| February 09, 2018 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
JLN Staff
Leo and Jack are stepping down from the CME Group board. An epic collaboration and rivalry ends in the most appropriate way, with both stepping down at the same time. A sincere thank you to both of them for their years of service to the CME Group and the industry. It is hard to imagine what the futures industry would look like had Leo Melamed not been around, nor had the tremendous energy he showed for so many years.~JJL
Changes in the CME Group board of directors alter some of the calculus for different initiatives or potential deals in the future.~JJL
CNBC reported that the Dow's drop of 1,032 points Thursday, its second 1,000-plus point drop this week, put the index on track to post its largest weekly decline since October 2008.~JK
ICE's Q4 Earnings report showed that its pricing and analytics generated 40 percent of its revenues, followed by exchange data at 22 percent, desktops and connectivity at 22 percent and listings at 16 percent. Pricing and analytics generated $248 million for the quarter, up 6 percent.~JK
Another JLN Options newsletter filled to the gills with volatility content yesterday - plus some snark directed at Bart Chilton.~SD
CME Group is hosting a live trading competition for gold trading starting on Sunday, March 11 at 5:00pm Central Time, and ending Friday March 16 at noon CT. The contest pits trader against trader in a "live, risk-free simulated environment" trading CME Group Precious Metals futures. First Prize: $2,500. You can go HERE to register and see more details.~SR
My sister-in-law, Barb Lothian, mother of our head of video production Patrick Lothian, is celebrating her birthday by raising money for breast cancer research. She is a breast cancer survivor and I can't think of a more worthy way to celebrate a birthday. Please consider donating.~JJL
STA Women in Finance Committee in partnership with STA Chicago is accepting nominations for the 2018 Ken Heath Award, honoring those men who have made a notable and genuine contribution to the advancement of women in finance.~JJL
Barchart CEO Mark Haraburda was named as an Outstanding Young Alumnus/Alumni Award winner by Illinois Institute of Technology Alumni Awards.~JJL
An FAQ list (don't worry, there are answers, too) was posted on the CAT NMS site.~SD
The spread between Greek 10-year and U.S. 10-year yields is less than 100 basis points(!). ~SD
Yesterday the Boy Scouts of America celebrated their 108th birthday. They were founded by a Chicago publisher who was a relative of former FIA president John Damgard. Some things you can't make up.~JJL
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Jim Rogers Says Next Bear Market Will Be Worst in His Life
Heejin Kim - Bloomberg
Veteran investor says that's because of more debt in system; Rogers makes no claim to know the timing for his prediction
Jim Rogers, 75, says the next bear market in stocks will be more catastrophic than any other market downturn that he's lived through.
/goo.gl/CC7t75
****** I bet it will be a panda bear market for Rogers.~JJL
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The Spread - Week of 2/5 - 2/9
JohnLothianNews.com
This is a bit of an early edition of our weekly options news recap as snow has blanketed Chicago and will continue to fall for the next few days. As another result of being Chicago-based, there is a built in affinity for the Bulls and the Bears. Well, bears are having more fun at the expense of bulls as a crazy trading week altered recent market norms. (This sports metaphor falls apart pretty quickly...)
Watch the video and read the stories referenced here »
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Thursday's Top Three
Our top read piece on Thursday was The VIX Can't Cause Vol - Cboe's View on Volatility ETPs from John Lothian News. Second went to Bloomberg's Map to the Underworld: $2 Trillion of Volatility Trades Here. Gotta love the headline on an exchange listed products story. Third went to The Trade's coverage of ICE in ICE chief Sprecher bullish on MiFID II prospects
| MarketsWiki Statistics Sponsored by Level Trading Field | 120,679,803 pages viewed 23,001 pages 211,625 edits
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| Lead Stories | Melamed, Sandner to retire from CME Group board
Gregory Meyer in New York - FT
Two grandees of the listed derivatives industry have announced their departures from the board of CME Group, having built it into the world's biggest futures exchange. Leo Melamed and Jack Sandner will retire as directors when their latest terms end in May, CME said.
/goo.gl/JA1j8U
****Crain's Chicago Business - CME's Melamed, Sandner exit board
China Ends 25-Year Wait as Yuan Oil Futures to Start Trading
Bloomberg News
Crude futures to begin trading in Shanghai on March 26: CSRC; Move seen as effort by China to develop its own oil benchmark. After a wait of about a quarter of a century, the world's biggest oil buyer is finally getting its own crude-futures contract.
/goo.gl/CRVU1m
TD Ameritrade to Allow Trading via Twitter; Discount brokerage aims to woo younger, digitally savvy investors
Lisa Beilfuss - WSJ
TD Ameritrade is letting customers initialize trades over Twitter, the latest attempt by the discount brokerage to attract digitally savvy and younger investors.
/goo.gl/D3urvq
Ten Years After the Crisis, Banks Win Big in Trump's Washington
Robert Schmidt, Jesse Hamilton - Bloomberg
In early February, with the Treasury secretary testifying about wild gyrations in the stock market and the Federal Reserve leveling unprecedented penalties against Wells Fargo & Co., it may have felt like 2008 again, with the financial system under siege. In reality, banks are booming, at least in Washington.
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Commodity traders gain relief on position limits under Mifid; ICE oil volumes dipped as tougher European rules took effect
Gregory Meyer and Philip Stafford - Financial Times
The UK financial regulator handed out more than a thousand exemptions to commodities traders in January after the introduction of wide-ranging markets reforms, underlining a scramble to comply with rules years in the making.
/goo.gl/iwnJe7
Central Banks Are Telling Markets It's Time to Grow Up
Marcus Ashworth - Bloomberg
It's time for markets to grow up. An important element in the current volatility tantrum is the return of inflation. Last Friday's U.S. payroll report kicked it off, and the struggle at this week's 10-year and 30-year U.S. Treasury auctions suggests fixed-income investors don't spy an end to the rout. This means the next key event for them is U.S. CPI data next Wednesday, which may validate everyone's fears that the inflation monster is at their door.
/goo.gl/mLCipi
Financiers 'keep skills sharp' by trading cryptocurrencies; Professional investors see the allure of bitcoin
Kadhim Shubber in London - FT
David is a quant, and he is between jobs. He previously worked at one of the world's top hedge funds and is currently on gardening leave, waiting to take up a new role at another company.
/goo.gl/NZeerw
Brokerage App Robinhood Thinks Bitcoin Belongs in Your Retirement Plan
Max Chafkin and Julie Verhage - Bloomberg
Late one Monday morning last December, Baiju Bhatt and Vlad Tenev, co-chief executive officers of online stock brokerage Robinhood, called an emergency meeting in the company's cramped Palo Alto office. Behind them on a flatscreen TV an image of the Greek sun god, Helios, appeared over a hot pink background with the words "DON'T SLEEP" in giant, yellow type. On the bottom, right-hand corner of the image was a date: Jan. 31.
jlne.ws/2EcbF7V
State of California Launches New Bond Investor Platform Powered by BondLink; The largest issuer in the municipal bond market is providing an open, dedicated investor website to bond investors as part of its enhanced transparency efforts
BondLink
BondLink today announced that the State of California has launched a new, dedicated investor platform to provide additional transparency to bond investors. The new website, which can be found at www.BuyCaliforniaBonds.com, is part of the state's enhanced disclosure efforts.
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Volatility Funds Worked as Intended. That's the Problem; Veteran traders know these strategies can mint money for years. They also know the gains can evaporate in one day.
Jared Dillon - Bloomberg
The standard response to the collapse -- and in some cases, the liquidation -- of inverse volatility exchange-traded products has been, "Why the heck do we need these things?"
/goo.gl/Qbfyux
Vix futures co-inventor: 'the tail grabbed the dog' this week; Man Group executive says volatility index has long since stopped being a useful gauge
Miles Johnson, Capital Markets Editor - FT
Vast speculative trading in derivatives tied to stock market volatility is dangerously scrambling key inputs used for risk management by banks, one of the original inventors of so-called Vix futures contracts has warned.
/goo.gl/n3cuVU
Bond Traders Have Gone From Hoping for Volatility to Worrying About It
Brian Chappatta, Liz McCormick - Bloomberg
As stocks tumble again, yields remain near a four-year high; Markets can't bank on Fed backstop as Powell takes the reins
For bond traders, the days of begging for more volatility may be over. Now they're fretting about just how grisly the selloff can get.
/goo.gl/z8haRx
Crypto-exchanges: weak link; Taxation may be the most effective way to rein in speculation
FT
Hong Kong's distance from western financial centres has given the city just the sort of freewheeling mentality that bitcoin's libertarian enthusiasts embrace. Attempts to curb speculation using conduct-based regulation are unlikely to dim crypto-mania.
/goo.gl/uBecHG
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CME Group Announces Retirement of Leo Melamed
CME Group
CME Group today announced that Chairman Emeritus Leo Melamed will retire from the CME Group Board of Directors at the conclusion of his current term in May 2018. Following his retirement, Melamed will serve as a consultant to the company for the next two years. After that time, Melamed will continue to retain his title as Chairman Emeritus.
/goo.gl/CsPnWN
CME Group Announces Retirement of Jack Sandner
CME Group
CME Group today announced that Retired Chairman Jack Sandner will step down from the CME Group Board of Directors at the conclusion of his current term in May 2018. Following his retirement, Sandner will serve as a consultant to CME Group for two years.
/goo.gl/c1YFNU
CME Group Inc. Names Slate of Director Nominees
CME Group
CME Group Inc. today announced its slate of candidates for its board of directors for election at the company's annual meeting to be held Wednesday, May 9, 2018.
/goo.gl/YFpsq6
Paul Milgrom to Receive CME Group-MSRI Prize in Innovative Quantitative Applications
CME Group
CME Group, the world's leading and most diverse derivatives marketplace, and the Mathematical Sciences Research Institute (MSRI) announced Paul Milgrom, Shirley and Leonard Ely Professor of Humanities and Sciences in the Department of Economics at Stanford University, as the 2017 recipient of the CME Group-MSRI Prize in Innovative Quantitative Applications. A ceremony honoring Milgrom will take place at CME Group headquarters on Monday, Feb. 12, at 9:30 a.m. CT and will feature a dynamic discussion on the topic of leading research on financial market design.
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ICE Exchange Announces Record Daily Volume In Low Sulphur Gasoil Contract
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 ICE Low Sulphur Gasoil contract achieved a daily volume record of 876,011 contracts on 7 February, 2018. The previous daily volume record was 766,054 contracts on 1 November 2016.
/goo.gl/8cvbG4
Ex-CME's McElligott Emerges at Tradeweb; The former CME veteran will be responsible for monetizing Tradeweb's market data, and for finding ways to use its data and analytics to drive trading on its platforms.
Max Bowie - Waters Technology
At Tradeweb, McElligott is responsible for all aspects of its data business, from monetizing market data to using data and analytics to drive trading volumes.
/goo.gl/NZPpS9
Cboe Global Markets Reports 2017 Fourth Quarter and Full Year Results
Fourth Quarter and Full Year Highlights
Cboe
Cboe Global Markets, Inc. today reported financial results for the fourth quarter and full year of 2017.
/goo.gl/Mjz8S7
Exchange operator Cboe's profit soars on tax benefit
Reuters Staff
Cboe Global Markets Inc's fourth-quarter profit surged as the largest U.S. options exchange benefited from a $191.5 million one-time gain related to new U.S. tax laws.
/goo.gl/idUWDJ
Aquis Exchange seeks exit for major shareholder; Divestment could form part of a broader plan for an initial public offering of Aquis on London's junior market
Samuel Agini - Financial News
Aquis Exchange, the alternative trading venue founded by City veteran Alasdair Haynes, is seeking external investors to buy out its biggest shareholder.
/goo.gl/72Q5ba
Euro Fixed Income Futures: Definition of reporting and position limits for March 2018
Eurex
The reporting and position limits for the March 2018 contracts in the Euro Fixed Income Futures were set as follows:
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First IPO of the year: Family company Dermapharm listed on the Frankfurt Stock Exchange today; Pharmaceutical company listed in Prime Standard / First Price: 28.00 Euro
Deutsche Boerse Group
Dermapharm Holding SEtoday opened the 2018 IPO season on the Frankfurt Stock Exchange. The shares of the pharmaceutical company from Grünwald near Munich noted at the start of trading at 28.00 euros after an issue price of 28.00 euros. The issue volume was 377 million euros. With the Prime Standard, the family-owned company has chosen the stock market segment with the highest transparency requirements.
/goo.gl/XNB2js
EurexOTC IRS: Update of liquidity factors and decay factor with effect from 19 February 2018
Eurex
The liquidity factors and the decay factor for the EWMA volatility for EurexOTC IRS are part of a regular review and will be updated prior to the first intraday calculation run on 19 February 2018.
/goo.gl/wREeuH
Deutsche Boerse launches Scale 30 Index; Selection index comprises the 30 most liquid shares from the Scale segment
Deutsche Boerse Group
Deutsche Boerse is expanding its index offering and launched the Scale 30 Index on Wednesday. The selection index measures the performance of the 30 most liquid stocks listed in the Small and Medium Enterprises (SME) Scale segment. The order book turnover at the Xetra and Frankfurt Stock Exchanges is decisive for inclusion in the Index.
/goo.gl/9AqPkH
CDS Signs Memorandum of Understanding with Canadian Equities Exchanges; Collaborative solution marks the conclusion of TMX Group's regulatory engagement regarding the clearing of securities of issuers with marijuana-related U.S. activities
TMX
CDS, Canada's equities and fixed income clearing house, today announced the signing of a Memorandum of Understanding (MoU) with recognized Canadian equities exchanges outlining the parties' understanding of Canada's regulatory framework applicable to the rules and procedures and regulatory oversight of the exchanges and CDS. The MOU also follows discussions with the Canadian Securities Administrators (CSA), an umbrella organization of Canada's provincial and territorial securities regulators regarding the clearing of securities of issuers with marijuana-related activities in the United States.
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TMX Group Equity Financing Statistics - January 2018
TMX
TMX Group today announced its financing activity on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) for January 2018.
/goo.gl/S3NWiE
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Hanweck Named Best Fintech Solution at Fund Technology/Wall Street Letter Awards 2018
Nasdaq
Hanweck announced that it was recognized as "Best Fintech Solution" at the Fund Technology/Wall Street Letter Awards 2018. This is the second consecutive year that Hanweck has been honored at this event, having been named "Best Risk Management Solution - Innovation" in last year's competition.
/goo.gl/kYGwLd
Cryptocurrencies Come to Campus
Nathaniel Popper - NY Times
While the price of Bitcoin has dropped since Christmas, the virtual currency boom has shown no signs of cooling off in the more august precincts of America's elite universities.
/goo.gl/JbyRaV
Litecoin Is Now a Surprise Favorite of Criminals Tired of Bitcoin
Jeff John Roberts - Yahoo
Bitcoin, which has for years been the currency of choice on the so-called dark web, is falling out of favor among criminals. This is not surprising given bitcoin's sluggish processing times, and law enforcement's growing ability to track its transactions.
/goo.gl/R6Hq5v
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| Politics | | An overview of politics as it relates to the financial markets | House Passes Budget Deal, Stopgap Spending Bill to End Shutdown; Package is now sent to President Donald Trump who is expected to sign it
Kristina Peterson and Natalie Andrews - WSJ
The House passed a two-year budget deal Friday morning, along with a stopgap spending bill to end a brief government shutdown, sending the bill to President Donald Trump.
/goo.gl/BKe3dH
Trump Receives Oval Office Briefing on Derivatives Rules; Meeting between Mr. Trump and CFTC Chairman Giancarlo expected to involve discussion of coming European regulations
Andrew Ackerman - WSJ
President Donald Trump met with the top U.S. derivatives regulator in the Oval Office on Wednesday, amid tensions between American and European policy makers on their efforts to coordinate on postcrisis regulation.
/goo.gl/MdBK4B
The Crypto Candidate for Congress; Political newbie Brian Forde has dazzled marquee crypto investors, who hope he can be the Washington friend they desperately need.
Joshua Green - Bloomberg
Over the past year, Bitcoin's meteoric riseÂand recent plungeÂhas captivated the financial world. The political world? Not so much. Washington remains stubbornly ignorant of cryptocurrency and blockchain technology. But that may soon change. A roster of prominent crypto investors has piled in to support a first-time Democratic congressional candidate, Brian Forde, who's looking to unseat the incumbent Republican in a pivotal Orange County, Calif., race that could determine which party controls the House of Representatives after November's midterm elections.
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The Deficit Spending Boom Won't Last Forever; There's an old saying about things that are unsustainable.
Justin Fox - Bloomberg
After bottoming out at $438 billion and 2.4 percent of gross domestic product in fiscal 2015, the U.S. federal deficit has started growing again. It was $666 billion (3.5 percent of GDP) in the fiscal year that ended in September, and with the big tax cut passed by Congress and signed by the president in December, and the moderately generous spending deal agreed to by congressional leaders from both parties on Monday, it seems destined to break the $1 trillion and 5-percent-of-GDP barriers in the next couple of years. 1
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Trump's Soaring Budget Deficit Risks Intensifying Market Frenzy
Seleha Mohsin, Liz McCormick, Rich Miller - Bloomberg
Treasury seen raising annual debt issuance to over $1 trillion; 10-year yields jump with fiscal stimulus among market worries
The ballooning federal budget deficit under President Donald Trump will force the U.S. to borrow more than $1 trillion this year and risks worsening the frenzy behind the global sell-off in stock markets.
/goo.gl/ueGypT
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | FCA's Andrew Bailey: Why regulators have fund managers in their sights; The regulator discusses the renewed focus on the investment industry
Andrew Bailey - FT
This spring we will publish the first tranche of final rules following our asset management market study, and consult on the second. Our counterparts around the world are also taking a greater interest in investment companies. It is important that we continue to talk to the industry about why it is that regulators are so focused on fund management and what we hope to achieve.
/goo.gl/pQc51b
Watchdogs bare teeth as cryptocurrencies dive; Central bankers fear risk of contagion into financial mainstream
Martin Arnold and Chloe Cornish in London - FT
They have been branded a Ponzi scheme, a tax dodge and an environmental disaster  and that is merely a fraction of the criticism that regulators have thrown at cryptocurrencies in the past week alone.
/goo.gl/P3hvx8
Market Structure 2018, Part 1: The Unintended Consequences of Market Structure Change
Steve Tumen - Deep Systems via TABB Forum
The purpose of an exchange is to bring together natural buyers and sellers with rules designed to promote just and equitable trading practices. But nearly every major structural change over the past 20-plus years has moved the marketplace further from the principles underlying the Securities Act of 1934. Today's markets are more fragmented and opaque, and trading is less 'just and equitable,' than at any time in memory.
/goo.gl/swTNqQ
Avoid Online Investment Fraud
Attorney General Eric T. Schneiderman
Attorney General Schneiderman urges ordinary investors to be careful when considering investment opportunities advertised online and consider these tips for recognizing and avoiding fraudulent solicitations on the Internet.
/goo.gl/gpaXoL
Ex-Credit Suisse Banker Gets 5 Years for Looting Accounts
Hugo Miller, Gaspard Sebag - Bloomberg
Lescaudron motivations driven by lure of profits, judge says; Banker caused damages of $152 million to wealthy clients
A former Credit Suisse Group AG wealth manager was found guilty of diverting millions of francs from client accounts to cover mounting trading losses in one of the biggest financial crime cases in Swiss history.
/goo.gl/vx336d
France and Germany join calls for global bitcoin clampdown; Finance ministers and central bank chiefs say digital tokens aren't 'currencies'
Nicholas Megaw - FT
France and Germany's finance ministers and most senior central bankers have joined the chorus of politicians and regulators calling for a coordinated clampdown on bitcoin and other virtual currencies.
/goo.gl/oTmw9p
ESMA publishes risk assessment work programme for 2018
ESMA
The European Securities and Markets Authority (ESMA) has today published its Risk Assessment Work Programme, setting out its priorities in assessing risks for securities markets for 2018. This Risk Assessment Work Programme provides an overview of the analytical, research, data and statistical activities by ESMA.
/goo.gl/GQT31J
FINRA Releases Paper Providing Perspectives on Customer Recovery
FINRA
The Financial Industry Regulatory Authority (FINRA) today released a paper providing perspectives on customer recovery of judgments and awards in the financial services industry, with a particular focus on the arbitration forum operated by FINRA. The paper - FINRA Perspectives on Customer Recovery - is intended to encourage a continued dialogue about addressing the challenges of customer recovery across the industry while directly informing the further enhancement of recovery in FINRA's forum. As noted in the paper, FINRA plans to organize discussions with other regulators and policymakers to further address the issue of customer recovery, identify additional data or analysis that may help inform effective decision-making in this area, and consider potential courses of action.
/goo.gl/J2NPoh
Charles Ross Associates
UK FCA
We believe this firm has been providing financial services or products in the UK without our authorisation. Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers.
/goo.gl/qp7ACx
FINRA Requests Comment on Proposed Amendments to Its Membership Application Program to Incentivize Payment of Arbitration Awards; Comment Period Expires: April 9, 2018
FINRA
FINRA is requesting comment on proposed amendments to its Membership Application Program (MAP) rules to create further incentives for the timely payment of arbitration awards by preventing an individual from switching firms, or a firm from using asset transfers or similar transactions, to avoid payment of arbitration awards while staying in business.
/goo.gl/m2k13h
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Crypto Cynics Stand to Profit the Most; Bubbles look like a uniquely predatory financial phenomenon.
Noah Smith - Bloomberg
Are they really believers? Photographer: Christopher Goodney/Bloomberg
Welcome, dear average American, to the lovely world of unregulated retail finance. Perhaps you're young enough that you missed the tech-stock housing bubbles. Perhaps you didn't have enough cash to "flip that house" back in 2006. Well, thanks to the invention of cryptocurrency, there's a whole new way for you to lose your life's savings.
/goo.gl/d5do1e
Evidence people haven't got a clue when they invest in bitcoin
Leslie Albrecht - MarketWatch
Want to know what bitcoin's price is going to do? Ask the dictionary
Online searches for the definition of bitcoin tend to spike before its price goes up.
It's the investment that everyone is talking about  but how many of those investors actually know what it is? Online searches for the definition of bitcoin BTC, -2.41% tend to spike right before the cryptocurrency's value peaks and trail off when it drops, according to data from Merriam-Webster.com and Google Trends.
/goo.gl/tyiaSp
Traders Addicted to Volatility Make Related ETPs Among the Most Popular
Rachel Evans - Bloomberg
Traders just can't stop betting on volatility. Four exchange-traded products that wager on price fluctuations were among the 10 most-traded of the day, data compiled by Bloomberg show. Of those, three benefit if volatility climbs; the other wins if the market calms down.
/goo.gl/T2AF8m
Virtu shares leap after earnings beat and volatility returns
Philip Stafford and Nicole Bullock - FT
Shares in Virtu Financial soared by more than 30 per cent to a record high on Thursday as the US high-frequency trader's earnings beat expectations and it welcomed volatility back into markets.
/goo.gl/TxJYE5
Some Investors Shun Longer-Dated Bonds as Duration Risk Rises; Demand for corporate bonds with longer maturities may soon fall off as yields climb
Tasos Vossos and Daniel Kruger - WSJ
Some investors are reducing their exposure to longer-dated corporate bonds as rising yields expose them to a greater risk of losses.
/goo.gl/VKrQSE
These Haven Assets Don't Reflect Panic in Markets Right Now
Mark Cudmore - Bloomberg
So much for the adage that stocks are inversely correlated with Treasuries and the Japanese yen. Equities have slumped over the past two weeks but there's been little reaction in the classic haven assets.
/goo.gl/Nwzus5
This Unusual Link Between Stocks and Volatility Says the Turbulent Times Aren't Over
Luke Kawa - Bloomberg
The rebound in S&P 500 Index futures from a 5 percent drop Monday could be seen as a sign that the stock market is still recovering from its wounds, but a closer look at the curve of volatility futures shows it may still need intensive care.
/goo.gl/TRP6jG
Investors resume their bets against market volatility; The trading strategy proved ruinous for some earlier this week
Robin Wigglesworth and Joe Rennison in New York - FT
Some investors are creeping back to the "short vol" trade that wiped out several financial instruments earlier this week, betting that stock market volatility will fall once again.
/goo.gl/X8BojH
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | ITG Releases January 2018 U.S. Trading Volumes and Provides International Trading Commission UpdateStrong International Growth Includes New Global POSIT Alert Record
Markets Insider
ITG, a leading independent broker and financial technology provider, today announced that January 2018 U.S. trading volume was 2.8 billion shares and average daily volume (ADV) was 132 million shares, compared to 2.7 billion shares and ADV of 133 million shares in December 2017 and 2.8 billion shares and ADV of 139 million shares in January 2017. There were 21 trading days in January 2018 and 20 trading days in both December 2017 and January 2017.
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What Big Hedge Fund Fees Pay For; Investment managers for the rich often share the money with the brokers who pitch their products.
Neil Weinberg - Bloomberg
Financial advisers in the U.S. have been under pressure. Investors are skeptical of high costs and sales fees for financial products. Federal rules finalized in 2016 require advisers to put their clients' interests ahead of their own when it comes to retirement accounts. Some of those rules aren't in force yet, and the Trump administration has signaled that it would like to roll them back, but many advisers working with everyday individual retirement accounts and 401(k) rollovers have already changed their business practices.
/goo.gl/wQmqRj
HNA Cuts Its Stake in Deutsche Bank
Steven Arons, Prudence Ho, Nicholas Comfort - Bloomberg
Stake declines to 9.2% from 9.9% as part of financing changes; 'HNA will continue to be a significant investor in Deutsche'
Deutsche Bank's largest investor, China's cash-strapped conglomerate HNA Group Co., reduced its stake in the German lender slightly while pledging to remain a "significant" holder as it reorganizes the financing of the stake.
/goo.gl/rjCJhU
Nomura apologizes to investors burned in bet against VIX 'fear index'
Takahito Hyuga - Japan Times
Nomura Holdings Inc. issued an apology after investors in a $300 million product betting on low volatility were all but wiped out during this week's stock market turmoil.
/goo.gl/ftYMXs
Barclays in U.S. set to join cryptocurrency credit card ban: report
Reuters Staff
Barclays (BARC.L) is likely to follow other major lenders in the United States in stopping customers from buying Bitcoin and other cryptocurrencies with its credit cards, according to an interview with a senior executive at its credit card unit.
/goo.gl/CWNDej
U.S. fund that lost most of its value shuts doors to new investment
Trevor Hunnicutt, Jennifer Ablan - Reuters
A U.S. mutual fund that relied heavily on a strategy that profits from calm markets has shut its doors to new investment after losing more than four-fifths of its value in recent market turmoil, filings showed on Thursday.
/goo.gl/jRPxVw
Fast-growing mutual fund is victim of market turbulence; LJM Preservation and Growth Fund had attracted $800m but lost 80% in two days
Joe Rennison in New York - FT
A fast-growing mutual fund has told investors that it will not charge them to redeem what is left of their money, after losing more than 80 per cent of its value in the wake of this week's turbulence.
/goo.gl/4PPyvX
Barclays names electronic trading boss in Europe; Appointment marks the latest senior change at bank's sales and trading division
Samuel Agini - Financial News
Barclays has hired the former head of electronic trading at Credit Suisse, reuniting him with his old boss now running the UK's bank's global equities division.
/goo.gl/ztDV5z
Fund manager Invesco recruits AXA trading heavyweight; Hire comes as fund managers adjust to new trading rules under Mifid II
Samuel Agini - Financial news
Invesco has secured the high-profile appointment of AXA Investment Managers' well-known global head of trading in London.
/goo.gl/m9NUS7
BGC Partners Reports Fourth Quarter and Full Year 2017 Financial Results
BGC
BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets, today reported financial results for the quarter and year ended December 31, 2017. BGC's financial results consolidate those of the Company's publicly traded and majority-owned subsidiary, Newmark Group, Inc.. Newmark reports its stand-alone results separately today.
/goo.gl/5BMQK5
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Muddy Waters Is Mystery Author of Report Exposing Chinese Billionaire's Ties to Giant Aluminum Stockpiles; Short seller used an alias, Dupre Analytics, to allege in a July 2015 report that the founder of China Zhongwang was committing fraud
Scott Patterson - WSJ
Muddy Waters LLC, one of the world's most renowned short sellers, wrote an anonymous 2015 report that first drew attention to suspicious activity behind an enormous aluminum cache in the Mexican desertÂa stockpile that helped spawn federal investigations and highlighted aluminum trade imbalances with China.
/goo.gl/hp8rK5
Austrian Bitpanda Goes to London for Crypto High Rollers
Jonathan Tirone - Bloomberg
Limits for customer bank transfers raised to 500,000 euros; Company sells bitcoin vouchers via state-owned Austrian Post
An Austrian cryptocurrency platform raised its trading limits and is opening a London office, pushing to broaden the market for high-rollers even as monetary policy makers across Europe demand tighter regulation.
/goo.gl/5VJ3Pb
China To Launch Highly Anticipated Crude Futures Contract; The move is intended to boost its pricing power on the global market
WSJ
China will launch its much-anticipated crude oil futures contract on March 26, a move intended to boost its pricing power on the global market as the world's biggest crude importer.
/goo.gl/d1e3vq
Beijing Hasn't Stopped Watching the Markets; The Chinese authorities have done little to try to halt this week's stock slide. That doesn't mean they are ready to let market forces have their way.
Andrew Peaple - WSJ
Has Beijing suddenly become a fan of free markets? The Chinese authorities have largely stayed on the sidelines this week as the global roller-coaster ride has spread to their shores. The Shanghai Composite, the country's main equities benchmark, slipped 4.1% Friday, its worst one-day drop since August 2015. On Thursday, the yuan suffered its sharpest one-day slide against the dollar since its surprise devaluation that same summer.
/goo.gl/eq11zc
China Banks' Stealth Meltdown; A crackdown on consumer lending would hurt mid-sized lenders the most.
Shuli Ren - Bloomberg
China's banks are in trouble again. With global markets in turmoil, the sell-off on the mainland hasn't generated as many headlines. That shouldn't be the case. In just four days, banks on the CSI 300 Index tumbled on average almost 11 percent, erasing the benchmark's entire gain this year.
/goo.gl/ssw2Xf
Japan to let Coincheck resume yen withdrawals Tuesday: source
Reuters Staff
Japanese regulators will allow cryptocurrency exchange Coincheck Inc to resume yen withdrawals from Tuesday, a person with direct knowledge of the matter said.
/goo.gl/3UgYz7
China's unwanted bitcoin miners may move to Canada
Daniel Shane - CNNTech
Once the global hub for all things bitcoin, China is now doing its best to drive the cryptocurrency out of its territory.
/goo.gl/Dt7CqA
Britain to tell the world 'Brexit does not mean Brexit'; UK wants nations to behave as if it is still covered by Brussels treaties during transition
Jim Brunsden in Brussels - FT
Britain has a message for the rest of the world after Brexit next year: please pretend we are still in the EU.
/goo.gl/yfrhfJ
Wreckage Across Global Equity Markets Has Hong Kong Faring Worst
Sofia Horta E Costa - Bloomberg
Nowhere has this week's market turmoil been more painful than in Hong Kong.
/goo.gl/eoitE7
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | Jacob Rees-Mogg's Hard Brexit Argument Pales at Cambridge Debate
Alex Morales - Bloomberg
Jacob Rees-Mogg, the bookmakers' favorite to become the U.K.'s next prime minister, has captured the zeitgeist among the grassroots of his own Conservative Party in recent months with his strident views in favor of the hardest of Brexits.
/goo.gl/oUBesi
The U.K. Is Down Since Brexit. Guess Who's Up.; Greece is growing faster than the U.K. and is outperforming it in financial markets.
Matthew A Winkler - Bloomberg
When British voters decided in June 2016 to exit the European Union, investors who had anticipated the opposite result stampeded out of sterling and the currency plummeted a record 8.05 percent to a 31-year low. Almost 20 months later, the pound has mostly recovered, providing some satisfaction to commentators who'd predicted that Brexit would prove more distressing to the EU.
/goo.gl/PynD6b
Barnier Says `Transition Today Is Not a Given': Brexit Update
Nikos Chrysoloras, Viktoria Dendrinou - Bloomberg
EU chief negotiator Michel Barnier briefs reporters on Friday as a week of Brexit talks winds up. On the agenda for Friday was an "update" from the U.K. on the future relationship.
/goo.gl/WTuF5W
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