Breaking News

Big bank tech arms race; South Korea Detains Crypto Execs; Rival Fidessa acquisition bidders ION and SS&C

First Read

Hits & Takes
JLN Staff

Euronext celebrated the 40th anniversary of its options exchange in Amsterdam yesterday. In conjunction, they also celebrated Drumming Day, a centuries old tradition commemorating the bravery of an orphaned boy who saved Amsterdam’s stock exchange from the Spanish during the Eighty Years’ War.~JJL

It’s not surprising that once volatility returns, the media starts to cover options markets more. As such, yesterday’s JLN Options newsletter was chock full of content, including background on the Greek general Thucydides, an IP spat, convexity, unprepared traders and a dig at David Einhorn’s confusion over why his fund lost money.~SD

Billed as a “funny version of Black Mirror,” a show of short comedy sketches called Buy the Dip (some strong language) has not been released yet but you can see the trailer taking some pokes at cryptocurrencies. Based on this I’d watch it.~JB

If CFTC commissioners ever get too heated from conducting so many fireside chats, they should go on Intercontinental Exchange’s Inside the ICE House podcast. The most recent episode featured Jeff Sprecher talking about ICE’s evolution.~SD

If you dig podcasts and cryptocurrencies then maybe some of these seven podcasts discussing cryptocurrency are for you.~JB

You can now see the work of two pages we have worked on CryptoMarketsWiki on the front page.~JJL

CME Group says based on extensive customer input, monthly and quarterly futures contracts on the Secured Overnight Financing Rate (SOFR) will launch on May 7, pending regulatory review. if you want to learn more about SOFR, read the CME’s white paper on the subject.~JJL

When Martin Luther King, Jr. was assassinated 50 years ago, Robert Kennedy spoke in Indianapolis, Indiana and told the crowd the terrible news. His speech helped Indianapolis be calm and riot-free in the aftermath. The speech remains special to this day.~JJL

The current weather map for the U.S. looks like it is from the movie “The Day After Tomorrow.”~JJL

Thank goodness that since April Fool’s day is over everything on the internet can be trusted again.~JJL

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Staying the (New) Course – Matt Chamberlain, LME
JohnLothianNews.com

London Metal Exchange CEO Matt Chamberlain welcomed a baby into his household in the days before LME Week – one of the bourse’s busiest times of year – but that was far from the only thing keeping the exchange leader occupied in 2017.

In this video from JLN’s annual series with industry leaders, Chamberlain talks about the LME’s efforts in 2017 to engage with market participants and investors regarding the most appropriate path forward (an unusual, almost philosophical chance to ponder best practices), the iterative process of adding new technological features, and initiatives planned for 2018, including the exchange’s plan to get in on the booming electric car battery metals scene. However, Chamberlain admits that with all of the burdens placed on LME members in 2017, 2018 represents a chance to provide a bit of a reprieve for market participants so they can focus on what they do best – trading metals.

Watch the video and read the rest here »

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Intercontinental Exchange Agrees to Acquire Chicago Stock Exchange
ICE
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that it has entered into an agreement to acquire the Chicago Stock Exchange (CHX), a full-service stock exchange, including trading, data and corporate listings services. The transaction is expected to close in the second quarter of 2018, subject to regulatory approvals. Terms of the transaction were not disclosed, and the financial impact will not be material to ICE or impact capital return plans.
/goo.gl/vUAHvs

*****Jeff Sprecher finally bought a historic Chicago exchange and did not even need to slip the offer under a hotel room door.~JJL

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Cboe Global Markets Appoints Executive Vice Presidents in Newly Formed Markets Division; Andy Lowenthal and Bryan Harkins will co-lead Markets Division as business partners; New Markets Division to unify product, sales and business development teams
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE | Nasdaq: CBOE), one of the world’s largest exchange holding companies, today announced the appointments of Andy Lowenthal and Bryan Harkins as Executive Vice Presidents and co-heads of the firm’s newly formed Markets Division.
/goo.gl/G1aF2o

***** The Cboe found a way to keep both of these talented and well liked executives and team them up.~JJL

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SEC Warns of Government Impersonators
SEC
The Securities and Exchange Commission today issued an Investor Alert warning investors of fraudsters claiming to be SEC employees in an attempt to trick investors into sending money or revealing sensitive account information. The alert makes clear that the SEC does not contact investors to confirm trades, set up trading accounts, or record the details of trades. The alert also notes that federal government agencies, including the SEC, do not endorse or sponsor any particular securities, issuers, products, services, professional credentials, firms, or individuals.
/goo.gl/oBEALh

***** Here are some other scams according to the FTC, assuming this is really the FTC.~JJL

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Wednesday’s Top Three
Yesterday’s top read story by a long shot was The Trade News’ piece Bidding war erupts over Fidessa acquisition. Second went to Bloomberg’s piece on Libor in The World’s Most Important Number. Third went to Institutional Investor’s The 2018 Trading Tech 40 which included: Raj Mahajan, global co-head of securities systematic solutions at Goldman Sachs Group, ranked first, and
Chris Isaacson, chief information officer at Cboe Global Markets, ranked second. Other notables were Bryan Durkin – president, CME Group in seventh; Sunil Hirani and Don Wilson – co-founders, Digital Asset Holdings at 13, Peter Maragos – CEO, Dash Financial Technologies at 28, Veronica Augustsson – CEO, Cinnober Financial Technology at 30; Don Ross III – CEO, PDQ Enterprises at 34; and Jennifer Nayar – CEO, Vela at 35. A list of varied technologies with just three women.

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MarketsWiki Stats
122,869,991 pages viewed; 23,056 pages; 212,405 edits
MarketsWiki Statistics

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Lead Stories

Wall Street’s Big Banks Are Waging an All-Out Technological Arms Race; Dimon, Blankfein, Gorman: Three great rivals are battling to control the $58 billion-a-year equities industry.
Hugh Son, Dakin Campbell – Bloomberg
Sunlight bounced off Goldman Sachs Group Inc.’s glass-and-steel Manhattan headquarters on a warm August morning in 2013. Eyes locked on their screens, traders and engineers shifted in their seats as exchanges prepared to open.
/goo.gl/bVgKD7

South Korea Detains Cryptocurrency Executives on Embezzlement Allegations
Eun-Young Jeong – WSJ
South Korean prosecutors detained the heads of two cryptocurrency exchanges, including one of the country’s largest exchanges, for allegedly embezzling customers’ assets, the latest in a string of enforcement actions tied to suspected malfeasance in the country’s bitcoin market.
/goo.gl/pF5kVK

***** We call this a “Pulling a Wasendorf.”~JJL

Fidessa names rival acquisition bidders; Fidessa confirms rival bidders ION Investment Group and SS&C Technologies without their consent.
Joe Parsons – The Trade
Fidessa has announced the two companies that made last-minute bids to acquire it were ION Investment Group and SS&C Technologies.
/goo.gl/1KwLhW

****More sources in Fintech

SS&C Technologies’ stock drops after commencing public stock offering
Marketwatch.com
The company said it plans to use the proceeds to financing its pending acquisition of DST Systems Inc. DST, -0.08% for more than $5 billion, announced in January.
/jlne.ws/2IuiR0K

NYSE parent ICE to acquire Chicago Stock Exchange
Ciara Linnane – MarketWatch
Intercontinental Exchange Inc. the parent of the New York Stock Exchange, said Thursday it has reached agreement to acquire the Chicago Stock Exchange without disclosing terms. The news comes after The Wall Street Journal reported last week that the NYSE was in talks on such a deal and was offering about $70 million. The deal is expected to close in the second quarter and will not be material to ICE or its capital return plans. ICE shares were not yet active premarket, but have gained 20.7% in the last 12 months, while the S&P 500 SPX, +1.16% has gained 12.4%.
/goo.gl/qkA2zy

Living in the Laboratory: Understanding the SEC’s Transaction Fee Pilot
George Bollenbacher, Capital Markets Advisors – TABB Forum
What has become clear is that almost nothing is clear about how fees and rebates impact both execution decision-making and execution quality, so the SEC’s social experiment is a worthwhile effort. We just need to make sure that it yields the most reliable results possible. In that regard, we should understand the many risks and difficulties involved in scientific experiments, particularly experiments in the social sciences.
/jlne.ws/2GybGrV

Bitcoin Brouhaha: Cryptocurrency Exchange OKEx Denies Price Tampering; The exchange accused others, after sudden price swings, of manipulating a futures contract
Steven Russolillo – WSJ
A large cryptocurrency exchange denied accusations from some customers it manipulated prices of bitcoin futures after sudden price swings on its trading platform last week.
/goo.gl/RW4ZxA

The striking similarities between mortgage-backed securities and the 17th century financial system; The 2008 financial crisis echoed the Stuart dynasty economic fallout
Moshe A. Milevsky – MarketWatch
It’s been exactly a decade since the collapse of Bear Stearns that prefaced the banking crisis of 2008. So you would think that by now investors might have absorbed and learned their lessons from financial history, namely that purchasing debt backed by questionable cash flows can backfire.
/goo.gl/59HJFf

FCA pursues annual ‘value for money’ assessment from buy-side; FCA enforces annual assessment despite concerns around sensitive information and the time frame having been raised.
Hayley McDowell – The Trade
Asset managers in the UK will be forced to provide annual assessments with regards to costs and value for money of funds, despite claims the requirement is misguided.
/goo.gl/9g5eS5

FCA reveals strict new rules for asset managers; Industry told to act in investors’ interests and move them to cheap versions of funds
Attracta Mooney, Owen Walker and Jennifer Thompson – FT
Asset managers have been warned to act in investors’ best interests as the UK financial watchdog announced stringent new rules to stamp out bad behaviour and restore savers’ trust in the £8.1tn British fund industry.
/goo.gl/k1Fjnq

LIBOR OIS – March 2018 Update
Chris Barnes – Clarus Financial Technology
Our previous blog on Libor-OIS was very popular. Therefore, let’s check out what the USD 1 year Libor-OIS spread did during March 2018.
/jlne.ws/2JjzLAz

Sebi is at it again. NSE, BSE investors can’t ignore regulatory risks; It’s high time the government imposed a requirement of impact assessment on Sebi
Mobis Philipose – Livemint
Last month, this column pointed out that National Stock Exchange Ltd’s valuation has risen 2.5 times in less than two years. Among other things, investors were enthused about the double-digit growth at the company, despite its high base.
/goo.gl/rr265A

Exchanges, OTC and Clearing

NYSE Parent Company Agrees to Purchase Chicago Stock Exchange
Steve Dickson – Bloomberg
The New York Stock Exchange’s parent company agreed to buy the Chicago Stock Exchange, adding the smaller venue after its sale to a Chinese buyer collapsed.
/goo.gl/y7YpA5

CME Group and GCSA Capital Collaborate to Deliver the Prefunded Treasury Facility Collateral Program for Meeting Performance Bond Requirements
CME
CME Group, the world’s leading and most diverse derivatives marketplace, and GCSA Capital, a leading provider of collateral and risk transfer solutions for central counterparties and OTC cleared and uncleared derivatives counterparties, today announced they have collaborated to develop the Prefunded Treasury Facility (“PTF”) as a permitted form of collateral at the clearing house division of CME (CME Clearing) for performance bond (initial margin) requirements for clearing members’ proprietary (House) positions in futures and options contracts.
/jlne.ws/2Gx4SLb

Cboe Global Markets Announces Planned Migration Date of Cboe Options Exchange to Bats Technology Platform
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE | Nasdaq: CBOE), one of the world’s largest exchange holding companies, today announced that it plans to migrate Cboe Options Exchange to the company’s proprietary Bats technology on October 7, 2019. The planned migration of Cboe Options Exchange to Bats technology follows similar migrations for Cboe Futures Exchange (CFE) and C2 Options Exchange.
/goo.gl/WdAQtf

Rise in Russian grain exports spurs trading in new wheat contract
Emiko Terazono and Gregory Meyer – Financial Times
The rise of the Black Sea region as a leading grain exporter has boosted traders’ interest in a new wheat futures contract ó one of the few agricultural commodities derivatives to gain traction on the international markets of late
/jlne.ws/2GwD1dW

What is the big switch underpinning the euro-clearing battle? As politicians wrangle over Brexit, there are already signs the market is expecting significant swap liquidity to shift to the continent
Peter Rippon – Financial News
Holding onto the EUR700bn-a-day euro-swap clearing market is one of the City’s biggest Brexit battles. But as the politicians continue to posture, there are already signs the market expects significant liquidity could shift to the continent.
/goo.gl/wxdjHV

NYSE Announces B & C Tape Fees
MarketsMedia
In a Trader Update posted April 2, the New York Stock Exchange announced trading fees for Tape B and C securities.
The bourse also added that the next phase of NYSE Pillar will be the expansion of NYSE electronic and floor trading to all Reg NMS securities beginning on April 9, 2018.
/jlne.ws/2GycNrL

ASX Monthly Activity Report – March 2018
ASX
/goo.gl/UgVtTY

SGX RegCo reviews Noble Group Limited’s Restructuring Support Agreement
SGX
Singapore Exchange Regulation (SGX RegCo) notes the Restructuring Support Agreement (RSA) entered into between Noble Group Limited (Noble Group) and certain senior creditors.
/goo.gl/nL2g1E

TMX Group Consolidated Trading Statistics – March 2018
TMX
TMX Group Limited today announced March 2018 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha) and MontrÈal Exchange (MX).
/goo.gl/oQuxhK

A. Single Stock Futures: Introduction of four SSFs; B. Single Stock Dividend Futures:
Introduction of one SSDF; C. Equity options: Introduction of two equity options
Eurex
The Management Board of Eurex Deutschland took the following decisions with effect from 11 April 2018:
/goo.gl/XmAkSt

Record Activity in Eurex Clearing’s Partnership Program
Eurex
In March, Eurex Clearing’s OTC Interest Rate Derivatives (IRD) segment saw record activity under the new Partnership Program. Volumes increased around elevenfold compared to March 2017 with a total of EUR 1.7 trillion notional cleared. The total notional outstanding reached EUR 4.7 trillion compared to EUR 1.2 trillion in March 2017.
/goo.gl/XBi279

Vente-unique.com lists on Euronext Growth
Euronext
Euronext today welcomed the listing of online furniture retailer Vente-unique.com on Euronext Growth.
/goo.gl/vYbrEt

Cboe Global Markets Reports March 2018 Trading Volume
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE | Nasdaq: CBOE), one of the world’s largest exchange holding companies, today reported March monthly trading volume and average revenue per contract (RPC)/net revenue capture data at www.cboe.com/monthlyvolrpc.
/goo.gl/cK8Yky

Cross Currency Haircuts: Adjustments as of the end-of-day batch run on 11 April 2018
Eurex
Please find attached a specification of Eurex Clearing’s Cross Currency Haircuts effective with the end-of-day batch run on 11 April 2018.
/goo.gl/EG6GFc

Spotify’s Trading Slump Raises Questions About Listing Process; Music-streaming company’s stock has mostly been on slow grind lower since Tuesday’s splashy market debut
Maureen Farrell and Chelsey Dulaney – WSJ
Spotify Technology SA SPOT -3.21% shares slumped Wednesday, raising questions about the potential costs of its unorthodox listing process a day after its splashy market debut.
/goo.gl/M9kvyb

Fewer Spotify Shares Sold Than Expected in Unusual Listing
Alex Barinka – Bloomberg
Initial share supply shortage seen as driving up price briefly; Music-streaming company’s trading volume below big tech IPOs
Fewer Spotify Technology SA holders sold shares in the company’s direct listing Tuesday than expected by advisers, potentially contributing to an initial shortage that drove the price up, people familiar with the matter said.
/goo.gl/RYV2rR

Cboe Global Markets Appoints Executive Vice Presidents in Newly Formed Markets Division
MarketsMedia
Cboe Global Markets, Inc. (Cboe: CBOE | Nasdaq: CBOE), one of the world’s largest exchange holding companies, today announced the appointments of Andy Lowenthal and Bryan Harkins as Executive Vice Presidents and co-heads of the firm’s newly formed Markets Division.
/goo.gl/Jn5bGd

Fintech

Fidessa confirms mystery bidders as Ion Trading and SS&C
Cat Rutter Pooley – FT
Fidessa on Thursday confirmed the identities of the two mystery potential bidders who had gatecrashed its takeover by Swiss group Temenos, which had been due to be signed-off by shareholders today, as the trading software provider Ion Trading and US-based financial services technology group SS&C.
/goo.gl/3YtxgD

****Reuters here.Quantitative Brokers Partners with CQG to Offer Best

Execution Algorithms for Futures; QB’s suite of execution strategies to be offered on CQG’s leading platform
Business Wire
Quantitative Brokers (QB), an independent provider of advanced algorithms and data-driven analytics to clients in the Futures and US Cash Treasury markets, today announced a partnership with CQG, a leading global provider of high-performance trading, market data, and advanced technical analysis tools, to offer QB’s suite of premium execution algorithms on CQG’s platform.
/goo.gl/Ab7NYk

Quantitative Brokers forms partnership with CQG
Finextra
Quantitative Brokers (QB), an independent provider of advanced algorithms and data-driven analytics to clients in the Futures and US Cash Treasury markets, today announced a partnership with CQG, a leading global provider of high-performance trading, market data, and advanced technical analysis tools, to offer QB’s suite of premium execution algorithms on CQG’s platform.
/goo.gl/LRz4UT

NetXpress Partners With Level Trading Field to Provide Cryptocurrency Exchange Feed
NetXpress
Global connectivity provider NetXpress is announcing its partnership with Level Trading Field, LLC, a highly interactive, cloud-based quantitative and analytics technology platform for traders and financial professionals.
/goo.gl/X8yF5W

Duco appoints COO
Hedgeweek
Duco, a data engineering technology company, has appointed Mireille Dyrberg as Chief Operating Officer (COO), with responsibility for customer success, all administrative functions, finance and legal.
/jlne.ws/2GBEgbK

IPC Names Robert A. Santella as Chief Executive Officer
PRNewswire
IPC, a leading global provider of secure, compliant communications and networking solutions for the financial markets community, announced today the appointment of Robert (Bob) A. Santella as its new Chief Executive Officer, effective April 16, 2018. Mr. Santella succeeds Neil Barua, who will leave the Company to pursue other opportunities.
/jlne.ws/2GzSXfK

Cryptocurrencies

Lendingblock appoints new CTO
Finextra
Lendingblock, the open exchange for cryptocurrency loans, today announces the appointment of Luca Sbardella as Chief Technology Officer. Luca is an experienced software engineer and quant developer, having worked as a CTO, lead software engineer and senior quant developer at BAML, BMLL Technologies and Citigroup. During this time, he had extensive experience as a senior quantitative developer on trading desks working closely on interest rate options and exotics.
/jlne.ws/2Jfo2Tr

South Korean prosecutors detain executives at crypto exchanges; Enforcement officials allege traders’ funds were moved to personal accounts of operators
Song Jung-a – FT
South Korean prosecutors have detained top executives of two South Korean cryptocurrency exchanges for alleged embezzlement and fraud as authorities crack down on virtual currency trading in one of the world’s most exuberant bitcoin markets.
/goo.gl/ss7fkq

Ripple Has Tried to Buy Its Way Onto Major Exchanges for Cryptocurrency
Annie Massa, Lily Katz, Matthew Leising – Bloomberg
Startup asked Gemini, Coinbase if money would persuade them; XRP has surged on speculation it may list on big U.S. exchange
Ripple has a problem. The startup controls the world’s third-largest cryptocurrency, XRP. Banks have signed onto its network and bought equity stakes in its business, which wants to rewire how money moves around the world. And yet when it comes to obtaining a coveted listing for XRP on two of the top U.S. cryptocurrency exchanges, Ripple hasn’t been able to close the deal.
/goo.gl/goaqg3

Cryptojacking is becoming a real menace
Stan Schroeder – Mashable
Cryptojacking ó the malicious practice of hijacking one’s computer resources to mine cryptocurrencies ó has taken off in a big way near the end of last year. According to a report by Symantec, published on Wednesday, cryptojacking has surged by 8,500% last year, especially since September ó which is roughly the time when the price of Bitcoin and Ethereum really hit the stratosphere.
/goo.gl/TfBEp4

Foxconn, Sirin Labs to make first blockchain smartphone; Foxconn, will manufacture its Finney blockchain smartphone, which is designed to securely store and use digital currencies such as bitcoin in fee-less transactions
Rama Venkat – Livemint
Swiss-Israeli technology firm Sirin Labs said that FIH Mobile Ltd, a subsidiary of world’s largest contract electronics manufacturer Foxconn, will manufacture its Finney blockchain smartphone, which is designed to securely store and use digital currencies such as bitcoin in fee-less transactions.
/goo.gl/Pk88PY

Nvidia: This Bitmain Thing Has Morgan Stanley Worried
Tiernan Ray – Barron’s
The news yesterday that startup Bitmain Technologies has unveiled a custom chip for “mining” cryptocurrencies continues to worry some analysts covering chip giant Nvidia (NVDA).
/goo.gl/1nh6Nd

Chinese Crypto Mining Company Poses a Threat to AMD and Nvidia
Lily Katz – Bloomberg
Beijing-based Bitmain selling new hardware for Ethereum mining; Competition may hurt demand for chipmakers’ GPUs, analysts say
Advanced Micro Devices Inc. and Nvidia Corp. are feeling the heat from a Chinese adversary that they never imagined would become a competitor.
/goo.gl/gT4L5g

Politics

Dimon Sees Risk to Global Economy in U.S. Trade War With China
Hugh Son – Bloomberg
JPMorgan CEO agrees there are ‘legitimate complaints’; In annual letter, he also says Fed may raise rates quickly
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said the U.S. has legitimate grievances with China on trade, but that “anything that starts to resemble a trade war” will pour risk and uncertainty into the global economic system.
/goo.gl/SjZDn8

Ex-Trump aide Bannon: ‘To hell with Wall Street’ view on trade moves
Reuters Staff
Steve Bannon, President Donald Trump’s former chief strategist and 2016 campaign CEO, had a fiery response on Wednesday to Wall Street’s dim view of Trump’s trade actions against China.
/goo.gl/nno2EE

Trump isn’t tweeting nearly enough, these Amazon stock investors say; Buyers of the stock don’t see the tweets as a threat, and are using the decline to add to positions
Ryan Vlastelica – MarketWatch
Over the past week, President Donald Trump has engaged in something of a one-man attack against the online retail giant Amazon.com Inc., repeatedly criticizing it and Jeff Bezos, the company’s founder, over a variety of issues. Bezos also owns the Washington Post, a publication Trump has criticized, and which he has repeatedly referred to as the “Amazon Washington Post.”
/goo.gl/e73ALQ

Regulation

Swaps data: a Mifid-shaped hole
Amir Khwaja, Clarus Financial Technology – Risk.net (NO PAYWALL)
As the first quarter of 2018 ends with the US Federal Reserve still on a rate-hiking path, it’s a good time to take stock of global US dollar swaps volumes.
/goo.gl/T6yFDp

FCA sets out next steps to improve competition in the UK’s asset management industry
UK FCA
The Financial Conduct Authority (FCA) has today published the latest step in its response to the concerns identified through its asset management market study. This is part of a package of remedies to ensure fund managers compete on the value they deliver, and act in the interests of the millions who entrust them with their savings.
/goo.gl/kcdVxc

Canada and South Africa continue to meet requirements for endorsement
ESMA
The European Securities and Markets Authority (ESMA) has today issued an update stating that the legal and supervisory frameworks of Canada and South Africa will continue to meet the requirements for endorsement under CRA Regulation (CRAR) from June 2018.
/goo.gl/chdZSH

South Korean Crypto Exchange Executives Detained in Fraud Probe
Jihye Lee – Bloomberg
Chief of Coinnest among those detained: prosecutors’ office; The Asian nation has been cracking down on crypto activity
South Korean prosecutors detained four executives from two cryptocurrency exchanges on allegations of embezzlement and fraud as regulators crack down on virtual currency trading in one of the world’s busiest bitcoin markets.
/goo.gl/4ogavb

U.K. Money Managers Under Pressure Over Fees
Silla Brush – Bloomberg
U.K. Financial Conduct Authority wants more disclosure; Regulator says extra information would help retail investors
The U.K. Financial Conduct Authority wants asset managers to disclose more information about how they measure their performance, ramping up pressure on active funds to justify their charges.
/goo.gl/WNfJTB

Investing and Trading

Q1 sees twice as many IPOs as the first quarter of 2017
John Filar Atwood – Jim Hamilton’s World of Securities Regulation:
The IPO market finished the first quarter, which began with a record-breaking January, with 55 new issues, nearly twice the Q1 2017 total of 28. Seventeen of the deals were completed in March, a slight improvement over February’s 16 offerings. The last week of March saw seven companies go public, including four that are headquartered in China. Nine of the year’s new issuers operate out of China.
/jlne.ws/2JirooN

Crash Course in Market Timing Shows Cost of Being Wrong at Tops
Lu Wang, Sarah Ponczek – Bloomberg
Final year historically makes up one fifth of bull market gain; Conflicting psychology more pronounced as volatility picks up
It’s the eternal debate. Stocks are teetering. Volatility’s back. Do you ride it out, or take the money and run?
/goo.gl/PhuKjb

For Bond Market, Trade-War Armageddon Looks Far From Imminent
Liz McCormick – Bloomberg
The U.S. Treasury market has yet to buy fully into the fear that’s sending equities sliding — that the world is on the precipice of a trade war.
/goo.gl/b28CDv

Three Things to Keep in Mind for Friday’s Employment Report
Erik Norland – CME Group
The February jobs report was a killer: 313,000 new jobs were created, with an additional 54,000 in upward revisions. Average hourly earnings growth, however, was much less impressive, growing only 2.6% YoY and just 0.4% after factoring for inflation. So, despite the unemployment rate holding at 4.1%, companies are hiring briskly but wage growth is mysteriously absent.
/jlne.ws/2Jin8pl

Institutions

JPMorgan Chief James Dimon Likes the Bank’s Growth Prospects, Despite Risks; Worries include cybersecurity, interest-rate policy, growth of ETFs
Emily Glazer – WSJ
JPMorgan JPM 1.52% Chase & Co. chief James Dimon shared an optimistic view of the bank’s growth prospects in his annual shareholder letter published Thursday.
/goo.gl/dMqh1M

Bill Ackman’s Pershing Square Faces Wave of Investor Redemptions; Future of activist investor’s firm may not include a private hedge fund after losing bets on Valeant and Herbalife
David Benoit – WSJ
William Ackman, the famed shareholder activist, is losing investors at a rapid pace and facing a future that would no longer include managing a private hedge fund.
/goo.gl/LqCSbp

The Man Who Spent $100K To Remove A Lie From Google
Aarti Shahani – NPR
In Europe, if there’s a webpage with information about you that you don’t like ó because it’s either inaccurate or just too personal ó you can make Google hide it from search results. Google has done exactly that with more than 1 million pages in Europe. It’s part of a growing legal movement in Europe that grants people “a right to be forgotten” on the Internet.
/goo.gl/XWhm8Z

Barclays’s Rating Cut by Moody’s to Lowest Investment Grade
Stephen Morris, Emma Orr – Bloomberg
Moody’s highlights key risks at volatile capital markets unit; Investors shrug off the news, bank’s shares are up about 1%
Barclays Plc’s ratings were cut by Moody’s Investors Service, citing concerns about earnings at the investment bank after the British lender split its riskier trading activities from its retail operations.
/goo.gl/dYSCXm

Exclusive: Yellen gets post-Fed payday in private meetings with Wall St. elite
Jonathan Spicer, Ann Saphir – Reuters
Janet Yellen visited Wall Street for a paid appearance two months after stepping down as Fed chair, discussing the economy and interest rates at an event hosted by investment bank Jefferies that included a sit-down dinner for forty.
/goo.gl/x54ESg

Regions

Britain Aims to Close Gender Pay Gap With Transparency and Shame
Liz Alderman – NY Times
The gender pay gaps detailed by British companies in recent months surprised almost no one ó men are paid more than women, often by a wide margin, at the vast majority of businesses.
/goo.gl/ivuN4T

Banks Rush to Turn Japan Cashless
Gareth Allan, Yuki Hagiwara – Bloomberg
Spurred by law change, lenders are working on digital payments; Open banking will change the financial industry, analysts say
Japanese banks, long content to foster the nation’s love for cash, are now diving into digital payments thanks to a regulatory change that threatens to usher in new rivals.
/goo.gl/nhKVqf

Banks get one more year to adopt Indian accounting standards; RBI deputy governor N.S. Vishwanathan says that banks are still not prepared to move to Ind AS and therefore they have decided to defer its implementation by a year
PTI
Mumbai: The Reserve Bank of India (RBI) on Thursday deferred the implementation of the Indian accounting standards (Ind AS) by one year as many banks are not prepared to migrate to the new accounting system.
/goo.gl/ciMxWc

Miscellaneous

Cyberattack Shows Vulnerability of Gas Pipeline Network
Clifford Krauss – NY Times
A cyberattack on a shared data network forced four of the nation’s natural-gas pipeline operators to temporarily shut down computer communications with their customers over the last week.
/goo.gl/vB7YFE

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Graduate of University of Minnesota School of Journalism and Mass Communication