Breaking News

Crypto Exchanges Embrace Controversial Practices; Weathering the financial crisis; Hurricane season

First Read

US marks 9/11 with somber tributes, new monument to victims
AP
Americans are commemorating 9/11 with somber tributes, volunteer projects and a new monument to victims, after a year when two attacks demonstrated the enduring threat of terrorism in the nation’s biggest city.
/jlne.ws/2x1TFLJ

***** The fire department by my house has a moving display of American Flags and signs documenting the various key events of the 9/11 day from 17 years ago. We shall not forget.~JJL

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Hits & Takes
JLN Staff

Today we have a report from JLN on CMT, reported by contributing editor Chuck Mackey. We took a deep dive into CMT and the challenges they face in the crypto markets. Look below for the writeup and link.~JJL

Edward Tilly, Cboe Global Markets Chairman and Chief Executive Officer, and Brian Schell, Cboe Global Markets Executive Vice President, Chief Financial Officer and Treasurer, will present at the Barclays Global Financial Services Conference in New York on Wednesday, September 12, at 8:15 a.m. ET. There will be a live webcast and a replay of the presentation accessible via the Cboe web site at www.cboe.com.~SR

A reminder: the WILD Chicago Mentorship Program kickoff event with Cynthia Zeltwanger will take place tomorrow, Sept. 12, at Lloyds on 1 South Wacker Drive starting at 5:00 Central Time. It begins and ends with networking.~SR

BarclayHedge has a new website, just launched. The company carries info on 5,858 hedge funds on its site.~JK

My first trip post hip replacement surgery will be to Washington, DC the week of October 3 to 5. The CFTC is holding its first fintech conference, FinTech Forward 2018, and the STA is holding their annual market structure conference at the same time. Additionally, on October 5, the CFTC’s Technology Advisory Committee will be meeting.~JJL

China is posed to ask the WTO for approval to slap sanctions on the U.S. over dumping duties. ~SD

ISE alum Jeanine Hightower-Sellitto has joined Gemini Trust as managing director of operations. Congrats Jeanine on the gig!~JJL

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IFM

The Volcker Rule Needs Transparency More Than ‘Simplification’; Five different agencies collect data in various forms. Regulators should standardize them.
Sheila C. Bair and Gaurav Vasisht – WSJ
A group of federal regulatory agencies have proposed a nearly 400-page “simplification” to the Volcker rule, the reform passed after the 2008 crash to curb risky financial activities. Part of the Dodd-Frank Act, the Volcker rule prohibits commercial banks, which are ultimately backed by taxpayers, from engaging in certain speculative trading activity. It also restricts their ability to invest in hedge funds or private-equity funds. The rule helps reduce moral hazard, decrease conflicts of interest between banks and their customers, and foster stability in the financial system.
/jlne.ws/2x48g9L

***** Smart regulation is the theme of our times.~JJL

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Under The Crypto Hood With CMT Digital
JohnLothianNews.com

You can trade cryptocurrencies on a screen but that doesn’t mean they have a ton in common with traditional assets. John Lothian News sat down with three members of CMT Digital to discuss the challenges posed by digital assets. Colleen Sullivan, CMT Digital’s CEO, talks about the missing infrastructure needed to bring cryptocurrency into the mainstream market. Rob Walker, CMT CTO, discusses market fragmentation and the accelerated pace at which crypto is evolving. Finally, Brad Koeppen, head of cryptocurrency trading at CMT, talks about adapting to cryptocurrencies’ sprawling ecosystem.
Watch the video and read the rest »

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Registration Open for CFTC’s First FinTech Conference; FinTech Forward 2018 Supports the Recognition of World Investor Week
CFTC
Registration is now open for “FinTech Forward 2018: Innovation, Regulation and Education,” a Commodity Futures Trading Commission (CFTC) conference that will convene on October 3-4 at its Washington, D.C. headquarters.
/jlne.ws/2CJEc8y

***** I will be there.~JJL

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Harry Potter and the Bank of England’s Productivity Policy Maker
Lucy Meakin – Bloomberg
New MPC member Jonathan Haskel to cast first vote this week; Weakness in U.K. productivity coming under increased scrutiny
Britain’s famous boy wizard may have the magic to revive the U.K. economy, according to the Bank of England’s newest policy maker Jonathan Haskel.
/jlne.ws/2x0Ddvw

*****The concept of “We are only limited by our imaginations” is true and almost policy.~JJL

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Jack Ryan: Not Exactly The Greatest Advertisement For Fintech
Madhvi Mavadiya – Forbes
I tried to take a break from fintech and the endless cryptocurrency documentaries on Netflix and watch the highly-publicized series Jack Ryan on Amazon Prime, but I realized that fintech is more mainstream than I thought.
Without spoiling too much for those of you who have not watched the series, the action-packed thriller started off with John Krasinski as a CIA analyst uncovering $9 million of financial transactions on SWIFT that were connected to a Yemeni terrorist named Suleiman.
bit.ly/2NCty7C

***** Good series.~JJL

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MWE World of Opportunity – The Chicago Ecosystem For Crypto Assets And Blockchain Technology
JohnLothianNews.com
“In order to have a healthy ecosystem for a new industry you really need four components. One is government involvement/regulatory clarity, two is academic institution involvement, three is trade associations and other advocacy groups and the fourth is the involvement of the startup community and mature institutions.”

The state of Illinois has been involved early and often in the cryptocurrency space. In this MarketsWiki Education video, Colleen Sullivan, CEO of CMT Digital, talks about what differentiates Chicago from other cities when it comes to digital assets.

Watch the video here »

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Monday’s Top Three
Our top story from Monday was the FT’s piece Life lessons from the people who worked at Lehman Brothers. Second was the Wall Street Journal’s piece on Daniel Michalow D.E. Shaw Partner Fights Back After Firing. Third was the academic paper from Charles Jones, Understanding the Market for U.S. Equity Market Data, examining whether data fees from stock exchanges are too high.

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MarketsWiki Stats
132,220,368 pages viewed; 23,271 pages; 214,878 edits
MarketsWiki Statistics

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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.

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Lead Stories

Crypto Exchanges Embrace Controversial Practices to Win Market Share
Olga Kharif – Bloomberg
‘Native’ token issuance is raising red flags among analysts; Listing fees can vary by project in contrast to other bourses
With digital-currency trading volume having plunged, some of the biggest crypto exchanges are turning to unorthodox practices to boost activity and win market share.
/jlne.ws/2x5W0W5

Weathering the financial crisis: how seven lives were changed
Lilah Raptopoulos in New York – FT
Ten years ago, on September 15 2008, the world woke up to the largest and most devastating bankruptcy filing in history. When financial services firm Lehman Brothers collapsed, it wiped away 25,000 jobs in a moment and set off a domino effect across global markets that led to the worst financial crisis since the Great Depression – and, some argue, ever.
/jlne.ws/2x4uIzg

Florence could hit with punch not seen in more than 60 years
AP
The last time the midsection of the East Coast stared down a hurricane like this, Dwight Eisenhower was in the White House and Marilyn Monroe and Joe DiMaggio were newlyweds.
/jlne.ws/2x2jriU

Winklevoss Twins Receive New York Approval to Launch New Crypto Coin
Annie Massa and Matthew Leising – Bloomberg
New York approves two stable coins from Winklevoss duo, Paxos; Newcomers tout transparency, ties to conventional banking
Two financial technology companies won New York state approval to issue cryptocurrencies pegged to the U.S. dollar, creating more regulated and transparent competitors to Tether and other so-called stable coins.
/jlne.ws/2x4lymr

Hehmeyer Trading + Investments Welcomes Roxanne Bennett As Managing Director Of Hehmeyer Capital Management
Hehmeyer
Hehmeyer Trading + Investments today announced the addition of Roxanne Bennett to Hehmeyer Capital Management as Managing Director (MD).
bit.ly/2Mknn3t

Cryptocurrency Startups Combine as Wall Street Blockchain Effort Falters; Chain and Lightyear, built around the technology underpinning bitcoin, are combining into a new company called Interstellar
Paul Vigna – WSJ
Chain Inc., a startup working with Nasdaq Inc. and others to build a blockchain-based trading platform, is merging with another cryptocurrency startup, a sign that efforts to plug the technology behind bitcoin into the traditional markets are proving harder than expected.
/jlne.ws/2x1vJZ6

Funding for ICOs Drops to the Lowest in 16 Months
Olga Kharif – Bloomberg
Autonomous Research says $326 million raised last month; Coin offerings blamed by analysts for fueling Ether selloff
Is the initial coin offering boom over? Startups raised just $326 million in August, the smallest amount since May 2017, according to data compiled by Autonomous Research. That compares with about $3 billion on average during the first three months of the year.
/jlne.ws/2x1UELV

Mark Carney’s term extended and Sir Jon Cunliffe re-appointed at the Bank of England
Gov.UK
Mark Carney to continue as the Governor of Bank of England until January 2020.
/goo.gl/avpivL

Could Oil Demand Peak in Just Five Years?; Recent forecasts point to oil growth ending far earlier than many in the industry expect
Sarah Kent – WSJ
The Era of Oil is coming to a close but experts and corporate analysts disagree about just when that will happen.
/jlne.ws/2x4tbt0

Lawyers, Lobbyists and Bankers Rewrite the Debt-Market Rule Books
Katie Linsell – Bloomberg
Warnings of Brexit risks in bond documents getting longer; Issuers tweaking small print to head off regulatory limbo
Travel company TUI AG warned of grounded vacation flights, Cambridge University said its supply of fee-paying continental European students could run dry. Corporate borrowers are stepping up efforts to avoid being caught off guard when Britain leaves the European Union next year.
/jlne.ws/2x5oyPq

Exchanges, OTC and Clearing

Nasdaq Financial Framework Technology Extended to Banks and Brokers Worldwide
GlobeNewswire
Technology will allow for trading infrastructure and operations outsourcing, as well as trade reporting; Supports systematic internalizers, MTFs, OTFs, single dealer and algo trading platforms
Nasdaq Inc. (Nasdaq:NDAQ) announced its Market Technology division has now launched its Nasdaq Financial Framework technology into the banks and brokers segment for complete outsourcing of trading infrastructure and operations, including regulatory reporting. This new market infrastructure solution complements Nasdaq’s risk and surveillance technology offering, which, as the industry benchmark for trade surveillance, is leveraged by over 140 sell-side clients worldwide.
/jlne.ws/2CL99t4

The hefty fees exchanges levy for data feeds must be challenged; Fund groups know that the cost of data helps determine whether ‘best execution’ is being achieved
Norma Cohen – FT
Stock exchanges are at the heart of the price discovery process. That is why they matter very much to asset managers who decide when, and whether, to commit investors’ capital to industry. But thanks in part to a new regulatory regime requiring fund managers to show investors that they are getting the best deal when they trade shares, the fees exchanges levy for data feeds are being challenged.
/jlne.ws/2x3iMho

Litigation funder Vannin Capital to float on LSE; Group seeks funding boost to match listed rivals Burford and Bentham
Barney Thompson in London – FT
Vannin Capital, a litigation finance business, has announced its intention to float on the London Stock Exchange as it looks to match the success of its listed rivals.
/jlne.ws/2x0E3IG

Danske Bank joins Partnership Program
Eurex
The Danske Bank is the first Nordic bank to join Eurex Clearing’s Partnership Program and to become a General Clearing Member for Eurex Clearing’s OTC IRD clearing service. So far, 30 firms have joined the Partnership Program to support the common objective of building a liquid alternative to clear EUR-denominated OTC interest rate derivatives in the EU27.
/jlne.ws/2x0EZga

Amendments to the Statutes for the EMIR Risk Committee
Eurex
This circular contains information with respect to Eurex Clearing’s service offering and corresponding amendments to the Clearing Conditions of Eurex Clearing AG (Clearing Conditions) regarding the following topic:
/jlne.ws/2wZBHcQ

Fintech

Born Technology and Blue Trading Systems Partner to Provide Anti-Cloud Futures Trading Platform
Born Technology
Blue Trading Systems and Born Technology have joined forces to provide professional traders with rapid access to BTS’s ultra low latency futures trading software delivered via Born’s private, global financial network.
/jlne.ws/2CK20ZN

Average fintech CEO compensation hits $850k a year
Finextra
Fintech is proving a lucrative sector for top level executives, with the average CEO pulling in total compensation of more than $850,000, according to a survey from Morlands Human Capital.
bit.ly/2NBvxcr

A Dutch financial upstart you may not have heard of is now worth more than Deutsche Bank
John Detrixhe – Quartz
Adyen, a 12-year-old payment company, is now worth more than EUR20 billion ($23.3 billion) on the stock market, edging out Deutsche Bank’s EUR19.9 billion market capitalization. The Dutch fintech’s stock has soared since its public debut less than three months ago, as investor enthusiasm for tech-savvy payment companies surges.
/jlne.ws/2x21HV0

AI Hasn’t Ushered in the Job-pocalypse Yet
Anne Vandermey – Bloomberg
The headline numbers from last month’s U.S. jobs report were good: 201,000 jobs added, unemployment under 4 percent and long-stagnant wages up a bit more than expected.
/jlne.ws/2x4ufx0

DBS Starts Wealth Chat Service Using WhatsApp, WeChat Platforms
Chanyaporn Chanjaroen – Bloomberg
Provides another way for rich clients to speak to advisers; Bank says it will record chats and meet compliance standards
DBS Group Holdings Ltd., Southeast Asia’s biggest bank, unveiled a service that will allow wealthy clients to interact with their relationship managers on WeChat and WhatsApp.
/jlne.ws/2x2p9kQ

LendingTree is the secret success story of fintech
Conor Witt – TechCrunch
For all of the excitement centered around fintech over the past half-decade, most venture-backed fintech companies struggle to acclimate to public markets. LendingClub and OnDeck have plummeted since their late 2014 IPOs after several years of darling status in the private markets. GreenSky, which went public in May of this year, has been unable to return to its IPO price. Square is the exception to the rule.
/tcrn.ch/2NAJZkV

Foreign exchange players remain unconvinced by algo wheels for accessing best possible liquidity; Speakers at this year’s TradeTech FX conference in Barcelona pour cold water on order routing automation.
John Brazier – The Trade
Foreign exchange (FX) market participants remain unconvinced as to the merits of using tools that automate orders to access specific pools of liquidity for the foreign exchange markets.
/jlne.ws/2wXWbCT

How Blockchain is Changing the Future of Fintech Industry
Prashant Sharma – Toolbox
As the new ubiquity of the twenty-first century, technological developments have now decidedly trickled into the workflow structure across multiple industries and are an integral element of varied business processes. Tasks which once required human hands, bulky machines, and physical currencies have now been efficiently digitized.
bit.ly/2NA23vp

Cryptocurrencies

New York regulator approves Winklevoss, Paxos dollar-linked tokens
Gertrude Chavez-Dreyfuss – Reuters
New York state on Monday approved Gemini Trust Company’s and Paxos Trust Company’s dollar-linked digital currencies, the first stablecoins to get the nod from the region’s regulator.
/jlne.ws/2x0wdyA

Riot Blockchain names new leaders as previous boss faces fraud charges
Reuters
Riot Blockchain Inc, a onetime biotechnology firm that saw its share price skyrocket when it refocused on cryptocurrencies, named a new chief executive after the company’s previous boss was accused of involvement in securities fraud.
/jlne.ws/2wZwJgc

Gemini Launches the Gemini dollar: U.S. Dollars on the Blockchain
Cameron Winklevoss – Co-Founder & President @Gemini
When we founded Gemini over four years ago, our mission was simple: build a bridge to the future of money. As a first step, this meant making it safe and easy to buy, sell, and store cryptocurrencies like bitcoin, ether, and Zcash. However, when fiat currency and cryptocurrency interact, the differences between the traditional banking system and cryptocurrencies become increasingly clear. While cryptocurrencies operate 24/7/365 (similar to email), fiat currencies only operate during specific “business hours” (like snail mail)?ó?a fundamental mismatch. As a next step in our mission, we must improve the linkage between these worlds by giving fiat currency the same desirable technological qualities of cryptocurrencies.
/jlne.ws/2CSxFZo

Lightyear buys U.S. blockchain start-up Chain; to move business to Stellar
Gertrude Chavez-Dreyfuss – Reuters
San Francisco technology start-up Chain Inc. has been acquired by Lightyear Corp., a company focused on the Stellar blockchain, Chain Chief Executive officer Adam Ludwin said on Monday.
/jlne.ws/2x0yKJg

Bitcoin Mutual Fund Launches in Canada
CCN
First Block Capital Inc., a Canadian cryptocurrency and blockchain investment company, has announced that its bitcoin trust, FBC Bitcoin Trust, has achieved mutual fund status in Canada, allowing investors to place funds in registered accounts such as a Tax Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP).
/jlne.ws/2x9TpdZ

The Black Grit That Beat Bitcoin’s Rally and Didn’t Slump
Swansy Afonso and Pradipta Mukherjee – Bloomberg
Graphite electrode prices soared on China’s clean-air push; Founder of Graphite India sees wealth rise to $1.75 billion
China’s push for blue skies has caused an obscure steelmaking ingredient to fuel gains of as much as 2,600 percent since the start of 2017 for the few companies that supply it, minting at least one new billionaire.
/jlne.ws/2x24ZYt

Another Crypto Boom Impossible Says Vitalik Buterin
bitGuru
Most have heard of the cryptocurrency boom in late 2017, where the majority of the cryptocurrency market saw unparalleled growth. Many have speculated when another boom like this will occur, while others’ have pondered if it will in fact ever happen again. According to Vitalik Buterin, Another crypto boom is impossible.
bit.ly/2NuKQUn

Politics

AP Fact Check: White House’s selective reading on economy
AP
President Donald Trump pitched a wildly off-base claim about economic growth Monday as the White House used selective statistics to build a case that the economy is doing much better than when Barack Obama was in office.
/jlne.ws/2x5QK4N

Trump Adviser Says President’s GDP Tweet Had an Extra Zero
Terrence Dopp, Toluse Olorunnipa and Jeff Kearns – Bloomberg
Trump claimed first time in century GDP above jobless rate; GDP growth sat above jobless rate multiple times since 1948
One of Donald Trump’s top economic advisers said the president erred in a tweet asserting growth in U.S. gross domestic product was higher than the unemployment rate for the first time in over a century.
/jlne.ws/2x4t1Sq

Regulation

SEC Charges Against Phillip Frost Might Just Be the Tip of the Iceberg
Bill Alpert – Barron’s
The U.S. Securities and Exchange Commission filed stock fraud charges late last week against billionaire drug entrepreneur Phillip Frost and a group of associates, accusing them of making $27 million in pump-and-dump stock schemes. The civil suit filed in Manhattan’s federal district court alleges that Frost and nine others manipulated micro-cap stocks over the last five years, aided and abetted by Frost’s investment trust and a Miami-based drug development company where he is board chairman and chief executive, Opko Health
/jlne.ws/2x0ySIA

Industry told to adhere to Global FX Code or face regulation; Expert panel at TradeTech FX in Barcelona this week outlined the benefits of adhering to the Code, and focus on more adoption from the buy-side.
Hayley McDowell – The Trade
Foreign exchange (FX) market participants have been warned that a failure of industry-wide adoption of the Global Code of Conduct could lead to further regulation.
/jlne.ws/2wXWddZ

Technology Based Innovations for Regulatory Compliance (“RegTech”) in the Securities Industry
FINRA
Technology Based Innovations for Regulatory Compliance in the Securities Industry outlines recent regulatory technology (RegTech) developments within the securities industry and potential opportunities and implications these technologies may have for broker-dealers.
/jlne.ws/2CK5Diu

FINRA Releases Report on the Rise of RegTech; Identifies Key Areas of Innovation, Benefits, Risks and Regulatory Consideration
FINRA
FINRA today released a white paper outlining recent regulatory technology (RegTech) developments within the securities industry and potential opportunities and implications these technologies may have for broker-dealers.
/jlne.ws/2CIDiJj

TRF Short Sale Files
FINRA
Beginning Monday, September 24, 2018, FINRA will add a new Daily Short Sale Volume File to its TRF – Regulation SHO data page. This file will provide aggregate daily short sale volume data by security that has been reported to the new FINRA/Nasdaq TRF Chicago.
/jlne.ws/2CJhpJZ

Statement on the Expiration of the Tick Size Pilot; Division of Economic and Risk Analysis and Division of Trading and Markets
SEC
On May 6, 2015, the Commission approved the National Market System Plan to Implement a Tick Size Pilot Program (Tick Size Pilot) as a two-year pilot program that would widen the minimum quoting and trading increments – or tick sizes – for stocks of certain smaller companies. The Tick Size Pilot commenced operation on Oct. 3, 2016, and therefore will expire, pursuant to its terms, at the end of trading on Tuesday, Oct. 2, 2018.
/jlne.ws/2CLl5uV

Andrew Bailey speech at the Annual Public Meeting 2018
UK FCA
Speech by Andrew Bailey, Chief Executive of the FCA, delivered at our 2018 Annual Public Meeting.
/jlne.ws/2CKXhat

Charles Randell speech at the Annual Public Meeting 2018
UK FCA
Speech by Charles Randell, Chair, Financial Conduct Authority, delivered at the Annual Public Meeting at the QEII Centre, Westminster.
/jlne.ws/2CFyu7w

Investing and Trading

Opinion: A Boglehead explains the simplest way to manage your money
Silvia Ascarelli – MarketWatch
Taylor Larimore is a big advocate of keeping investing simple ó simple enough to be handled with just three mutual funds. He says it means he doesn’t need to spend more than about an hour a year managing his money.
/jlne.ws/2x457qt

Goldman Bear-Market Risk Indicator at Highest Since 1969: Chart
Cormac Mullen – Bloomberg
A Goldman Sachs Group Inc. indicator designed to provide a “reasonable signal for future bear-market risk” has risen to the highest in almost 50 years. The firm’s Bull/Bear Index, which is based on measures of equity valuation, growth momentum, unemployment, inflation and the yield curve, is now at levels last seen in 1969. While the gauge is at levels that have historically preceded a bear market, Goldman strategists including Peter Oppenheimer wrote in a note last week that a long period of relatively low returns from stocks is a more likely alternative.
/jlne.ws/2x3cSg5

Can We Survive the Next Financial Crisis?
Yalman Onaran – Bloomberg
Ten years ago this week, Lehman Brothers Holdings Inc. collapsed, triggering the worst financial crisis in almost a century, a seismic event that still reverberates today.
/jlne.ws/2N2neH1

Borrowers Struggle to Raise Funds as Emerging Markets Tumble; After raising a record sum in the international bond markets last year, emerging-market firms and governments are now cutting back
Joe Wallace and Manju Dalal – WSJ
The steep falls in emerging markets have hurt the ability of developing-world companies and governments to issue bonds overseas, making it harder to pay back existing debt and putting potential pressure on economic growth there.
/jlne.ws/2x5UqU9

Cargill’s stockholders reap bumper dividend; Controlling family members of global agribusiness share majority of $551m payout
Gregory Meyer in New York – FT
The 100-odd family members who control Cargill have collected their biggest dividend cheques in years after the agribusiness titan profited by selling beef, grain and food ingredients.
/jlne.ws/2x43YPn

New Way to Play FANG Stocks Falls Short for Some Investors; ‘Auto-callable’ notes tied to tech stocks are gaining in popularity but aren’t always delivering large payouts
Ben Eisen – WSJ
Investors looking to reap the gains of highflying technology stocks while avoiding the risk are finding they can’t do both.
/jlne.ws/2xa0jQr

New Partners in Weed Startup: Jimmy Buffett and Wrigley Scion; The ‘Margaritaville’ singer will license his Coral Reefer brand to Surterra Holdings
Jennifer Maloney – WSJ
Singer Jimmy Buffett and billionaire William “Beau” Wrigley Jr. are getting behind a U.S. marijuana startup, joining a scrum of companies betting on the increasingly crowded cannabis industry.
/jlne.ws/2x4oeR1

Bear Market Engulfs Hong Kong’s $2.1 Trillion Benchmark Stock Index; The city’s shares are another victim of the global selloff driven in part by trade tensions
Saumya Vaishampayan and Steven Russolillo – WSJ
Hong Kong’s stocks fell into a bear market Tuesday, another casualty of an international selloff driven by trade tensions, a stronger dollar and worries about the resilience of developing economies.
/jlne.ws/2x4mTtx

Institutions

Goldman banker had raised ethics concerns: NYT
Reuters
A former Goldman Sachs Group Inc (GS.N) partner had raised concerns about some unethical practices at the bank before he left in 2015, the New York Times reported on Tuesday, citing people close to the matter.
/jlne.ws/2x0rHjo

****The NYT story here.

JPMorgan Bolsters Hedge Fund Team in Asset Management With Hires
Michelle Davis and Sonali Basak – Bloomberg
JPMorgan Chase & Co. is broadening its team that offers hedge fund investments in a bet that volatility will help spur more allocations to the industry.
/jlne.ws/2x1v5La

Decade After Repos Hastened Lehman’s Fall, the Coast Isn’t Clear
Liz Capo McCormick and Alexandra Harris – Bloomberg
New rules reduced threat of cascading failures, market size; Safeguards haven’t eliminated risk of fire sales in new crisis
Ten years after the collapse of Lehman Brothers Holdings Inc. showed just how crucial short-term funding markets are to the financial system, no one is sounding the all-clear.
/jlne.ws/2x2mNCw

ING’s CFO quits over money laundering scandal; Resignation comes amid concern about criminal cross-border money flows
Martin Arnold in London – FT
Dutch bank ING said its chief financial officer had resigned after being singled out as responsible for the compliance failings that allowed companies to launder hundreds of millions of euros and pay bribes.
/jlne.ws/2x3dcvr

****Reuters here.

Regions

Emerging-Markets in Moment of Calm Before Central-Bank Meetings
Tomoko Yamazaki , Yumi Teso , and Robert Brand – Bloomberg
Policy makers in Argentina, Turkey, Russia to set the tone; Currencies rise, while technology stocks drag down EM shares
Emerging markets are enjoying a bit of a breather, but with central banks soon to be in action across some of the hardest-hit countries, the reprieve is probably temporary.
/jlne.ws/2x4b5aR

Europe May Be `Epicenter’ of Emerging-Market Crisis, BofA Says
Justina Lee – Bloomberg
Region is more vulnerable to weakness in developing nations; A global, cross-asset contagion could eventually reach U.S.
If the current weakness in emerging markets turns into a global crisis, Europe may be its epicenter, according to Bank of America Merrill Lynch.
/jlne.ws/2x0tZPw

Rupee at Record Low Puts RBI Under Pressure to Curb Market Rout
Anirban Nag – Bloomberg
Forex reserves down $26 billion from a record high in April; Current-account deficit at 5-year high, capital outflows hurt
India has a currency problem and it’s not going away anytime soon. A current-account deficit at a five-year high, elevated oil prices and an emerging-market sell-off have conspired to push the rupee to below 72 per dollar last week, taking its decline since the beginning of the year to almost 12 percent, the worst performer in Asia.
/jlne.ws/2x279r3

Brexit

Brexit Bulletin: A Deal, and Then the Drama
Emma Ross-Thomas – Bloomberg
Michel Barnier, the European Union’s chief negotiator, reckons a Brexit deal is in sight. His tone has shifted, he’s increasingly polite about Prime Minister Theresa May’s Brexit plans, and on Monday he set out a timeline to a deal: six to eight weeks.
The pound surged on the prospect that a path to an agreement is emerging after months of dire warnings that the U.K. could tumble out of the bloc into legal limbo.
/bloom.bg/2NBylX1

JPMorgan and Citi say just hundreds of jobs will leave London due to Brexit – not thousands
Oscar Williams-Grut – Business Insider
Executives from three major banks said on Tuesday they expect to move just several hundred jobs out of Britain in the immediate aftermath of Brexit, far fewer than consultants and industry bodies had initially estimated.
/jlne.ws/2x0rDQG

UK businesses plan to combat no-deal Brexit with £40bn stockpile
Think-tank says fluctuations in inventories makes mini-recession ‘almost inevitable’
Roger Blitz in London – FT
UK companies will stockpile about £40bn of imports to cope with the impact of a no-deal Brexit, according to an assessment of the likely fluctuations in inventories as the country prepares to leave the EU.
/jlne.ws/2wXS5L1

U.K. Brexiteers Are Bracing For New Fight Over EU Laws
Robert Hutton and Ian Wishart – Bloomberg
As Barnier says a deal is in reach, Brexiteers resist; May will need to get any Brexit deal through Parliament
Brexit-backing lawmakers in Theresa May’s divided Conservative Party are gearing up for another fight with the prime minister, this time over how EU law will apply in Britain after it has left the bloc.
/jlne.ws/2x38QVc

Brexit: Economists say UK has ‘nothing to fear’ from no-deal exit
BBC
The UK has “nothing to fear” if it exits the EU in March without a trade agreement, a report backed by Boris Johnson and Jacob Rees-Mogg has said.
Economists For Free Trade said half the UK’s global trade was under World Trade Organisation rules and this could apply to the EU until a bespoke deal is done.
A “clean break”, it said, would cut the price of food and clothes imports by 8% and boost tax revenues by up to £80bn.
The claims were branded “Project Fantasy” by Labour MP Chuka Umunna.
/bbc.in/2NzlkNv

Miscellaneous

The Colleges That Offer the Best Financial Futures; In the Wall Street Journal/Times Higher Education College Rankings, these schools’ graduates are ahead in the end
Douglas Belkin – WSJ
A national survey of college freshmen spanning half a century offers this broad takeaway: A generation ago, students attended college to search for meaning and find themselves. Today, they enroll with the aim of landing a good job after graduation and making money.
/jlne.ws/2x2822R

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Graduate of University of Minnesota School of Journalism and Mass Communication