Breaking News

London’s Tribes of Finance Face Off

First Read

Hits & Takes
JLN Staff

If you are a broker or CTA, or are interested in learning more about those aspects of the markets, come to the NIBA’s September 13 Chicago Conference at the CME Group. Learn more and sign up HERE.~JJL

Yesterday, FIA President and CEO Walt Lukken reacted to Chairman Giancarlo’s speech on cross border regulation post Dodd-Frank: “We welcome Chairman Giancarlo’s leadership to reconsider the CFTC cross-border approach, particularly as it relates to access to clearing. We look forward to providing the agency input at the appropriate time.”~JJL

Women in Listed Derivatives (WILD) is continuing its Mentorship Program with the Circles format and is holding a kickoff event where you can learn more about it and network with other WILD members. The event is on Wednesday, September 12 at 5:00pm CST at Lloyd’s, 1 South Wacker Drive. Go here for details and to RSVP. ~SR

The JLN Options newsletter was chock full of content yesterday. Check it out here. ~SD

You can read the report from Nasdaq, “Promoting Transparency: Nasdaq Market Data Proposals” HERE.~JJL

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IFM

Amazon at $1 Trillion Pushes Bezos’s 2018 Gain to $67 Billion
Bloomberg
Amazon.com Inc. briefly became America’s second trillion-dollar company on Tuesday after adding $434 billion to its market cap this year.
No one has benefited more than founder Jeff Bezos, who has added $67 billion to his fortune this year, giving him a $167 billion net worth on the Bloomberg Billionaires Index as of 12:30 p.m. in New York on Tuesday.
/jlne.ws/2Nebtge

**** They note in the article that Bezos has made an average of $8 million/hour ($2,222/second) so far in 2018.~JB

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Why CME wants to buy its way to a slimmer board; It’s part of CEO Terry Duffy’s drive to turn the 170-year-old Chicago exchange, formerly owned by traders and now the world’s largest futures market, into an even bigger international, electronic juggernaut.
Lynne Marek – Crain’s Chicago Business
CME Group CEO Terry Duffy expects to welcome a big new shareholder to the company’s board soon, thanks to a $5.5 billion acquisition of London-based NEX Group. He also aims to usher out six old-guard directors.
/jlne.ws/2Ngpius

***** This is a follow up story to Lynne Marek’s popular story last week.~JJL

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‘Bingeable,’ ‘biohacking’ and ‘fintech’ are now officially words
Rachel England – Engadget
To say that the internet has played a massive role in the shaping of global society is a bit of an understatement, really, but one area that often gets overlooked is its influence on language. Thanks to teh interwebz (bear with me), we’re all exposed to words, phrases and spellings from languages and subcultures we might never have access to otherwise, and this has opened up a whole world of linguistic joy (and loathing). Today, Merriam-Webster has added more than 840 new entries to its dictionary, a step in the continuous process of recording our ever-expanding language.
/jlne.ws/2Cl0OvF

***** It is like Shakespeare was still alive.~JJL

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Diary of a Fintech CMO: How to Capture Company Culture on Camera
By Brian Mehta of TT via Medium
For the past few years, I’ve been sharing ideas about pushing my company to think like a start-up, about the importance of cultivating the right company values, and developing a strong company culture. In today’s post, I’m returning to the idea of company culture, but from a slightly different angle: company culture as caught on camera.
/jlne.ws/2PDQUap

***** Great recruitment video by TT wins some awards.~JJL

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Tuesday’s Top Three
The thread of the day on Tuesday was: criminality. Our top story of the day was the Bloomberg piece The Trader Who Shattered UBS Now Faces His Own Reckoning about Kweku Adoboli. Second was the Telegraph’s piece looking back at the 2008 Financial Crisis and The ticking time bomb that could blow up into a financial crisis. Third was Marketwatch’s Enron fraud architect Jeff Skilling released from prison

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Lead Stories

London’s Tribes of Finance Face Off; Brexit has turned the British capital’s once-allied financial factions against each other
Max Colchester – WSJ
As Brexit looms, London faces an existential moment as Europe’s capital of capital. Its preeminence as a global financial center on par with New York, Hong Kong and Singapore is at stake.
/jlne.ws/2M1GH5g

CFTC chairman targets cross-border swaps regulatory reform; Christopher Giancarlo, head of the CFTC, has long-been a critic of swaps trading rules in the US.
Hayley McDowell – The Trade
The head of the US derivatives watchdog has put forward plans for a major regulatory reform of cross-border swaps trading, after admitting the regulator’s current approach is over-expansive, complex and impractical.
/jlne.ws/2LW5Rm0

CFTC head plans swaps rules rethink
Philip Stafford – FT
The top US derivatives market regulator has revealed plans to soften some of its rules for regulating swaps, saying the Obama-era standards had sometimes over-reached their jurisdiction and were increasingly out of step with the rest of the world.
/jlne.ws/2MRFzGG

Scandals expose flaws in EU fight against dirty money, say watchdogs; Report reveals lack of legal clarity, patchy data-sharing and limited staffing
Jim Brunsden in Brussels, Caroline Binham in London and Claire Jones in Frankfurt – FT
EU regulators have warned of serious weaknesses in the bloc’s controls on money laundering after scandals engulfing Danske Bank and other lenders fuelled concerns that the union was failing to crack down on illicit funds entering its banking system.
/jlne.ws/2CmqQio

U.S. regulators extend comment period for proposed ‘Volcker Rule’ rewrite
Pete Schroeder – Reuters
U.S. regulators said on Tuesday they will giving the public an extra 30 days to comment on a proposed rewrite of the “Volcker Rule” banning proprietary trading by banks.
/jlne.ws/2Clq98Q

Toronto Stock Exchange Celebrates 25th Anniversary of REITs; Leaders from across Canada’s real estate sector commemorate milestone with TSX market open ceremony
TMX
Canada’s premier equity markets, Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV), are hosting members of REALPAC, Canada’s real estate industry association, for a market open ceremony today in celebration of the 25th anniversary of real estate investment trusts (REITs) in Canada and the listing of the first REIT on TSX.
/jlne.ws/2CjW35S

Switzerland’s banks try to put the past behind them; Despite a 2013 tax evasion deal with the US, some remain wary of the country’s lenders
Ralph Atkins in Zurich – FT
Five years ago, Switzerland’s banks finally realised the game was up. In late summer 2013, the affluent Alpine country submitted to a deal with Washington that drew a line under its role in helping US clients evade tax.
/jlne.ws/2M2kkNg

Deutsche Bank’s index eviction obscures bigger picture; Deutsche and Commerzbank both face likely demotion but Berlin is warming to a merger
Olaf Storbeck – FT
Over the past decade, German lenders Deutsche Bank and Commerzbank never failed to disappoint and September has started with more of the same.
/jlne.ws/2M2grIl

China’s policy choices crucial for global financial stability; Despite risks the real threat stems from the impact of a crisis on economic growth
John Plender – FT
The British historian Arnold Toynbee remarked that America was a large, friendly dog in a very small room and that every time it wagged its tail it knocked over a chair. If he had lived to witness Donald Trump’s America he would not have called the dog friendly. And he would have noted the presence of another big beast in the room, namely China.
/jlne.ws/2LZIAiQ

Rahm Emanuel’s departure causes uncertainty for Chicago businesses
Lisa Schencker and Robert Channick – Chicago Tribune
Chicago’s business community is nervously waiting to see who will next lead the city and whether that person will be as big a booster as Mayor Rahm Emanuel, who announced Tuesday he won’t seek re-election.
/jlne.ws/2NgX6rh

Exchanges, OTC and Clearing

Tradeweb brings block trading to Bond Connect; Tradeweb’s block trade allocation function is expected to see trading volumes increase on Bond Connect.
Hayley McDowell – The Trade
Tradeweb has launched block trading functionality via the Bond Connect initiative to allow investors to complete transactions from multiple funds in a single block.
/jlne.ws/2CjTHUA

CME Group Averaged 15.9 Million Contracts Per Day in August 2018, Up 18% from July 2018
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, reached average daily volume (ADV) of 15.9 million contracts during August 2018, in line with August 2017 and up 18 percent from the prior month. Open interest increased 3 percent from the end of August 2017 and 13 percent from year-end 2017, respectively, to 122 million contracts. Open interest represents the total number of outstanding positions held by participants across all CME Group markets at the end of August 2018.
/jlne.ws/2CliZS4

EDGA, the Hot Tub Time Machine of Stock Trading
Larry Tabb – TABB Forum
The Cboe reportedly is looking to implement a 3- to 4-millisecond speed bump for liquidity-taking orders on its EDGA equity exchange. While the delay may attract new market makers, the asymmetric speed bump effectively will give liquidity providers a time machine that will provide them with much greater clairvoyance into who they do business with and at what price, transferring risk from the liquidity provider to the liquidity taker.
/jlne.ws/2Ng1GG9

CME Group Announces Henry Hub Natural Gas Futures Open Interest Reaches Record 1.62 Million Contracts
CME Group
CME Group announced Henry Hub Natural Gas futures open interest reached a record 1,617,589 contracts on Friday, August 31, surpassing the previous record of 1,606,874 contracts set on August 17, 2018. Open interest represents the total number of outstanding positions held by all participants in a given market.
/goo.gl/H8zqoc

Clearing houses: The new too-big-to-fail firms
Samuel Agini – Financial Times
Since the financial crisis, regulators have aimed to make the system safer by making some derivatives less risky. Their efforts on that front, however, may have undermined their work on another – tackling the threat of institutions that are too big to fail.
/jlne.ws/2oElFQZ

SEB goes live with DTCC Alert Regional Custodian workflow to manage…
Finextra
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that Skandinaviska Enskilda Banken AB (SEB) has recently gone live with DTCC’s new ALERT for Regional Custodian workflow via global custodian Brown Brothers Harriman (BBH).
/jlne.ws/2oCYmXT

The Saudi Stock Exchange (Tadawul) Launches Derivatives Market In The First Half Of 2019
Tadawul
The Saudi Stock Exchange (Tadawul) will introduce exchange-traded derivatives in the first half of 2019. Tadawul will launch an index futures contract based on the tradeable index jointly developed with MSCI. Saudi Arabia’s inclusion into the major emerging markets indices further validates the need for this market. Tadawul is planning to launch additional derivative products gradually as part of its strategy to diversify its product offering and provide more investment opportunities for market participants.
/goo.gl/jtha2n

Connect helps drive inclusion of Chinese assets into international indices
Charles Li – HKEX
Stock Connect and Bond Connect have both been given big stamps of approval over the past few weeks as global index compilers add Chinese assets into their major international benchmark indices for the first time.
/jlne.ws/2PxpnHA

EEX Trading Results For August 2018
Mondovisione
In August 2018, the European Energy Exchange (EEX) increased volumes on its power derivatives markets by 52% to 271.3 TWh (August 2017: 178.9 TWh). In the Phelix products for Germany, Austria and Germany/Austria, volumes increased by 44% to 153.2 TWh (August 2017: 106.1 TWh). Also on the markets for France (24.7 TWh, +18%), Italy (40.3 TWh, +34%) and the Netherlands (1.3 TWh, +14%), EEX achieved clear double-digit growth. Options markets contributed 36.3 TWh to the total volume (August 2017: 10.8 TWh).
/jlne.ws/2NieFak

Breakingviews – Shanghai’s early market win threatens oil duopoly
Clara Ferreira-Marques – Reuters
Shanghai’s early success with its new oil market is beginning to threaten the duopoly of Brent and WTI. In four months, the yuan-denominated crude futures contract has built a 7 percent share of global crude turnover. Dealing in a state-managed currency remains an issue for investors, and Western traders have yet to really weigh in. But Beijing is on the way to building a credible benchmark.
/jlne.ws/2Cjs7GJ

MGEX Reports August 2018 as the Fourth Best Month of All-Time
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), welcomes August 2018 into the fourth position on the Total Monthly Exchange Volume record list with 275,743 contracts.
/goo.gl/Xa5N4B

Italy-based MyBest Group arrives on Euronext Growth; Euronext welcomes a new Italian company on its market, as part of its European Tech SME initiative.
Euronext
Euronext today announces the successful completion of MyBest Group’s listing on Euronext Growth, an omnichannel platform which allows people to save on utility bills. The first trading day is expected on 10 September 2018, following a EUR3.4 million private placement.
/jlne.ws/2LYzWRP

The art of designing markets. Part V; Trading outside the public order book
Eurex
Market design recognizes that well-functioning markets are more than the confluence of supply and demand. They depend on detailed rules. Market designers try to understand the rules and procedures as well as the workings and requirements of particular markets well enough to fix problems or to build completely new markets when they seem promising.
/jlne.ws/2M2O5NQ

AITE group report (part IV): An interview with the researcher
Eurex
After having published three joined reports with the Aite Group researching MSCI exchange-traded derivatives in today’s market structure, we have interviewed Virginie O’Shea, Research Director at AITE Group on her interesting findings. Learn about the current market structure of MSCI exchange-traded derivatives and how margin cost influence the selection of market places. The video also let you know what the investors expect from the market and some thoughts looking forward.
/jlne.ws/2CjS755

A. Introduction of four Single Stock Futures; B. Equity options: Introduction of six equity options; extension of maturities for options on Intesa Sanpaolo S.p.A. to up to 60 months
Eurex
The Management Board of Eurex Deutschland took the following decisions with effect from 10 September 2018:
/jlne.ws/2CmAoKg

Introduction of four single stock futures and six equity options – Liquidity Provider schemes
Eurex
Effective 10 September 2018, Eurex Clearing AG will include the following four single stock futures and six equity options introduced at Eurex Deutschland in the existing Liquidity Provider schemes respectively with unchanged parameters:
/jlne.ws/2M0q0qX

Deutsche Börse Photography Foundation congratulates new Foam talents 2018; 20 photographers selected for the Foam Talent program / Foam talent show at The Cube in Eschborn 2019
Deutsche Börse
The Deutsche Börse Photography Foundation congratulates the 20 photographers selected for the annual Foam Talent program. In 2019, the foam talent exhibition will be held in San Francisco, New York, London and Paris with talks, events and a large-scale presentation and will be shown within the 20-year anniversary program of the Art Collection Deutsche Börse in Frankfurt / Eschborn.
/jlne.ws/2LZNFIb

Investor’s Business Daily Integrates Nasdaq Last Sale Pre- and After-market Data Across All Content and Product Offerings
GlobeNewswire
Investor’s Business Daily (IBD), a leading financial news and research organization, today announced that it has joined with Nasdaq, Inc. (Nasdaq:NDAQ) to bring Nasdaq Last Sale (NLS) to IBD Digital subscribers. IBD also integrated Nasdaq’s data into its top-performing products SwingTrader, Leaderboard, and MarketSmith, as well as the IBD mobile app, uniting real-time market data with the industry’s highest-quality investing content and analysis. IBD users now have access to real-time pricing and volume information on equity markets. Additional collaborative features, including integration of pre-market and after-market data, will be rolled out in the near future.
/jlne.ws/2Clqk41

Fintech

Minium

Simplitium

Peering into the TT Crypto Future(s)
Michael Unetich – Trading Technologies
I’d like to announce a new initiative for TT’s cryptocurrency business. We’re starting a new series here on Trade Talk, just for crypto, that we’re calling Crypto Corner. It will be akin to our “5 Questions with…” series which features interviews with traders and other thought leaders in our industry.
/jlne.ws/2PDdrnB

American investor Warren Buffett sets his eyes on India’s fintech market
DW
US business magnate Warren Buffett has made a surprise entry into India’s digital payment market, with his Berkshire Hathaway reportedly injecting some $360 million into Paytm, India’s largest digital payments platform.
/jlne.ws/2CjX1ie

Fintech Upgrade doubling S.F. workforce
Mark Calvey – Bizjournals
Fintech lender Upgrade plans to double its San Francisco headquarters workforce to 200 by the end of 2019, after raising $62 million in a third round of financing last month.
The company employs 300 people, including 100 in San Francisco. The company also has an operations office in Phoenix and technology offices in Chicago and Montreal.
/jlne.ws/2wKfXRv

Startup Influx into Fintech: Is There Still Space for Growth?
Ranjeet Sethi – Equities.com
The word “Fintech” stands for Financial Technology and refers to the technology that is used to make payment processes more reliable and efficient, or the technology that is used to drive the delivery of financial products and services to the consumer in a more efficient manner.
Fintech is the industry that brings technological innovations to the field of finance. Companies that provide fintech solutions can be considered as disrupters of the conventional ways of banking and finance.
/jlne.ws/2wKraBs

Fintech and Online Lending Power Players to Convene in Chicago Under One Roof
Press Release
The fintech industry continues to heat up, as unexpected behemoths like Amazon and Goldman Sachs have entered and disrupted the online lending space. And as this industry shift is taking place, Chicago finds itself in the heart of the fintech boom, touting one of the most competitive financial markets in the world.
/jlne.ws/2wN5FzO

Eze Software Achieves ISO 27001 Recertification, Expands Scope to ISO 27017, 27018 Cloud Security & Privacy; Key Standards Underscore Expanded Information Security Commitment
Business Wire
Eze Software, a leading global provider of investment technology, has renewed its International Standard Organization (ISO) 27001 certification, and has expanded the scope to align with the requirements of the ISO 27017 Cloud Security and ISO 27018 Cloud Privacy standards. The recertification covers Eze Software’s information security system infrastructure and operations supporting its Eze Investment Suite and Eze Eclipse offerings.
/jlne.ws/2MO8dbH

Cryptocurrencies

Goldman Sachs is retreating from launching the first bitcoin trading desk on Wall Street
Dakin Campbell and Frank Chaparro – Business Insider
Even Goldman Sachs, the Wall Street behemoth that trades in the markets’ most esoteric assets, can’t find a way to trade bitcoin.
The bank is ditching plans to open a desk for trading cryptocurrencies in the foreseeable future, according to people familiar with the matter, as the regulatory framework for crypto remains unclear.
/jlne.ws/2wIeYRD

Abra CEO: SEC Denies Bitcoin ETFs Because Applicants Do Not Fit Industry Archetype
Ana Alexandre – Cointelegraph
The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto exchange traded funds (ETFs) is because the crypto industry does not fit the applicant archetype, according to the CEO of crypto payment startup Abra, CNBC reported September 4.
/jlne.ws/2CnjriK

IBM Reveals Stellar-Based ‘Near Real-Time’ Blockchain Payment Network
William Suberg – Cointelegraph
IBM has brought its Blockchain World Wire (BWW) payment network out of beta this week, according to a recent post on IBM’s website.
BWW, which uses digital currency on Stellar’s blockchain to facilitate international settlements between banks in “near real-time,” is the latest step forward for IBM and Stellar, which have been eyeing blockchain payment options since October last year.
/jlne.ws/2wJqZWW

Australian Securities Exchange Delays Planned Switch to Blockchain by Six Months
Marie Huillet – Cointelegraph
The Australian Securities Exchange (ASX) has announced that it will delay its transition to use blockchain for equity transactions by six months, the Sydney Morning Herald reports September 4.
As Cointelegraph has previously reported, the ASX has been working to implement blockchain as of December 2017 to replace its current system for processing equity transactions.
/jlne.ws/2CjVBoc

China Embracing Blockchain but Continues to Clamp Down on Cryptocurrency Speculation
Mark Alcala – blokt.com
China believes in the future potential of blockchain technology. While blockchain is the same technology powering cryptocurrency, the Chinese government remains firmly convinced at the moment of the potential dangers posed by cryptos to its investing citizens.
/jlne.ws/2CnqNCU

China’s biggest bitcoin miner in $1bn fundraising; IPO under consideration in spite of fall in value of cryptocurrency
Louise Lucas and Nicolle Liu in Hong Kong – FT
China’s biggest bitcoin mining company Bitmain Technologies is hoping to raise up to $1bn in pre-IPO private funding even as the falling value of bitcoin has hit demand for its products and brought down prices.
/jlne.ws/2NgY0nF

Africa and its Antiquated Banking: Bitcoin The Solution?
Jeffrey Gogo – Bitcoin.com
Africa has steadily accelerated the switch to modern technologies. But can a continent facing a crisis with antiquated banking technologies, low rate of financial inclusion, poor confidence in the banking system, and high remittance costs become the new battleground for blockchain and cryptocurrency?
/jlne.ws/2CkWQDh

Iran government allows cryptocurrency mining as an accepted industry
Rebecca Leighton – Coin Insider
Iran’s Supreme Cyberspace Council has announced that ministries within Iran are now accepting cryptocurrency mining as a legal industry.
According to local news source IBENA, secretary of the Supreme Cyberspace Council Abolhassan Firouzabadi has said that the National Cyberspace Center’s policy includes organizing cryptocurrencies. According to the secretary, the Central Bank as a trustee in the foreign exchange area holds weight as a decision making authority and will be soon declaring the framework and final strategies for cryptocurrency related activity. This includes “trade and participation of startups and trade activists in the cryptocurrency sphere”.
/jlne.ws/2ClpT9T

Securities Commission Malaysia Issues Notice To Cease All Activities Promoting Lavidacoin
Mondovisione
The Securities Commission Malaysia (SC) has issued a notice directing the promoter of Lavidacoin to cease all promotional activities in relation to Lavidacoin with immediate effect, pending further review by the SC into the matter.
/jlne.ws/2MMC2JQ

Apex Clearing to Support Cryptocurrency Investments; Launch of Apex Crypto to provide streamlined service for next generation investors as demand for crypto trading capabilities grows; Crypto offering represents next step in democratizing wealth management and giving investors access to full spectrum of asset classes
Business Wire
Apex Clearing, a leader in digital wealth management, will be offering its clients the ability to service the demand for crypto assets among millennials and others who want to invest in digital currency as well as brokerage assets. This new service – via Apex Crypto, a separate entity – is expected to be available starting in the fourth quarter of 2018.
/jlne.ws/2Npm0oZ

Cryptofacil to Launch Digital Asset Platform; Platform Will Be Powered by Bittrex; New cryptocurrency platform to offer Latin America and Caribbean customers a reliable and robust exchange with a selection of over 200 digital tokens
Cryptofacil
Cryptofacil, a new fintech digital asset trading platform, and Bittrex, the premier U.S. based blockchain trading platform, announced a partnership today that will launch a digital asset trading platform with over 200 digital tokens. The platform will reach customers in Latin America and the Caribbean.
/jlne.ws/2NgvORY

Politics

Rahm Emanuel Says He’s Not Running For Re-Election
Block Club Chicago
CHICAGO — Mayor Rahm Emanuel announced Tuesday morning he will not run for re-election.
“I’m not shy, and together we’ve never shied away from a challenge,” the 58-year-old, two-term mayor said with his wife, Amy Rule, at his side.
/goo.gl/Jh1L4f

Facebook, Twitter Will Face GOP Questions of Political Bias
Ted Johnson and Janko Roettgers – Variety
Twitter’s Jack Dorsey and Facebook’s Sheryl Sandberg are scheduled to appear on Capitol Hill on Wednesday, and it’s not too difficult to figure out what they should expect from Republican lawmakers: claims of political bias in their algorithms.
/jlne.ws/2PB0v1w

Trump suggests protesting should be illegal
Felicia Sonmez – Washington Post
President Trump has long derided the mainstream media as the “enemy of the people” and lashed out at NFL players for kneeling during the national anthem. On Tuesday, he took his attacks on free speech one step further, suggesting in an interview with a conservative news site that the act of protesting should be illegal.
/jlne.ws/2CnK4nQ

Twitter chief says politics don’t play a role in decision-making; Jack Dorsey to testify on Capitol Hill on the same day as Facebook’s Sheryl Sandberg
Aliya Ram in London and Jessica Dye in New York – FT
Twitter’s chief executive Jack Dorsey has defended his social media platform’s political neutrality after US president Donald Trump accused it of “shadow-banning” rightwing voices.
/jlne.ws/2LW2YSc

Wall Street May No Longer Be Able to Shrug Off Trump’s Trade Wars
Peter Eavis – NY Times
This may be the point at which investors have to start taking President Trump’s trade wars much more seriously.
/jlne.ws/2LYy6jT

Regulation

Remarks Of CFTC Chairman J. Christopher Giancarlo To The City Guildhall, London, United Kingdom
Mondovisione
Nearby, in the streets and alleys, since the time of the Romans, this part of London has been a center of commerce. It drew the world’s products with a powerful force of gravity and inspired global exploration, banking, and trade. Here was a crossroads of commodities, where goods flowed from the land and sea, slowly, yet steadily, then rapidly becoming a torrent from places like the tin mines of Cornwall and the farms of Scotland, and farther, from the teas of India and the lamb of New Zealand. London became a powerhouse of trade and finance, and since the 12th Century, Guildhall has been the central meeting place for the city.
/jlne.ws/2CiSigX

Agencies Extend Comment Period for Proposed Rule Simplifying and Tailoring the “Volcker Rule”
CFTC
Five federal financial regulatory agencies on Tuesday extended until October 17, 2018, the comment period for a proposed rule to simplify and tailor compliance requirements for the “Volcker rule.” The Volcker rule generally restricts banking entities from engaging in proprietary trading and from owning or controlling hedge funds or private equity funds.
/jlne.ws/2Cmt9lw

ESMA publishes opinion on proposed amendments to SFTR technical standards
ESMA
The European Securities and Markets Authority (ESMA) has published an Opinion in response to the European Commission’s (EC) proposed amendments of the technical standards on reporting under the Securities Financing Transactions Regulation (SFTR), which were notified to ESMA on 24 July 2018.
/jlne.ws/2CxbpEf

ESAs report finds automation in financial advice slowly growing but scale of market remains limited
ESMA
The three European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA – today published the results of their monitoring exercise on automation in financial advice. The Report shows that while the phenomenon of automation in financial advice seems to be slowly growing, the overall number of firms and customers involved is still quite limited. As the identified risks have not materialised and considering the limited growth of the phenomenon, the ESAs believe that no immediate action is necessary.
/jlne.ws/2CnQYcK

New OTC Transparency Data Download and API Guidelines (Effective November 5, 2018)
FINRA
As part of a technology modernization initiative, FINRA has implemented improved interfaces to retrieve data and has established naming conventions that follow industry standards. This change will promote consistent column names, both in the file download feature and API access.
/jlne.ws/2ClMF1j

New OTC Equity Short Interest and OTC Threshold Data Download and API Guidelines (Effective November 5, 2018)
FINRA
As part of a technology upgrade, FINRA has implemented improved interfaces to retrieve data and has established naming conventions that follow industry standards. This change will promote consistent column names, both in the file download feature and API access.
/jlne.ws/2LZO9xV

Reminder – FINRA/Nasdaq TRF Chicago
FINRA
FINRA reminds firms that the new FINRA/Nasdaq Trade Reporting Facility (the FINRA/Nasdaq TRF Chicago) will commence operation on Monday, September 10, 2018. The FINRA/Nasdaq TRF Chicago provides FINRA members with another mechanism for reporting over-the-counter trades in NMS stocks and complying with FINRA’s requirements with respect to back-up trade reporting arrangements, as set forth in FINRA Trade Reporting Notice January 20, 2016.
/jlne.ws/2M1RUCU

FCA appoints new Director of Competition
UK FCA
The Financial Conduct Authority (FCA) has appointed Sheldon Mills as its new director of competition. Sheldon is currently senior director, mergers and state aid at the Competition and Markets Authority (link is external) (CMA).
/jlne.ws/2CjYUvC

NFA Comment Letter to CFTC
NFA
RIN 3039—AE73: Proposed Rule Financial Surveillance Examination Program Requirements for Self-Regulatory Organizations
/jlne.ws/2CuFd4n

Investing and Trading

ETF threat fizzles: Hunt for systemic risk comes up short
David Ricketts – Financial News
Regulators have anxiously watched assets in exchange traded funds swell to record levels following the financial crisis, but they have so far uncovered little support for theories that the products could be responsible for the next market crash.
/jlne.ws/2Ng0cM5

Blood-Testing Firm Theranos to Dissolve; Firm, tarred by scandal, will pay creditors its remaining cash
John Carreyrou – WSJ
Theranos Inc., the blood-testing company accused of perpetrating Silicon Valley’s biggest fraud, will soon cease to exist.
/jlne.ws/2Cmqok3

ETF business boosted at Citi by several new appointments; New appointments made across equities, prime, futures and securities services, and fixed income within Citi’s ETF business.
Hayley McDowell – The Trade
Citi has made several key appointments to its exchange-traded fund (ETF) business from rival institutions, as it seeks to become the sell-side platform of choice for ETFs.
/jlne.ws/2ClfWt6

Nominations now open for The TRADE’s Rising Stars of Trading and Execution 2018; Nominations for this year’s Rising Stars awards are now open and will run until 5 October.
John Brazier – The Trade
The TRADE’s Rising Stars of Trading and Execution Awards returns for its fourth year, recognising the most promising up-and-coming talents in trading.
/jlne.ws/2M5b8rC

INTL FCStone Ltd Releases Report On The Appeal Of Physical Gold To The Asian Wealth Market – Study & Survey Conducted By Hubbis Provides Insights From 174 Wealth Managers In Asia
Mondovisione
INTL FCStone Inc. (NASDAQ: INTL) today announced that its London-based subsidiary, INTL FCStone Ltd’s Precious Metals Division, in partnership with research firm Hubbis, has released a report on the Appeal of the Physical Gold Market. The study looks at the outlook for gold, its rise as a hedging strategy for high net worth (HNW) portfolios, Asia’s evolving gold market, and the impact of technology on the precious metal sector.
/jlne.ws/2MPKXdp

Farmer sentiment rises, but opinions split over potential impact of aid package
CME Group
Agricultural producer sentiment increased modestly in August after dipping sharply in July according to the latest Purdue University/CME Group Ag Economy Barometer reading. The barometer, which is based on a monthly survey of 400 agricultural producers from across the country, had an August reading of 129, 12 points higher than July but still well below readings from May and June.
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Institutions

Top Goldman Banker Awaits His Fate as New CEO Fills No. 2 Post
Sridhar Natarajan and Nabila Ahmed – Bloomberg
Inside firm, John Waldron is seen as frontrunner for president; David Solomon is expected to make picks as he takes the helm
The bonhomie was flowing as a cadre of senior Goldman Sachs investment bankers convened in July at Silo Ridge, a private enclave set among the rolling hills of New York’s Hudson Valley.
/jlne.ws/2LZan3e

Credit Suisse continues rebuild of US prime division with new senior derivatives expert; Credit Suisse has hired Terry Burke from CME Group as it continues to rebuild its US prime services division.
Joe Parsons – The Trade3
Credit Suisse has hired a new US head of prime derivatives services, as it looks to continue rebuilding the division following a string of departures earlier this year.
/jlne.ws/2M2lMPT

Fidelity International ETFs Available Via SIX For The First Time
Mondovisione
The ETF segment at SIX is gaining another high-profile provider: As of today, 5 smart beta ETF issued by Fidelity International trade on SIX. This takes the number of ETF providers available via SIX to a new high of 25, and the number of ETFs to a record of 1’394. Fidelity International is already the third new ETF issuer joining the Swiss stock exchange, after J.P. Morgan and Franklin Templeton.
/jlne.ws/2NfIF6Y

Regions

Erdogan has limited options to save Turkey from financial crisis
Samia Nakhoul, Dominic Evans – Reuters
After 15 years in power as prime minister and president, Tayyip Erdogan faced down a weak opposition in June elections that swept away any checks and balances to the unchallenged rule he wanted. In Turkey he appears lord of all he surveys.
/jlne.ws/2oEGuvJ

Emerging-Market Rout Rattles Indonesia; The country’s shares suffered their worst day in nearly two years as blowups in Turkey and Argentina, and a surge in the dollar, have dented appetite for emerging markets
Saumya Vaishampayan – WSJ
The pain sweeping emerging markets hit Indonesia, where shares suffered their worst day in nearly two years on Wednesday, and the government unveiled a raft of measures to shore up a currency that has hit two-decade lows.
/jlne.ws/2M0dc3L

Norway’s Trillion-Dollar Oil Fund Hitting Critical Mass in Property Deals; With properties in the U.S., U.K., France, Germany and Switzerland, Norges is now exploring possible deals in Singapore
Isobel Lee – WSJ
When Norway’s trillion-dollar oil fund decided to start buying commercial property in 2010, its managers figured that it would focus primarily on about a dozen of the world’s top cities.
/jlne.ws/2LYtkmw

Brexit

Lord Mervyn King attacks ‘incompetent’ Brexit approach
Simon Jack – BBC
Former Bank of England governor Lord King has blasted Brexit preparations as “incompetent”.
The Brexit supporter said it “beggared belief” that the world’s sixth-biggest economy should be talking of stockpiling food and medicines.
/jlne.ws/2CmoHTS

U.K. Would Vote Against Brexit in Second Referendum, Study Says
Tim Ross – Bloomberg
British public critical of May’s progress in EU negotiations; Leave voters switching to back Remain, NatCen findings show
British voters are more skeptical about Brexit than they’ve ever been and would probably vote against leaving the European Union if the government called a second referendum, according to new research.
/jlne.ws/2LZIUOL

UK finance industry dominates European scene; Even significant loss of business due to Brexit would fail to dent London’s status
Kate Allen – FT
Even if the UK loses a quarter of its international financial sector as a result of Brexit, it will still be double the size of any other European business centre, according to new research which highlights the extent to which the City’s dominance gives Britain a point of strength in negotiations over its future relationship with the EU.
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About Author

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