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John Lothian Newsletter: Germany Blasts Deutsche Bank Executives Over Culture; China Has the World’s ‘Safest’ Equity Market, HKEx CEO Says; SEC Cranks Up Probe Into Fund Firms’ Fees

First Read

Bits & Pieces
By John J. Lothian

Doug Ashburn has been promoted to the position of chief operating officer of John J. Lothian & Company, Inc. He assumes this new role in addition to his roles as head of business development and editor at large for John Lothian News.

Previously Jon Matte held the role of COO, one that he assumed when he joined the company in August of 2007 to help start building MarketsWiki.com. Jon left last January for a company in adventure tourism in Norway.

Doug joined JJLCO in 2011 as an intern to help us develop MarketsReformWiki. He had been a trader for 20 years on the floor of the CME, trading foreign exchange options and other products. He had also just completed a masters in business administration from IIT Stuart School of Business and was recommended to us by IIT’s Mike Gorham.

Doug has developed into an outstanding journalist and media entrepreneur, using his detailed mind and strategic, big picture market view to help us with business development and operations. We have greatly benefited from his multifaceted contributions to the firm and its products. He is very deserving of this latest promotion.

We are pleased to announce we have renewed DTCC as a Partner level sponsor of MarketsWiki and John Lothian News. As part of the sponsorship, DTTC is promoting its joint venture with Euroclear on margin settlement and collateral services.

Don’t forget to sign up your interns and newer employees for our Chicago Summer Intern Education series on August 4, 5 and 7. There is limited seating for August 7, so sign up soon.

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Martin Wheatley to stand down as FCA Chief Executive
UK FCA
The Financial Conduct Authority (FCA) today announced that Martin Wheatley is to stand down as Chief Executive with effect from September 12 2015.
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****** When Gary Gensler stood down, no one noticed.

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Lloyd Blankfein Is Now a Billionaire
by Michael J Moore, Pamela Roux, Bloomberg
Goldman Sachs Group Inc. made hundreds of partners rich when it went public in 1999. Its performance since then has turned Lloyd Blankfein into a billionaire.
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***** Give unto Goldman what is Goldman’s and give to the CEO the rest.

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Vision Statement: Fidessa Looking At Realtime and Predictive Analytics and Cybersecurity
JohnLothianNews.com

The financial technology space is always moving and aiming at moving targets. Justin Llewellyn-Jones COO and global head of derivatives for Fidessa, said firms now are facing broader and deeper technology challenges than ever, from real time order analytics to new cyber security needs.

Speaking with John Lothian News at the FIA IDX conference in London, Llewellyn-Jones said Fidessa has been focused on expanding its execution algorithms, an initiative that was moving forward over a year ago.

“We’ve been extending that set of algorithms in terms of the synthetic order types, the execution types we cover, the benchmark algorithms.”
Watch the video »
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Five Minutes with Randy Scharringhausen, COO of EESAT
Sarah Rudolph, JLN
Randy Scharringhausen is the chief operating officer of EESAT, a financial technology startup that launched in 2013. As a long-time derivatives trader who started his own institutional broker-dealer in 2006, he has seen the evolution of markets onto electronic platforms and some of the holes that transformation has created. One example is in the complex order book space.
EESAT aims to improve transparency and consolidation in the complex order books (COBs) offered by seven out of the 13 equity options exchanges. Complex orders are multi-legged strategies such as a straddle, strangle, ratio spread and butterfly.
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***** I don’t remember what I scored on my EESATs.

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When this market crashes, traders get trashed
By Sara Sjolin, MarketWatch
This may be the one market where every participant is hoping for a crash. At the new Reserve Bar Stock Exchange in London’s “Square Mile” financial district, drink prices swing up and down according to supply and demand, sending thirsty city workers on a roller-coaster ride in the hunt for the best priced bender.
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****** I don’t need my drink prices to move. The room normally is moving enough for me.

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MarketsWiki Education Intern Series 2015
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Lead Stories

Germany Blasts Deutsche Bank Executives Over Culture; Confidential BaFin report criticizes bank for keeping quiet about attempted Libor manipulation
By David Enrich, Jenny Strasburg and Eyk Henning – WSJ
German regulators accused a half-dozen current Deutsche Bank AG executives of failing to stop or tell regulators about years of attempted market manipulation, according to a confidential report reviewed by The Wall Street Journal that portrays the German bank as suffering from a badly broken corporate culture.
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China Has the World’s ‘Safest’ Equity Market, HKEx CEO Says
by Kana Nishizawa, Eduard Gismatullin, Bloomberg
Hong Kong Exchanges & Clearing Ltd. Chief Executive officer Charles Li called China the world’s “safest” stock market, seeking to allay investor concerns over government intervention and surging volatility.
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SEC Cranks Up Probe Into Fund Firms’ Fees
Inquiry centers on whether money managers are properly disclosing additional costs to investors
By KIRSTEN GRIND, WSJ
U.S. securities regulators are examining whether mutual-fund managers are dipping more deeply than allowed into their investors’ money to compensate the brokerages that distribute their products, according to people familiar with the matter.
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Dealers seek equity derivatives carve-out from margin rules
By Louie Woodall, Risk.net
Emir requirements may force dealers to reinvent synthetic equity finance trades
Dealers are lobbying for a number of widely used equity derivatives contracts to be exempted from proposed new margining requirements from European regulators, fearing the proposals in their current form could hamper their ability to offer certain types of equity finance transactions.
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HKEx chief defends himself from criticism after saying mainland China market safe
SCMP
Stock exchange chief Charles Li, who has faced criticism this week for his comment that mainland markets were safe even as investors lost millions, said he was talking about their regulatory infrastructure, not price levels.
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China Securities Finance Said to Have Up to $483 Billion on Tap
Bloomberg
China has made 2.5 trillion yuan to 3 trillion yuan ($483 billion) of funding available for government agency China Securities Finance Corp. to support the stock market, people familiar with the matter said.
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LME may have to curb price volatility in line with peers; Graphic nickel/copper volumes; Price movement caps would protect against spillover speculators; LME resistance could be broken by its international ambition
By Pratima Desai, Reuters
The London Metal Exchange may have to introduce rules to rein in extreme volatility to conform with other exchanges and regulatory regimes, industry sources said.
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Convictions Prove Elusive in ‘London Whale’ Trading Case
By JAMES B. STEWART, NY Times
The case of the London Whale has ended — with a whimper. Last week, Britain’s Financial Conduct Authority took the unusual step of announcing that it was dropping its investigation and would take no further action against Bruno Iksil, whose risky bets on complex derivative contracts ended up costing JPMorgan Chase $6.2 billion in losses.
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TMX Group seeks ‘fresh’ approach to equities business with hire of Nick Thadaney
Financial Post
TMX Group has hired Nick Thadaney, former head of electronic trading venue ITG Canada, as chief executive of global equity capital markets at the exchange group. Thadaney, who takes the new job Sept. 1, will replace Kevan Cowan, who left TMX abruptly this week. Thadaney will report to TMX Group CEO Lou Eccleston and will be responsible for all equity listing and trading activity.
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Wall Street opens its wallet for Jeb Bush
Megan Murphy in Washington, FT
Many of the 2016 US presidential candidates had to disclose their campaign finance numbers to the public for the first time on Wednesday, in filings with the Federal Election Commission.
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FCA Chief Executive Martin Wheatley to Exit
WSJ
Martin Wheatley, chief executive of the Financial Conduct Authority, one of the U.K.’s top financial regulators, is leaving.
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Santander Consumer USA Names Blythe Masters Chairwoman
By MICHAEL CORKERY, NY Times
Facing regulatory pressure related to its governance and lending practices, the subprime auto lender Santander Consumer USA has appointed Blythe Masters, a former longtime executive at JPMorgan Chase, its chairwoman.
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Regulatory

Democratic lawmakers ask regulators for data on U.S. bank swaps
Reuters
Two U.S. Democratic lawmakers on Thursday asked regulators to hand over information about banks’ potentially risky swaps activities after Congress weakened rules last year, saying financial institutions refused to hand over the data. Senator Elizabeth Warren of Massachusetts and Representative Elijah Cummings of Maryland said taxpayers needed to understand how banks responded after lawmakers undid rules governing their swaps operations.
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Important Notice to CPOs and CTAs regarding changes to the CPO Form PQR and CTA Form PR that will become effective for the period ending June 30, 2015
NFA
Based on feedback and questions that NFA received from CPO and CTA Members, NFA has made some slight enhancements to the CPO Form PQR and CTA Form PR effective for the quarter ending June 30, 2015. NFA is providing this Notice to highlight the specific enhancements that were made.
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Martin Wheatley to stand down as FCA chief
InvestmentWeek
Financial Conduct Authority chief executive Martin Wheatley is to stand down on 12 September after the Treasury said it believes “different leadership is required”.
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Statement on the Anniversary of the Dodd-Frank Act, by Chair Mary Jo White
SEC
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The Need for Proactivity: Remarks at the 2015 National Association of Women Lawyers Annual Meeting and Awards Luncheon , by Chair Mary Jo White
SEC
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FTSE Russell Confirms Compliance with IOSCO Principles
FTSE
FTSE Russell today announces it has published its Statement of Compliance with the recommendations made by the International Organization of Securities Commissions (IOSCO)
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Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
SEC

    • EDGA: Notice of Withdrawal of Proposed Rule Change, as Modified by Amendment No. 1, to Amend Rules 11.6, 11.8, 11.9, 11.10 and 11.11 of EDGA Exchange, Inc. (Release No. 34-75459; File No. SR-EDGA-2015-10; July 15, 2015)

 

    • FINRA: Order Approving a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, to Adopt FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) (Release No. 34-75472; File No. SR-FINRA-2014-048)

 

    • FINRA: Order Approving a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, to Adopt FINRA Rule 2241 (Research Analysts and Research Reports) in the Consolidated FINRA Rulebook (Release No. 34-75471; File No. SR-FINRA-2014-047)

 

    • MSRB: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Consisting of an Amendment to MSRB Rule G-45, on Reporting of Information on Municipal Fund Securities (Release No. 34-75454; File No. SR-MSRB-2015-05; July 15, 2015); see also Exhibit 5

 

    • NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Change in the Size of a Creation Unit Applicable to Shares of the PIMCO Total Return Active Exchange-Traded Fund (Release No. 34-75475; File No. SR-NYSEArca-2015-63)

 

    • NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule (Release No. 34-75469; File No. SR-NYSEArca-2015-62); see also Exhibit 5

 

    • NYSE Arca: Order Approving a Proposed Rule Change, as Modified by Amendment No. 1, to List and Trade Shares of the iShares iBonds Dec 2021 AMT-Free Muni Bond ETF and iShares iBonds Dec 2022 AMT-Free Muni Bond ETF under NYSE Arca Equities Rule 5.2(j)(3) (Release No. 34-75468; File No. SR-NYSEArca-2015-25)

 

    • NYSE Arca: Notice of Filing of Amendment Nos. 1, 2, and 3 and Order Approving on an Accelerated Basis a Proposed Rule Change, as Modified by Amendment Nos. 1, 2, and 3, to List and Trade Shares of the SPDR SSgA Flexible Allocation ETF under NYSE Arca Equities Rule 8.600 (Release No. 34-75461; File No. SR-NYSEArca-2015-44; July 15, 2015)

 

    • NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Period Applicable to the Customer Best Execution Auction per Rule 971.1NYuntil July 18, 2016 (Release No. 34-75460; File No. SR-
    • NYSEMKT-2015-48; July 15, 2015); see also Exhibit 5
    • OC: Notice of Filing of Proposed Rule Change Relating to Decimal Pricing for Spread Transactions (Release No. 34-75464; File No. SR-OC-2015-02); see also Exhibit 4

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FINRA Solicits Comment on New Academic TRACE Data Set
FINRA
The Financial Industry Regulatory Authority (FINRA) is requesting comment on a proposal to create a new academic Trade Reporting and Compliance Engine (TRACE) data set that would be available to institutions of higher education.
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Warren, Cummings Continue to Hammer Banks on Derivative Rule
By VICTORIA MCGRANE, WSJ
Sen. Elizabeth Warren and Rep. Elijah Cummings are not giving up their crusade against a contentious Dodd-Frank rollback that passed as part of a giant spending bill late last year.
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Canadian securities regulators announce results of continuous disclosure reviews for fiscal 2015
AMF
The Canadian Securities Administrators (CSA) today published Staff Notice 51-344 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2015, which summarizes the results of the CSA’s continuous disclosure (CD) review program.
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Exchanges & Trading Facilities

Nasdaq Futures Announces 16 New Members
NASDAQ.com
Today, Nasdaq (Nasdaq:NDAQ) announced that Nasdaq Futures, Inc. (NFX), the exchange group’s US-based energy futures market, has approved 16 Futures Commission Merchants (FCMs) as new members. Some of the new members include: ABN AMRO Group, ADM Investor Services, Advantage Futures, Citigroup Global Markets, ED&F Man Capital Markets, Goldman Sachs, INTL FCStone, J.P. Morgan, Merrill Lynch, Mizuho Securities USA, Phillip Capital, Rosenthal Collins Group, Societe Generale and Wedbush Futures.
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HKEx chief expects China to regulate over-the-counter funding
ejinsight
Hong Kong’s stock exchange chief expects China to take some steps to regulate over-the-counter funding systems in the mainland following the recent troubles in the nation’s stock markets. Charles Li, chief executive of Hong Kong Exchanges and Clearing Ltd. said Chinese regulators could initiate some action given the view that the A-share rout in the past month may have been partly due to systems that facilitated large scale off-balance sheet funding activities.
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Exchange Publishes Consultation Paper on Proposed Changes to its ESG Guide
HKEx
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), published a consultation paper today (Friday) to seek views on proposed amendments to its Environmental, Social and Governance (ESG) Reporting Guide (the ESG Guide or Guide) (Note 1).
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HKEx Announces Results of Stock Exchange Review of Listed Issuers’ Financial Reports
HKEx
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), today (Friday) published a report summarising key findings from its review of 100 periodic financial reports released by issuers between October 2013 and April 2015*.
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CME Group and SGS Open Cocoa Grading Facility in Amsterdam
CME Group
Group, the world’s leading and most diverse derivatives marketplace, and SGS, the world’s leading inspection, verification, testing and certification company, today announced the opening of a new, state-of-the-art cocoa grading facility in Amsterdam.
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CME Group expands lean hogs daily trading limits
Reuters
The CME Group Inc, the world’s largest livestock futures exchange, will expand trading limits for lean hog futures effective on Aug. 31, the exchange said on Thursday.
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Positive start for Euronext Milling Wheat Futures on JSE
Hedgeweek
The Euronext Milling Wheat futures contract listed on the Johannesburg Stock Exchange (JSE) is showing encouraging levels of market interest, following its official start of trade on 8 July. To date, the JSE has traded just over 10 000 tons of wheat.
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Hedge Funds & Managed Futures

Former Soros Manager Said to Seek $750 Million for Macro Fund
by Bei Hu, Bloomberg
Dai Jixin, a Hong Kong-based alumnus of Soros Fund Management, is seeking as much as $750 million for a global macro hedge fund, said people with knowledge of his plans
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Banks & Brokers

Legal charge of $1.45bn bites into profits at Goldman Sachs
Ben McLannahan in New York, FT
Second-quarter profits at Goldman Sachs more than halved from a year earlier, as a resilient performance from core parts of the investment bank was offset by choppy bond trading and a big provision for litigation.
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Citi transformation shows in results
Laura Noonan, Investment banking correspondent, FT
Citigroup delivered its second consecutive set of expectation-beating results, and vowed to continue its post-crisis transformation by cutting more branches and selling at least $32bn of non-core assets.
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Goldman Sachs Profits on a Wave of Deals; In a switch, mergers staff beats trading division; bank says it’s ‘in the center of all M&A dialogue’
By JUSTIN BAER, WSJ
The bankers are back on top at Goldman Sachs Group Inc.
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HSBC Unit in the Cross Hairs of Saudi Regulator; Bank is being investigated over whether it inflated the valuation of a construction firm’s IPO
By RORY JONES in Dubai and MARGOT PATRICK in London, WSJ
HSBC Holdings PLC’s Saudi Arabia unit has come under investigation by regulators in the kingdom for its role in a stock listing that has left investors nursing heavy losses and the bank’s chief executive cleaning up a fresh mess.
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Swedish Banks Strain to Cope With Negative Interest Rate Environment; Second-quarter earnings of three large banks show lenders succeeded in improving margins on loans
By ANNA MOLIN, WSJ
Swedish banks are straining to cope with the nation’s exotic monetary policy, made of ever-lower negative interest rates.
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Clearing & Settlement

Euroclear Half Year 2015 Operating Performance – Increased Client Activity Levels And Favourable Market Conditions Support Robust First Half Operating Results
Press Release
The Euroclear group reports a robust operating performance for the first half of 2015, benefitting from increased client activity across all business lines and favourable market conditions during the period. A record high of EUR 28 trillion client assets held in safekeeping reinforces Euroclear’s position as the industry’s trusted provider of open post-trade infrastructure, market safety and operating efficiency.
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Bitnet and BlockCypher Develop a Bitcoin Instant Transactions System
NEWSBTC
One of the major problems Bitcoin acceptance is facing right now is the slow rate of transactions on the network. There’s a time lag in receiving cleared funds since a Bitcoin payment can take around 10 minutes to be verified and confirmed on the Blockchain. This is an issue that inhibits both merchants and companies from accepting Bitcoin payments.
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The brave new world of Bitcoin
International Law Office
Given the convenience of established currency and payment systems, what is driving the ever-growing interest in Bitcoin and other virtual currencies? Canada has a fairly concentrated banking system, with six large banks dominating the market. The level of concentration in the banking sector also has an impact on the payment clearing and settlements systems that are available in Canada.
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Indexes & Products

Carl Icahn Fuels Criticism of Bond ETFs; More investors are becoming concerned over a possible crisis is brewing
By GREGORY ZUCKERMAN, KATY BURNE and SARAH KROUSE, WSJ
The Greek government is working on a bailout, Chinese stocks are slumping and U.S. investors are counting down to an expected interest-rate increase.
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For Clues to Greek ETF’s Future See Egypt After Arab Spring
Bloomberg Business
How good are exchange-traded funds like the Global X FTSE Greece 20 at tracking stock prices when no prices exist? Egypt in 2011 offers some insights. When Cairo’s exchange was closed for almost two months during the Arab Spring uprising, speculators used a U.S.-listed security as a way of estimating where Egyptian equities would open once trading resumed. Turned out they were a little off: while the ETF slipped about 1 percent during the suspension, it plunged 8.1 percent after the exchange reopened.
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FTSE Launches New U.S. Low Volatility Factor Index
Traders Magazine Online News
FTSE Russell is launching a new index designed to help the buyside better align its trading strategies and alpha targets to large- and mid-cap companies in the U.S. The new index, the FTSE U.S. Quality / Volatility / Yield Factor index is part of the FTSE Global Factor Index Series and reflects specific factor characteristics for companies – such as: quality, low volatility and yield. http://jlne.ws/1fPEQRK

Nasdaq surge is triggering 2000 bubble flashbacks for strategists
MarketWatch
Some strategists are starting to think either history could repeat itself for technology stocks, or we could be opening a new, nastier chapter in the book of bubbles.
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Technology

Interactive Data Builds FutureSource Excel Add-in
Waters Technology
Interactive Data has added a Microsoft Excel add-in as a delivery option for its FutureSource data and analytics terminal for commodities and energy professionals. The Excel add-in will enable users to perform day-to-day data tracking, ad-hoc analysis and advanced time-series and curve analytics within Excel spreadsheets, leveraging the vendor’s real-time and historical data.
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TradingScreen Deploys TradeCross – A Crossing Platform Developed with the Buy Side
PRNewswire
TradingScreen, the leading independent provider of electronic trading solutions, and a group of 15 of the largest long-only asset managers in Europe have launched TradeCross, the first buy side-designed crossing platform for fixed income corporate bonds. With the support and collaboration of these asset managers, TradeCross enables participants to uncover and unlock hidden liquidity from buy-side inventories along with other new sources of liquidity to complement the traditional trading approach for credit products.
jlne.ws/1K9g0Gl

Moore’s Law Is Showing Its Age; The prediction about squeezing transistors onto silicon has been revised again.
By DON CLARK, WSJ
No company sounds more religious about Moore’s Law than Intel Corp., whose co-founder made a famous observation about the miniaturization of chip circuitry 50 years ago. But that doesn’t mean the company opposes revising its canon.
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Enforcement

SEC Charges Purported Investment Adviser in San Diego With Stealing Client Funds and Conducting a Ponzi Scheme
SEC.gov
In a complaint filed in federal court in San Diego, the SEC alleges that Paul Lee Moore and Coast Capital Management, his purported investment advisory firm, raised $2.6 million from clients. Instead of investing their money as promised, Moore allegedly siphoned nearly $2 million of client funds to pay travel expenses, buy retail goods, and fund his use of pornographic websites. The complaint alleges that Moore used the remaining $625,000 in client funds to repay earlier clients with money from new clients in classic Ponzi scheme fashion.
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SEC Charges Pennsylvania Attorney with Insider Trading in Advance of Merger Announcement
SEC.gov
According to the SEC’s complaint, Herbert K. Sudfeld illegally traded on the news that sent Harleysville’s stock price up 87 percent when the merger of the two insurance companies was announced in September 2011. At the time, Sudfeld was a real estate partner at a law firm that advised Harleysville on the merger. Sudfeld was not involved in the merger and learned that the announcement of it was imminent from a conversation between an attorney working on the transaction and their shared legal assistant.
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Alleged British hacker faces extradition to US
Gina Chon in Washington, FT
Lauri Love, a British citizen accused of hacking into the networks of several US government agencies, was arrested on Wednesday and faces possible extradition to the US.
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ASIC crackdown on ‘phoenix’ scams
Michael Roddan, The Australian
The Australian Securities and Investments Commission will be keeping a close eye on struggling companies this financial year that resurrect their assets in an illegal manoeuvre known as “phoenix” activity.
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Trader charged with rigging Libor says outcomes were random
By Estelle Shirbon, Reuters
Ex-trader Tom Hayes on Thursday told a London court where he is on trial for rigging Libor that his attempts to influence benchmark interest rates had resulted in “random” outcomes that had not benefited his trading positions over time.
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Environmental & Energy

The Freakish Year in Broken Climate Records; State of the climate: Broken
by Tom Randall, Bloomberg
The annual State of the Climate report is out, and it’s ugly. Record heat, record sea levels, more hot days and fewer cool nights, surging cyclones, unprecedented pollution, and rapidly diminishing glaciers.
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Climate change seen as greatest threat by global population
By Ami Sedghi – The Guardian
Climate change is what the world’s population perceives as the top global threat, according to research conducted by the Pew Research Center, with countries in Latin America and Africa particularly concerned about the issue.
jlne.ws/1SqKKo6

Court rules EU must declare breaches of environmental law
By Madeleine Cuff – BusinessGreen
In a landmark ruling the Court of Justice of the EU yesterday banned the European Commission from keeping information regarding hazardous waste and water quality confidential.
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Coal Projects Face Increasing Risk as Japan Eyes Climate Goals
By Chisaki Watanabe – Bloomberg News
With countries from China to Brazil lining up to showcase efforts to rein in pollution that causes global warming, developers of coal power plants in Japan may find themselves increasingly under pressure.
jlne.ws/1MerRpT

Futures markets have much to say about oil’s direction
Gregory Meyer, FT
For a brief, brave moment this year there was a sense the worst was over for the oil sector. This week, that feeling evaporated.
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Asia-Pacific

World Bank denies China sought to have critical report censored
Shawn Donnan in Washington and Gabriel Wildau in Shanghai, FT
The World Bank sought to head off accusations on Friday that it had bowed to Chinese pressure and censored itself by removing a contentious chapter on the country’s financial system from a report on China’s economy.
jlne.ws/1J4ltzA

World Bank backtracks on China criticism
Tom Mitchell in Beijing, FT
The World Bank formally disavowed a report critical of China’s financial sector on Friday and said it would co-invest in projects with the Beijing-led Asian Infrastructure Investment Bank, as its president wrapped up a three-day visit to the Chinese capital.
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China Property Market Threatened by Stock Rout
Bloomberg
On June 10, as the Shanghai Composite Index was heading for a seven-year peak, Wan Xinjian borrowed the maximum he was allowed from his brokerage to buy more stocks.
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Foreign investors seek reform of China stock suspensions
By Michelle Price and Deena YAO, Reuters
Foreign investors have called on Chinese regulators to review the mechanism that allowed more than half its listed companies to halt trading in their shares during the recent market crash, trapping investors as prices tumbled.
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Frontier Markets

Wanted: investors with capital, expertise and experience
Sophia Grene, FT
As African entrepreneurs expand their businesses, they look not only for capital but also for expertise from their investors to help build their ventures. And, although much investment in African businesses is domestic or intra-African, significant flows of money and business guidance are coming from the rest of the world.
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Global banks to steer clear of Iran until sanctions finally go
Yahoo Finance UK
International banks and most insurers are likely to steer clear of dealing with Iran for some time, fearing they could face more fines from U.S. regulators despite this week’s nuclear deal between world powers and Tehran.
jlne.ws/1e4AGU8

Now, algorithm-based trading apps for retail investors; Sequel to rising interest among retail, HNI participants in derivatives; trading houses develop these in-house
Sneha Padiyath, Business Standard
High-speed sophisticated trade applications are being developed for retail clients dabbling in stock and index futures.
jlne.ws/1MeL7DL

Citi and StanChart set to advise Myanmar on first credit rating
Yahoo Finance UK
Citigroup Inc and Standard Chartered Plc are set to advise Myanmar on its first credit rating, according to people with direct knowledge of the matter, paving the way for the country to issue its maiden international bond.
jlne.ws/1e4AHrt

If Vietnam is the next ’emerging’ market, how do I invest?
Telegraph
Vietnam is on the hard road from being a ‘frontier’ market to an ’emerging’ one. As an indication of the risk investors still attach to it, Vietnam sits in the MSCI Frontiers Market Index alongside Bangladesh, Ghana, Ukraine and Jamaica.
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About Author

Doug Ashburn is a former editor-at-large of John Lothian News. He left in late 2016 and is now the managing editor of T3 Custom.