Breaking News

Virtu to Buy ITG in Almost $1 Billion Deal; CME’s Nex to apply for Dutch exchange licence

First Read

Hits & Takes
JLN Staff

From Trading Technologies: “It is with sadness we share that Louise Moore, a London-based customer success manager at TT for the last five years, lost her 2-year battle with cancer over the weekend. Louise joined TT’s London team 7 years ago as a consultant after working as a manager at MF Global. She touched many people with her outgoing personality, big sense of humor and bravery. She worked in this industry for more than 20 years and made many friends. She will be deeply missed by those who knew her, especially her TT family.” The JLN team offers its deepest sympathy to the family and friends of Ms. Moore.~JJL

The 14th World Exchange Congress is taking place on the 25th to 27th of February 2019 in Beirut, Lebanon. Participants include executives from the Botswana Stock Exchange, Aquis Exchange, South Pacific Stock Exchange, B.S.E. Sofia, Zagreb Stock Exchange, Bucharest Stock Exchange, Bombay Stock Exchange, Namibian Stock Exchange, Montenegro Stock Exchange, Lusaka Securities Exchange Zambia, BRVM.~JJL

Care to see what the crystal ball says? Well, you’re in luck as Preqin has an 81-page report out about what the alternatives industry will look like in 2023.~SD

FOW and Global Investor are hosting the MENA Asset Management and Trading Summit on November 14, 2018 at the Conrad Hotel in Dubai. You can find the agenda, speakers and contact information here.~SR

On November 15, SIFMA’s Listed Options Symposium program will feature the state of the options industry, take a deep dive into key market structure topics, and discuss the path to achieving a more liquid and resilient market. Join SIFMA in NYC or via Webinar. For details, visit www.sifma.org/listed-options.~JJL

The finalists have been announced for the Deutsche Bˆrse Photography Foundation Prize 2019.~JJL

The Girl Scouts of America have decided to sue the Boy Scouts of America because the Boy Scouts are rebranding as Scouts BSA. Such a sad move.~JJL

The father of a victim in the Parkland school shooting put a bulletproof vest on the ‘Fearless Girl’ statue next to the NYSE.~JJL

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Cboe’s problems don’t end with the VIX; There’s another fight brewing over market data fees. Clients contend they’re too high, the SEC is mulling a crackdown – and the exchange is pushing back.
Lynne Marek – Crain’s Chicago Business
There’s another fight brewing over market data fees. Clients contend they’re too high, the SEC is mulling a crackdownóand the exchange is pushing back. “Angry Chris” Concannon was on full display at a Securities & Exchange Commission meeting in Washington recently to discuss stock market data fees.
/goo.gl/kr9K9c

***** This story is from several days ago, but I was reminded by a concerned reader/writer that I had not included it in JLN. Sorry, Lynne!~JJL

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Even Lobsters Can’t Escape Trump’s Trade War; Crustacean economics was a textbook study in supply and demand until Chinese buyers lost their appetite.
Shawn Donnan – Bloomberg
In his cargo shorts and T-shirt, Mark Barlow looked anything but an international trade warrior. Yet a few weeks ago, when he slid open the door to his low-slung warehouse in a scrappy industrial lot to reveal concrete tanks filled with 375,000 gallons of 40-degree water and a fortune in live Maine lobsters, he might as well have been leading a battlefield tour.
/jlne.ws/2FldPar

****** I studied the lobster market in college and did a Harvard Business School case study on them. One of my favorite memories from a summer spent at Purdue.~JJL

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Girl Scouts sue Boy Scouts over trademark as boys welcome girls
Jonathan Stempel – Reuters
The Girl Scouts of the United States of America filed a trademark infringement lawsuit against the Boy Scouts of America on Tuesday, after the Boy Scouts decided to drop “Boy” from its namesake program and start welcoming older girls.
/jlne.ws/2Fbpc4t

***** Seems like an odd move, but sometimes that is the way the cookie crumbles.~JJL

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Tuesday’s Top Three
Yesterday’s top story was Billionaire Boys Club’s Joe Hunt seeks cut in life sentence from the AP (via the Chicago Tribune). It did not really delve into Hunt’s time as a futures trader. Second place went to a story dissecting recent developments in grain royalty, How a 205-Year-Old Grain Dynasty Won Activist Victory Over Bunge. Is a sale next for Bunge? The winner of the bronze was Hank Paulson’s piece in the Financial Times, We are living in an age of unprecedented risks

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Lead Stories

Virtu Financial to Buy Brokerage ITG in Almost $1 Billion Deal; Deal values Investment Technology Group at $30.30 a share
Allison Prang – WSJ
Virtu Financial Inc. is buying brokerage Investment Technology Group Inc. for nearly $1 billion in a deal it said would help stabilize its quarterly earnings results.
/jlne.ws/2Fb2No5

****Financial Times here and Reuters here. Recall Bloomberg reported in early October that Virtu was pursuing ITG.~SD

CME’s Nex to apply for Dutch exchange licence as Brexit hedge
Philip Stafford – FT
Nex, the UK trading and technology group, has applied for an exchange licence with Dutch regulators in a move that could see it shift more trading assets out of London as a hedge against a no-deal Brexit.
/jlne.ws/2Fb0Ish

A $240-Billion-a-Day Market Is Leaving London Ahead of Brexit
Will Hadfield – Bloomberg
Europe’s biggest repo trading venue is moving to Amsterdam; BrokerTec is the first company to relocate an entire market
The City of London is being dealt another Brexit blow. CME Group Inc. is moving its European market for short-term financing, the largest in the region, out of London because the exchange operator wants to guarantee continental firms can continue to use it if there is a no-deal Brexit.
/goo.gl/1USmZD

Former JPMorgan metals trader pleads guilty to spoofing
Kadhim Shubber and Gregory Meyer – FT
A former JPMorgan Chase precious metals trader has pleaded guilty to spoofing charges in the latest action brought by US authorities as they attempt to clean up futures markets.
/jlne.ws/2D8Wb74

****CNBC here and Bloomberg Law here.

DTCC Enters Test Phase on Distributed Ledger Project for Credit Derivatives with MarkitSERV and 15 Leading Global Banks
DTCC
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that it has advanced to the testing phase of its ground-breaking project to re-platform its credit derivatives Trade Information Warehouse (TIW) on distributed ledger technology (DLT) and cloud.
/jlne.ws/2QomFFd

Draghi’s Secret Ballot Turns ECB Bank Watchdog Race Into a Cliffhanger
Piotr Skolimowski and Alessandro Speciale – Bloomberg
Ireland’s Sharon Donnery was clear frontrunner until recently; Italian Andrea Enria has gained momentum on EBA experience
A secret ballot of European Central Bank policy makers on Wednesday has turned the race to become the euro region’s next bank-supervision chief into a cliffhanger.
/jlne.ws/2FldDYL

Shale Boom Changes Way U.S. Gas Traders Buy and Sell
Naureen S Malik – Bloomberg
Volumes climb at Southeastern, Texas hubs, exchange data show; Natural gas production has surged in Permian and Appalachia
North American natural gas bets are moving closer to the nerve centers of the shale boom in the U.S. East.
/jlne.ws/2Qol8PF

Billionaire Novogratz Invests in Cryptocurrency Firm Bitfury
Ruben Munsterman and Ruth David – Bloomberg
Funding round values firm at more than $1 billion, people say; Bloomberg reported in October that Bitfury is mulling an IPO
Cryptocurrency venture Bitfury raised $80 million from investors including the merchant bank founded by billionaire ex-Goldman Sachs Group Inc. partner Mike Novogratz.
/jlne.ws/2FbgAe9

Consolidated tape remains a dream for fixed income traders; Fixed income participants express frustration at the unlikely launch of a consolidated tape in Europe for fixed income trading data.
Hayley McDowell – The Trade
A consolidated tape in fixed income trading remains an unlikely development in Europe in the near future, despite the industry’s continued desire for one to be established.
/jlne.ws/2F9vMs7

Exchanges, OTC and Clearing

Euronext announces volumes for October 2018; Euronext, the leading pan-European exchange in the Eurozone, today announced trading volumes for October 2018.
Euronext
Cash trading- In October 2018, the average daily transaction value on the Euronext cash order book stood at EUR8,865.9 million, up +20.2% compared to October 2017 and up +6.2% from the previous month.
Derivatives trading- In October 2018, the overall average daily volume on derivatives reached 602,169 contracts, up +21.0% compared to October 2017 and up +4.7% compared to the previous month.
/jlne.ws/2DampWP

Palestine securities exchange profits grew 82% in the 9 months of 2018
FEAS.org
Palestine Securities Exchange (PSE) announced its financial results for the nine months of the year ending September 30, 2018, which showed a net profit of USD 669,120 an increase of 82% compared to USD 367,401 in the same period of 2017.
/jlne.ws/2DaoDp9

Cboe Global Markets Reports October 2018 Trading Volume
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), one of the world’s largest exchange holding companies, today reported October monthly trading volume and average revenue per contract (RPC)/net revenue capture data at www.cboe.com/monthlyvolrpc.
/goo.gl/t1WNkV

Intercontinental Exchange Announces Record Trading for Dutch TTF Gas Futures
ICE
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that the Dutch TTF Gas futures contract achieved record volume in futures for October, and hit a new record for Open Interest (OI).
/jlne.ws/2F89K98

Liquidnet adds emerging market bonds to fixed income platform; Emerging market bonds from local markets including Mexico, South Africa, Hungary and Poland, are available to trade on Liquidnet’s platform.
Hayley McDowell – The Trade
Liquidnet has expanded its institutional fixed income trading platform through the addition of emerging market bonds, amid growing investor demand for the instrument to diversify portfolios outside of Europe and the US.
/jlne.ws/2FioNNw

Eurex KOSPI derivatives: Changed trading hours on 15 November 2018
Eurex
Due to the South Korean Exam Day, continuous trading of the Eurex KOSPI derivatives (FMK2, OKS2) will start on 15 November 2018 at 11:00 CET (regular: 10:00 CET).
/jlne.ws/2F97NJR

Single Stock Futures: Introduction of six SSFs; Single Stock Dividend Futures: Introduction of three SSDFs
Eurex
The Management Board of Eurex Deutschland took the following decisions with effect from 12 November 2018, due to previous corporate actions:
/jlne.ws/2Fc6Osb

MSCI index futures: A Adjustment of tick sizes; B. Fee waiver for ex-index futures
during all trading hours, as well as for selected products during Asian trading hours
Eurex
The Management Board of Eurex Deutschland took the following decisions with respect to MSCI futures:
/jlne.ws/2F7NbBB

MSCI index futures: Fee waiver for ex-index futures during all trading hours, as well as for selected products during Asian trading hours
Eurex
Eurex Clearing has taken the following measures:
/jlne.ws/2F64UJu

TMX Group Consolidated Trading Statistics – October 2018
TMX
TMX Group Limited today announced October 2018 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha) and MontrÈal Exchange (MX).
/jlne.ws/2F5y0bV

HKEX 2018 Third Quarter Results
HKEX
/jlne.ws/2F8as6i

Ag producer sentiment rebounds; producers react favorably to U.S.-Mexico-Canada Agreement
CME Group
Agricultural producer sentiment rebounded in October, according to the Purdue University/CME Group Ag Economy Barometer. The October barometer reading of 136 was 22 points higher than September, which was the lowest reading for the survey since 2016. The barometer is based on a survey of 400 agricultural producers from across the country.
/jlne.ws/2FhSaQq

Fintech

Barchart Partners with FreightWaves to Deliver Freight News and Data on Barchart.com
Barchart
Barchart, a leading provider of financial market data and technology, has announced a new partnership with freight news and data leader FreightWaves. The partnership covers the creation of a new Freight Market Center on Barchart.com; providing users with the latest data, content, and news for global freight markets. Additionally, FreightWaves will integrate Barchart’s cmdtyStatsSM database for global economic data and commodity statistics, into their SONAR data platform.
/jlne.ws/2D4iElz

Thomson Reuters eyes ‘substantive’ purchases after Blackstone deal
Matt Scuffham – Reuters
Thomson Reuters Corp (TRI.TO) (TRI.N) is looking to make “substantive” acquisitions to boost its legal and tax units after selling a majority stake in its financial terminal business, Chief Executive Jim Smith said on Tuesday.
/jlne.ws/2QohpS9

Predata Named as Winner of TABB Group’s 2018 Innovation Award
Predata
Selected as the most exciting startup innovating workflows within capital markets
Predata, the predictive analytics company for anticipating geopolitical risk, was named the winner of TABB Group’s 2018 SuperNova Award, recognizing the most exciting FinTech startup helping to innovate business models within capital markets.
(NO LINK)

Banking veteran Spencer Lake joins Duco board
Emily Horton – Financial News
Spencer Lake, the banking veteran and fintech advocate, has taken a board seat at Duco, a fintech outfit backed by Michael Spencer’s NEX Group.
Lake, a former vice-chairman of global markets at HSBC, has in the past year reinvented himself as a go-to man for City fintech firms keen to sell their services to big banks. Duco’s is the seventh such board position he has taken up since 2017.
/jlne.ws/2QmP6mT

****Press release here.

Lloyds invests in fintech Thought Machine; Company has developed cloud-based core banking platform
Nicholas Megaw – FT
Lloyds Banking Group has taken a stake in a fintech company that is developing a new core banking platform, as part of a “strategic partnership” designed to speed up its ambitious digitisation plans.
/jlne.ws/2F9qjl5

Buy-side must adapt to rise of fixed income automation to flourish, says panel; Heads of trading from Pictet Asset Management and BlueBay Asset Management underline the importance of adaptability as trading technologies become more automated.
John Brazier – The Trade
The increasing emergence of automated processes in fixed income trading means buy-side desks must adapt to evolve alongside these developments, according to buy-side speakers at the Fixed Income Leaders Summit 2018.
/jlne.ws/2Fc65qX

KRM22 Collaborates With Vector Risk To Develop Global Risk Platform
Morningstar
KRM22 PLC on Tuesday said it partnered with Vector Risk to further enhance its Global Risk platform.
/jlne.ws/2Pdu3XF

Cryptocurrencies

DTCC begins testing DLT platform for credit derivatives
Finextra
The Depository Trust & Clearing Corporation (DTCC) is ploughing ahead with its project to re-platform its credit derivatives Trade Information Warehouse (TIW) on distributed ledger technology and cloud, enlisting 15 of the world’s largest banks for a testing phase.
/jlne.ws/2qzI8jg

Northern Trust processes first DLT live capital call
Asset Servicing Times
Northern Trust has processed the first live capital call using distributed ledger technology (DLT) for Emerald Cleantech Fund III LP, a venture capital fund focused on technology companies.
/jlne.ws/2QnHtwx

Hublot Offers Swiss Watch for Those Who Have Bitcoins to Burn
Daniela Wei and Benjamin Robertson – Bloomberg
Swiss watchmaker Hublot, owned by LVMH, introduced a limited-edition timepiece that’s exclusively available for purchase with Bitcoin, 10 years after the digital currency was first created. The watch, made for Hublot’s Big Bang line, costs about $25,000, Chief Executive Officer Ricardo Guadalupe said at an event in Hong Kong. It’s the world’s first major luxury brand to offer a product that can only be bought with Bitcoin.
/jlne.ws/2AONlcL

‘Blue Crypts’ Are The Future
Clem Chambers – Forbes
When you look at a table of cryptocurrencies on a website, unlike in the world of stocks, they are listed by market cap. This in a way is an example of the newness of the market. There are no sectors, indexes or ETFs–the market is judged by size alone.
/jlne.ws/2qvC3nU

Blockchain Announces $125 Million ‘Airdrop’ of Stellar Cryptocurrency
Jeff John Roberts – Fortune
The crypto wallet provider Blockchain on Tuesday said it will distribute cryptocurrency to millions of its users in what appears to be the largest such giveaway of its kind. The giveawayóknown in crypto parlance as an “airdrop”ówill see recipients each get about $25 worth of the cryptocurrency commonly known as Stellar as part of an overall distribution worth $125 million.
/jlne.ws/2qxU6tz

Posing as Elon Musk nets hacker about $180,000 worth of bitcoin so far
Shawn Langlois – MarketWatch
A fool and his bitcoin are soon parted. Knowing that, enterprising hackers in recent days took over several “verified” accounts, tweaking their profiles to look like Elon Musk’s account. They then urged users to send a small amount of bitcoin in exchange for the promise of more bitcoin to be sent back.
/jlne.ws/2qxbDCj

Capitalising crypto
Thomas Hale – Financial Times
The Swiss Financial Market Supervisory Authority (FINMA) is, according to this story from swissinfo.ch, advising banks and dealers that crypto-assets should be assigned a flat risk-weighting of 800 per cent.
/jlne.ws/2Flf0Xp

From $50M bitcoin deals to almost selling for $50M at the market bottom: The story of B2C2
Frank Chaparro – The Block Crypto
The crypto bear market had one trading firm searching for a buyer in recent months
B2C2 in 2017 was taking calls for $50 million bitcoin deals; But the bear market forced the firm to search for new opportunities, CEO Max Boonen told The Block
B2C2, a UK-based cryptocurrency market-making firm, was doing multi-million dollar bitcoin deals in 2017 but the crypto bear market almost brought it to the chopping block in 2018.
/jlne.ws/2qABdGB

Politics

Once an Optimist on U.S.-China Relations, Henry Paulson Delivers a Sobering Message; The former Treasury secretary warns that Chinese behavior and U.S. miscalculation could bring down an ‘economic Iron Curtain’ between the two global superpowers
Greg Ip – WSJ
Few people have championed U.S. engagement with China as forcefully or successfully as Henry Paulson, first at Goldman Sachs Group Inc., later as Treasury Secretary, and now as elder statesman.
/jlne.ws/2Finf6a

No Significant Foreign Interference Seen on Midterm Vote; U.S. security officials and social media firms said Tuesday they spotted a limited amount of deliberate disinformation
Dustin Volz – WSJ
U.S. security officials and social media firms said Tuesday they spotted a limited amount of deliberate disinformation targeting the midterm election, but that they hadn’t observed any significant efforts to directly breach election infrastructure with cyberattacks.
/jlne.ws/2FlfnRN

Congressional gridlock? Financial markets are fine with it; Traders can get back to focusing on what really worries them – the Fed and China
Michael Mackenzie – FT
So we have congressional gridlock, the consensus result from the US midterm elections. With that out of the way, financial markets can get back to focusing on what really worries them: Federal Reserve policy and US-China trade tension.
/jlne.ws/2F60EKk

Billionaire Democrat Pritzker Wins Illinois Governor Race
Elizabeth Campbell – Bloomberg
Democrat J.B. Pritzker, a billionaire and heir to the Hyatt hotel empire, won the Illinois governor’s race, beating incumbent Republican Bruce Rauner, according to projections from FOX and NBC.
/jlne.ws/2Fa4KRq

New York’s Next Attorney General Vows to Investigate Trump’s Dealings
Erik Larson – Bloomberg
James promises to ‘shine a light’ on Trump real estate deals; Immigrants, minorities under attack by Trump, James contends
Letitia James, the newly elected Democratic attorney general of New York, promised during her acceptance speech Tuesday to investigate Donald Trump’s real estate dealings.
/jlne.ws/2FbfwqF

Regulation

BlackRock Munich offices raided in German tax fraud probe; Asset manager co-operating with investigators and has not been accused of wrongdoing
Olaf Storbeck in Frankfurt – FT
A far-reaching criminal investigation into tax fraud in Germany has spread to BlackRock, with the group’s Munich offices raided by criminal prosecutors on Tuesday.
/jlne.ws/2F7JaNx

****Reuters has Chairman of BlackRock’s German arm orders investigation cooperation and German prosecutors search BlackRock in dividend-stripping inquiry: source

ESMA provides overview of NCAs’ declared compliance status with Guidelines
ESMA
The European Securities and Markets Authority (ESMA) has published an overview of the compliance status declared by national competent authorities (NCAs) as regards the application of ESMA guidelines in their respective jurisdictions.
/jlne.ws/2F65HdK

ESMA publishes official translations of Guidelines on MiFID II suitability requirements
ESMA
The European Securities and Markets Authority (ESMA) has issued today the official translations of its Guidelines on certain aspects of the MiFID II suitability requirements.
/jlne.ws/2FblF6d

The Small Firm Report; Tuesday, November 27, 2018
FINFA
Small firms represent a critical portion of FINRA’s membership and often face regulatory challenges that are unique from their large firm counterparts. In an effort to provide additional compliance education, FINRA launched The Small Firm Report last April, a free conference call series hosted by senior FINRA leaders who discuss trending topics, new rules and regulatory guidance and best practices.
/jlne.ws/2F5z0gb

Member Supervision: Introducing Bari Havlik and the Exam Program Transformation
FINRA
When Bari Havlik joined FINRA as Executive Vice President of the newly named Member Supervision team, she did so with big plans for the examination and risk monitoring programs.
/jlne.ws/2F94QZI

FCA statement on the launch of the Cost Transparency Initiative (CTI)
UK FCA
The FCA is pleased to note today’s announcement which launches a new body to deliver a template for the disclosure of costs and charges to institutional investors. This will lead to improvements in the ability of institutional investors to access and assess critical information on costs.
/jlne.ws/2F9wMN7

Securities Commission Malaysia Committed To Strengthening Trust And Confidence Of Investors
MondoVisione
The Securities Commission Malaysia (SC) today hosted over 100 regulators, academics, representatives from global and regional institutions at the annual Asian Roundtable on Corporate Governance (ARCG), organised jointly by the SC and the Organisation for Economic Cooperation and Development (OECD).
/jlne.ws/2Flj8GT

HKFE Obtains U.S. Commodity Futures Trading Commission Approval For Hang Seng Index Total Return Index Futures And Hang Seng China Enterprises Index Total Return Index Futures
MondoVisione
Hong Kong Futures Exchange Limited (“HKFE”) is pleased to announce the U.S. Commodity Futures Trading Commission (“CFTC”) has certified the following contracts to be offered and sold to persons in the United States (“U.S.”). U.S. investors can now directly trade the contract within the U.S.
/jlne.ws/2F7OG2H

Investing and Trading

U.S. Mortgage Applications Hit Lowest Since 2014 as Rates Rise
Scott Lanman – Bloomberg
A gauge of U.S. mortgage applications fell last week to the lowest level in almost four years as borrowing costs hit the highest since 2010, adding to challenges for the housing market.
/jlne.ws/2F6NJYv

Where to Find Treasury Buyers? Not Asia; The erosion of demand in emerging Asian markets reflects their maturation into more stable economies
Daniel Kruger – WSJ
Asian investors are proving less and less eager to buy U.S. government bonds, even as the Treasury Department prepares to sell $1.3 trillion of new debt in the new fiscal year.
/jlne.ws/2qyEkP7

The Treasury Market Has a Big Chicken-and-Egg Problem; Which came first: record demand for long duration or bond yields at multiyear highs?
Brian Chappatta – Bloomberg
The world’s biggest bond market faces a conundrum. Figuring out the answer could guide traders for the rest of the year and into 2019.
/jlne.ws/2qyG8HV

ETFs Practice Passive Aggression; October’s market gyrations can be partly traced to changes in the membership of popular indexes. Also, when insiders admit mistakes.
John Authers – Bloomberg
Passive investing has conquered the financial markets. This is in many ways a good thing, not the least of which is that it dramatically reduces the cost of investing and therefore improves results. But at a certain point it becomes very hard to observe something passively without having an effect on it. This is a well-understood principle from quantum physics, and it is undeniably true in the world of stocks, where flows in and out of exchange-traded funds often set prices at the margin.
/jlne.ws/2qG7wEd

Institutions

Hedge Funds Revive the Junk Bond CDO; Hedge funds are using financial engineering common before the financial crisis to borrow money and buy high-yield bonds
Matt Wirz and Cezary Podkul – WSJ
Wall Street financiers are reviving a complex transaction seldom seen since the financial crisis: collateralized debt obligations.
/jlne.ws/2F7OQXL

Interactive Investor scraps exit fees; Chief executive slams the ‘shoddy practice’ of charging to withdraw money
Kate Beioley – FT
Interactive Investor, the second-largest investment platform in the UK, has scrapped the exit fees it charges to customers who move their money elsewhere ahead of a potential ban on such fees proposed by the UK financial regulator earlier this year.
/jlne.ws/2F7OfW1

Goldman chief: 1MDB accusations against former staff ‘distressing’; Two former bankers have been charged in connection with 1MDB scandal
Don Weinland – FT
Goldman Sachs’ new chief executive David Solomon has said the blatant manner in which two former employees allegedly broke the law in their work with Malaysian fund 1MDB was “very distressing.”
/jlne.ws/2F7J5td

Bank of America plans hiring spree to revive investment bank; Move comes after leadership overhaul and slide in fees from M&A advisory work
Stephen Morris and Arash Massoudi – FT
Bank of America plans to hire as many as 50 senior dealmakers to revitalise its stuttering investment bank only weeks after overhauling the unit’s leadership in response to a slide in fees.
/jlne.ws/2F5ZEpe

Goldman’s Solomon Says He Feels ‘Horrible’ About 1MDB Breaches
Sridhar Natarajan and Erik Schatzker – Bloomberg
Malaysian fund scandal has implicated at least three bankers; U.S. firm is working with the authorities, Solomon says
Goldman Sachs Group Inc. Chief Executive Officer David Solomon said he felt “horrible” about the role former bank employees played in the scandal surrounding Malaysia’s 1MDB fund.
/jlne.ws/2F9DdzG

UBS Trader Accused in Insider Case Bought 3-Liter Bottles of Cristal
Franz Wild – Bloomberg
Walid Choucair is on trial in London for insider trading; Ex-UBS compliance officer accused of giving him tips on deals
Day trader Walid Choucair often spent thousands of pounds on oversized bottles of champagne at Tramp, a private members club in London’s tony Mayfair area. But he also came to play electric guitar with his band.
/jlne.ws/2Fa5Nky

ITG agrees to billion dollar Virtu takeover deal; ITG agrees to be acquired by high speed trading firm Virtu for $30.30 a share.
Joe Parsons – The Trade
Independent brokerage ITG has agreed to be acquired by high speed trading firm Virtu for $30.30 a share, in a near-$1 billion deal showing increasing consolidation between institutional brokerages.
/jlne.ws/2F96nz1

Credit Agricole Q3 profits rise, buoyed by retail and investment banks
Reuters
French bank Credit Agricole reported higher third quarter net profits, due to a good performance at its retail and investment banking units.
/jlne.ws/2qG7jkp

Regions

China to limit length of stock trading halts
Gabriel Wildau – FT
China’s securities regulator will limit the duration of share suspensions on mainland stock exchanges, a response to complaints from investors and index providers that companies use trading halts to prevent declines in their stock price.
/jlne.ws/2F3PipY

Norway wealth fund should not add new equity markets to index amid review -ministry
Reuters
Norway’s sovereign wealth fund should not add new markets to its benchmark equity index until a review of its composition has been concluded, the Finance Ministry said in a letter to the central bank, which manages the fund.
/jlne.ws/2qwlIPQ

China’s IPO Drought Features 35 Exhausted Regulators; Companies trying to go public face onerous layers of scrutiny from an understaffed watchdog.
Shuli Ren – Bloomberg
A stock market devoid of IPOs is a stagnant pool. China is in another listing drought, two years after the IPO floodgates were reopened. So far this year, just 80 companies got the nod from the securities regulator, raising a paltry 15 billion yuan ($2.2 billion).
/jlne.ws/2qxe7Az

Mozambique to hand over gas revenues to fix ‘tuna bond’ dispute; Resolution of debt scandal extracts heavy cost from one of world’s poorest countries
Joseph Cotterill – FT
Mozambique will hand up to half a billion dollars of its future offshore gas bounty to bondholders to resolve a dispute over controversial debts that triggered a financial crisis.
/jlne.ws/2qACjCd

Brexit

Arron Banks and Leave.EU accused of data misuse; Brexit backer and insurance company face £135,000 in fines for sharing customer details
Robert Wright – FT
Arron Banks’ insurance operations allowed customer information to be illegally used for political purposes, UK regulators said on Tuesday, exposing the millionaire’s businesses and the pro-Brexit campaign group he funded to fines totalling £135,000.
/jlne.ws/2F9rUrj

Miscellaneous

How will algorithms change the art market?; ‘Things are moving relatively fast for an industry bound by tradition’
Alice Hancock – FT
Debate over the role of technology in the art market has exploded this year. Portion, an auction house that accepts only cryptocurrency, was launched last month. Before that there was the emergence of Codex Protocol, a new registry for fine art, wine and collectibles based on blockchain technology. Even the 252-year-old auction house Christie’s has got in on the act. At its inaugural “Art and Tech” summit this summer, it explored questions that had more to do with new technologies than Old Masters. “What is blockchain, really?” was the title of one event.
/jlne.ws/2F9riSj

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Graduate of University of Minnesota School of Journalism and Mass Communication