Breaking News

Chicago’s Newest Trading Floor Will Be Staffed by Humans; NYSE on Track to Lose More ETF Listings; Big asset managers struggle to meet Mifid II deadline

First Read

Hits & Takes
By JLN Staff

BOX gets SEC approval for a trading floor, the CBOE picks the Winklevoss twins for bitcoin futures and earnings news from ICE and LSEG is among today’s top headlines.

ICE and LSEG came out with earnings today. Check it out in Exchange News. ~JJL

I like context. Morgan Housel has a blog – An Honest Business News Update – with a lovely reminder humanity is more than the sum of what gets the publicity. ~SD

We have added a Hello Bar to the bottom of the MarketsWiki Education website] and to the top of the [[http://www.johnlothiannews.com|JohnLothianNews.com website to encourage visitors to sign up for the John Lothian Newsletter. This is the work of Patrick Lothian and Jim Kharouf in collaboration with the rest of the JLN staff. ~JJL

Below is a pic of BOX’s office space for its new floor which was approved yesterday.
(Click for larger image)

It’s in the second level atrium area right across from the fitness center of the CBOT building. I’ve walked by a number of times since the BOX logo popped up on the door and never seen so much as a fly. But yesterday there was a sign of life as some unknown soul had a baseball game playing on a TV. ~SD

++++

CBOE Teams Up With Winklevoss Twins for Bitcoin Data; Move paves way for Chicago-based exchange to list bitcoin derivatives
Gunjan Banerji – Bloomberg
U.S. exchanges are racing to secure a piece of the growing cryptocurrency market. CBOE Holdings Inc., CBOE -0.44% which oversees the largest U.S. options exchange, has entered an agreement with brothers Cameron and Tyler Winklevoss to use bitcoin market data. The move paves the way for Chicago-based CBOE to list bitcoin derivatives.
/goo.gl/oWpeYQ

***** I completely missed the Winklevoss connection yesterday. I must have been too busy posting to Facebook. ~JJL

++++

Avoiding the Crowd Is a Good Bet for Beating the Stock Market
Cormac Mullen – Bloomberg
Study shows high returns from purchasing least crowded stocks; Shares ‘neglected’ by fund managers generally outperform
U.S. fund managers can enjoy outsize returns by focusing on “neglected” stocks, according to a study published in the latest edition of The Journal of Portfolio Management.
/goo.gl/24HYKB

***** With so few stocks, how much neglect can there be?~JJL

++++

The State of Today’s Markets: Issues and Opportunities – Larry Tabb
Education.MarketsWiki.com

“This industry is a meritocracy. If you can do a better job than the next guy, then you’ll get rewarded more than the next guy. That’s a good thing.”

In this video from MarketsWiki Education’s World of Opportunity event in New York, Larry Tabb, founder and research chairman of the TABB Group, gives a comprehensive view of the state of markets today with an eye toward the future. Tabb covers everything from the dangers markets face when quantitative easing ends; the decrease in IPOs; the prospect of the regulatory pendulum swinging back to less regulation; and how difficult it will be for fintech to totally disintermediate established players.
Read the rest and watch the video »

++++

U.K. Budgets Millions to Train Inexperienced Trade Negotiators Ahead of Brexit
Charlotte Ryan – Bloomberg
Trade department also spending on headhunting, legal fees; Some 200 Trade Department staff have already had training
The U.K. government is budgeting millions of pounds to train staff to negotiate trade deals, to compensate for a lack of expertise as the country prepares for Brexit.
/goo.gl/Y9qvL5

***** This sounds like a great plan.~JJL

++++

Bust Up America’s Monopolies Before They Do More Harm; Democrats should crusade against companies that stifle competition and gouge consumers.
Noah Smith – Bloomberg
Theodore Roosevelt is an American icon. His face appears on Mount Rushmore, and his confident, confrontational approach is still remembered fondly. But Roosevelt wasn’t quite a Republican of the laissez-faire Reaganite mold. Much of his campaign rhetoric now reads like language from a Bernie Sanders campaign rally. Roosevelt’s main attack against the “malefactors of great wealth,” as he called them, was to try to break up the monopolies and cartels that he saw as siphoning wealth from working-class Americans.
/goo.gl/T4eMYW

******You can give credit or blame to the Chicago School for the trend of bigger and bigger firms with more market power.~JJL

++++

Wednesday’s Top Three
Yesterday’s top story by a long shot was CME sees dollars in data sales, but struggles to grow. In second was the tale of payment disruptor Stripe, How Two Brothers Turned Seven Lines of Code Into a $9.2 Billion Startup. In third was yet another in a series of recent market maker developments, Virtu Is Said to Explore Sale of Fixed Income Unit BondPoint.

++++

MarketsWiki Stats
105,462,602 pages viewed; 22,657 pages; 207,492 edits
MarketsWiki Statistics

++++

Lead Stories

Chicago’s Newest Trading Floor Will Be Staffed by Humans
Brian Louis – Bloomberg
Chicago will get its first new open-outcry trading floor in years after BOX Options Exchange won regulatory approval to open a new one at a time when trades are increasingly done on computer screens.
jlne.ws/2vupVbf

****SD: SEC approval document here.

NYSE on Track to Lose More ETF Listings; The exchange, long the dominant venue for such products, is facing increased competition from Bats, Nasdaq
Asjylyn Loder and Alexander Osipovich – WSJ
The New York Stock Exchange, long the dominant listing venue for U.S. exchange-traded funds, is on track to lose ETF listings for a second straight year as competing exchanges vie for a larger slice of the fast-growing industry.
/goo.gl/8ifu7N

Big asset managers struggle to meet Mifid II deadline; Large investment houses yet to decide how they will pay for investment research
Attracta Mooney – FT
At least 12 of the world’s biggest fund houses, including BlackRock and JPMorgan Asset Management, are yet to make a decision on how they will pay for investment research despite a looming deadline to comply with new European rules.
/goo.gl/7yjyE3

The demise of Libor is not a done deal for markets; Moving more than $350tn of derivatives pegged to benchmark will take longer than five years
Alexandra Scaggs – FT
Reports of the death of Libor may be exaggerated, particularly in US markets. The UK markets regulator, the Financial Conduct Authority, has set a rough timeline for banks to prepare for a transition away from the floating interest rate benchmark that is crucial to world markets. By the end of 2021, it will no longer require banks to contribute to its calculation for rates in sterling, it said.
/goo.gl/hPPKmh

Trading Firms Pick Amsterdam Over London as Brexit Bites
Will Hadfield, Brian Louis and Silla Brush – Bloomberg
Electronic markets operator Tradeweb joins Radix, Hard Eight; Dutch regulator favors speed traders, platforms, firms say
Two U.S. algorithmic-trading firms are picking Amsterdam over London as the location for their first European office, reinforcing the Dutch city’s standing as a financial hub post Brexit.
/goo.gl/rSvWu2

Efforts to Future-proof ISDA Documentation Important Step for Derivatives Smart Contracts, says New ISDA/Linklaters Whitepaper
ISDA
Work currently under way to standardize and formalize certain clauses within International Swaps and Derivatives Association (ISDA) legal documents and definitions is an important pre-cursor to unlocking value in the derivatives market and realizing the cost and efficiency benefits of smart contracts and distributed ledger, according to a new whitepaper published today by ISDA and Linklaters.
/goo.gl/4gipCZ

Investment banks, not HFTs, fuel flash crashes – FCA research; High-frequency traders are often blamed for sharp rises and falls in the stock markets
Samuel Agini – Financial News
High-frequency trading firms, so often blamed as the forces behind flash crashes and soaring rallies in the stock markets, have been handed a line of defence by the UK’s financial watchdog.
/goo.gl/BX8xKa

Howard Tullman to leave 1871 at year-end
John Pletz – Crain’s Chicago Business
Howard Tullman is retiring at the end of the year as CEO of 1871, the tech incubator at the Merchandise Mart that’s become the city’s symbolic tech hub.
jlne.ws/2wmLQO0

Bunge holds door open on sale of company
Neil Hume – Financial Times
Bunge, the grain trader that has been a takeover target for Swiss commodity group Glencore, kept the door open on a sale of the company after it reported a sharp drop in second-quarter profits and lowered earnings guidance.
Asked if a sale was still possible, Bunge chief executive Soren Schroder said he and the board took their responsibility to shareholders seriously and would “evaluate the best path” for the New York-listed company.
jlne.ws/2wmj5ky

Drifting crop chemical deals ‘double whammy’ to U.S. farmers
Rod Nickel – Reuters
An advanced weed-killing chemical has twice come back to haunt Arkansas farmer John Weiss.
The herbicide, known as dicamba, has long been employed in the United States to kill weeds before fields were planted, but its use spiked after regulators last year approved a new formulation that allowed farmers to apply it to growing plants.
jlne.ws/2wmhEm7

CCP Disclosures: How much does it cost to run a trading business?
Chris Barnes – Clarus Financial Technology
Under the voluntary CPMI-IOSCO Public Quantitative Disclosures by CCPs, over two hundred quantitative data fields covering margin, default resources, credit risk, collateral, liquidity risk and more are published each quarter with a quarterly lag.
jlne.ws/2wmrPqS

Complex short Vix products draw fire as vol plumbs lows; Hedging effects mean popular exchange-traded products vulnerable to big losses if volatility spikes
Nazneen Sherif – Risk.net
With US stock market volatility creeping lower and lower, investors searching for yield have piled into exchange-traded products (ETPs) that are short volatility. They have performed phenomenally well: three out of the top five short volatility products in terms of assets have almost doubled in value in just a year’s time. As such, investors, particularly retail, have flocked to the product (see Table A).
/goo.gl/KBsTwZ

‘London Whale’ Has a New Target: J.P. Morgan’s Top Brass; Four years after agreeing to testify against two former traders, Bruno Iksil changed his story, prompting prosecutors to drop criminal case
Lucy McNulty, Gregory Zuckerman and Rebecca Davis O’Brien – WSJ
The U.S. case against two former J.P. Morgan Chase & Co. traders charged with concealing billions of dollars in losses fell apart because a key witness known as the London Whale shifted blame to Chief Executive Officer James Dimon and other top executives, according to a person familiar with the matter.
/goo.gl/kPCAyp

London Stock Exchange boss Xavier Rolet backs UK listings review; Regulator’s proposals find favour as exchange raises interim dividend by a fifth
Philip Stafford in London – FT
The head of the London Stock Exchange Group has backed the review of the UK listings process by markets regulators, arguing it is necessary to keep London competitive in a global market.
/goo.gl/Fa9x6F

Exchanges, OTC and Clearing

Intercontinental Exchange Reports July Statistics: ICE ADV up 11% y/y led by 14% Increase in Financials ADV & 12% Increase in Energy ADV; Open Interest up 10% y/y
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today reported July 2017 trading volume and related revenue statistics, which can be viewed on the company’s investor relations website at http://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet.
/goo.gl/6YojR9

Intercontinental Exchange Approves Third Quarter Dividend of $0.20 Per Share
ICE
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced today a $0.20 per share dividend for the third quarter of 2017. The cash dividend is payable on September 29, 2017 to stockholders of record as of September 15, 2017. The ex-dividend date is September 13, 2017.
/goo.gl/Rd5d5h

Intercontinental Exchange Reports Strong Second Quarter 2017 GAAP Diluted EPS of $0.70 on Record Revenues of $1.2 billion, +4% y/y; Record Adjusted Diluted EPS of $0.75
ICE
Intercontinental Exchange (NYSE:ICE), a leading operator of global network of exchanges and clearing houses and provider of global data and listing services, today reported financial results for the second quarter of 2017. For the quarter ended June 30, 2017, consolidated net income attributable to ICE was $418 million on $1.2 billion of consolidated revenues less transaction-based expenses. Second quarter GAAP diluted earnings per share (EPS) were $0.70, up 17% year-over-year. On an adjusted basis, net income was $448 million in the second quarter, and diluted EPS were $0.75, up 9% year-over-year. Please refer to the reconciliation of non-GAAP financial measures included in the press release for more information on our adjusted net income and adjusted diluted EPS.
/goo.gl/VkLrck

LSEG interim results for the 6 months ended 30 June 2017
London Stock Exchange Group
Unless otherwise stated, all figures below refer to continuing operations for the six months ended 30 June 2017. Comparative figures are for continuing operations for the six months ended 30 June 2016 (H1 2016).
/goo.gl/Kja19n

LSE’s Turquoise growth stumbles as MiFID II looms; With MiFID II expected to see a surge in block trading activity, Turquoise’s decline in value traded in the first half of this year comes as a surprise.
By Hayley McDowell – The Trade
The London Stock Exchange-owned (LSE) Turquoise saw its value traded plummet in the first half of this year, despite MiFID II widely expected to bring about a surge in block trading.
/goo.gl/vBy7FW

London Stock Exchange lifts dividend on income growth
Philip Stafford – FT
The London Stock Exchange Group has raised its dividend by a fifth after reporting double-digit growth at its main data and clearing operations.
/goo.gl/1PHTFK

LSE chief defends UK listing rule changes
Samuel Agini – Financial News
The head of the London Stock Exchange said it is important for UK listing rules to move with the times, amid intensifying debate around efforts to make it easier for state-owned companies, such as Saudi Aramco, to float in the capital.
/goo.gl/4HPCua

CBOE to launch bitcoin future contracts
Philip Stafford – FT
CBOE, which has the largest share of US options markets, is gearing up to launch options and derivatives on bitcoin, just as the controversial cryptocurrency embarks on its experiment that will help determine its future.
/goo.gl/8JDrXM

***** Future or Futures?~JJL

World Federation Of Exchanges Publishes Report Into Enhancing Retail Investor Participation In Emerging Markets
Press Release
The World Federation of Exchanges (“WFE”), which represents more than 200 market infrastructure providers including exchanges and CCPs, today published a research report into how exchanges can enhance retail investor participation in emerging markets.
The report reviews existing academic literature on the subject, and analyses data from 14 emerging market exchanges to assess what levers impact levels of retail trading. It looks at a variety of factors, such as transaction costs, tax rates and financial literacy programmes, and how these factors affect the breadth (number of individuals investing) and depth (level of trading activity in number of trade and value traded) of the retail investor pool. The report also contains several case study interviews that support and expand the results of the statistical analyses.
jlne.ws/2u3qapu

EEX and IncubEx Join Forces to Develop and Expand Global Environmental and Commodity Markets
Business Wire
he European Energy Exchange (EEX) and IncubEx are pleased to announce a partnership to build and improve liquidity in environmental and other related contracts. In this framework, the partners aim to increase the number of active participants at the exchange and to create a global trading network. The cooperation involves existing environmental products and aims to continuously extend and improve the offering to clients.
jlne.ws/2wmEHgB

LCH users weigh early exit as fears grow of EU ban
Luke CLancy and Duncan Wood – Risk.net
European users of LCH are speaking to at least two rival clearing houses as they consider leaving the London-based venue before a potential ban can trigger a mass exodus.
Under proposals issued in June, European Union entities could be barred from using LCH or face a huge increase in capital requirements once the UK leaves the EU in March 2019. Further details on the timing and scope of the ban are not expected until the second half of next year, potentially leaving a tight window for departing firms, and some are said to be weighing their options already.
jlne.ws/2wmRbVG

SIX Swiss Exchange ETF Market Report: 2nd Quarter 2017
MondoVisione
This report provides detailed figures regarding the performance of SIX Swiss Exchange’s ETF segment.
Today, SIX Swiss Exchange published the new ETF Market Report[PDF]. In order to provide you with even more information about the development of its ETF segment, SIX Swiss Exchange has comprehensively revised and enhanced its report ETF Quarterly Statistics.
/goo.gl/QenFvg

ASX Monthly Activity Report – July 2017
ASX
/goo.gl/bbD2j6

Neptune Adds Rabobank and TD Securities as Latest Dealers
WatersTechnology
Coordinated by Neptune Networks, the platform operates as a not-for-profit utility network with the goal of establishing a hub for the exchange of pre-trade bond axes and inventories in a standardized, transparent format between the buy and sell side.
jlne.ws/2wmvlSc

Key Figures SIX Swiss Exchange: July 2017
Mondovisione
Trading turnover of CHF 824.7 billion (+5.9% year-on-year) since the start of the year
jlne.ws/2wmsed2

JPX Market Updates
JPX
TSE; Designation of Securities Under Supervision (Confirmation): POCKET CARD CO.,LTD.
TSE; Broadening of Daily Price Limits (Preliminary Notice) : ATOMIX CO.,LTD.
/goo.gl/5HCHn2

Fintech

We Survived Spreadsheets, and We’ll Survive AI; History shows technology fuels new kinds of jobs in addition to the ones it renders obsolete
Greg Ip – WSJ
Whether truck drivers or marketing executives, all workers consider intelligence intrinsic to how they do their jobs. No wonder the rise of “artificial intelligence” is uniquely terrifying. From Stephen Hawking to Elon Musk, we are told almost daily our jobs will soon be done more cheaply by AI.
/goo.gl/8igT4z

Bitcoin Exchange Had Too Many Bitcoins; It’s enough to make you wish for a blockchain. Oh, wait.
Matt Levine – Bloomberg
A few months ago we talked about a weird legal dispute over the Dole Food Co. buyout. Dole’s chief executive officer, David Murdock, had taken it private for $13.50 a share in 2013, but shareholders thought it was worth more. So they sued, and won, and Murdock was ordered to pay shareholders an extra $2.74 a share plus interest, and shareholders were told to submit claims for their money.
/goo.gl/vUz46v

Here’s How Unicorns Trick You Into Thinking They’re Real
Julie Verhage – Bloomberg
Study finds private valuations aren’t grounded in reality; Employees, early investors often lose with stock provisions
Unicorns aren’t real, and neither are the valuations ascribed to many of the startups that say they’re worth $1 billion or more.
/goo.gl/oVzZoN

Politics

Russians Portray Washington as Mired in Chaos; Moscow sees new sanctions, which Trump has signed into law, as sign of Beltway disarray
Nathan Hodge and Thomas Grove – WSJ
Switch on the news in Russia, and the message is clear: Washington is in chaos.
/goo.gl/3bevRV

*****”I asked you not to tell me that”~JJL

Trump’s CEO Brain Trust Hasn’t Done Much
Matthew Townsend, Shannon Pettypiece and Joe Deaux – Bloomberg
Some executives have distanced themselves from the president; Manufacturing group hasn’t had a meeting in five months
Elon Musk of Tesla and Walt Disney’s Bob Iger have quit. Jeffrey Immelt of General Electric and JPMorgan Chase’s Jamie Dimon have dissented.
/goo.gl/DVNp3K

As the lies and contradictions mount, federal officials are deciding to simply ignore Trump
John Harwood – CNBC
Increasingly, federal officials are deciding simply to ignore President Donald Trump.
Evidence arrives every day of the government treating the man elected to lead it as someone talking mostly to himself.
The phenomenon has grown more pronounced as Trump keeps struggling to govern amid special counsel Robert Mueller’s Russia investigation.
/goo.gl/nKxT51

Regulation

The biggest financial scam you’ve never heard of is taking over the internet – and I just spent weeks investigating it
Josie Cox – The Independent
We live in a low-return, high-cost world of deep economic uncertainty, so how would you feel if I suddenly granted you access to a pot of cash – for argument’s sake £20,000 or more – and said that you could do with it whatever you liked?
jlne.ws/2wmpdt8

****SD: It takes a bit to get to the scam in question ó it’s shady binary options providers.

OCC Issues Request for Information on the Volcker Rule
The National Law Review
This morning, the Office of the Comptroller of the Currency (“OCC”) released a Request for Information (“RFI”) to determine how regulations implementing the Volcker Rule should be revised to better accomplish the purposes of the statute.
jlne.ws/2wmWHr7

U.S. court puts Metlife ‘too big to fail’ case on indefinite pause
Reuters
A U.S. appeals court on Wednesday decided to put the federal government’s appeal in a lawsuit involving MetLife Inc. on indefinite pause to allow time for Treasury Secretary Steven Mnuchin to finish reviewing how the government determines non-bank financial institutions like the insurer are “too big to fail.”
jlne.ws/2wmP6sL

ASIC updates licence conditions on OpenMarkets Australia Limited
ASIC
ASIC and OpenMarkets Australia Limited (OpenMarkets) have agreed for an independent expert to monitor, evaluate and report on OpenMarkets’ implementation of recommendations arising from an independent review of its trading and compliance arrangements.
/goo.gl/oy4r5b

US regulator moves to loosen Volcker rule; OCC seeks public comment on changing Obama-era ban on proprietary trading
Barney Jopson in Washington – FT
A bank regulator appointed by President Donald Trump has taken a first step towards loosening the Volcker rule banning banks from placing market bets with their own capital, targeting a post-crisis prohibition that is reviled on Wall Street.
/goo.gl/xgBLeM

Scourge of fund managers to chair FCA panel on fees
Mark Cobley – Financial News
Chris Sier, the transparency campaigner who has proved one of the most tenacious and effective critics of the asset management industry, has been recruited by the Financial Conduct Authority to chair its new working group on fee disclosure.
jlne.ws/2vttG0E

Regulator fines PwC $1 million for faulty Merrill Lynch audit
MarketWatch
The Public Company Accounting Oversight Board, the audit industry regulator, censured and imposed a $1 million civil penalty against PricewaterhouseCoopers LLP on Wednesday for issuing audit and examination reports without obtaining sufficient evidence to support its opinion for broker-dealer Merrill Lynch, a subsidiary of Bank of America [s:BAC], in 2014.
jlne.ws/2wmiNKB

Sebi directs 13 people to disgorge Rs 124 crore in NSEL case
Business Standard News
The Securities and Exchange Board of India (Sebi) directed 13 officials of the Multi Commodity Exchange (MCX) and 63 Moons Technologies, formerly Financial Technologies India or FTIL, to return a total of Rs 124 crore (including annual interest of 12 per cent) made unlawfully.
jlne.ws/2wmceaH

Steven Cohen’s Point72 faces regulatory rebuff in UK; FCA indicates family office would not receive regulatory approval
Lindsay Fortado and John Gapper – FT
The family office of Steven Cohen, the billionaire banned from running a hedge fund in the US, has run into a regulatory roadblock in the UK.
/goo.gl/mwMHHM

Podcast: July 2017 Monthly Recap
FINRA
Revisit the latest FINRA Notices, compliance resources, and news from July 2017.
/goo.gl/9cWMea

Overseas Stock Manipulator Settles SEC Charges
SEC
The Securities and Exchange Commission today announced that an overseas stock manipulator has agreed to pay nearly $800,000 and be permanently barred from involvement in penny stocks after hiding his significant stake in a small oil & gas company while secretly funding a fraudulent promotional campaign that artificially boosted the company’s stock price before he dumped his shares.
jlne.ws/2wmKJxF

Investing and Trading

British inventor close to ‘Holy Grail’ of carbon capture at zero cost
Ambrose Evans-Pritchard – Telegraph
Rodney Allam is a soft-spoken Englishman of the old school. He does his maths with pen and paper. He uses a slide-rule.
/goo.gl/Wd6chu

Wall Street, Climbing Sharply, Skips Washington’s ‘Soap Opera’
By NELSON D. SCHWARTZ – NY Times
Caterpillar and other companies including Apple and U.S. Steel have reported earnings that surpassed analysts’ estimates. Credit Jessica Rinaldi/Reuters
Despite the disorder in Washington ó with a revolving door at the White House and roadblocks on Capitol Hill ó Wall Street and corporate America are booming.
/goo.gl/ZaTHFK

Pressure Eased for Commodity Firms Amid Bond Upgrades; Cost cuts and rebounding prices have improved commodity firms’ balance sheets, pushed up ratings and propelled $92 billion in bonds onto corporate indexes
Tatyana Shumsky – WSJ
Commodity-related firms and their investors are reaping the rewards of a record stretch for corporate-bond upgrades.
/goo.gl/kSLWJN

Greenspan’s bond bubble prognosis overblown; Persistent slow growth and demographic factors entail low market yields
John Authers – FT
Stocks are not in a bubble, but bonds are. When the bond bubble bursts we should all beware, and it could burst soon.
/goo.gl/K32LRA

Invesco targets Guggenheim’s ETF business in expansion push; Purchase would bolster Atlanta mutual fund group’s basket of offerings
Kara Scannell in New York – FT
Invesco is in talks to buy Guggenheim Partners’ exchange-traded fund business, according to people familiar with the negotiations, in a move that would bolster the Atlanta mutual fund giant’s basket of offerings as it seeks to expand the growing asset class.
/goo.gl/361B3e

Institutions

Lloyd Blankfein wants to break up with hedge fund traders
Kevin Dugan – NY Post
Lloyd Blankfein to Wall Street: It’s not you, it’s me. The Goldman Sachs chief executive, who has overseen two straight quarters of disappointing trading revenue, is pegging a turnaround, in part, on plans to expand its trading partners.
/goo.gl/AxytC2

Cantor Fitzgerald CEO buys iconic triplex at $81M discount
Emily Smith – NY Post
The massive triplex penthouse at the Pierre hotel ó once the city’s most expensive listing, asking $125 million ó has been purchased by Cantor Fitzgerald CEO Howard Lutnick for a stunning discount at $44 million, Page Six can exclusively reveal.
/goo.gl/DeRLdx

Banks Are Steering Clear of the Legal Pot Businesses
AP Via Bloomberg
Billions of dollars are expected to flow through California’s legitimate marijuana industry next year when recreational pot becomes legal, but most of those businesses won’t be able to use banks.
/goo.gl/uK5VwM

Credit Agricole Becomes Third French Bank With Standout Trading
Fabio Benedetti Valentini – Bloomberg
Second-quarter profit tops estimates at France’s No. 2 lender; French mortgage refinancing boom helps domestic LCL unit
Maybe it’s a French thing: Credit Agricole SA became the latest Seine-side bank to show trading prowess while securities firms elsewhere stumbled.
/goo.gl/XrHJ59

Taiwan’s First Central Bank Minutes Show No Rush to Raise Rates
Miaojung Lin and Justina Lee – Bloomberg
Comments suggest no tightening bias among most members: DBS; Board members saw slowing growth outlook and mild inflation
Taiwan’s central bank released minutes from a policy meeting for the first time Thursday, with the record showing board members saw slowing growth and mild inflation as they decided to keep rates unchanged.
/goo.gl/55JvAu

Regions

L&G taps HSBC for Asian equity trading head; Danny Kwok worked at HSBC Global Asset Management for six years as a senior trader.
Hayley McDowell – The Trade
Legal & General Investment Management (LGIM) has poached a senior trader from HSBC Global Asset Management to join its expanding team in Asia.
/goo.gl/nU14wb

China’s Latest Bubble Is Its Most Serious Yet; The sheer size and ever-changing nature of Beijing’s asset-management industry make it near impossible to regulate
Anjani Trivedi – WSJ
Chinese regulators are targeting the latest bubble in their financial system: the domestic asset-management industry. Unfortunately, it is a moving target.
/goo.gl/ECFJus

Chinese Wealth Manager Plans Branches in Australia and Canada
Bloomberg News
Noah plans to set up branches in Canada and Australia; Firm says overseas AUM may grow 30% annually in next 3-4 years
U.S.-listed Noah Holdings Ltd. is planning to set up branches in Vancouver, Canada, pictured, and Australia Photographer: George Rose/Getty Images
Chinese millionaires’ money overseas is backing a local wealth manager’s global expansion even as the government steps up controls on capital outflows.
/goo.gl/JLbMEs

Brexit

City firms lay out Brexit goals for FCA; UK financial services firms want the regulator to do better on its Brexit communications, its annual survey finds
Lucy McNulty – Financial News
The UK’s financial services firms want better communication from the markets watchdog on Brexit planning, according to a survey of institutions the Financial Conduct Authority oversees.
/goo.gl/9mGY3X

Tradeweb confirms Amsterdam base post-Brexit; Tradeweb follows MarketAxess with new European Union base in Amsterdam.
Hayley McDowell – The Trade
Tradeweb has chosen Amsterdam as its new base following the UK’s decision to exit the European Union.
/goo.gl/zDkgPW

Brexit reveals Britain’s enduring flaws; ‘Tasking the Brexiters with managing Brexit was like asking the winners of a debating contest to engineer a spaceship’
Simon Kuper – FT
It’s possible that Brexit ó treated strictly as an intellectual concept ó is a brilliant idea. However, it was sold with falsehoods and is now being mismanaged. To cite just a few Brexiter politicians: David Davis sketched a deal with the EU as simply a matter of a quick visit to Berlin; Daniel Hannan said that obviously the UK wouldn’t leave the European single market; and Nigel Farage predicted that other countries would follow Britain out of Europe.
/goo.gl/uy3ZGZ

Brexit Is No Longer So Frightening for Macro Investors
Paul Dobson and Samuel Potter – Bloomberg
FTSE 350 keeps pace with Europe stocks; credit swaps decline; Implied pound volatility slips and gilts narrow gap to bunds
As the Brexit process lurches from one drama to the next, dominating U.K. politics, media and business decisions, traders have grown immune to noise surrounding the country’s departure from the European Union.
/goo.gl/Ze2gbg

Miscellaneous

Boy Scouts: Top leaders didn’t call Trump to praise speech
David Crary – The Associated Press
The Boy Scouts denied Wednesday that the head of the youth organization called President Donald Trump to praise his recent, politically aggressive speech to its national jamboree.
jlne.ws/2wmmT5l

Investors should embrace the power of doing nothing
Miles Johnson – Financial Times
Now we have arrived in August, many of us are no doubt preparing to escape the office for the summer holidays. In honour of the lazy hours readers will hopefully be spending on a sunny beach somewhere, it is worth revisiting one of the most powerful and repeatedly underrated investment strategies: the ability to do as little as possible.
jlne.ws/2wmXuIU

Struggling Americans Once Sought Greener PasturesóNow They’re Stuck; The country is the least mobile since after World War II, even in economically depressed rural locales
Janet Adamy and Paul Overberg – WSJ
When she graduated from high school, Taylor Tibbetts was a bright star in this small Northern Michigan town. She won an $18,000-a-year swimming scholarship to Converse College in Spartanburg, S.C., and departed for her freshman year with high hopes.
/goo.gl/3G3p6v

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

About Author

Graduate of University of Minnesota School of Journalism and Mass Communication