front by a nose was the Bloomberg story, China's Biggest Exchange Amps Up Trading Technology Systems. Tied for second (and in no particular order) were the stories, HTG Capital Partners, LLC, to Acquire Operations of Kottke Associates, LLC and DV Trading breaks away from Rosenthal Collins
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| Lead Stories | Watch Out London, Amsterdam Is Coming to Get You
Elco Van Groningen, Corina Ruhe - Bloomberg
Dutch capital to focus on clearinghouses, fintech and niches; Amsterdam lobbying behind the scenes to win U.K. business
Amsterdam is taking a different approach from other European cities to lure London's post-Brexit business: It's focusing on quietly targeting specific sectors like clearing, fintech and high frequency trading.
goo.gl/9UohI3
Wall Street Whacks Pay Hardest in Four Years to Preserve Profits
Laura J Keller - Bloomberg
Goldman, Morgan Stanley and JPMorgan slash first-half pay; Average compensation per employee fell 16% to $137,750
Three of Wall Street's largest investment banks slashed their first-half compensation pools for employees by the most in at least four years.
goo.gl/YABDQc
Ethereum Gets Its Hard Fork, and the 'Truth' Gets Tested
Paul Vigna - WSJ
A controversial solution to a massive theft in the world of cryptocurrencies was implemented on Wednesday. If it works, it will see tens of millions returned to the original owners, but doing so may harm the reputation of the platform on which that currency was created. The "hard fork" of the underlying software behind Ethereum went live Wednesday morning, with miners, developers, and users being give a choice of whether or not to adopt it, setting up a rare and philosophically fraught decision for the fledgling community. If the fork gets adopted, a massive fraud will be reversed - but doing so may harm the integrity of the underlying platform.
on.wsj.com/2auORC9
Deutsche Boerse Secures 55% Shareholder Backing for LSE Deal
Will Hadfield, John Detrixhe - Bloomberg
The German exchange has until July 26 to win acceptance
Deutsche Boerse AG has yet to secure shareholder acceptance for its 10.6 billion-pound ($13.9 billion) takeover of London Stock Exchange Group Plc, although it edged closer with 55.5 percent of investors giving it the go ahead.
goo.gl/Wq7iRw
ICAP to lose electronic trading chief; Interdealer broker confirms departure of Gil Mandelzis
by: Philip Stafford - FT
ICAP is to lose one of its most senior executives after Gil Mandelzis said he would step down as head of the UK interdealer broker's key electronic trading business.
/goo.gl/30GuWH
Dark Pools Must Tame Conflicts of Interest, U.K. Regulator Says
John Detrixhe, Silla Brush - Bloomberg
The venues must provide more detail about how they operate; MiFID II will restrict European dark pool trading in 2018
U.K. regulators are scrutinizing dark pools after several operators were ordered to pay fines in the U.S.
goo.gl/MC0yz1
JP Morgan clients suffer in interbank repo basis blowout; Suspension of DTCC service leaves market "in uncharted territory"
Robert Mackenzie Smith - Risk.net
The suspension of the Depository Trust & Clearing Corporation's (DTCC) interbank repo clearing service last week has seen borrowing costs jump for banks that use JP Morgan to clear their trades rather than rival clearer, BNY Mellon. The DTCC's service allowed participants in the market to trade with each other, regardless of which of the two big clearing banks they used. It was suspended after a proposed overhaul - prompted by regulatory concerns about intraday credit risk within the service...
goo.gl/cqsVgv
HSBC Bankers Are First Individuals Charged in U.S. Currency Case
Tom Schoenberg and Patricia Hurtado - Bloomberg
Mark Johnson arrested at Kennedy Airport Tuesday in New York
Bank's former head of global currency trading also charged
Federal agents surprised an HSBC Holdings Plc executive as he prepared to fly out of New York's Kennedy airport late Tuesday, arresting him for an alleged front-running scheme involving a $3.5 billion currency transaction, according to three people familiar with the matter.
bloom.bg/2auBP7R
U.S. Maps 1MDB Fraud Trail From Kuala Lumpur to Hollywood
Greg Farrell, Andrew M Harris, Keri Geiger and David McLaughlin - Bloomberg
Homes, art, 'Wolf of Wall Street' proceeds marked for seizure
Officials used Malaysia fund as 'personal' account: Lynch
More than $3.5 billion traveled a trail of fraud from Malaysia through a web of shell companies, fueling a spending binge on Monet paintings and luxury real estate in the U.S. and Britain, with at least $700 million flowing back into accounts controlled by Malaysia's prime minister.
bloom.bg/2a0XFBF
CurveGlobal Appoints Richard Walker Head Of Business Development
London Stock Exchange Group
Richard Walker will join from LCH; Brings extensive strategic sales and marketing experience across buy and sell side in both listed and OTC markets; Key appointment ahead of CurveGlobal September go-live
CurveGlobal, the new interest rates derivatives venture between LSEG, seven major dealer banks and CBOE, today announces the appointment of Richard Walker as Head of Business Development. Richard will join CurveGlobal on 22 August in a new role created to support the new venture's market engagement programme ahead of its September 26 launch.
goo.gl/EiIiEt
UN research says it's getting too hot to work, and it could cost the global economy $2 trillion by 2030
Mun Keat Looi - Quartz
The heat is rising, and it could cost the global economy $2 trillion by 2030. New research suggests that climbing temperatures will make it harder for workers to do their jobs, particularly in the world's poorest economies. The situation is worst for those in the lowest paid and most heat-exposed professions, such as construction and farming.
goo.gl/JagziY
Central US bracing for 'heat dome;' heat indexes to top 100
Crain's Chicago Business
High temperatures and humidity will bake much of the central U.S. this week, sending heat indexes soaring as high as 115 degrees in some places for the first time this year.
goo.gl/hJAsnh
Pimco seeks to draw a line under turmoil
Stephen Foley and Mary Childs - Financial Times
Bill Gross, the former chief investment officer of Pimco, says tensions at the asset manager first began to build when rival executives pushed for a move into hedge funds  beyond the firm's origins in bond investing. Before he was ousted in 2014, he railed against a vast "Cheesecake Factory menu" of products, arguing that the company should stick to simple "bonds and burgers". But, with the appointment of Man Group hedge fund boss Emmanuel Roman as its new chief executive, Pimco has signalled it is moving further in the Cheesecake Factory direction.
on.ft.com/2abEt68
HSBC Currency Traders Got Greedy on Christmas
By Matt Levine - Bloomberg
Oh man: Federal agents surprised an HSBC Holdings Plc executive as he prepared to fly out of New York's Kennedy airport around 7:30 p.m. Tuesday, arresting him for an alleged front-running scheme involving a $3.5 billion currency transaction in 2011.
goo.gl/uuV12F
The Risk Oil Drillers Couldn't Hedge Away; Failing drilling companies lose valuable insurance that would protect them against falling oil prices.
Asjylyn Loder, Rachel Adams-Heard - Bloomberg
To provide themselves a cushion against sharp drops in oil prices, drilling companies often buy hedgesÂfinancial contracts that pay off when prices fall. Now a quirk of bankruptcy law has stripped some shale drillers of that insurance just when they need it most.
goo.gl/HXhlrm
Buy-side sees greater acceptance of swaps clearing; Large buy-side companies have less than six months to prepare for incoming clearing rules for derivatives.
By Joe Parsons - The Trade
Europe's asset managers are gradually accepting clearing of interest rate swaps and are preparing to establish connections to clearing houses.
goo.gl/yqEoZ3
U.S. research agency launches money fund data tool
Reuters
The U.S. Office of Financial Research, a government agency which conducts independent financial research and analysis, said on Wednesday it launched an online tool that allows investors to analyze the securities held by money market mutual funds.
goo.gl/w5KqHq
Bill Ackman Just Accused Carl Icahn of Stock Fraud
by Jen Wieczner - Fortune
And he thinks the SEC will investigate.
In a fresh attack on Herbalife, hedge fund manager Bill Ackman is accusing the company and its largest shareholder Carl Icahn of stock market manipulation.
goo.gl/ZodhUd
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| Brexit | | Financials stories regarding the recent decision of the United Kingdom to leave the European Union | Asset managers assess impact of Brexit
Madison Marriage and Chris Newlands - Financial Times
UK asset managers have borne the brunt of investors' reaction to the UK's decision to leave the EU, with some funds suffering their highest withdrawals since the 2008 financial crisis. The decision by eight fund companies this month to bar investors from pulling their money from UK commercial property funds has dented confidence - and fuelled concerns that outflows could have worsened across other asset classes. Next week Man Group , Schroders , Henderson , Jupiter and Aberdeen Asset Management will publish earnings updates, providing for the first time detailed comment on the impact of the EU referendum on their businesses.
on.ft.com/2abL4xL
Fund managers have more to worry about than Brexit
By Richard Phillipson - Financial News
UK-based investment managers have more to worry about than Britain leaving the European Union. While we do not know what the impact of being a third country will be, there are other clear and present dangers that need to be addressed.
goo.gl/236zM8
City of London's brokers put brave face on fallout from Brexit
Philip Stafford - Financial Times
If the UK's decision to leave the EU puts the City of London's trading position at risk, those most affected are putting a brave face on it nearly a month on from the vote. At MarketAxess, the US-owned bond trading venue, a team of five people are working on the vote's implications and examining potential alternatives to London as its European base.
on.ft.com/2abMEzs
Brexit: Theresa May says talks won't start in 2016
BBC
Theresa May has said the UK will not begin official negotiations on leaving the EU this year as she held talks with Germany's Chancellor Angela Merkel. Speaking in Berlin, the PM said securing a "sensible and orderly departure" from the EU would take time. But she insisted the UK would not "walk away" from Europe and wanted to retain the "closest economic links".
bbc.in/2abMA2K
Britain Negotiates Its EU Exit With a Weak Hand
By Leonid Bershidsky - Bloomberg
As the U.K.'s new prime minister, Theresa May, met with Chancellor Angela Merkel of Germany on Wednesday to open informal Brexit talks that European Union leaders insisted would not take place, the key question concerns the strength of the negotiating positions. Both May and Merkel are no-nonsense leaders, and their interaction won't be driven by emotion: It'll be about how much the EU and the U.K. need each other.
goo.gl/JXbzxy
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CME Group Announces First Trades of New Aluminum A380 Alloy (S&P Global Platts) Futures
Press Release
CME Group, the world's leading and most diverse derivatives marketplace, today announced that the first Aluminum A380 Alloy (S&P Global Platts) futures contracts were traded on Tuesday, July 19, 2016. A total of 50 futures contracts were traded across the August through December 2016 contract months.
goo.gl/mgjExw
Charles Li Direct
HKEX
There has been a lot of coverage of "Brexit" since citizens of the UK narrowly voted to leave the European Union. The fallout from the decision still remains to be seen, but many are asking me if it will have an impact on the London Metal Exchange and implementation of our commodities strategy. I'm happy to say our plans are on track, but I'd like to take a closer look at our growth plans, particularly pertaining to the Mainland.
goo.gl/5lj7Pg
Deutsche Börse still short of support for LSE merger
James Shotter and Philip Stafford - Financial Times
Deutsche Börse's efforts to secure shareholder approval for its merger with the London Stock Exchange Group look set to go to the wire after support for the EUR24bn deal rose just two percentage points in a week. The Germany exchanges operator remains short of an already-reduced 60 per cent threshold it needs to press ahead with the deal to create a European powerhouse of trading, risk management and data services for investors around the world.
on.ft.com/2abLT9t
Floor trader confusion holding back new swap market-makers
Robert Mackenzie Smith - Risk.net
A lack of clarity around the Commodity Futures Trading Commission's (CFTC) floor trader exemption is one of the key issues holding back non-banks from acting as swap market-makers, claim market participants. The US regulator's floor trader exemption allows principal trading firms (PTFs) to act as market-makers in the cleared, electronically traded interbank swap market without having to register as a swap dealer, which would place extra compliance, capital, margin and reporting requirements on...
goo.gl/wvHc1n
TMX Taps Ex-ICE, NYSE Tech Exec Rajarathinam as CIO
Max Bowie - WatersTechnology
Canadian exchange operator TMX Group has appointed Jay Rajarathinam chief information officer, responsible for developing and executing the exchange's technology vision and strategy, as well as for activities such as managing IT client delivery, optimizing TMX's technology assets, and leading ongoing technology operations and integration initiatives.
goo.gl/w6od3z
NCDEX introduces e-tagging technology
Business Standard News
The National Commodity & Derivatives Exchange (NCDEX) has started introducing the Radio Frequency Identification (RFID) technology in exchange-approved warehouses, it said on Wednesday. RFID ensures that commodities stored in warehouses are tracked through radio signals and the information helps improve efficiency and reliability of storage and delivery operations.
goo.gl/nXHCHB
HKEX Announces New Head of OTC Clearing
HKEx
Hong Kong Exchanges and Clearing Limited (HKEX) has appointed Jacky Mak as Managing Director, Head of OTC Clearing, effective Monday, 25 July 2016. Mr Mak will be in charge of business development and operations of OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of HKEX. He will report to Calvin Tai, HKEX's Head of Clearing.
goo.gl/aG7fkA
OTC Clear Receives Regulatory Approval to Clear USD/CNH Cross Currency Swaps
HKEx
OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), announces that the Securities and Futures Commission has granted approval of its clearing services for cross currency swaps. OTC Clear expects to launch the service in August of this year.
goo.gl/cFdUp0
Don't list stock exchanges
Jaimini Bhagwati - Business Standard Column
On 6 July 2016 the National Stock Exchange (NSE) Chairman Ashok Chawla was reported in the Economic Times as having said that "a credible road map has been put in place for listing NSE". The same news item mentions that NSE is expecting to file initial public offering (IPO) papers with the Securities and Exchange Board of India (Sebi) in January 2017. This is an alarming development. The Bimal Jalan Committee on "Review of Ownership and Governance of Market Infrastructure Institutions (MIIs)" submitted its report to then Sebi Chairman C B Bhave in November 2010.
goo.gl/enAKqo
CloudMargin: "Are Capital Markets ready for the Cloud?"
Eurex
For a long time, capital markets have depended on self-contained, proprietary infrastructure, with applications and services running on-premises. The need for change has become evident as these traditional structures have become unsustainable. The benefits and potential for innovation of the cloud technology are clear and its adoption by capital markets firms is at a tipping point. The question now is a matter of when and how, rather than if.
goo.gl/SXuIGo
A. Single Stock Futures: Introduction of three SSFs; B. Single Stock Dividend Futures: Introduction of one SSDF
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG took the following decisions with effect from 25 July 2016:
/goo.gl/62Yrda
Eurex Exchange's Fixed Income Futures & Options: highlights of Q2/2016
Eurex
Markets made a confident start to Q2 although the UK's vote to leave the EU overshadowed other developments by end of June. Fixed income derivatives volumes remained relatively robust:
goo.gl/4nhlst
Borsa Istanbul: Employment Contracts Of 34 Persons Terminated By July 15, 2016 - Contracts Of A Further 51 Persons Terminated As Of July 18, 2016
Mondovisione
Within the framework of the targets and business strategies envisaged by the new management established on April 1, 2016, Borsa Istanbul terminated the employment contracts of 34 persons by July 15, 2016 on the grounds that their services are no longer needed. The contracts of a further 51 persons were terminated as of July 18, 2016.
goo.gl/bvwbmd
More pain seen for U.S. crude as product glut adds to gloom
BY DEVIKA KRISHNA KUMAR - Reuters
A glut of refined products has worsened the already-grim outlook for U.S. crude oil for the rest of the year and the first half of 2017, traders warned this week, as the spread between near-term and future delivery prices reached its widest in five months.
goo.gl/mNZd8q
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| Politics | | An overview of politics during an election year as it relates to the financial markets | Donald Trump Sets Conditions for Defending NATO Allies Against Attack
By DAVID E. SANGER and MAGGIE HABERMAN - NY Times
Donald J. Trump, on the eve of accepting the Republican nomination for president, said Wednesday that if he were elected, he would not pressure Turkey or other authoritarian allies about conducting purges of their political adversaries or cracking down on civil liberties. The United States, he said, has to "fix our own mess" before trying to alter the behavior of other nations.
goo.gl/4iiCHm
Trump Says U.S. May Not Defend NATO Allies If Russia Attacks
Andy Sharp, Aaron Eglitis - Bloomberg
Republican presidential nominee speaks to New York Times; Billionaire praises Turkish President Erdogan in interview
In his strongest remarks to date on the future of the western military alliance, Republican presidential nominee Donald Trump said the U.S. would only defend NATO members attacked by Russia after reviewing whether those nations "have fulfilled their obligations to us."
goo.gl/z68Zab
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| Investing & Trading | | Today's top stories from fixed income, currencies and commodities (FICC) | JPMorgan Unit Sees Unprecedented Bond Risks as Treasuries Slide
Brian Chappatta - Bloomberg
Debt trades on what others are willing to pay, Aronov says; Real yield on 10-year Treasuries is near the lowest in decades
Investors flocking to U.S. Treasuries in a world inundated with negative-yielding sovereign bonds should think again, according to J.P. Morgan Asset Management.
goo.gl/xXjHDD
The OFR Introduces Interactive U.S. Money Market Fund Monitor
Stacey Schreft - Office of Financial Research
The Office of Financial Research today released its Money Market Fund Monitor, a set of interactive charts for exploring the portfolios of U.S. money market funds. Money market funds have been popular for decades among investors who want better returns than bank accounts offer, but still with little risk. Since the 1990s, institutional investors have used money market funds as a professional cash management option.
/goo.gl/uOwt9h
The VIX Is at Its Lowest Point in a Year - But Don't Get Complacent Just Yet
WSJ
Investors' expectations for gyrations in the stock market dwindled to a one-year low this week. The CBOE Volatility Index, commonly referred to as Wall Street's fear gauge, closed on Tuesday at 11.97 - its lowest level since July 17, 2015, when it hit 11.95. That's a remarkable development, given less than a month ago, during the height of investors' anxiety over the U.K. vote to exit the European Union, the VIX spiked to as high as 25.76.
on.wsj.com/2abKNe2
Pimco Finds a Good Man Manager for Tough Task
Paul J. Davies - WSJ
No matter how good you might be, some markets are still tough to beat. Pacific Investment Management Co. has endured a rough spell since Bill Gross, its mercurial founder and chief investment officer, stormed out in 2014. But now it has poached a talented chief executive from the world's biggest listed hedge-fund manager, Man Group of the U.K.
on.wsj.com/2abKzDz
Man Group: handy Manny
Financial Times
By most measures, Man Group is in much better shape today, as Manny Roman resigns as chief executive, than it was in the spring of 2013, when he started. Assets under management are more than a third higher, at $79bn. Both compensation and overhead costs are lower in absolute terms. The fund group has diversified its offering of funds significantly, largely though mergers. The shares have returned 56 per cent over his tenure.
on.ft.com/2abJYSh
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | JPMorgan oil trader takes over commodities
David Sheppard and Neil Hume - Financial Times
JPMorgan has appointed its top oil trader as the new head of its commodities division, the latest move in a business that has reinvented itself since selling the bulk of its physical operations two years ago. Jeff Katz, who previously oversaw oil trading at the Wall Street bank, is to replace Mike Camacho who is moving into the bank's asset management division, according to an internal memo seen by the Financial Times.
on.ft.com/2abLgNe
Goldman Sachs under spotlight in Malaysian fund scandal
Reuters
Goldman Sachs' work with Malaysian sovereign wealth fund 1MDB is under the spotlight over U.S. government allegations that billions of dollars were diverted for the personal use of officials in the southeast Asian country.
reut.rs/2abNegH
Wells Fargo to roll out pilot robo adviser in first half of 2017
Reuters
Wells Fargo & Co's wealth management business plans to roll out a pilot version of a robo adviser service during the first half of 2017, a spokeswoman said on Wednesday. Robo advisers are computer software programs that manage client money using algorithms and computer-generated portfolios rather than traditional human brokers. They are popular with investors who want to pay lower fees or prefer digital options.
reut.rs/2auNH9T
The rich owe Indian banks more than $11 billion but refuse to pay up  Quartz
Madhura Karnik - Quartz
Indian banks are in trouble, and the trouble-makers refuse to toe the line. Up to 8,167 borrowersÂdespite their ability to repayÂhave defaulted on Rs76,685 crore ($11.4 billion) of loans taken from public sector banks in Asia's third-largest economy. Answering a query in the Rajya Sabha on July 19, India's finance minister Arun Jaitley said cases have been filed against 1,724 such entities, called wilful defaulters.
goo.gl/DgYshI
Former rivals steer Barclays through uncertain times
By Tim Burke - Financial News
Investment bankers at Barclays see more of group chief executive Jes Staley than they did of his predecessors. The former head of JP Morgan's investment bank arrived at Barclays in December 2015 and has since been hands-on with its corporate and investment banking business, managers say. He joins calls with clients, helps to pitch for business and takes a keen interest in how the division is run.
goo.gl/nGMnkY
Morgan Stanley Knows Why the Rent Is Too Darn High; Apartment prices prove most linked to jobs growth in the U.S.
Tracy Alloway - Bloomberg
Greedy landlords or just plain jobs growth? A new Morgan Stanley analysis sheds some pictorial light on America's rising rents.
goo.gl/5NI0vW
Why Goldman thinks investors should seek sanctuary in the U.S.
By Sue Chang - MarketWatch
Bet on the U.S. It is still in better shape than the rest of the world, says Goldman Sachs.
goo.gl/1kaknE
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Thomson Reuters working with top London University on big data
The Trade
Thomson Reuters is working with Imperial College London in an attempt to solve global big data challenges impacting the financial sector. The idea behind the project is to "drive faster innovation in FinTech and RegTech" through extended research.
goo.gl/aRR0nO
Now You Can Check Your 401(k) on Your Apple Watch! OK, Who's Into It?; Savers in workplace retirement plans get 'up-to-the-minute plan information that's even closer than their fingertips.'
Suzanne Woolley - Bloomberg
It's "the first Apple Watch app for retirement planning." That's how Empower Retirement, the financial services company that administers 401(k) savings plans for more than 8.1 million participants in the U.S.1, is billing it.
goo.gl/cZLWEw
The man in charge of Santander's $200 million fund has some thoughts on fintech
BI Intelligence
Santander Innoventures, the London-based fintech VC fund, has secured another $100 million in funding from its parent bank.
goo.gl/YeM1Nk
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | UK equity market dark pools - Role, promotion and oversight in wholesale markets
UK FCA
We have surveyed the UK equity marketplace, focusing on dark pools and broker crossing networks, by examining promotional activity and the identification and management of conflicts of interest by dark pool operators.
goo.gl/r9jaXJ
FCA publishes thematic review into dark pools
UK FCA
Firms operating dark pools have made significant progress in addressing the promotion and the management of conflicts of interest according to a new report from the Financial Conduct Authority (FCA) published today.
goo.gl/G0H5oH
FCA criticised for being too 'defensive'
Caroline Binham - Financial Times
The financial watchdog is too "defensive in the face of criticism" and has not properly dealt with legitimate complaints about its workings, according to a new independent report. A rising workload, staff shortages and an environment in which the direction of the Financial Conduct Authority was explicitly questioned led to an increase in complaints referred to the Financial Complaints Commissioner in the 2015-2016 financial year.
/goo.gl/gg94ur
Chief Executive speaks at APM about recent work and future challenges
FCA
I want to start by recording my thanks to Tracey McDermott for her work both before and during her time as acting Chief Executive. Tracey has been an example to many people for her dedication to public service and the rigour of her thinking and actions.
goo.gl/WOiEYC
Hedge fund tied to kickback probe liquidates funds
By Kevin Dugan and Josh Kosman - NY Post
The hedge fund caught up in a New York City municipal union kickback scandal is now liquidating two of its funds, The Post has learned. Up to now it was believed that Platinum Partners, which allegedly paid the union president $60,000 in return for getting a $20 million investment, was liquidating just one of its funds.
goo.gl/JCG8p5
Singapore finds lapses in 3 banks in 1MDB probe; UBS, StanChart and DBS face action from monetary authority
by: Jeevan Vasagar in Singapore - FT
Singapore's regulator has pledged to take "firm regulatory actions" against UBS, Standard Chartered and DBS Bank for failings in anti-money laundering controls related to the widening international scandal surrounding Malaysia's state investment fund 1Malaysia Development Berhad (1MDB).
/goo.gl/stIi5Z
Platinum Partners to liquidate two main funds amid government probes
BY LAWRENCE DELEVINGNE - Reuters
Platinum Partners has hired an independent monitor to oversee the liquidation of its two main hedge funds amid investigations by U.S. authorities, according to a letter sent to investors on Wednesday.
goo.gl/PbYTj9
California man pleads guilty to charges related to Gerova stock scheme
BY JONATHAN STEMPEL - Reuters
A 73-year-old Californian charged with running a scheme with three of his sons to manipulate the stock price of reinsurer Gerova Financial Group Ltd and then dump the shares at inflated prices pleaded guilty to fraud on Wednesday, U.S. prosecutors said.
goo.gl/W8LlaA
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Singapore Finds Lapses Related to 1MDB Funds at Banks
A money-laundering investigation of Malaysia's state investment fund found lapses at local units of DBS, Standard Chartered and UBS
By Jake Maxwell Watts and P.R. Venkat - WSJ.com
SINGAPOREÂSingapore said Thursday that a wide-ranging money-laundering investigation into fund flows connected with Malaysian state investment fund 1MDB has found serious lapses at three major banks that in some cases included "undue delay in detecting and reporting suspicious transactions."
goo.gl/FTgUFr
Frontier markets - looking past the headlines
Mat Lystra - FTSE Russell
When we think about frontier markets as investment options, concerns like corruption, rule of law (or lack thereof) and inaccessible government services might come to mind. These are the types of risks that make for catchy news headlines but they shouldn't necessarily be showstoppers when considering this segment of the market. To get the whole picture, one needs to consider the factors outside of the headlines that drive performance.
/goo.gl/y6wPYr
Trudeau Commits to Carbon Price Amid Provincial Opposition
Josh Wingrove - Bloomberg
Prime Minister speaks ahead of meeting of Canada's premiers
Oil-producing Saskatchewan threatens to fight federal move
Prime Minister Justin Trudeau is pledging to set a national carbon price to cut emissions, a key message sent as Canada's provincial premiers meet to discuss how to proceed. Trudeau and the premiers fell short of a commitment to impose a price earlier this year, instead pledging to study a plan that could include "carbon pricing mechanisms," and report back on an emissions reduction plan by October. A carbon price typically means either a tax or a cap-and-trade regime.
bloom.bg/2auIrTr
Chinese Private Equity Funds Are Taking on the World's Giants
Cathy Chan - Bloomberg
PE firms from China pursue overseas deals at record pace; One Italian target says China links are what matter most
Giuseppe Bellandi never imagined that his company, a 30-year-old maker of industrial automation components in the foothills of the Italian Alps, would end up in the hands of a private-equity fund from China.
goo.gl/COzHMV
High noon for regulators in China's Wild West bond market
BY NATHANIEL TAPLIN AND SAMUEL SHEN - Reuters
A dispute between investors and the underwriter of a bond issued by Evergreen Industries is showing up regulatory failings that need fixing if China is to sustain newly robust inflows of foreign capital into local bonds.
goo.gl/NVpHTh
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| Miscellaneous | | Stories that don't quite fit under the other sections | Here's why America can't get over the financial crisis
Bob Bryan - Business Insider
Sometimes it can seem as if the financial crisis never left.
goo.gl/c4BRDe
Feds Look to Seize 'Wolf of Wall Street' Rights As Part of Malaysian Corruption Action
Eriq Gardner - The Hollywood Reporter
As part of a massive asset seizure tied to what was allegedly stolen from Malaysia, the U.S. government is seeking the civil forfeiture of rights to the Oscar-nominated film, The Wolf of Wall Street, directed by Martin Scorsese.
goo.gl/6eT0A5
A Former Wall Street Trader on Why He Left Banking; "You can feel like making $800,000 is almost like living in poverty."
GILLIAN B. WHITE - The Atlantic
For all the movies, books, and mythology that exist about Wall Street, the inner workings of big banks and the motivations of those who work there remain somewhat mysterious to lots of Americans.
goo.gl/oMH9kW
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