Breaking News

Goldman-Backed High-Speed Trading Network Sold for $39.5 Million; The Dutch Have Solutions to Rising Seas. The World Is Watching.; HFT – Not so flashy anymore

First Read

Eurex CEO Sees Plenty of Structural Growth Potential
JohnLothianNews.com

“We also see a lot of structural growth potential… If we look at the equity index complex, there is a clear trend of many asset managers moving to passive investment structures. We see that … on the derivatives side [adding] new liquidity pools to global index families.”

Thomas Book, CEO of Eurex Frankfurt AG and Eurex Zurich AG, believes the exchange can take advantage of the opportunities presented by a changing European landscape. Low interest rates for a long time equated to low interest in Eurex’s fixed income offerings ó this year the exchange has seen new adoption of the product. Book views volatility as an underdeveloped asset class in Europe ó Eurex wants to grow the European volatility space and extend those offerings to US investors as well. Also, Eurex saw volumes triple in its MSCI futures and options suite so far this year, a trend the exchange wants to continue to support. Then there’s the elephant in the room ó MiFID II ó which also presents opportunities for the exchange.

Read the rest and watch the video »

++++

Morgan Stanley’s Gorman Latest CEO Snared by Email Prankster
Liz Hoffman – WSJ
Hook, line and sinker.
Morgan Stanley CEO James Gorman is the latest to be snared by an email prankster who has targeted at least four Wall Street bosses so far. Mr. Gorman last night replied to an email appearing to come from Alistair Darling, a former chancellor of the British exchequer and a Morgan Stanley board member. A spokesman confirmed the exchanges, screenshots of which the prankster posted on Twitter
jlne.ws/2tn4GD2

***** I wonder if James Gorman will have his pants altered now that one leg is longer than the other, his leg having been pulled.

++++

TT sales reshuffle sees Fox, McDonnell leave
Global Investor Group
Fintech firm Trading Technologies has reshuffled its senior sales management and parted ways with Brian Fox and Robbie McDonnell, two of its top salesman in the US and Asia.
Fox, who ran TT sales in Chicago and Houston, and McDonnell, who oversaw Asian sales, are said by sources close to the firm to have left their respective positions in Chicago and Sydney in recent weeks. A spokeswoman for TT told FOW: “Trading Technologies has restructured its sales organisation to establish a streamlined global sales effort focusing on business development, and a global customer success group for highly coordinated outbound coverage and broader relationship management.”
jlne.ws/2tnIM2M

***Steve Stewart, managing director for Europe, the Middle East and Africa, and Guy Scott, managing director for Americas, now report to TT’s chief commercial officer Michael Kraines.

++++

The Anglo-American democracy problem; Inequality, skills misconception and complacency plague these two rigid societies
Edward Luce
Lionel Jospin, former French prime minister, once said: “Yes to a market economy, no to a market society”. Anyone grappling with why the US and Britain have been hit worse by populism than many other democracies might recall his words.
/goo.gl/usyGE9

***** There is so much change in the world it is hard to keep up, and I focus on it.

++++

Bloomberg follows paywall trend at Businessweek; Print and digital ad pressures push publishers to chase alternative revenue streams
Shannon Bond in New York – FT
Bloomberg is putting Businessweek behind a paywall as Michael Bloomberg’s financial news and information company looks to shift the magazine’s main source of support from its advertisers to its readers.
/goo.gl/EdyfjW

***** Looks like Bloomberg is going to make you pay.

++++

You’re Invited to FOW-John Lothian News Trading Chicago on June 28th!
Register here

This one-day event at the Swissotel on June 28th is aimed largely at the end-users of the markets: commodity trading advisors, asset managers, hedge funds and proprietary traders.

The conference will cover the issues that impact those firms directly – regulation, technology and market structure, with an underlying thread of trading in an age of uncertainty. All of this will be delivered in a variety of formats, from an Oxford-style debate on the Dodd-Frank Act’s repeal to TED-style talks to panel discussions.

The event is free to attend for CTAs, asset managers, props and hedge funds. For full conference information, click HERE.

Watch the preview »

++++

Emini Russell 2000 Index Futures; Reminder: How to move positions from ICE to CME
CME Group
With less than 25 days until E-mini Russell 2000Æ Index futures and options return to CME Group, we want to ensure you have all of the information you need to easily and expediently transition your existing positions beginning July 10.
/goo.gl/8Pu81u

***** Get ready for the move back to the CME.

++++

MiFID II: How Did We Get Here and What Does It Mean?
BY: ANDREW GIBBINS – Trade Talk Blog
As the industry has been preparing for the implementation of MiFID II (Markets in Financial Instruments Directive II) in 2018, so too has Trading Technologies been working closely with our clients on planning and executing compliance solutions. Over the next few months, I will be sharing my thoughts and TT’s point of view on MiFID II and industry implications. We begin the first in a series of blog posts with what is MiFID, how did we get here and what does it all mean?
/goo.gl/oFiEQ8

***** The latest from the TT Blog.

++++

Wednesday’s Top Three
Yesterday’s most clicked story was a longform about Flow Traders, Dutch Speed-Trader Turns to Currencies After Conquering ETFs. Second was a WSJ story about the continued rise of the machines, IBM Launches Watson for Financial Regulation. In third was CME’s Duffy Returns to Work After Collapsed Lung.

++++

MarketsWiki Stats
102,610,929 pages viewed; 22,554 pages; 206,472 edits
MarketsWiki Statistics

++++

++++

Lead Stories

Goldman-Backed High-Speed Trading Network Sold for $39.5 Million
Brian Louis – Bloomberg
GTT bought Perseus, which runs microwave networks traders use; Goldman Sachs invested $20.5 million in Perseus in 2015
Perseus Inc., a Goldman Sachs Group Inc.-backed firm that runs a high-speed network used by some of the fastest traders to zoom orders across continents, said it was just sold for $39.5 million.
/goo.gl/QrN1jw

The Dutch Have Solutions to Rising Seas. The World Is Watching.
Michael Kimmelman – NY Times
In the waterlogged Netherlands, climate change is considered neither a hypothetical nor a drag on the economy. Instead, it’s an opportunity.
The wind over the canal stirred up whitecaps and rattled cafe umbrellas. Rowers strained toward a finish line and spectators hugged the shore. Henk Ovink, hawkish, wiry, head shaved, watched from a V.I.P. deck, one eye on the boats, the other, as usual, on his phone.
/goo.gl/o25ccD

HFT: Not so flashy anymore; After a string of M&A deals in the HFT space at the beginning of the year, does it spell an end to the traditional HFT business model? Writes Joe Parsons.
Joe Parsons – The Trade
After the publication of Michael Lewis’s “Flash Boys” in 2014, the high-frequency trading (HFT) firms dominating financial markets in the shadows were brought to light.
/goo.gl/2SQw7z

DV Trading buys Chicago rival Eldorado Trading’s assets
Lynne Marek – Crain’s Chicago Business
Chicago high-speed electronic trading firm DV Trading is expanding, hiring employees from shuttering Chicago rival Eldorado Trading, and opening an office in London next month.
DV Trading added seven employees from Eldorado Trading recently, and acquired some of the firm’s trading hardware and software, DV Trading CEO Jared Vegosen said. He declined to say how much DV paid for the assets.
jlne.ws/2soMKLi

Europe holds the cards on clearing yet both sides can profit; There is encouragement for those who fear that Brexit will diminish the City’s status
Simon Gleeson – FT
Clearing houses do three big things. They estimate the likelihood that a member will default and take collateral from them against this. They manage a default when it happens, and they mutualise the costs of that default.
/goo.gl/EIxrWO

City’s clearing relief tempered as EU details examined; European Commission seeking new powers over UK-based clearing houses
Philip Stafford in London and Jim Brunsden in Brussels – FT
The initial relief in the City of London was palpable this week. In a long-awaited decision, authorities in Brussels stopped short of demanding that the EU becomes home to the business of clearing euro-denominated derivatives once Britain leaves.
/goo.gl/kbV16p

BofA Says $53 Billion Expense Target Is Just the Beginning
Hugh Son and Jennifer Surane – Bloomberg
Looking for ways technology can replace people, Montag Says; Chief operating officer cites currency trading as one example
Bank of America Corp. will keep cutting costs even after reaching its annual spending goal of $53 billion by finding more ways technology can replace people, Chief Operating Officer Tom Montag said.
/goo.gl/AV9i3t

Michael Lynton Joins IEX Group Board of Directors
IEX
IEX Group, Inc. today announced that it has appointed Michael Lynton, the Chairman of Snap, Inc. and previously the CEO of Sony Entertainment, to its Board of Directors as a non-executive director.
/goo.gl/t7xqXM

Goldman Goes Mr. Roboto on Debt Sales; The Wall Street bank can bring greater transparency to an opaque market.
Lisa Abramowicz – Bloomberg
Goldman Sachs wants to be a technology company, and it’s taking steps to be more like one even in some traditionally human-intensive businesses.
/goo.gl/RTtxls

MiFID II Will Change the Market in Six Distinct Ways
Ollie Cadman – Vela Trading Technologies
In March, Vela hosted an executive roundtable in London on the cross asset challenges of MiFID II. In the third and final event report, we look at the changes that participants from across the market expect to see in business models, trading patterns, and relationships.
/goo.gl/lCb7KY

European Commission proposes amendments to CCP supervision
FIA
Yesterday, the European Commission issued a proposal for “more robust supervision” of central counterparties. The proposal would establish a more rigorous system of supervision for third-country CCPs that are systemically important to the European Union’s financial markets, and would give European regulators the authority to require these CCPs to relocate into the EU if the additional supervision is deemed to be “insufficient to mitigate the potential risks.” The proposal also would establish a number of procedures to make the supervision of EU CCPs “more coherent.”
/goo.gl/FnG9Gr

Ethical FX via the Global Code
Ivy Schmerken – FlexTrade Systems via TABB Forum
Foreign exchange participants are getting a crash course in ethical behavior. The FX Global Code for the wholesale foreign exchange market provides the industry with a single set of guidelines to prevent bad behavior in currency trading. And, while the FX code of conduct is voluntary, firms in the FX markets could face commercial pressure from central banks and/or clients to adhere to it.
/goo.gl/aIkiRr

Bromance of Trading Veterans Gives Viola’s Virtu a New Chairman
Annie Massa – Bloomberg
Billionaire Viola passes chair role to ex-Nasdaq CEO Greifeld; Greifeld and Virtu CEO Cifu see new opportunities in KCG deal
The same November day that Bob Greifeld announced he was stepping down as chief executive officer of Nasdaq Inc., he met billionaire Vinnie Viola at a bistro on Manhattan’s Upper East Side.
jlne.ws/2soUe0z

Fed raises rates, unveils balance sheet cuts in sign of confidence
Lindsay Dunsmuir and Howard Schneider – Reuters
The Federal Reserve raised interest rates on Wednesday for the second time in three months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing U.S. economy and strengthening job market.
jlne.ws/2sq2zRH

Sebi to complete FTIL group probe by July end; To submit findings to Bombay HC at next hearing in August
N Sundaresha Subramanian – Business Standard
The Securities and Exchange Board of India (Sebi) will complete its investigation into complaints against Financial Technologies India Limited (FTIL, now 63 Moons) and several other entities associated with it by the end of next month.
/goo.gl/cJ3UCf

Exchanges, OTC and Clearing

MGEX Shatters Previous Daily Volume Record By 23 Percent
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), reports a total volume of 33,453 from Tuesday, making it the best daily volume in MGEX’s history. This surpasses the previous record set on January 12, 2017 when 27,095 contracts traded by 23 percent.
jlne.ws/2tmoCWZ

Eurex Market-on-Close Futures (“Eurex MOC Futures”) on EURO STOXX 50 Index Futures (FES1): Draft Contract Specifications
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Z¸rich AG agreed draft changes to the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland and Eurex Z¸rich (Contract Specifications) to prepare the introduction of Eurex Market-on-Close Futures (“Eurex MOC Futures”) on EURO STOXX 50 Index Futures.
/goo.gl/6A5kG9

Trax and Bats link up for MiFID II trade reporting; Trax APA users will have the choice to direct equity trades to Bats APA for post-trade reporting.
Hayley McDowell – The Trade
Trax and Bats Europe are planning to connect their approved publications arrangements (APA) ahead of MiFID II’s post-trade reporting requirements.
/goo.gl/c44VH5

Let’s Have an NSE Initial Penance Offering
Andy Mukherjee – Bloomberg
Try this at home. Anywhere on a Microsoft Excel spreadsheet, type =RAND(). You’ll see a decimal number between 0 and 1. Close the worksheet and reopen it a second later, and you’ll see a different figure.
/goo.gl/g66VeH

Volume Rises for S&P 500 Options with P.M.-Settlement on 3rd Fridays
Matt Moran – CBOE
In regard to the popular S&P 500 options, on May 1, 2017, CBOE changed the symbol for existing SPXPM option series to option symbol SPXW. Beginning last month, CBOE is offering both SPX options with a.m.-settlement, and SPXW options with p.m.-settlement, on third Fridays of the month. This conversion was designed to allow greater ease of access for those looking to place spreads from week to week. We have received some very positive feedback from institutional investors on this change to the symbol SPXW.
/goo.gl/DBMQI4

ICE Clear Credit LLC
Notice of Withdrawal of Proposed Rule Change Relating to ICC’s Liquidity Risk Management Framework and ICC’s Stress Testing Framework
/www.gpo.gov/fdsys/pkg/FR-2017-06-15/pdf/2017-12377.pdf

ICE Clear Credit LLC
Notice of Proposed Rule Change Relating to ICC’s End-of-Day Price Discovery Policies and Procedures
/www.gpo.gov/fdsys/pkg/FR-2017-06-15/pdf/2017-12376.pdf

CBOT – Modifications to the Fed Fund Options Floor Broker Pool Program
www.cftc.gov/filings/orgrules/rule053117cbotdcm001.pdf

CBOT – Modifications to the CBOT Market Maker Program for Deferred 30-Day Federal Fund Futures
www.cftc.gov/filings/orgrules/rule053117cbotdcm002.pdf

Fintech

Broadway Technology Leases 25,000 Square Feet at 28 Liberty
Broadway Technology
Savills Studley, the leading commercial real estate firm specializing in tenant representation, announced that it has completed a new lease for Broadway Technology at 28 Liberty Street in Lower Manhattan.
Broadway Technology provides award-winning, high-performance trading solutions and infrastructure to top financial firms around the world.
jlne.ws/2spcaZ7

Baidu, With a Move Into Fintech, Gets Wary Credit-Ratings Look; The search engine’s move into unsecured consumer lending and uninsured investment products brings it more risk
Alyssa Abkowitz – WSJ
Baidu Inc. is among China’s tech giants looking to get a leg up in the competitive financial services market. Credit-rating companies aren’t so sure it’s a good idea.
/goo.gl/LhuYQN

Bank of America to lay off more workers
Dan Freed – Reuters
Bank of America Corp (BAC.N) has begun laying off employees in its operations and technology division, part of the second-largest U.S. bank’s plan to cut costs.
/goo.gl/rX8Iw0

AIG teams with IBM to use blockchain for ‘smart’ insurance policy
Suzanne Barlyn – Reuters
Insurer American International Group Inc has partnered with International Business Machines Corp to develop a “smart” insurance policy that uses blockchain to manage complex international coverage, the companies said on Wednesday.
/goo.gl/J3XtF1

IBM Blockchain Summit 2017 – Atlanta
IBN
Thursday, June 29, 2017 – Intercontinental Buckhead Atlanta
Join IBM, an early adopter, to see how blockchain technology is here now – changing fundamental business processes and the ways networks transact and exchange value. You’ll gain knowledge to understand what blockchain is and what it is not, and see blockchain’s business potential as it applies to your unique business challenges.
/goo.gl/UQQXvR

Eight of the best fintechs from across the world selected for The FinLab’s accelerator programme
FinLab
After sieving through close to 400 applications across 44 countries, The
FinLab, Singapore’s first corporate fintech accelerator, selected 8 innovative fintech businesses for its second cycle of acceleration.
/goo.gl/LS4QuG

SDiX, Kynetix and Everledger trial first-ever blockchain for diamond trading
Kynetix
Singapore Diamond Investment Exchange (SDiX), the world’s first commodity exchange in physically settled diamonds, today announced that it has successfully partnered with Kynetix, the physical commodity digitisation expert, and Everledger, supplier of blockchain and distributed ledger infrastructure, to complete the first part of a Proof-Of-Concept of a blockchain-based authentication and secure record-keeping service for trading diamonds on a global commodity exchange.
/goo.gl/DkVrYf

Politics

Macron and allies head for EU clash on foreign takeovers; Leaders want powers to restrict buyouts in strategic sectors
Arthur Beesley in Brussels – FT
French president Emmanuel Macron is heading for a clash with pro-free trade member states at his first EU summit over his push for a “protective Europe” that would give Brussels the power to restrict foreign takeovers of key industries.
/goo.gl/hSWB8t

Trump’s Incoherent Foreign Policy Is Upending the World; U.S. leadership is sorely needed as the globe is torn by tribalism. Trump’s not going to provide it.
Joe Klein – Bloomberg
In the beginning, it was almost possible to believe Donald Trump had a coherent worldview. There were those, like Walter Russell Mead in Foreign Affairs, who argued that the president had a purposeful, Andrew Jackson-inspired “America First” policy. Alliances and treaties, especially trade deals, would be measured according to a narrow definition of national interest rather than long-term global stability. This was a simplistic, nearsighted strategy, but at least it made some political sense. It was what his constituency wanted. The primacy of domestic electoral considerations has certainly been notable in Trump’s world.
/goo.gl/iLCWdN

Mueller Examining Whether Trump Sought to Slow Flynn Probe
Chris Strohm – Bloomberg
Move widens inquiry into Russian interference in election; Interviews sought with two top U.S. intelligence officials
The special counsel investigating Russia’s interference in the 2016 election plans to interview two top U.S. intelligence officials about whether President Donald Trump sought their help to get the FBI to back off a related probe of former National Security Adviser Michael Flynn, according to three people familiar with the inquiry.
/goo.gl/NPBOsP

Mueller Probe Examining Whether Donald Trump Obstructed Justice; Special-counsel investigation has expanded to look into president’s firing of former FBI Director James Comey
Del Quentin Wilber, Shane Harris and Paul Sonne -WSJ
President Donald Trump’s firing of former FBI Director James Comey is now a subject of the federal probe being headed by special counsel Robert Mueller, which has expanded to include whether the president obstructed justice, a person familiar with the matter said.
/goo.gl/LYX9qA

Eugene Fama Discusses His New Five-Factor Model
Chicago Booth Review
Plus more from the Nobel Laureate on the Trump tax plan, the Euro, and his approach to research
/goo.gl/DCMVXA

Yellen says she’s ‘sympathetic’ to Trump’s deregulation plan
Steve Goldstein – MarketWatch
Federal Reserve Chairwoman Janet Yellen may have been nominated by President Barack Obama, but she’s not sounding uncomfortable with the deregulatory agenda of President Donald Trump.
/goo.gl/IinfU6

Regulation

MiFID II: How Did We Get Here and What Does It Mean?
Trading Technologies
MiFID II is a consequential and reactionary financial regulation born from MiFID I and the same G20 Pittsburgh meeting in 2009 that instigated the blueprints of its older siblings, Dodd-Frank, EMIR, REITS and, recently, the seemingly stalled Regulation Automated Trading (Reg AT), post the 2008 financial crash.
jlne.ws/2ti1hWq

Judge scraps U.S. evidence against Wall Street financier Wey
Jonathan Stempel – Reuters
Wall Street financier Benjamin Wey persuaded a federal judge to suppress all evidence seized in U.S. government searches of his home and offices, in a setback for prosecutors who charged him with fraud over Chinese “reverse mergers.”
jlne.ws/2tn8AvU

TCA and best ex drives algo adoption in FX; MiFID II and the FX global code of conduct are expected to cause a surge of algo usage in FX markets.
Hayley McDowell – The Trade
An increased focus on best execution and the growing use of transaction cost analysis (TCA) could see increased algo usage in FX markets, according to research.
/goo.gl/cWYIFJ

Ex-Visium fund manager sentenced to 18 months after fraud conviction
By Brendan Pierson – Reuters
A former portfolio manager at Visium Asset Management LP was sentenced to 18 months in prison on Wednesday following his conviction on securities fraud charges stemming from an investigation that led the New York-based hedge fund to close last year.
/goo.gl/12KVss

ISDA Financial Benchmarks Symposium, Scott O’Malia, June 15, 2017
ISDA
/goo.gl/hlOhTE

Proposed Rule Change to Extend the Implementation of FINRA Rule 4240 (Margin Requirements for Credit Default Swaps)
FINRA
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend FINRA Rule 4240 (Margin Requirements for Credit Default Swaps) to extend to July 18, 2018 the implementation of FINRA Rule 4240. FINRA Rule 4240 implements an interim pilot program with respect to margin requirements for certain transactions in credit default swaps that are security-based swaps.
/goo.gl/MXTHmj

Start Your Financial Road Trip With an Emergency Fund
FINRA STAFF
It’s an annual rite for many familiesóthe summer road trip. Memorial Day through Labor Day is one of the busiest travel periods of the year, so it’s no coincidence that the travel experts offer road-trip survival tips, from tuning up the car to keeping your cell phone charged.
/goo.gl/hYejsS

UBS fined $280k for system failures; Deficiencies were seen on UBS’ price improvement network and Opera trading systems.
Hayley McDowell – The Trade
UBS has paid a total of $280,000 to authorities in Australia for several system deficiencies which saw clients lose money.
/goo.gl/k1v06S

SEC Resolves Financial Fraud Action
JD Supra
Financial fraud has long been a key SEC enforcement priority. The Commission’s most recent case in the area centered incorrect financial statements tied to the premature recognition of revenue reflecting errors and a failure to determine the correct accounting principles. In the Matter of Michael B. Hayford, Adm. Proc. File No. 3-18020 (June 9, 2017).
/goo.gl/SwK6JC

Limiting SEC Disgorgement Unanimous Supreme Court Draws a Bright Line Five-me
JD Supra
Court held unanimously last week in Kokesh v. Securities and Exchange Commission, No. 16ó529 (2017), that the Securities and Exchange Commission’s (SEC’s) often used disgorgement remedy was a penalty subject to the five-year statute of limitations under 28 U.S.C. ß 2462.
/goo.gl/RRJLCC

Investing and Trading

O’Brien Investment Group Launching Discretionary Global Macro Fund; Hedge Fund Managed by Goldman Sachs Alumna Monica Fuentes, Ph.D. to Open to Public July 1
O’Brien Investment Group
O’Brien Investment Group (OBIG) has launched the OBIG Discretionary Global Macro Fund, managed by Monica Fuentes, Ph.D. The hedge fund will be open to public participation starting July 1 and available to sophisticated market participants such as accredited institutional investors and large family offices. The Fund will offer a Founders Share Class for the first $100 million of assets under management (AUM), available with a $250,000 minimum investment.
/goo.gl/ykB7Su

The real driver of dollar-cost averaging is your emotions, not reduced risk
Meir Statman – MarketWatch
One popular strategy for investors with cash destined for stocks is to employ dollar-cost averaging, or dividing their cash into segments and converting each into stocks according to a predetermined schedule.
Both logic and simulations indicate that investors are more likely to increase their wealth with investing all at once than with dollar-cost averaging. Moreover, risk reduction cannot be a rational reason for the persistence of this strategy.
jlne.ws/2tnaM6o

How cryptocurrency ethereum looks set to overtake bitcoin ó in one chart
Victor Reklaitis – MarketWatch
Just as Wall Street is paying more attention to bitcoin, a rival is increasingly threatening to become the top dog among cryptocurrencies.
jlne.ws/2spBzC9

U.S.-based bond funds net most cash in nearly two years: ICI
Trevor Hunnicutt – Reuters
U.S. fund investors downgraded their expectations for the domestic economy and snapped up bonds during the latest week, dropping the most cash into debt funds in more than 23 months, Investment Company Institute data showed on Wednesday.
jlne.ws/2sq4ndK

Janet Yellen and the Case of the Missing Inflation
Neil Irwin – NY Times
Inflation has stubbornly stayed lower than the Federal Reserve has desired for the past eight years, and it has been falling in the last few months. In a move that could well define her chairmanship of the central bank, Janet Yellen is betting that falling prices are a temporary blip that will soon be forgotten.
/goo.gl/NlERqE

Fed Raises Rates, Sets Out Plan to Shrink Asset Holdings Beginning This Year; Central bank pencils in one more rate increase later this year if the economy performs as expected
Nick Timiraos – WSJ
The Federal Reserve said it would raise short-term interest rates and spelled out in greater detail its plans to start slowly shrinking its $4.5 trillion portfolio of bonds and other assets this year.
/goo.gl/VDGc7o

Investors Play the Risky Role of Lender; Investments surge into asset managers that lend to midsize firms who can’t get financing from banks
Jon Sindreu – WSJ
Desperate to increase returns, some of the world’s most conservative investors are taking bigger risks by aping banks and lending directly to companies.
/goo.gl/O5Sfkz

Institutions

SoftBank Said to Hire Ex-Deutsche Bank Trading Chief Colin Fan
Stephanie Baker – Bloomberg
Fan will help manage SoftBank’s $93 billion Vision Fund; Fan left Deutsche Bank in 2015 as part of a management shakeup
Colin Fan, the former co-head of Deutsche Bank AG’s investment banking and trading unit, is joining SoftBank Group Corp., according to a person familiar with the situation.
jlne.ws/2t3gcEC

Barclays said to hire Goldman Sachs quant trader Asita Anche
eFinancialCareers
As it builds up its trading business, Barclays is understood to have hired Asita Anche, a former managing director in Goldman Sachs’ fixed income systematic market making division.
jlne.ws/2tn3fol

Barclays turns to hedge fund manager to lead US rates trading; Barclays has hired Chris Leonard, a founder of two New York-based hedge funds, to lead its US rates trading team.
Joe Parsons – The Trade
Barclays has appointed a former hedge fund manager to lead its US rates trading team, as the bank looks to fill the void left by its US fixed income veteran Michael Yarian.
/goo.gl/PBESQa

Three US bank chiefs fall victim to email prankster; Serial hoaxer exposes risk of inadvertent leaks of sensitive information
Ben McLannahan and Kadhim Shubber – FT
Three top US bank chiefs have been duped by an email prankster, highlighting the risk of inadvertent leaks of sensitive information through the most basic of breaches.
/goo.gl/rLg5Kt

Wells Fargo Is Accused of Making Improper Changes to Mortgages
Gretchen Morgenson – NY Times
Even as Wells Fargo was reeling from a major scandal in its consumer bank last year, officials in the company’s mortgage business were putting through unauthorized changes to home loans held by customers in bankruptcy, a new class action and other lawsuits contend.
/goo.gl/kfuCHP

A Female CEO of a Big Bank? The Odds Are Now Greater Than Zero
Jordyn Holman – Bloomberg
Four of five biggest U.S. banks have two women in the wings; Study says more than one woman necessary to break status quo
When JPMorgan Chase & Co. Chief Operating Officer Matt Zames, long considered a CEO-in-waiting, announced his decision to leave the bank last week, attention turned to other executives on the bench — and for the first time, there’s a non-zero chance the bank’s next leader will be a woman.
/goo.gl/zk4RhP

Regions

America Can Spin the Oil World on Its Axis
Mark Grant – Bloomberg
The government can provide incentives, as oil and natural gas production is not just a matter of economics, but of national security as well.
jlne.ws/2soCN0f

Morgan Stanley CEO says Saudi Arabia could be ‘major opportunity’
Olivia Oran – Reuters
Morgan Stanley CEO James Gorman said Saudi Arabia could be a “major opportunity” for the firm as the country unveiled plans for oil giant Saudi Aramco’s $100 billion initial public offering and introduced a series of reforms to attract foreign capital in 2015.
jlne.ws/2sqaZsx

Emerging Markets No Longer Fear the Fed; Latest U.S. interest-rate increase draws a muted market response
Steven Russolillo and Saumya Vaishampayan – WSJ
Who’s afraid of the Federal Reserve? Not, it seems, investors in emerging markets.
/goo.gl/NHyAZE

Brexit

A hard Brexit risks no Brexit at all
Ambrose Evans-Pritchard – Telegraph
The surest way to prevent Brexit ever happening is for hardline eurosceptics to overplay a weak hand. Ideological greed will get the better of them.
/goo.gl/BAb1HQ

A path that would avoid Brexit calamity; Theresa May’s government needs to put national interest before party loyalty
Philip Stephens – FT
Emmanuel Macron could have chosen to humiliate Theresa May when the two leaders met in Paris. Wise beyond his years, the French president told the prime minister that the door was still open to rethink Britain’s relationship with the EU. Britain should take Mr Macron at his word. There is a path out of the Brexit mess. It requires the reassertion of the national interest over that of the Conservative party.
/goo.gl/w4Yxuh

Miscellaneous

Atlanta Fed raises U.S. second quarter GDP growth view to 3.2 percent
Reuters
jlne.ws/2sqcve1

****SD: Love this story when paired with the next one. They were back-to-back in my news feed.

Barclays keeps U.S. second-quarter GDP estimate at 2.0 percent
Reuters
jlne.ws/2spVEbj

Chuck Jaffe, Host of “Money Life Radio Show,” Named Chief Editor of RagingBull.com
RagingBull.com
RagingBull.com has named veteran journalist Chuck Jaffe as its new editor, as part of an aggressive plan to change the site’s editorial strategy to give investors insight into the minds of traders.
/goo.gl/Lv8F7v

0.00 avg. rating (0% score) - 0 votes

About Author

Graduate of University of Minnesota School of Journalism and Mass Communication