| | | | | | | | March 28, 2016 | | | | | First Impressions | | |
2016 Exchange CEO Series: Jeff Sprecher Talks Data, Clearing and Growth for ICE
JohnLothianNews.com
For the Intercontinental Exchange (ICE), 2015 was about major investments in data and analytics services. Now in 2016, the exchange is looking to integrate recent data acquisitions into its business and grow well beyond traditional exchange trading and clearing services.
ICE CEO Jeff Sprecher spoke with John Lothian News at the FIA Boca Conference about how its purchases of SuperDerivatives, Interactive Data and S&P Analytics fit into its business model. ICE is also working with Blackrock, on exchange traded funds, to become its benchmark index provider.
"We started to pivot the company to get deeper into the data space," Sprecher said. "We want to articulate a vision on how exchanges and data can come together into one holistic business that can serve customers."
| | | | | | Quote of the day: | | | | | | “ | "If the only entities willing to hold positions in U.S. Treasuries are 'buy and hold,' meaningful liquidity in the U.S. Treasury market will be nonexistent."
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| ” | Ronin Capital LLC, a Chicago-based proprietary trading firm in the story, "Hedge Fund Invasion of U.S. Treasuries Puts Bond Traders at Risk".
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| | | | Lead Stories | | |
U.S. judge rejects 14 banks' bid to throw out rate-rigging lawsuit
Reuters
A federal judge in Manhattan on Monday rejected an effort by 14 of the world's biggest banks to throw out a private lawsuit accusing them of rigging an interest rate benchmark used in the $553 trillion derivatives market.
U.S. District Judge Jesse Furman said investors led by several pension funds and municipalities could pursue federal antitrust claims over an alleged conspiracy to rig "ISDAfix" from 2009 to 2012, and breach of contract and unjust enrichment claims against most defendants. Other claims were dismissed.
reut.rs/1TeU0QT
Why We Think We're Better Investors Than We Are
By GARY BELSKY - NY Times
>From their earliest days, the loosely confederated research efforts that came to be known as behavioral economics spawned a large quantity of studies centered on securities investment. This was not because the field's pioneers were especially interested in stocks and bonds, nor was the early research commonly underwritten by financial services firms.
goo.gl/4fnjUo
Private Equity Executive Accused of Faking Investments
Dealbook - NY Times
A former executive with a large private equity firm has been arrested and charged with securities fraud, federal prosecutors said on Monday.
Andrew Caspersen, a Harvard Law School graduate and a partner at the Park Hill Group, an advisory firm that until last fall had been a part of the Blackstone Group's advisory business, has been accused of seeking to defraud a number of institutional investors of $95 million through fake private equity investments.
nyti.ms/1TeVevp
Why Investors Face Roller-Coaster Markets
By Mohamed A. El-Erian - Bloomberg View
Risk assets such as stocks, corporate bonds and bank loans have been trading in a wide and volatile range, taking investors on a roller-coaster ride up and down, including most recently a rally of about 10 percent in U.S. equity markets.
goo.gl/6QSLBE
City of London split over LSE-Deutsche Börse merger
Patrick Jenkins, Financial Editor - FT
The prospective sale of the London Stock Exchange Group to a foreign rival has split the City of London elite, with stark differences of opinion emerging over whether it matters that the exchange's 300 years of independence are poised to come to an end.
goo.gl/2xKabg
Hedge Fund Invasion of U.S. Treasuries Puts Bond Traders at Risk
Bloomberg
Hedge funds are crowding into U.S. Treasuries, and that has bond traders bracing for more turbulence.
While the Federal Reserve doesn't break out hedge-fund ownership, a group seen as a proxy increased its holdings to a record $1.27 trillion in the past year, according to a quarterly report released by the central bank this month.
bloom.bg/1TeXGC6
Big Banks' Mermaid Problem; Selling off parts of Citigroup would be easier said than done
By AARON BACK - WSJ
Keefe Bruyette & Woods analysts made waves last week by suggesting in a research note a breakup of Citigroup, starting with the sale of international assets like Mexican unit Banamex. Not everyone was buying it. Karen Shaw Petrou at Federal Financial Analytics likened this to becoming a mermaid - a nice idea, but hard to achieve in the real world.
goo.gl/MgSwem
Banks may get more choice in capital models despite Basel curbs on benefits
Neil Roland, MLex
Banks could gain greater choice in how they use bespoke risk models for setting capital requirements, despite new restrictions on the benefits they derive from those in-house risk formulas. The prospect of more freedom appears as a counterpoint within yesterday's proposal to bar the use of models for some loans and limit the impact for others.
goo.gl/dVkwWb
Japan Seen Stuck With Negative Yields on 70% of Bonds for 2016
Kevin Buckland, Shigeki Nozawa, Yumi Ikeda
Primary dealers' median forecast for 10-year yield at -0.1%; `The BOJ has dominated the bond market,' says JPMorgan Chase
Japanese primary dealers say negative bond yields are here to stay in 2016, and room for capital gains has run out.
goo.gl/Lspu5l
China Bull Who Beat 99% of All Bond Funds Says Yuan Drop Is Over
Bloomberg
For an investor whose fortunes are tied to a currency that most forecasters warn is destined to decline, Andy Seaman is surprisingly upbeat.
The manager of Stratton Street Capital's Renminbi Bond Fund says the shock devaluation of China's currency in August -- and the raft of dire analyst predictions that followed -- have failed to shake his confidence.
bloom.bg/1TeY17W
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| Central Banks | The Fed Wants Markets to Stop Taking the Dot Plot So Seriously
Craig Torres - Bloomberg
Vice Chair Fischer leading efforts to improve rate forecasts; St. Louis Fed's Bullard considering withholding his dot
Since the day they were unveiled in January 2012, the Federal Reserve's interest rate forecasts have been criticized for taking on too much importance and become fodder for mockery in financial markets.
goo.gl/lsquBK
Gundlach says April rate hike 'inconceivable' after lower GDP forecasts
Reuters
Jeffrey Gundlach, the widely followed investor who runs DoubleLine Capital, said on Monday that an interest-rate increase by the Federal Reserve in April is "inconceivable," given lower forecasts for first-quarter GDP growth.
The Federal Reserve Bank of Atlanta's GDPNow model on Monday predicted growth at a 0.6 percent pace in the first quarter, marked down from an earlier estimate of 1.4 percent. And forecasting firm Macroeconomic Advisers estimated GDP growth at a 1 percent pace in the first three months of 2016, down from an earlier prediction of 1.5 percent.
reut.rs/1TeX6UR
Calm before the storm: how central banks are brewing the next financial crisis
South China Morning Post
A storm is brewing in world financial markets but stock market investors seem to be the last ones worrying about it. There are clear warning signs of global economic slowdown and a glut of headwinds and tail risks to contend with. This devil-may-care attitude could be the market's undoing before too long. The world is not in great shape for a rerun of any 2008-style disorder.
bit.ly/1TeYdnF
The dollar may give the Fed a green light on rates: Analyst
CNBC
The Federal Reserve could raise interest rates in June if the dollar doesn't spike in expectation of such a move, Fidelity Investment's Jurrien Timmer said Monday.
cnb.cx/1TeYBTa
| | | | Currencies | Has truce been declared in the currency wars?
Roger Blitz in London, Leo Lewis in Tokyo and Jennifer Hughes in Hong Kong - FT
Marc Chandler of Brown Brothers Harriman could not have been more sniffy about the idea of a currency wars truce being declared by the world's main central banks.
goo.gl/Dv4jvP
Ethereum, a Virtual Currency, Enables Transactions That Rival Bitcoin's
By NATHANIEL POPPER - NY Times
Even as Bitcoin, riven by internal divisions, has struggled, a rival virtual currency  known as Ethereum  has soared in value, climbing 1,000 percent over the last three months. Beyond the price spike, Ethereum is also attracting attention from giants in finance and technology, like JPMorgan Chase, Microsoft and IBM, which have described it as a sort of Bitcoin 2.0.
goo.gl/mZ7dkB
The Bank of England's RSCoin: An Experiment for Central Banks or a Bitcoin Alternative?
Bitcoin Magazine
On February 21, 2016, the Bank of England reported that it had partnered with researchers at University College in London to produce RSCoin, a digital currency designed for central bankers.
Sarah Meiklejohn and George Danezis, two students from University College, created RSCoin which, they announced, offered a protocol superior to that of Bitcoin.
bit.ly/1TeYh6I
The Fed is trying to confuse investors: Strategist
CNBC
When it comes to monetary policies, mixed messaging is the new transparency, according to one Wall Street strategist.
On CNBC's "Trading Nation" last week, BK Asset Management's Boris Schlossberg said that in an attempt to decrease volatility and prop up the global economy, central banks around the world appear to be working in conjunction with one another.
cnb.cx/1TeYoPN
| | | | Indexes & Index Products | Index IDEA: Key UK equity market drivers highlighted by variation of FTSE 100 index
FTSE Russell
Viewing the UK equity market through the lens of the FTSE 100 Semi Annual Equally Weighted Index illuminates positive and negative drivers for this market year-to-date and over the last five years. The index automatically reweights all individual constituents within the FTSE 100 Index to 1% every June and December, making it an effective lens through which to analyse outsized price swings in UK-listed stocks
goo.gl/a5ZJT3
Lattice: Is Your Smart Beta Risk-Efficient?
ETF.com
The challenges facing investment advisors seem to get more complex every day: volatile markets; an uncertain political environment; and an unending array of new investment approaches to understand. In the past, it seemed there were two "schools of thought": 1) since markets are efficient, use low-cost, cap-weighted passive; or 2) find managers to beat the market and manage risk. Today we see an incredible proliferation of choices in "the space between" passive and active strategies.
goo.gl/9uzhjT
Passive Beats Active in '15: Report
ThinkAdvisor
Last year was tough for the equity market thanks to falling oil prices, a strengthening U.S. dollar and other factors. The S&P 500 had a total return of nearly 1.4% in 2015 vs. 1.0% for the S&P Composite 1500. But how did the active mutual funds fare? That's what the S&P Dow Jones Indices' research looks at every six months, when it posts its S&P Indexes Versus Active Research, or SPIVA, U.S. Scorecard.
goo.gl/R3y6sS
Hologic, Centene Tapped For The Big Show, Will Join S&P 500 - Focus on Funds
Barrons.com
The big-cap U.S. stock benchmark will receive two new members. S&P Dow Jones Indices announced after the closing bell on Thursday that Hologic (HOLX) and Centene (CNC) will join the S&P 500 after the close of trading on Tuesday, March 29. Hologic makes medical diagnostic and imaging equipment and surgical products. It will replace Pepco Holdings (PEP), which is being acquired by Excelon (EXC).
on.barrons.com/1RJROkZ
Can House Prices Keep Rising?
Indexology - S&P Dow Jones Indices
The next S&P/Case-Shiller Home Price report will be releases at 9 AM Tuesday morning. It will show whether the west's dominance continues and whether prices will keep climbing despite questions about the availability of financing.
goo.gl/eOHL77
| | | | Gold | Chinese Investors See Golden Opportunity
WSJ
Chinese investors have been snapping up gold bars and coins, overshadowing the usual purchases of gold jewelry and contributing to the metal's price rise of about 15% from six-year lows in December.
on.wsj.com/1TeXhzJ
Federal Reserve Rains On Gold Stocks Parade
Shanghai Metals Market
Comments from Federal Reserve officials not only rained on gold 's parade this week but also threw cold water on the red-hot rally in gold- and silver -mining stocks so far in 2016.
Around the close of the stock market on Wednesday, Comex April gold futures were at $1,220.60 an ounce, which was a loss of $33.70, or 2.7%, over the first three days of an abbreviated trading week -- ahead of the long Easter weekend in many nations. Comex May silver was down 55.6 cents, or 3.5%, during that timeframe to $15.255 an ounce.
bit.ly/1TeYsPs
New U.S. sanctions a headache for companies linked to North Korean gold
Reuters
More than two dozen U.S.-listed companies have links to North Korean gold in their supply chains, according to regulatory disclosures reviewed by Reuters, potentially putting them at risk of penalties under tough new U.S. sanctions against Pyongyang's mining sector.
reut.rs/1TeZfQl
Can Gold Break Its Connection To The Yen? - SPDR Gold Trust ETF (NYSEARCA:GLD)
Seeking Alpha
The SPDR Gold Trust ET (NYSEARCA:GLD) correlates to the price of gold as the fund holds only physical gold. I often use this ETF as a proxy to run one-to-one analyses on stocks and other ETFs. In this article, I will expose an interesting pattern in GLD and what that might mean for gold investors.
bit.ly/1TeZgUv
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