| October 19, 2016 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Is This Industry Growing?
Jim Kharouf
If you are a glass half-full kind of person, 2016 could be one of the better years this industry has seen in some time, at least for U.S. futures business. If total U.S. customer segregated funds held by U.S. futures brokers of as of August 2016 remains around the latest level of $168.7 billion, it would mark a 5.7 percent rise over December 31, 2015 and the first time since 2014 that those assets levels have risen. Couple that with a September Tabb Group report that projected futures volumes to rise 3.2 percent in 2016 to 3.6 billion contracts, the picture seems a bit brighter.
Indeed, for some firms, we've seen some striking rises in customer seg funds in recent years, coinciding with some equally eye catching drops in that category from the likes of Deutsche Bank and Jefferies. It has led some to believe that there has simply been a reshuffling of the customer base, as some banks exit or scale back, and independent FCMs have gladly picked up many of those customers. But the business growth is much more nuanced than that.
John Lothian & Co.'s Jim Kharouf examined this backdrop in depth with several FCMs and proprietary trading executives three weeks ago to see where firms are growing and where they are struggling. In our report below: Firms of the Future: Regulation, Technology and Finding Your Niche, executives say that regulation continues to threaten the growth potential in this industry, especially opaque rules that leave many brokers and traders guessing and tentative.
Firms are also looking to the FinTech space for help and are more willing than ever to buy, rather than build in-house. But the uncertainty surrounding the current and upcoming regulations is coupled with technology that addresses small pieces of the problem. Meanwhile, the cost of compliance professionals continues to rise for firms.
The short problem is that the industry, now six full years after the Dodd-Frank Act was passed, wants to know the rules and wants technology to help stay within them. Once that is answered, along with some normalcy on interest rates, this industry is poised to once again grow. The question now is just how long will this take?
We invite you to take a look at this report, sponsored by Itiviti
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Firms of the Future: Regulation, Technology and Finding Your Niche
Jim Kharouf - JLN
In this special report on the state of the futures industry, John Lothian News spoke with several key FCM and proprietary trading firm executives to discuss today's challenges and opportunities in their respective markets. This off-the-record meeting covers everything from the current market landscape to the challenges of regulation to technology and the future of our industry. Click here to see what executives had to say in this dynamic and shareable report.
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CME Group and Duco Announce Launch of Fee Data Control and Reconciliation Service for CME Member Firms
CME Group
CME Group, the world's leading and most diverse derivatives marketplace, and Duco Technologies, a global fintech provider of award-winning data control services, today announced that Duco's innovative data control and reconciliation services will be available to CME Group member firms starting in January 2017. The launch follows a successful six-month trial period with a limited number of futures commission merchants (FCMs).
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Barchart Taps Keith Petersen as its Head of Strategy and Corporate Development | Finance Magnates
Barchart, a provider of financial market data and technology, has appointed Keith Petersen has its newest Head of Strategy and Corporate Development. This is the group's most recent hire and one that looks to maximize his lengthy experience in the financial realm, according to a Barchart statement.
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**JK: Mark Haraburda, building his team.
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David Goldberg, trader with Chicago Board of Trade, dies at age 85
Graydon Megan - Chicago Tribune
David Goldberg was a successful trader at the Chicago Board of Trade as well as a mentor to many and one of the people who helped turn a small grain exchange into a worldwide operation. "He was a successful, disciplined trader," said Charles Carey, a partner at HC Technologies and a former chairman of the Chicago Board of Trade, now part of the Chicago Mercantile Exchange.
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***** Dave Goldberg was one of the silent giants of the futures industry in Chicago. Goldberg Brothers at one time was the biggest clearing firm at the CBOT. It was bought by LIT out of London to help form LIT America. My good friend and longtime mentor John Ruth worked for Goldberg and moved on to be a leader at LIT America. He later founded Burling Bank, which is a longtime resident in the lobby of the CBOT Building. Condolences to his family, friends, colleagues and employees on his passing.
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Japan considers regulating Pokémon Go virtual currency; Ruling could oblige gamemakers to secure virtual money with real-world yen
by: Leo Lewis - FT
Japan's Financial Services Agency is nearing a landmark decision on the status and securitisation of PokeCoins, the virtual currency used to breed rare monsters in the highly successful mobile game Pokémon Go. The FSA, which has not formally disclosed when it will make its ruling, is debating the issue with Pokémon Go's US-based creator, Niantic. https://goo.gl/f8Ufaw
**JK: Regulators are now turning their sights on Monopoly money. Is that real currency or the original cryptocurrency, and should it be regulated too?
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Americans Work 25% More Than Europeans, Study Finds
Ben Steverman - Bloomberg
Americans are addicted to their jobs. U.S. workers not only put in more hours than workers do almost anywhere else. They're also increasingly retiring later and taking fewer vacation days. A new study tries to measure precisely how much more Americans work than Europeans do overall. The answer: The average person in Europe works 19 percent less than the average person in the U.S.
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**JK: Headlines should read that Europeans have 25 percent more fun than Americans.
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Privilege Helps MenÂbut Not WomenÂGet Fancy Jobs
ALEXIA FERNÃNDEZ CAMPBELL - The Atlantic
It may not surprise anyone that people from wealthy backgrounds have an advantage in landing some of the most lucrative jobs in the country. Privileged families are often well connected, after all, and one elite lawyer might favor applicants who are from his or her alma mater or have similar interests and upbringing. But new research shows that, in many cases, class advantage evaporates if an applicant is a woman. In fact, it appears to hurt her career prospects. https://goo.gl/QZyNNT
**JK: The barriers to women are based on gender, nothing else.
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Tuesday's Top Three
Yesterday's top story was "2016 Chicago's Coolest Offices," which featured Geneva Trading among the coolest. Rob Creamer's smile just got a little brighter. Second place was a piece published on LinkedIn by longtime John Lothian News friend Tayloe Draughon about How Spoofing Works & Why it is Illegal." Tayloe was one of the speakers this summer at our Chicago MarketsWiki Education World of Opportunity series. Lastly, another broadside at the Bloomberg empire took third place with a story in the NY Times titled "Start-Up Taking Aim at Bloomberg Terminals Hires Former Bloomberg Head."
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| Sponsored Content |
Whitepaper: The Need for Radical Reform
A perfect storm of rising costs and an increasing regulatory burden has raised barriers to entry across the market.
The post financial crisis world of low rates and increased monopoly is not sustainable, there is a need for radical reform across the market.
This whitepaper looks at the challenges in the market today and asks what can put the derivatives industry on a more sustainable course. The whitepaper, produced in partnership with Object Trading, is free to download. To get your copy, click here. |
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| Lead Stories | Broken Indicators Mean It's Growing Harder to Spot Troubles in the Market
Luke Kawa, Andrea Wong - Bloomberg
Once tried-and-true signals of risk no longer function; New money-market rules are latest changes to distort gauges
It's not hard to see the potential flash points on the horizon -- the U.S. presidential election; Deutsche Bank AG's mounting legal charges; the day central banks stop buying bonds. Yet when it comes to gauging risks in the world's financial markets, these days investors are flying more or less blind.
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US eyes prize in Brexit battle over derivatives; New York could be 'big winner' from EU-UK swaps tussle, says Morgan Stanley chief
by: Philip Stafford - FT
In the post-Brexit vote stand-off between London and Europe one flashpoint is the City's prized swaps business. Faced with a less certain future on both sides of the English Channel, the market is now asking whether the US will ultimately emerge as the prime destination for derivatives.
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Japan to tighten regulations on high-frequency traders
Reuters
Japan plans to tighten regulations on high-frequency trading (HFT), whose growing presence in the Tokyo Stock Exchange has raised concerns such trades could destabilise the market and put retail investors at a disadvantage.
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RPT-CFTC regulator oversaw compliance at firm accused of illegal trades
By Sarah N. Lynch - Reuters
A U.S. Commodity Futures Trading Commission senior regulator is being thrust into the spotlight after the agency fined her former employer for a supervisory breakdown over illegal wash trades that primarily occurred on her watch. The commission's Sept. 28 civil case against Newedge USA LLC, now fully owned by Societe Generale, makes no mention of Eileen Flaherty, who heads up the agency's office that oversees rules governing chief compliance officers at brokerage firms, among other things.
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CFTC regulator warns attorneys about whistleblower 'abuses'
Lynne Marek - Crain's Chicago Business
Attorneys for Igor Oystacher and his Chicago-based 3Red Trading firm are getting attention from regulators they're battling in court, but not in a good way. Rosemary Hollinger, deputy director in Chicago for the Commodity Futures Trading Commission's enforcement division, reminded lawyers attending a securities and commodities enforcement panel last week that it's not just employers who can illegally chill whistleblowers. It's defense counsel, too, she said specifically referring to filings by attorneys in the Oystacher case playing out in federal court in Chicago.
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CME and Duco bid to streamline fee processing
Finextra
CME Group, the world's leading and most diverse derivatives marketplace, and Duco Technologies, a global fintech provider of award-winning data control services, today announced that Duco's innovative data control and reconciliation services will be available to CME Group member firms starting in January 2017.
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Shanghai Futures Exchange partners with NASDAQ for surveillance platform; Exchange has launched new surveillance platform powered by NASDAQ's SMARTS technology.
By Hayley McDowell - TheTradeNews.com
Shanghai Futures Exchange partners with NASDAQ for surveillance platform Hayley McDowell [email protected] Exchange has launched new surveillance platform powered by NASDAQ's SMARTS technology. false The Shanghai Futures Exchange has launched a new mark
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How One Goldman Sachs Trader Made More Than $100 Million; The gains from big trades on junk bonds are a throwback to an earlier era on Wall Street
By JUSTIN BAER - WSJ
One junk-bond trader at Goldman Sachs Group Inc. earned more than $100 million in trading profits for the firm earlier this year, an unusual gain at a time when new regulations have pushed Wall Street to take fewer risks.
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Are Fund Managers Doomed? Making the Case for Passive Investing's Triumph; Can investors really continue to get more for less? Three reasons the passive-investing revolution is set to last.
By SPENCER JAKAB - WSJ
By almost any measureÂperformance, inflows and certainly bang for the buckÂpassive funds for years have trounced active managers. But can the superior performance continue, or are there limits to their success?
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Political Risk Takes Center Stage for U.K. Investors; Traditional ways of valuing British markets have broken down in the past two weeks
By MIKE BIRD and CHRISTOPHER WHITTALL - WSJ
For investors in British markets, it is now all about the politics. Britain's June vote to leave the European Union was a shock, but investors responded in fairly traditional ways: They sold the pound and bought government bonds, reflecting an expectation of lower interest rates to offset an economic hit. They bought stocks of British multinationals, whose foreign earnings suddenly look better when converted into weaker sterling figures.
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FIA co-signs a letter calling for a delay on the PRIIPs Regulation
FIA
On 17 October, FIA co-signed a letter with the Joint Associations Committee (JAC), the International Swaps and Derivatives Association (ISDA), the Global Foreign Exchange Division of the Global Financial Markets Association (GFMA), and the International Capital Market Association (ICMA), calling for a delay of the PRIIPs Regulation by one year to 3 January 2018 as the only viable option that allows for the effective implementation of the PRIIPs Regulation.
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Checking the Unchecked - How a Key Market Access Rule Laid the Foundation for A Stronger Financial System
Fidessa
The growing risk that unchecked exchange access posed to the financial system drove the
SEC to issue an important rule governing market access in late 2010. Uncertainty around the
implications of that rule, 15c3-5, presented some early challenges, but what ultimately emerged
was a framework of controls that improved the resiliency of stock markets. Douglas Craig, Senior Product Manager at Fidessa, discusses how the industry managed the new regulation and how it ultimately helped strengthen the integrity of trading.
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Essential Aspects of CCP Resolution Planning - Discussion Note
OCC
On October 17 OCC provided comments to the Financial Stability Board (FSB) on the issue of essential aspects of CCP resolution planning. OCC supports the work being done regarding CCP resiliency and recovery, but reiterated its concern that in providing guidance regarding resolution, the FSB and other policymakers should not prevent a CCP like OCC from fully implementing its recovery plan and should avoid suggesting steps or processes that undermine the CCP recovery process.
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The Big Interview: Jenny Knott
Joe Parsons - The Trade
The TRADE speaks to ICAP's post-trade risk and information CEO, Jenny Knott about the businesses recent acquisitions, the future of FinTech and how the buy-side are stepping up investments in derivatives technology.
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Bond turmoil threatens to trigger year-end global market sell-off
Jamie McGeever and Vikram Subhedar - Reuters
If October's bond jolt reverberates through a politically nervy end to the year, many funds fear it may trigger an exodus from all richly valued financial assets as investors re-price intertwined stocks and bonds and hurry to protect 2016 gains. Record low bond yields have snapped higher suddenly this month as investors sense a shift away from ever-easier money and credit policies from the world's big central banks toward more use of government tax cuts or spending to foster growth.
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Paul Volcker: Breaking Up Big Banks Wouldn't Help; Former Fed chairman also sees little need at this point to designate asset managers as 'systemically important'
By ADAM CREIGHTON - WSJ
Paul Volcker on Tuesday pushed back against calls to break up big Wall Street banks and ramp up oversight of large asset managers, while disputing claims that the rule named after him had caused a damaging drop in market liquidity.
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Banks adopt blockchain for mortgage valuation system
Don Weinland - Financial Times
Bank of China and HSBC are among a group of lenders aiming to launch mortgage services in Hong Kong using blockchain  the decentralised database technology behind the digital currency bitcoin. So far, Bank of China (Hong Kong) has led tests on a property valuation system for home loans based on blockchain technology, according to Duncan Wong, vice-president of financial technologies at Astri, the government-backed research institute working on the system. He said the bank plans to go live with it next month.
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LCH under scrutiny after outsized Brexit margin calls; Intra-day calls criticised by banks; FIA working group pushing for change
Lukas Becker, Peter Madigan and Duncan Wood - Risk.net
Margin practices at LCH have come under fire after banks faced bumper calls on the day of the UK's Brexit result. Some members of LCH's interest rate swap clearing service are said to have received calls for as much as $1 billion - an obligation that had to be met within an hour. Banks are aggrieved because the calls cover their clients' losing positions - not the net risk the bank sends to the clearing house - and also because the posted margin is not returned until late the following business...
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| Brexit | | Financials stories regarding the recent decision of the United Kingdom to leave the European Union | London Mayor Khan Warns of Chronic Skills Shortage Over Brexit
Alex Morales, Thomas Penny - Bloomberg
Khan, SNP say EU nationals shouldn't be 'bargaining chips'; SNP to lead parliamentary debate on status of EU citizens
London faces a "chronic skills shortage" because of the uncertainty faced by European Union citizens who work in the capital over their status after Brexit, Mayor Sadiq Khan said.
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RPT-Keeping euro-clearing in London probably not a priority in Brexit talks -minister
Reuters
The future of London's financial clearing business is a significant consideration in Britain's negotiations on leaving the European Union, but is probably not a priority for government, city minister Simon Kirby said on Wednesday.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Eris Adds Live Points On The Yield Curve
PRNewswire
Eris Exchange (Eris), a U.S.-based futures exchange offering cash-settled swap futures as the leading alternative to traditional OTC swaps, began offering live streaming, tradable markets in 3Y and 4Y Eris Standard U.S. Dollar Interest Rate Swap Futures on August 29. The launch increased the live points on the yield curve from five to seven, enabling new hedging and spread trading opportunities. The new streaming contracts complement previous live markets in 2Y, 5Y, 7Y, 10Y, and 30Y Eris Standards already streaming in Eris SwapBook.
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CBOE Vest Launches CBOE Vest Defined Distribution Strategy Fund (VDDIX)
CBOE
CBOE Vest, an investment manager focused on Target Outcome Investment strategies, today announced it has launched the CBOE Vest Defined Distribution Strategy Fund (VDDIX). VDDIX seeks to generate consistent monthly distributions, non-correlated to equity or bond markets, of 5.25% annualized over the one-month Treasury yield, before fees and expenses, while preserving capital over the long term. VDDIX is the second mutual fund launched by CBOE Vest, following the August launch of the CBOE Vest S&P 500 Buffer Protect Strategy Fund (BUIGX).
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Tim Keady to lead DTCC sales effort
Finextra
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the appointment of Timothy Keady as Managing Director of DTCC Solutions and Sales & Solution Delivery.
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Trading Continues during Black Rainstorm Warning
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) announced that the Black Rainstorm Warning has not affected trading in the securities and derivatives markets, which continue to operate as normal. According to the rules, trading will continue until the end of today's last trading session.
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Volatility index derivatives: 1. Re-naming of Mini Futures on the VSTOXX® Index; 2. Introduction of an option on VSTOXX® Futures; 3. Phasing-out of the option on the VSTOXX® Index (OVS)
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG took the following decisions, effective 1 February 2017:
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Tokyo Stock Exchange To Begin Calculating Tokyo Stock Exchange REIT Net Total Return US Dollar Hedged Index
MondoVisione
The Tokyo Stock Exchange has been calculating and publishing the Tokyo Stock Exchange REIT Net Total Return Index and will begin calculating the Tokyo Stock Exchange REIT Net Total Return US Dollar Hedged Index on October 19.
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Update on SGX's proposed acquisition of the Baltic Exchange
SGX
Singapore Exchange ("SGX") today announced that a Court hearing has been fixed for 7 November 2016 to sanction the proposed scheme of arrangement under Part 26 of the UK Companies Act ("Scheme") for the acquisition of The Baltic Exchange Limited ("Baltic Exchange").
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SGX reports 1Q FY2017 net profit of $83 million
SGX
1Q FY2017 Financial Summary
Revenue: $191 million, down 13% from a year earlier; Operating profit: $97 million, down 17%; Net profit: $83 million, down 16%; Earnings per share: 7.8 cents, down 16%; Interim dividend per share: 5 cents, unchanged
All figures are for the year except for figures in brackets which are for the year earlier, unless otherwise stated
Singapore Exchange (SGX) today reported net profit of $83.1 million ($99.3 million) for 1Q FY2017. Revenue was down 13% to $190.8 million ($219.6 million). Earnings per share was 7.8 cents (9.3 cents) and the Board of Directors has declared an interim dividend of 5 cents (5 cents) per share, payable on 3 November 2016, in line with the stated dividend policy.
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| Politics | | An overview of politics during an election year as it relates to the financial markets | Dirty money: Trump and the Kazakh connection; FT probe finds evidence a Trump venture has links to alleged laundering network
by: Tom Burgis - FT
Ever since a series of bankruptcies left banks unwilling to lend to him, Donald Trump has been on the lookout for partners willing to fund the buildings that bear his name.
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Trump adviser Anthony Scaramucci promises to 'repeal' DOL fiduciary rule
InvestmentNews
One of Donald Trump's top Wall Street supporters  and a recently named adviser to the campaign  promises that the Republican presidential nominee will rip up a Labor Department investment advice rule if he is elected. Anthony Scaramucci, managing partner of Skybridge Capital, said the measure, which requires financial advisers to act in the best interests of their clients in retirement accounts, is an example of government overreach that would divert too much capital into low-cost passive ETFs and index funds.
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Sorry, Trump, Fed Policy Actually Favors You
By Tyler Cowen - Bloomberg
As Donald Trump charges that the election is being rigged, let's consider one of his claims: that Janet Yellen and the Federal Reserve are keeping the economy artificially strong to benefit the candidacy of Hillary Clinton. While Trump is correct that the Federal Reserve system is subject to some political influence, the rest he gets mostly backwards. If anything, Fed monetary policy has weakened the electoral prospects of the Democratic Party since the financial crisis.
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| Investing & Trading | | Today's top stories from fixed income, currencies and commodities (FICC) | Investor Cash Levels Jump Toward Levels Not Seen Since 9/11
Sid Verma and Luke Kawa - Bloomberg
Fears of a bond-market crash, a breakdown in globalization, a new crisis in the euro area? There were a bevy of reasons for fund managers to push their cash balances to 5.8 percent of their portfolios in October, up from 5.5 percent last month, matching levels not seen since the aftermath of the Brexit vote. The share of cash hasn't been higher than that since November 2001, shortly after the terrorist attacks in the U.S.
bloom.bg/2ejdbNr
How to Invest in LEAPS
Jeff Brown - US News
Stock options look like the vampires of the investing world, sure to kill you no matter how suave and sexy they seem when you meet. Most buy-and-hold mutual fund investors would grab a cross and start throwing holy water if you suggested options trading. But they probably haven't heard about LEAPS, which advocates say offer a way to rent stocks instead of buying them, with the prospect of enjoying years worth of stock gains for a fraction of the price.
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Smart-beta investors 'dip their toes' back into value strategies
Tom Eckett - Investment Week
The report, written by Antoine Lesne, head of SPDR ETF research and strategy EMEA, and ETF strategists Rebecca Chesworth and Tapiwa Ngwena, said inflows into value strategies have started to pick up. In particular, SPDR's energy and materials sector funds, both traditionally known as value sectors, have seen inflows over recent months.
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Winklevoss brothers name State Street as bitcoin ETF administrator
Gertrude Chavez-Dreyfuss - Reuters
Cameron and Tyler Winklevoss on Tuesday filed amendments to their proposed bitcoin exchange-traded fund, naming State Street as administrator, according to a filing with the Securities and Exchange Commission. The Winklevoss brothers, identical twins, had filed their first application for a bitcoin ETF called Winklevoss Bitcoin Trust three years ago.
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Paulson's 2016 Loss Mounts With Advantage Fund Down 18.5%
Katia Porzecanski - Bloomberg
Advantage fell 2.8% during September, Partners dropped 4.5%; Hedge-fund billionaire isn't seeing rebound achieved by peers
John Paulson is suffering deepening losses in two of his hedge funds, a sign that the positive turnaround in performance seen by several managers this year may be out of reach for the billionaire.
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Assets in fixed income ETFs surge to record high in 2016
Anna Federova - Investment Week
Investors have piled over $100bn into bond ETFs so far this year, taking the total assets under management (AUM) held in these vehicles to their highest ever level. The amount held in fixed income ETFs this year to end of September has reached $612bn, marking a 24% rise from the $495bn invested in these products at the end of last year, according to BlackRock. Fixed income ETFs now make up just under a fifth of total ETF assets globally, which stood at $3.4bn in September, up from $3bn at the end of 2015.
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Equities trading stings Wall Street banks as investors embrace bonds
Olivia Oran - Reuters
In a reversal of fortune for Wall Street banks that have invested heavily in equities trading, clients flocked back to bonds last quarter and left stocks behind. In earnings reports over the past several days, Bank of America (BAC.N) and Citigroup (C.N) saw massive slides in equities trading revenue, while Goldman Sachs Group Inc (GS.N) and JPMorgan Chase & Co (JPM.N) posted small increases. The downturn appears to be a short-term blip related to market conditions and is unlikely to affect business strategies, analysts said.
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Janet Yellen to macroeconomists: that whole (aggregate) supply-demand thing might need a rethink
Cardiff Garcia - Financial Times
Janet Yellen's speech on Friday to the Boston Fed conference was like a greatest-hits collection of the frustrations long expressed by advocates of more-stimulative demand policy. One of those frustrations has been rooted in the belief that a more aggressive counter-cyclical response to recessions doesn't merely jumpstart the economy again, but also prevents semi-permanent damage to the economy's very capacity for growth  in other words, weak demand now can damage potential supply into the future.
on.ft.com/2ejdoA3
Ecuador bank's suit against Wells Fargo over cyber heist can go forward: ruling
Nathen Layne - Reuters
A lawsuit by an Ecuadorean bank alleging that Wells Fargo & Co (WFC.N) is liable for authorizing the transfer of $12 million stolen in a 2015 cyber heist can go forward, a U.S. judge ruled on Tuesday.
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Morgan Stanley profits up 62% on trading comeback
by: Ben McLannahan - FT
Morgan Stanley has wrapped up a generally positive earnings season for the big US banks, posting a 62 per cent increase in net income thanks to a strong showing from its trading arm.
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Goldman Boosts Trading Revenue, but Dials Back Risk
Liz Hoffman - WSJ
Goldman Sachs Group Inc. is dialing back on risk  again. The firm's daily average value-at-risk, a measure of how much it could lose on a given day, fell to $57 million in the third quarter, down from $62 million last quarter and a post-crisis low. In 2009, that figure was $218 million. Meanwhile, Goldman's trading revenues in the third quarter hit a six-quarter high of $3.75 billion. In other words, Goldman said Tuesday that it had made more money trading in the third quarter while taking less risk.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | AMP Activates The Technancial Company AND CQG'S Hosted Real Time Risk Manager, To Manage Risk
Mondovisione
The Technancial Company (TTC) in conjunction with CQG and AMP Global Clearing announced today that AMP Global Clearing will utilise TTC's JANUS Risk Manager platform (JRM) hosted by CQG to enhance their client services with real time risk monitoring.
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | U.S. says Ernst & Young to pay $11.8 million to settle audit charges
Suzanne Barlyn - Reuters
Ernst & Young will pay $11.8 million to settle charges over "failed audits" of oil services company Weatherford International Plc , the U.S. Securities and Exchange Commission said on Tuesday. An Ernst & Young partner who coordinated the audits and a former tax partner who was part of the audit team were also charged in the SEC's order, the agency said in a statement.
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FINRA Fines Merrill Lynch $2.8 Million for Systemic Reporting, Books and Records, and Related Supervisory Violations
FINRA
The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Merrill Lynch, Pierce, Fenner and Smith Inc. $2.8 million for systemic trade reporting, Order Audit Trail System (OATS) reporting, books and records, and related supervisory violations that occurred over a period of several years. FINRA uses trade reporting and OATS data as an integral part of its automated market surveillance program to detect manipulative activity and other potential violations of FINRA rules and the federal securities laws.
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Hong Kong Bans Short-Seller Left From Market for Five Years
Eduard Gismatullin - Bloomberg
Left's report case raises concerns about crackdown on freedom; Evergrande shares fell 20% in June 2012 after note published
A Hong Kong tribunal banned U.S. short-seller Andrew Left from trading on the city's market for five years after publishing "false and/or misleading" claims about a company listed there.
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Sebi blow for MF distribution biz; Regulator's consultation paper suggests segregation of advisory function from distribution
Sanjay Kumar Singh - Business Standard
For the past few years, it has been tough being a mutual fund (MF) distributor in the Rs 16 lakh-crore industry. With the Securities and Exchange Board of India (Sebi) on a mission to change the rules of the game, little time has been given to this group to settle down.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China to World: We Don't Need Your Factories Anymore
Anjani Trivedi - WSJ
Judah Huang works deep in the global supply chain at a Chinese company that makes nonstick coatings for cookie sheets, frying pans and grills sold in stores such as Wal-Mart. Until a few years ago, the pans and griddles were made in China, but most of the materials that went into them were not. Mr. Huang imported most of the resins, pigments and pastes for his coatings from multinational suppliers such as Dow Chemical Co. of the U.S. and Eckart Effect Pigments of Germany. Now, in a shift that is echoing throughout China's vast manufacturing sector, he is buying more than 70% of those things from local suppliers.
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Hedge Fund Startups Plummet in Asia Amid Low Returns, High Fees
Suzi Waite - Bloomberg
Asia hedge funds are opening at the slowest pace since the turn of the century. Just 27 new funds started trading in Asia in the first nine months of this year, the fewest since 2000 when 56 funds opened, according to Eurekahedge. It's the third straight year of declines, and down from 83 new funds last year.
/goo.gl/OcWOja
Global Money Flees Japan Stocks at Fastest Pace Since 1987
Min Jeong Lee, Toshiro Hasegawa - Bloomberg
Outflows are biggest since before nation's bubble burst; Investors lose faith in Abenomics as deflation persists
International equity investors are giving up on Japan.
/goo.gl/NvwlXR
First Saudi bond sale raises $17.5bn in emerging market record; Debt issue part of a broader plan to shift economy away from its reliance on oil
by: Elaine Moore in London and Simeon Kerr in Dubai - FT
Saudi Arabia has tapped global bond markets for the first time, raising up to $17.5bn in a record-breaking sale as collapsing energy prices force the world's largest oil exporter to undergo a radical economic transformation.
/goo.gl/riTdHP
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| Miscellaneous | | Stories that don't quite fit under the other sections | Wall Street Dealmaker Says Professor Took Him for a Ride
Graham Bowley - NY Times
On Wall Street, Andrew J. Hall is known, even feted, as an aggressive trader with nerves of steel, capable of earning a $100 million bonus in a single year. His particular skill: spotting opportunities in high-stakes oil markets. When he turned to constructing a personal art collection, he did so with similar ambition and shrewdness, amassing an impressive trove of 5,000 works by hundreds of artists he loved, including Leon Golub, an American postwar painter of expressionistic, heroic-scale figures.
nyti.ms/2ejbWOd
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