Breaking News

UK court upholds ICE Trayport sale order; State Street to Start Voting Against Companies That Don’t Have Women Directors; AI technology to replace 90,000 buy-side jobs by 2025

First Read

Rosenthal Collins Group Appoints Matthew Straight CIO
Press Release
Rosenthal Collins Group LLC (RCG), a leading independent futures clearing firm, announced the appointment of Matthew Straight as its new Chief Information Officer and Executive Vice President. Straight joins RCG with 26 years of experience in technology leadership, engineering and financial services.

**JK: Congrats to Matthew and to RCG.


Trade like a girl; Trading desks in the asset management industry are dominated by men, but this patriarchal trend is beginning to shift as women on the buy-side are uniting to encourage others to join the sector.
Hayley McDowell – The Trade
Did you know women are scientifically better at trading than men? At least that’s the findings of research undertaken by academics at the UK’s University of Leicester. The study found employing a greater number of female traders reduces the chances of a market crash and increases the regularity of positive trading returns. According to the research, women posses certain qualities that help them carry out the role of a trader more effectively.

**JK: Lady traders unite!


Glass 5% full for women CEOs – now what?
Catherine Yoshimoto, Senior Index Product Manager – FTSE Russell Blog
International Women’s Day comes at a time when gender equality has never been more relevant. On January 21, women’s marches around the globe attracted unprecedented numbers. As the campaign for women’s rights appears to be growing into a global movement, I thought I’d take a closer look at how women are represented in our US index constituent companies. The results are not encouraging.

**JK: We got a long way to go folks.


Publicity looms as PwC, MF Global go to trial in New York
Publicity about both the recent Academy Awards and Wall Street hung over a Manhattan courtroom on Monday as lawyers struggled to find jurors to decide whether PricewaterhouseCoopers helped cause the collapse of MF Global Holdings Ltd, a commodity brokerage once headed by former New Jersey Governor Jon Corzine.

**JK: My man Corzine, back in the spotlight.


Hello America, We Are the Casin Group
Jackson Xiao
If you are in the United States and have heard the name “Casin Group,” chances are you have been following the proposed acquisition of the Chicago Stock Exchange. Casin is the lead investor in the acquisition group?ó?a group that includes both private Chinese companies and American businesses. This deal has received an abundance of coverage, both in the U.S. and around the world. My name is Jackson Xiao; I am the Vice President of Chongqing Casin Group, and CEO of our American subsidiary, North America (NA) Casin Holdings.

***** PR push by the firm no one knows, but wants to buy the Chicago Stock Exchange.


Singapore Futures Trader Has Spent $2.3 Billion Amassing Enough Sugar to Fill 3,000 Swimming Pools; Wilmar International, partly owned by Archer Daniels Midland, is relatively new to sugar but already creating market confusion
Carolyn Cui and Serena Ng – FT
A new power in sugar trading is buying unprecedented amounts of the sweetener on the U.S. futures exchange, creating confusion in one of the world’s most volatile commodity markets.

***** This trader will not be beat.


Wall Street’s Nerds: The World’s Most Powerful Trading Executives
Jeffrey Kutler – Institutional Investor
Modern financial markets could not function without automation. Traders, counterparties, and transaction-processing infrastructures depend on automation to cope with the avalanches of data that are both generated by the markets and essential to their reliability and integrity. Despite occasional glitches ó which have become progressively less frequent and less severe since the disastrous flash crash of May 2010 ó it all happens so smoothly that it is easy to take the technology for granted.

****SD: There are four women on this list of 40.


Monday’s Top Three
What’s common on our top three stories? Exchanges. The FT’s piece, dug into How LSE and Deutsche Bˆrse’s merger unravelled. Second went to Crain’s piece on Terry Duffy in CME’s new CEO Duffy? wants faster returns on investments. Third went to the interesting news, EEX set to acquire 100% ownership of US Nodal Exchange


MarketsWiki Stats
95,083,15 pages viewed; 22,370 pages; 204,178 edits
MarketsWiki Statistics


Lead Stories

UK court upholds ICE Trayport sale order
Philip Stafford – FT
A UK appeals court has upheld a ruling by competition authorities that Intercontinental Exchange must sell Trayport, an energy software trading platform it bought for $650m more than a year ago.

Intercontinental Exchange Statement on Competition Appeal Tribunal’s Trayport Ruling
Intercontinental Exchange notes today’s ruling by the Competition Appeal Tribunal (CAT) with respect to ICE’s appeal against the Competition and Market Authority (CMA) prohibition decision in connection with the acquisition of Trayport.

State Street to Start Voting Against Companies That Don’t Have Women Directors
Joann S. Lublin and Sarah Krouse – WSJ
Firms won’t have an exact quota for compliance with State Street’s mandate, but must prove they attempted to improve a lack of diversity
Index-fund giant State Street Global Advisors on Tuesday will begin pushing big companies to put more women on their boards, initially demanding change at those firms without any female directors.

AI technology to replace 90,000 buy-side jobs by 2025; New report predicts artificial intelligence will replace 230,000 jobs across capital markets globally by 2025.
Hayley McDowell – The Trade
By 2025, artificial intelligence (AI) technology will reduce the number of employees in asset management globally by 90,000, according to research.

Bloomberg fights to keep Pimco on Treasury trading platform
Joe Rennison – Financial Times
Bloomberg is fighting to keep the bond house Pimco as a customer on its platform to buy and sell Treasuries, as the advance of automated trading reshapes the $14tn US government debt market. Pimco, one of the most influential debt investors with almost $1.5tn of assets under management, is working on a tie-up with rival trading venue Tradeweb, according to people with knowledge of the discussions, escalating the fight over how the benchmark for global debt is traded electronically.

Australia’s Blockchain Efforts for Securities Trading Turn Competitive
Cryptocoin News
Computershare, an Australian stock transfer company, and SETL, a U.K.-based blockchain developer, are reportedly throwing their collective hat in the ring to provide a blockchain-based securities register for the Australian market, according to the Australian Financial Review.
The two companies have reportedly been meeting to develop a blockchain that would compete with the Australian Securities Exchange (ASX) blockchain project.

What in God’s Name is Happening at the World’s Largest Hedge Fund?
Bess Levin – Vanity Fair
Ray Dalio, the billionaire founder of Bridgewater Associates, the world’s largest hedge fund, announced last week that he would be relinquishing day to day control of the firm and that, separately, co-C.E.O. Jon Rubinstein, the firm’s fourth chief executive in a year, would be leaving the company after it was mutually decided that he was “not a cultural fit for.”

Courts Will Define Boundaries of Friendship in Insider Trading
Peter J. Henning – NY Times
Insider trading law is heating up again, with a trial involving the high-profile gambler Billy Walters scheduled to start next week.

Fed May Take Legal Action Against ‘London Whale’; Former J.P. Morgan trader Bruno Iksil could face a permanent ban from working in finance
Lucy McNulty – WSJ
The Federal Reserve is considering legal action against Bruno Iksil, the trader at the center of the “London whale” trading debacle, according to a person familiar with the matter. Mr. Iksil had thought he would face no further threat of charges, the person said.

Get ready for ‘regular Fed rate hikes all year,’ former Treasury official warns
The Federal Reserve will increase interest rates next week, as many central bankers have been recently hinting, and that’s only the beginning, according to Brookings Institution’s Aaron Klein, a Treasury staffer during former President Barack Obama’s administration. “The Fed is racing to get to 1.5 percent for the interest rate so that they can get above the next recession and get out in front,” Klein said Monday on CNBC’s “Squawk Box.”

Exchanges, OTC and Clearing

TRADEcho to provide trade publication for SIX Swiss Exchange
SIX Swiss Exchange has approved the London Stock Exchange’s TRADEcho service as a Trade Data Monitor (TDM) for the SIX Swiss Exchange.
This agreement enables foreign participants (Remote Members) of the SIX Swiss Exchange to meet their reporting obligations for trades in Swiss securities admitted for trading on a Swiss regulated market via the TRADEcho platform.

TMX Group Consolidated Trading Statistics – February 2017A- A+ Print
TMX Group Limited today announced February 2017 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha), MontrÈal Exchange (MX) and NGX.

LCH Board Change
LCH, a leading global clearing house, announced today that Neil Walker is standing down as a non-executive director of LCH’s SA and Group boards, effective immediately, in order to focus on executive commitments elsewhere. Neil has been a non-executive director for LCH since 2012 and has served as a member of LCH’s risk committees.

SGX reports market statistics for February 2017
Total Derivatives volume was 12.47 million, up 7% month-on-month and down 10% year-on-year. SGX
Equity Index Futures volume was 9.95 million, up 4% month-on-month and down 14% year-on-year.
FTSE China A50 Index Futures remained the most active contract with volume of 4.68 million, up 5% month-on-month and down 17% year-on-year.

Intercontinental Exchange Announces Election Of Ann Cairns And Duriya Farooqui To ICE Board Of Directors
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that its Board of Directors has elected Ann Cairns and Duriya Farooqui as new Directors effective March 3, 2017.

Deutsche Bˆrse AG launches trading of money market funds with shorter settlement period of T+1; Five BlackRock Institutional Cash Series plc money market funds are tradable on Xetra
Deutsche Boerse
From today on money market funds with a shorter settlement period of T+1 are tradable via Xetra. These products are therefore the first class of securities for which transactions are settled on the trading day following order execution. All other classes of securities in exchange trading currently have a settlement period of T+2. The new offering addresses the particular trading and settlement conventions of money market funds.

TMX Group Reports Bump in February 2017 Volumes
Finance Magnates
TMX Group Limited, operator of the Toronto Stock Exchange and another four marketplaces – TSX Venture Exchange, TMX Select, Alpha, Montreal Exchange (MX) and NGX – has reported the aggregated trading metrics for February 2017, which took another step forward, ultimately adding to last ?month’s healthy gains across volumes, values and transactions.

DTCC expands data across major asset classes; DTCC DataPro aims to simplify data management across transaction types and asset classes.
Hayley McDowell – The Trade
The Depository Trust and Clearing Corporation (DTCC) has expanded its data products to cover all major asset classes.


Trading Technologies Connects To Dubai Gold & Commodities Exchange
Press Release
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, today announced Trading Technologies now offers connectivity to Dubai Gold & Commodities Exchange (DGCX) through its TT trading platform. With this new connection, commodity and currency derivatives traders can utilize TT’s robust functionality, including the TT Mobile applications for iOS and Android devices, to chart and trade the full range of products listed on DGCX.

SIX Swiss Exchange opts for TRADEcho’s trade reporting; SIX Swiss Exchange remote members will use TRADEcho for data monitoring and reporting.
Hayley McDowell – The Trade
SIX Swiss Exchange has chosen the London Stock Exchange’s (LSE) TRADEcho service as a trade data monitor to meet reporting regulatory requirements.

Bloomberg Tradebook launches best execution platform
Hayley McDowell – The Trade
Bloomberg Tradebook has established a platform for its equities and options trading, specifically designed to meet best execution requirements.

IBM, Maersk in blockchain tie-up for shipping industry
Gertrude Chavez-Dreyfuss – Reuters
IBM and Danish transport company Maersk said they were working together to digitize, manage, and track shipping transactions using blockchain technology.

DB1 Ventures Zeros In On Funding Blockchain and AI
Figuring out which types of companies or technologies to invest in can be a long and arduous task to take on. This is especially true when it comes to a larger investment company’s decision-making process.

IBM aims to spark revolution in quantum computing
Richard Waters – Financial Times
IBM is taking its first step towards commercialising quantum computing, making it the first big tech company to try to reap a dividend from what could one day be a revolutionary new form of computing. Most researchers agree that full-scale computers based on quantum mechanics, theoretically making them massively more powerful than existing machines, are still years away.


Investors look to politicians instead of central bankers
Claire Jones – FT
Politicians are taking over from central bankers as the most important influences on investors’ behaviour after an era in which interest-rate setters appeared to tower over the global economic order, a leading financial organisation has concluded.

Dodd-Frank roll-back targets asset manager stress tests
The new version of a bill to roll back post-crisis financial reforms in the US would kill a requirement for asset managers to be stress tested, has learned.

CDS markets signal rising fear of euro breakup
Marcello Minenna – FT
The following guest post on credit default swap basis is from Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator.


America’s Treasuries Revolution in Limbo With Mnuchin in Charge
Matthew Leising and Liz McCormick
Former Treasury officials fear years of work will be ignored; Trading data for first time to be collected starting in July
The revolution in the U.S. Treasury market is in limbo. Deep within an office park in Rockville, Maryland, a U.S. financial industry watchdog is hard at work trying to make the $13.9 trillion market easier to understand.

CFTC Announces Daniel J. Davis As General Counsel
U.S. Commodity Futures Trading Commission Acting Chairman J. Christopher Giancarlo today announced that Daniel J. Davis has been named the agency’s General Counsel.

NFA bars Redding, Calif. commodity trading advisor Samico Worldwide Markets, Inc. and its principal Thomas Gasparini from membership
National Futures Association (NFA) has permanently barred Redding, Calif. commodity trading advisor Samico Worldwide Markets, Inc. (Samico) and its principal and sole associated person, Thomas Gasparini, from membership and from acting as a principal of an NFA Member.

BSE wants Sebi to raise ceiling on depository holding
Business Standard
BSE wants regulator Securities and Exchange Board of India (Sebi) to increase investment ceiling for stock exchanges in depositories. The move comes less than a month ahead of the deadline for the exchange to divest its holding in Central Depository Services Ltd (CDSL) from 50 per cent at present to 24 per cent, the maximum permissible limit.

Investing and Trading

IEA Doubles Forecast for New OPEC Oil by 2022 as Iraq Ramps Up
Grant Smith – Bloomberg
OPEC will increase its production capacity by about twice as much as previously thought, led by expansion in Iran and Iraq, the International Energy Agency said.

Investor group seeks to bar Snap from indexes over voting rights
Ross Kerber – Reuters
A group representing large institutional investors has approached stock index providers S&P Dow Jones Indices and MSCI Inc, looking to bar Snap Inc and any other company that sells investors non-voting shares from their stock benchmarks.

A Corporate Bond Market Shift Is Underway
Ben Eisen – WSJ
Corporate bond investors are bracing for the Federal Reserve’s next move. On Friday, investors unloaded short-term corporate bonds that would be hit particularly hard by a rate increase, while keeping up purchases of longer-term debt.

Commodities Are Coming Back as a Diversity Play
Stephanie Yang – WSJ
The ties between commodities and other assets are coming loose and reinvigorating the long-beleaguered commodity market this year. The three-month correlation between commodities and stocks recently fell to the lowest level since September 2008, while commodities’ links with the U.S. dollar and bonds has also weakened this year, according to RBC Capital Markets.

OPEC Said to Break Bread With Shale in Rare Show of Detente
Javier Blas – Bloomberg
For the last two years, they’ve been locked in a battle for supremacy of the oil market. But for a couple of hours in Houston over dinner on Sunday, the head of OPEC and leaders of some of America’s top shale producers shared a table for a rare off-the-record chat about the future of oil.

A Taxing Problem for Investors; A corporate tax cut could provide a big boost to profits, but investors are expecting too much from it
Justin LaHart – WSJ
A corporate tax cut could provide a big boost to companies’ profits. The boost might not be quite as big, or come as soon, as investors think, though.

A word of caution on the bond-stock decoupling; Equity market optimism is not reflected in bonds. How significant is this divergence?
Mohamed El-Erian – FT
In the last few days, several market participants and watchers have highlighted a decoupling of equity and fixed-income markets that has seen the Dow Jones and S&P indices soar impressively to record highs while yields on 10-year and 30-year US government bonds have remained relatively low. One respected observer noted that “bond investors do not believe the excitement over growth in the stock market”. Another, equally astute, commentator wrote that “bond investors are sending a very different view”.

Exxon’s $20 Billion Spending Plan Points to U.S. Energy Surge; Exxon CEO Darren Woods outlined an 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas
Bradley Olson – WSJ
Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America.


Banks could earn $332 million from wave of financial services deals
Pamela Barbaglia – Reuters
A spate of big deals by financial services companies in Europe could earn investment banks an estimated $332 million in advisory fees, with Goldman Sachs (GS.N) set to take the lion’s share of the pot.

Deutsche Bank Bets on Ex-Goldman Partner in Strategy Revamp
Steven Arons and Jan-Henrik Foerster – Bloomberg
Marcus Schenck had been itching to work on deals — so much so that the chief financial officer of Deutsche Bank AG would spend one day a week with clients, a habit that didn’t always sit well with colleagues, according to a person familiar with his thinking.

BOE’s Hogg Failed to Disclose Barclays Family Links in 2013
Fergal O’Brien and Lucy Meakin – Bloomberg
Hogg hired as COO in 2013, only notified BOE this year; Declaration made as part of appointment as deputy governor
Bank of England Deputy Governor Charlotte Hogg has found her appointment at the center of a controversy after she failed to disclose a family link to Barclays Plc.

Chinese banks experiment with bitcoin-like system
Joseph Adinolfi – MarketWatch
Chinese banks in two cities are testing a custom-built digital currency developed by the People’s Bank of China, according to information gleaned from local media reports and interviews with two individuals who are familiar with the central bank’s thinking.


China confronts issue of how to use up excess corn stocks; Beijing hunts solutions as failed minimum price policy forces agricultural sector revamp
Lucy Hornby – FT
How do you solve a problem like China’s excess corn stocks?
Use it to make translucent film for greenhouses is one answer, its most influential agricultural expert said on Monday, as Beijing casts about for ways to rid itself of unwanted stores of corn and other agricultural commodities built up in recent years

China exerts control over hot debt markets; Authorities seek to slow borrowing using short-term money markets
Jennifer Hughes – FT
In China, it isn’t so much what is said but who says it. Few market followers can have been surprised by a warning that China’s rising leverage poses risks. But this one came from Li Keqiang, China’s premier, to the National People’s Congress. The impression left by the Chinese premier was that Beijing’s emphasis is now on controlling risks ó deleveraging in other words ó as much as growth. China’s fast-evolving bond markets are already reflecting this shift.

Why women make the best stock traders; Female traders are better at buying cheap and selling high
Peter Swan – The Conversation via Business Standard
Female traders can be far more selective, as they spend more time evaluating before making a trade and have a calmer approach in financial storms. Previous research shows women trade less than men, but does not reveal why. Our analysis shows this greater delay between trades is there for a good reason.

Emerging-Market Investors Take a Shine to Egypt
John Sfakianakis – Bloomberg
Most Egyptian businessmen are finally giving off an air of optimism these days, thanks to the three-year, $12 billion loan program signed in November with the International Monetary Fund.

China’s Massive Bond Market Coming to Index Near You; Citigroup announced Tuesday that mainland Chinese bonds were eligible for inclusion in its widely followed indexes of investment-grade bonds.
Anjani Trivedi – WSJ
China’s bond-market dreams could finally be coming true. But global investors should tread with care.

Western Europe: Portugal’s banks receive life support, at a cost
Dominic O’Neill – Euromoney
Portugal made progress on securing desperately needed international investment in its banks in February, as the balance of power in Lisbon’s financial sector tipped definitively in favour of foreign control. To the regret of many in Lisbon, oversight of a sector only a few years ago dominated by local bankers and local regulators, has now turned to figures in Brussels, Frankfurt and Spain, and increasingly the US, Angola and China.


Save Britain from the worst of Brexit by joining EFTA; The trade platform offers a practical and symbolic step for the UK’s new strategy
Liam Byrne – FT
The people have spoken. The Brexit referendum offered voters a ballot paper, but not a road map. And it is now down to government and parliament to chart a course through the minefield before us.

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Graduate of University of Minnesota School of Journalism and Mass Communication