Breaking News

Nasdaq to Provide Clearing Technology to SIX for Clearing Overhaul

Clearing House

First Read

Hits & Takes
JLN Staff

Kevin McPartland

The JLN team is home after a successful day two of MarketsWiki Education World of Opportunity in New York at Nasdaq yesterday. We had 12 speakers who knocked it out of the park. Thank you to Nasdaq for hosting day two and for all our sponsors and speakers. Thank you too to the hard working JLN staff. The videos will start rolling out in the coming days and weeks.~JJL

During the merit badge workshop on Tuesday at Nasdaq, Robby Lothian had to give an impromptu two minute speech as part of the badge. With no idea what to talk about, and not wanting to follow in the footsteps of other speakers who talked about why the Yankees will win the World Series or why the New York Mets won’t, he made his decision. He decided to speak on why Chicago deep dish pizza was superior to New York pizza. That’s my boy!!~JJL

++++

Nikkei Index Options & Futures

Ocean Tomo, the Intellectual Capital Merchant Banc, recently issued a report entitled, “Blockchain and Cryptocurrencies Industry Report.”
Ocean Tomo
Among other things, this Report analyzes the patent landscape in the Blockchain and Crypto markets. Additionally, it examines various IP Blockchain efforts by looking at firms or projects that are using Blockchain as a part of their business model to make IP markets and licensing more efficient. By way of example, one such firm, Intellectual Property Coin Group, seeks to facilitate IP transactions that are tied directly to global, in-force government issued patents. https://goo.gl/43vbiP

++++

Interest rate benchmark reform: transition to a world without LIBOR
UK FCA
Speech by Andrew Bailey, Chief Executive of the FCA, at Bloomberg, London – on transitioning from LIBOR to alternative interest rate benchmarks.
/jlne.ws/2L2jCD9

***** Here is the speech by Andrew Bailey on Libor.~JJL

++++

Wednesday’s Top Three
Talk about an event that still resonates: February 5, 2018, when the Dow Jones Industrial Average plummeted 1,175 points, is such a day. We noted that our story about that market event and the damage inflicted on customers and clearing brokers was the most read story of the year in JLN. Yesterday, FCMs Big And Small Suffer Major Losses On Latest Black Monday was the second most read item, and remained in the top three for the third consecutive day. The story is historically significant and still acutely relevant. Our top piece of the day is also quite important, Bloomberg’s Mobius Says Trade War Is Just a Warm-Up Act for Financial Crisis. The third most read item was the NYSE’s letter to the SEC about rival exchange IEX, Transaction Fee Pilot for NMS Stocks, Securities Exchange Act Release No.82873, which is a critical attack on IEX by the NYSE’s Brent Fields. It includes unusually brassy language such as “IEX has sunk to a new low” and “IEX has failed to have any meaningful impact as an exchange.” With that, these are our top three.

++++

MarketsWiki Stats
129,447,998 pages viewed; 23,189 pages; 214,006 edits
MarketsWiki Statistics

++++

Lead Stories

Nasdaq to Provide Clearing Technology to SIX for Clearing Overhaul; Nasdaq post-trade technology to support clearing of pan-European equities and Nordic derivatives for SIX
Nasdaq
Nasdaq announced a new contract to deliver its clearing and real-time risk management technology via the Nasdaq Financial Framework to SIX x-clear, one of Europe’s leading providers of clearing services. The technology will power SIX’s clearing of pan-European equities and Nordic derivatives.
/jlne.ws/2LaUM4l

Abandon Libor Now or Else, U.K. Agency Warns Finance Firms
Franz Wild and John Glover – Bloomberg
The U.K. Financial Conduct Authority warned traders to speed up their move away from products based on the Libor rate, or risk falling foul of the regulator when the 50-year-old borrowing benchmark disappears.
/jlne.ws/2L7W7Zo

Flash Boys on the Farm? Arms Race Gets Unleashed Over Crop Data
Alan Bjerga, Nick Baker, Megan Durisin, and Brian Louis – Bloomberg
USDA ends decades-long policy of giving journalists data first; Website distribution may benefit traders with fastest access
It’s the sort of edge any trader would covet — and one the authorities were actually hoping to prevent. Yet the U.S. Department of Agriculture may well be clearing the way for some Wall Street speed demons to trade on market-moving data before others. Abandoning decades of precedent, the agency has decided to only post its reports directly on the web, rather than also release them via accredited media. While that may seem like a democratic move, it actually could set the stage for a winner-takes-all arms race to grab the info first.
/goo.gl/goqGGW

UK watchdog warns financial firms over Big Data
Huw Jones, Carolyn Cohn – Reuters
Britain’s banks and insurers must take the lead in spelling out how they will use data collected from customers or they could face new rules, Financial Conduct Authority Chair Charles Randell said on Wednesday.
/jlne.ws/2L5L0Ac

Hackers target new cryptocurrency investors; As exchanges increase security cyber crooks seek out new soft targets
Jemima Kelly – FT
As cryptocurrency exchanges beef up security measures following a relentless run of heists, cyber criminals are turning their attention to stealing digital tokens directly from users.
/jlne.ws/2L3gpU1

Former trader convicted in Euribor rigging trial; A second defendant was acquitted while the jury failed to reach verdicts for 3 others
Barney Thompson – FT
A former star trader at Barclays has been found guilty of conspiracy to defraud in relation to the Euribor lending rate, while one other defendant was acquitted and the jury failed to reach verdicts for three others.
/jlne.ws/2Lb9A2V

FCA warns banks must accelerate plans to abandon Libor; Andrew Bailey said financial institutions should move to new ‘risk-free’ reference rates
Philip Stafford – FT
The head of the UK markets regulator has issued its sternest warning yet that banks must speed up their plans to abandon Libor in favour of the new “risk-free” reference rates.
/jlne.ws/2L1HdE2

Titans of Junk: Behind the Debt Binge That Now Threatens Markets
Shannon D. Harrington, Sally Bakewell, Christopher Cannon and Mathieu Benhamou – Bloomberg
Masayoshi Son and Elon Musk leveraged their dreams to the hilt. Patrick Drahi stockpiled debt to build a global cable empire. Michael Dell loaded his computer company with risky loans to buy out activists threatening his control. And a group of Chinese developers borrowed big to expand in the nation’s booming property market.
/goo.gl/mS6WZr

Pretty Soon, You’ll Get to Invest Just Like Ray Dalio; His approach has a lot of variations but isn’t foolproof.
Nir Kaissar – Bloomberg
Ray Dalio may be slowing down, but the investment strategy he popularized is just getting started.
/jlne.ws/2L3StzS

The Reason Merger Arbitrage Funds Aren’t Doing Well; Evidence suggests that returns are more dependent on financial stress than volume of deals.
Aaron Brown – Bloomberg
Mergers and acquisitions are booming, with 2018 projected to be the first year that global deal volume breaks $5 trillion. But merger arbitrage funds, which attempt profit on perceived market inefficiencies before or after an M&A deal is announced, are not doing well. The last three months for which data are available represent the first time MAFs have lost money three months in a row, and represent the second-, third- and sixth-worst months since data begins in 1999.
/jlne.ws/2LaywYk

OPINION: HFTs Not to Blame for ‘Flash Crashes’?
Rob Daly – Traders Magazine
Is the conventional wisdom regarding high-frequency trading’s contribution to ‘flash crashes’ wrong? Is it unfair to lay the blame of the worst market-structure characteristic at the feet of high-frequency traders? According to the authors of a recent research note published by the UK’s Financial Conduct Authority, HFT firms are not the one whom most likely fuel mini-flash crashes, but agency brokers that provide direct market access for their clients.
/jlne.ws/2L3olVj

Exchanges, OTC and Clearing

LSE To Launch RFQ For Equities
MarketsMedia
London Stock Exchange is introducing a pan-European request for quote for cash equities in the autumn, highlighting the expansion of the order type from exchange-traded funds and less liquid asset classes since new regulations went live in the European Union.
/jlne.ws/2L3tCw2

CME Technical Issue Keeps Some Customers From Connecting
Nick Baker and Sheela Tobben – Bloomberg
July 11, 2018, 3:06 PM
CME Group Inc., the world’s biggest exchange operator, experienced a technical malfunction Wednesday that prevented some traders from accessing the market.
“We’re experiencing a technical issue that is impacting connectivity for some customers,” the company said in a statement. “Our markets remain open while we work directly with customers to resolve the issue.”
/goo.gl/oucg2u

Nex shareholders’ punchy payday protest
Philip Stafford – FT
More than 40 per cent of shareholders in Nex Group have voted against the UK financial technology company’s policy allowing management’s share bonuses to vest if a planned sale to Chicago’s CME Group goes ahead.
/jlne.ws/2L0NNL9

CCPs build their liquidity buffers
Alessandro Aimone -Risk.net
Ten of the largest central counterparties (CCPs) strengthened their liquidity by $43.7 billion, a rise of 10%, in the first quarter over the last period of 2017. About a quarter of that improvement came from deposits at commercial banks.
/jlne.ws/2LaccOa

Trading on MCX halts twice due to technical glitch; MCX said that the technical glitch was not caused due to any cyber security breach.
Press Trust of India
Leading commodity bourse MCX on Wednesday said the trading was halted at its platform twice during the day because of a technical glitch.
/jlne.ws/2Lb0C5L

Eritrean potash deposit company readies London listing
Neil Hume, Natural Resources Editor – FT
A company developing a large potash deposit in Eritrea has announced plans to list in the UK, testing the appetite of investors for ‘greenfield’ mining projects in Africa.
/jlne.ws/2La74JU

For the first time over 1,300 ETFs on Xetra
Deutsche Börse Cash Market
With the two new iShares ETFs launched on Xetra and the Frankfurt Stock Exchange this Thursday, the number of products in the ETF segment of the Deutsche Börse exceeded 1,300 for the first time. Since the beginning of the year alone, there have been 115 new listings.
/jlne.ws/2L4sxEm

DBS and SGX launch customised investment education programme for budding investors
SGX
In response to demand for investor education across different investor profiles and financial proficiencies, DBS Bank and Singapore Exchange (SGX) today announced a three-year collaboration to provide retail investors with the knowledge, skills and tools to aid financial decision-making and kick-start their investment journey.
/jlne.ws/2L5Slje

SGX welcomes Futu Securities International (Hong Kong) Limited as Securities Trading Member
SGX
Singapore Exchange (SGX) today welcomed Hong Kong-based brokerage firm, Futu Securities International (Hong Kong) Limited, to its securities market as a trading member.
/jlne.ws/2L2jbJ1

Fintech

Thomson Reuters Uses AI To Increase Personalization For Financial Professionals On Its Financial Desktop Platform, Eikon
Mondovisione
Thomson Reuters today announced the launch of Eikon Digest, a proprietary personalized service containing the most significant news, research, data and information from Thomson Reuters Eikon, its financial desktop platform. EIKON Digest builds on the strength of Reuters News which is renowned for breaking news, delivering comprehensive independent analysis and commentary on the latest world and financial market news and supplements and leverages a unique combination of artificial intelligence and Reuters editorial curation, designed to distill the most critical information from a vast array of trusted sources, saving clients time and helping ensure they are always aware of what matters to them the most.
/jlne.ws/2KZZzp9

Which Locations Are Drawing FinTech Companies?
Tedd Carrison and Kristin Sexton – Area Development
As financial technology, or “FinTech,” grows from an obscure corner of the digital market to a source of mainstream trends and broad-reaching innovations, the cities that cultivate FinTech companies are no longer limited to large, traditional financial centers. Recent growth in the industries comprising FinTech has been distributed among markets, primarily in the South and West, that show the right combination of attributes to attract today’s employers.
bit.ly/2L3X1WY

Rise or fall? The evolution of the European fintech industry
Leah Hodgson – PitchBook
Although technology in financial services has been present in the industry for decades— from ATMs to chip and pin—it’s only in the last few years that the concept of fintech has become a fixture and gained significant traction in Europe. But although it has seen considerable VC investment, will the sector be able to sustain the same pace of growth?
bit.ly/2L7xn3E

How fintech is turning China’s cities into cashless societies
Richard Cook – Asia Times
In 2025, will Tencent be the biggest company in the world? Or will it be Alibaba? Tencent’s story, just like modern China’s, is one of superlatives and big numbers. Founded in the southern Chinese city of Shenzhen in 1998, Tencent launched its first product, the QQ instant messaging service, a year later.
bit.ly/2L3vKnv

Cryptocurrencies

Crypto Crime Is a Focus of Trump’s New Task Force on Consumer Fraud
Benjamin Bain and David McLaughlin – Bloomberg
Justice Department-led group will target digital currencies; Fraud against elderly and veterans will also be priorities
In forming a new task force to protect consumers from fraud, the Trump administration made clear that one of the greatest threats to the public is just emerging: red-hot markets for crypto coins.
/jlne.ws/2L6ePAz

Accenture to lead The Institutes’ blockchain platform development
Matthew Lerner – BusinessInsurance.com
The Institutes RiskBlock Alliance, the insurance organization’s blockchain consortium, said that Accenture P.L.C. will lead development of RiskBlock’s production-grade platform to develop and implement blockchain uses for the industry, The Institutes said in a statement Monday.
/jlne.ws/2KZZRML

Big Advertisers Embrace Blockchain to Root Out Digital Spending Waste; Blockchain’s secure, transparent nature has drawn interest from big consumer advertisers, who tend to be wary of digital ad agencies and tech venders
Lara O’Reilly – WSJ
Blockchain technology has made inroads in industries from logistics to health care. Now, it’s gaining traction with marketers, who see it as a potential answer to the pitfalls of online advertising.
/jlne.ws/2L4Js9G

$1.5 Billion Were Confiscated From a Unlawful Crypto Gambling Platform – Coindoo
Adriana Midrigan – Coindoo.com
Twenty-one public security institutions based in Guangdong have arrested 540 individuals accused of creating a football gambling during the FIFA World Cup. They have violated Chinese legislation that prohibits the organization of online gambling. In such cases, both the participants and the organizers are subject to criminal liability.
bit.ly/2L3zANv

Politics

U.S.-China Trade Talks Grind to a Halt
Saleha Mohsin, Jenny Leonard, Jennifer Jacobs and Andrew Mayeda – Bloomberg
High-level negotiations that started in May have petered out; Administration has signaled it could restart talks – source
High-level trade talks between the U.S. and China have ground to a halt as the Trump administration threatens to escalate a trade war that shows little sign of abating, according to five people familiar with the matter.
/goo.gl/WxNZcE

Senate overwhelmingly rebukes Trump with tariff vote
Ted Barrett – CNN
For the second day in a row, the Senate pushed back on President Donald Trump, showing stiff resistance to his key policy decisions on tariffs and NATO even as the President is at a summit in Europe wrestling with allies over those same issues.
/goo.gl/G33Pf8

Germany Is Nobody’s ‘Captive,’ Mr. Trump; The NATO ally isn’t any more dependent on Russian gas than it was during the Cold War.
Leonid Bershidsky – Bloomberg
President Donald Trump sees a clear link between U.S. security guarantees under the North Atlantic Treaty and American trade with the alliance’s member states, in particular when it comes to liquefied natural gas sales to Germany. But he isn’t likely to change the reality of Germany’s energy needs and plans.
/jlne.ws/2L7u0d0

A Soybean Surge Makes Trump’s Trade War Look Deceptively Good
Jim Tankersley – NY Times
President Trump’s trade war is expected to temporarily bolster United States economic growth, in part because Beijing tried to beat the clock on Mr. Trump’s tariffs by stocking up on American soybeans, crude oil and other exports.
/jlne.ws/2L83ct1

Tower of secrets: the Russian money behind a Donald Trump skyscraper; The Trump Toronto reveals the links between a shadowy world of post-Soviet money and a future president
Tom Burgis – FT
One October day in 2007, a celebrity real estate developer in a greatcoat and powder-blue tie alighted from a stretch limousine in Toronto’s financial district. Before a bank of photographers, he took hold of a golden shovel. To his left, also holding a novelty spade, was his partner in a C$500m (£287m) skyscraper, construction of which was to begin that day: a Russian-Canadian billionaire whose fortune had its origins in the collision of communism, capitalism and the KGB at the fall of the Soviet empire.
/jlne.ws/2L4DSnK

Robert Reich: Donald Trump Is A Liar. Don’t Let Him Get Away With it | Opinio
Robert Reich – Newsweek
As the political season heats up, Trump is ramping up his lies through his three amplifiers: Fox News, rallies, and Twitter. According to The Fact Checker’s database, the average daily rate of Trump’s false or misleading claims is climbing.
/jlne.ws/2LaXhDL

Regulation

Sebi not averse to the merger of exchanges, says Chairman Ajay Tyagi; The comments come amid reports of merger talks between NSE and largest commodity bourse Multi Commodity Exchange (MCX)
Pavan Burugula – Business Standard
Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi on Wednesday said the regulator was not against the merger of exchanges.
/jlne.ws/2L7xOef

Ex-Tesla Worker Escalates Legal Battle by Blowing Whistle to SEC
Dana Hull and Josh Eidelson – Bloomberg
A former Tesla Inc. employee portrayed by Elon Musk as a saboteur has filed a whistle-blower tip to the U.S. Securities and Exchange Commission alleging the company made misstatements and omissions to investors.
Martin Tripp, a process engineering technician who left Tesla on June 19 and was sued by the company shortly thereafter, accused the carmaker of inflating weekly Model 3 production figures by as much as 44 percent. In a tip filed to the SEC on Friday, he also said the company installed unsafe batteries in vehicles that may be at higher risk of catching fire later.
/goo.gl/QmoCM8

U.S. Justice Department announces task force to deter fraud, avoid ‘piling on’
Diane Bartz, Katanga Johnson – Reuters
U.S. Justice Department officials on Wednesday announced the establishment of an anti-fraud task force intended to deter fraud and coordinate investigations to avoid “piling on,” where multiple agencies probe the same alleged misconduct.
The task force brings together the Justice Department and U.S. attorneys offices, the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB) and Securities and Exchange Commission (SEC), said Deputy Attorney General Rod Rosenstein, who made the announcement along with the heads of the three agencies.
/goo.gl/q7XcaK

ESMA Consults On The Clearing Obligation Under EMIR
ESMA
The European Securities and Markets Authority (ESMA) has today published a Consultation Paper (CP) on the Clearing Obligation under EMIR. The CP deals with an amending draft RTS regarding the treatment of intragroup transactions with a third country group entity. ESMA’s consultation seeks stakeholders’ views on a proposed extension of the temporary intragroup exemption and is open for feedback until 30 August 2018.
/jlne.ws/2L7SuCK

ESMA sets out plan for systematic internaliser regime calculations and publications
ESMA
The European Securities and Markets Authority (ESMA) has today published details of its action plan (within its updated Q&As on MiFID II and MiFIR transparency topics) for systematic internaliser (SI) regime calculations ahead of their publication on 1 August 2018. ESMA’s action plan focuses on equity, equity-like instruments and bonds while postponing the publication for derivatives and other instruments to 1 February 2019.
/jlne.ws/2L4t1ua

ESMA updates Q&As on MiFID II and MiFIR investor protection and intermediaries
ESMA
The European Securities and Markets Authority (ESMA) has updated its Questions and Answers (Q&A) document on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).
/jlne.ws/2L6qfo1

ESMA reminds UK-based regulated entities about timely submission of authorisation applications
ESMA
The European Securities and Markets Authority (ESMA) is issuing this Public Statement in order to raise the awareness of all market participants on the importance to prepare for the possibility of no agreement in the context of the United Kingdom withdrawing from the European Union. As there is no assurance that a transition period will be agreed upon, entities need to consider the scenario where a hard Brexit would take place on 30 March 2019.
/jlne.ws/2L6ysZe

Whistleblower Attorney Explains How Proposed Changes To SEC Whistleblower Program Will Undermine Deterrence
Mondovisione
On June 29, 2018, the U.S. Securities and Exchange Commission (“SEC”) announced proposed amendments to the rules governing its successful whistleblower program. This announcement received immediate criticism from whistleblower advocates as well as two of the five SEC Commissioners who oppose the amendments.
/jlne.ws/2L0Jmjt

BoE says worried by lack of auditor choice for banks
Huw Jones – Reuters
The Bank of England said on Wednesday there is too little choice of auditor for big banks who must switch book-keepers under European Union rules.
/jlne.ws/2L2dQRZ

SEC Issues Agenda for July 16 Meeting of the Fixed Income Market Structure Advisory Committee
SEC
The Securities and Exchange Commission today released the agenda for the July 16 meeting of the Fixed Income Market Structure Advisory Committee. The Commission established the advisory committee to provide a formal mechanism through which the Commission can receive advice and recommendations on fixed income market structure issues.
/jlne.ws/2L6deuz

U.S. Treasury Issues Final Regulations on Inversion Transactions; In an inversion, a U.S. company takes a foreign address, typically through a merger with a smaller firm
Richard Rubin – WSJ
The Treasury Department on Wednesday released the final version of regulations designed to limit U.S. companies’ ability to engage in so-called inversion transactions that put their tax addresses abroad.
/jlne.ws/2LaZIGp

SEC Files Additional Charges in Fitbit Stock Manipulation Scheme
SEC
The Securities and Exchange Commission today filed fraud charges against a second defendant in connection with a scheme to manipulate the price of Fitbit securities through false regulatory filings.
/jlne.ws/2L6rP9i

Remarks on the Establishment of the Task Force on Market Integrity and Consumer Fraud
Chairman Jay Clayton – SEC
Thank you for inviting me to say a few words about the importance of this Task Force.[1] I commend the President and the Attorney General for their leadership in this area. Serving and protecting Main Street investors is my main priority at the SEC. We recognize that close partnerships with our fellow regulators and law enforcement agencies are vital to helping us detect and respond to fraud. Through a few examples, I’d like to highlight some of the work the SEC is doing to combat retail securities fraud and illustrate how important inter-agency cooperation is.
/jlne.ws/2LaX57v

Production Test for TRACE Trade Reporting FIX Tag Changes
FINRA
On Monday, August 20, 2018, FINRA will require a change to all FIX trade reporting related to the processing of execution time during Daylight Savings Time (DST) changes. FIX Tag 60 (TransactTime) will be used to indicate the Execution Time for all products and Tag 22007 (ExecutionTime) will be retired from processing use.
/jlne.ws/2L6qv6t

Investing and Trading

NFEC Seeks Input on Definition of Financial Literacy
PR Newswire
The National Financial Educators Council seeks to improve upon the current financial literacy definition and would value third-party input. The NFEC currently defines financial literacy as “Possessing the skills and knowledge on financial matters to confidently take effective action that best fulfills an individual’s personal, family, and global community goals.”
/jlne.ws/2L8FpWG

Investors Have Become Too Complacent About Inflation; Markets have been worried about what’s happening to growth. In the background, inflation is warming up
Richard Barley – WSJ
Remember inflation? What with trade conflicts, political turmoil and puzzles around global growth, there’s a lot for investors to juggle. But this year’s ructions in global markets started with a steep climb in bond yields in part due to rising inflation. U.S. consumer price data for June, due Thursday, are forecast to show inflation at 2.9%, its highest for more than six years. With so much else to worry about, inflation may have moved too far off investors’ radar.
/jlne.ws/2L1Chiu

Soyabean prices drop to lowest since 2008
Peter Wells – FT
Soyabean prices are getting crushed, dropping to their lowest since the financial crisis as the trade war between the US and China ratchets up.
/jlne.ws/2L0U09X

U.S. Yield Curve to Invert in Mid-2019, Morgan Stanley Says
Chris Anstey – Bloomberg
Fed in March to map out end to balance-sheet contraction: MS; Net Treasury supply seen smaller thanks to Fed balance sheet
The Federal Reserve next March will probably map out an end to the contraction in its balance sheet, helping support longer-dated bond yields, which will drop below those on shorter-dated notes by the middle of 2019, according to Morgan Stanley.
/jlne.ws/2Lab39k

Opinion: The risk Jeff Bezos takes with Amazon.com offers stock investors a valuable lesson
Mark W. Johnson – MarketWatch
Some years ago, famed investor Warren Buffett told an interviewer that his approach to investing “is very much profiting from lack of change rather than from change. With Wrigley chewing gum, it’s the lack of change that appeals to me. I don’t think it’s going to be hurt by the internet. That’s the kind of business I like.”
/jlne.ws/2L1CySt

IEA warns spare oil capacity to be ‘stretched to limit’; Crude prices rally after steepest one-day fall in two years
David Sheppard – FT
The International Energy Agency warned on Thursday that spare oil production capacity risks being “stretched to the limit” as supply disruptions and US sanctions against Iran tighten the market.
/jlne.ws/2L3rTXz

Institutions

Morgan Stanley manager steps down amid complaints against brokers
Reuters Staff
Morgan Stanley (MS.N) said on Wednesday that Robert Perry, manager for the firm’s Beverly Hills, California, wealth management office, has left the firm.
/jlne.ws/2L3sKaN

BlackRock plans its largest ever alternative investment fundraiser
Trevor Hunnicutt – Reuters
BlackRock Inc (BLK.N) is planning to raise $3.5 billion for investments in energy infrastructure in what is poised to be its largest alternative investment fund yet, an executive at the world’s largest asset manager told Reuters.
/jlne.ws/2L7Sbb4

Hedge fund Tiger Global takes $1 billion stake in Softbank: source
Reuters Staff
U.S. hedge fund Tiger Global has built a stake worth more than $1 billion in Japan’s Softbank Group which it considers to be under-valued, a source with direct knowledge of the matter said on Wednesday.
/goo.gl/G1i6W9

Glencore forms committee to handle DoJ probe; Chairman and two non-execs to oversee response to US government investigation
Neil Hume , Natural Resources Editor – FT
Glencore has asked its chairman and two non-executive directors to handle the company’s response to a US government investigation into possible bribery and corruption.
/jlne.ws/2L0TFnH

Goldman Sachs, Prysmian, others lose challenge against 302 million euro EU cartel fine
Foo Yun Chee – Reuters
Investment bank Goldman Sachs (GS.N), the world’s top cablemaker Prysmian (PRY.MI), Nexans (NEXS.PA) and eight other cable companies on Thursday lost their challenge against a 302 million euros ($352.6 million) EU cartel fine.
/jlne.ws/2L6qJKI

The Wealth-Management Arms Race Is Heating Up
Olivia Carville – Bloomberg
Citigroup Inc. is adding muscle to its private-wealth arm, hiring advisers from rival Bank of America Corp. as competition for assets intensifies.
/jlne.ws/2L6oWW9

Wall Street Competes With Unregulated Banks for the Riskiest Loans
Sally Bakewell – Bloomberg
Regulators loosen guidance so banks return to buyout lending;Non-traditional lenders that filled void vie for junk debt
Wall Street’s junk war is heating up. On one side are major banks, which are diving back into high-risk corporate lending now that U.S. regulators have loosened up.
/jlne.ws/2L1FAGq

Regions

Saudi securities regulator awards first two fintech licenses
Reuters Staff
Saudi Arabia’s securities regulator approved its first two financial technology licenses on Tuesday, part of a drive to develop a fintech sector in the Arab world’s biggest economy under reforms designed to reduce reliance on oil exports.
/goo.gl/cZ6K8p

Venezuelan economy shrank 12 pct in first quarter – congress
Reuters
Venezuela’s economy contracted 12 percent in the first three months of this year compared with the same quarter of 2017, the opposition-led congress said on Wednesday, in another dramatic indication of the OPEC nation’s unraveling.
/goo.gl/qFa6W8

Brexit

Brussels downplays BoE warnings on Brexit risk to derivatives; Assurances from EU commissioner run directly counter to fears spelled out by Carney
Jim Brunsden – FT
The European Commission has downplayed warnings from the Bank of England that the validity of vast numbers of financial services contracts could be put at risk if regulators do not put special measures in place before Brexit, saying the market should be able to deal with most of the problems itself.
/jlne.ws/2La7WhE

Theresa May ditches hopes of keeping City in tight tie-up with EU; White paper discards ‘mutual recognition’ in favour of looser ties after Brexit
George Parker and Patrick Jenkins in London – FT
UK prime minister Theresa May has abandoned plans for a tight new relationship with the EU in financial services after Brexit, laying out a new proposal for a looser partnership in her long-awaited white paper on Thursday.
/jlne.ws/2L4B0Hu

May Unveils U.K. Soft Brexit Blueprint, But Banks Are Cut Loose
Tim Ross and Ian Wishart – Bloomberg
Government white paper: U.K.-EU ‘free-trade area for goods’; May says plan delivers ‘principled and practical Brexit’
Theresa May released the most contentious document of her two-year premiership on Thursday, vowing to push through her plan to keep the U.K. closely tied to the European Union single market after Brexit.
/jlne.ws/2Lb3jUV

Miscellaneous

Mansueto buying 49 percent stake in Chicago Fire
Danny Ecker – Crain’s Chicago Business
After expanding his empire to real estate with the purchase of the Wrigley Building, billionaire Morningstar founder Joe Mansueto is adding a new investment to his portfolio: professional soccer.
/jlne.ws/2L6lRp3

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

About Author

Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.