| November 02, 2017 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
By JLN Staff
Congratulations to CME Group employees who supported October Pink for a Purpose campaign. Their efforts brought in more than $50,000. When you include CME's corporate donations, more than $175,000 will go to @BeBrightPink and more than $16,000 will go to @CR_UK for the early detection, prevention and research for breast and ovarian cancer.~JJL
The Treasury released its report on year-end 2016 U.S. portfolio holdings of foreign securities.. The largest holdings of foreign securities by country were the Cayman Islands with $1.37 trillion, the United Kingdom with $1.20 trillion, Japan with $854 billion and Canada with $831 billion. ~SD
Until yesterday a mobile phenomenon, zero-fee brokerage Robinhood announced a web platform with more bells and whistles.~SD
Asia Pacific Financial News from John Lothian News for November 1 is HERE.~JJL
The Houston Astros won the World Series. The Chicago Cubs are officially dethroned as World Series champs.~JJL
FinTEx holds their annual Science Fair on November 8 from 5 PM to 7:30 PM at Old Crow Smokehouse. You can network with other innovators and learn about the products & technologies being developed by leading Midwestern FinTech companies. Members and students $20; non-members $30.~JJL
You can follow the John Lothian Twitter feed HERE. ~JJL
You can follow the John Lothian News Facebook posts HERE.~JJL
You can follow the John Lothian News linkedin activity HERE.~JJL
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The Industry Discusses the Big Data Boom, Part I
JohnLothianNews.com
At the 33rd Annual FIA Futures and Options Expo in mid-October, John Lothian News spoke with a variety of industry participants about upcoming milestones and trends in financial markets.
This third video in the series covers the effects and future of the big data boom and will be accompanied by a second video on the subject. In part one, John Omahen, head of product strategy with FIS, Yuriy Shterk, head of derivatives product management for Fidessa, Davor Frank, senior solutions architect with Solarflare, and Ciarán Kennedy, chief sales officer for Metamako discuss the benefits and struggles surrounding big data.
Watch the video and read the rest here »
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Looking for Continued Growth, SGX Goes West
Spencer Doar - JLN
Singapore Exchange has had a good stretch of late.
The exchange's fiscal first quarter results were reported on October 25, showing approximately $149 million in revenues, a 7 percent year-over-year increase, and net profits of $66 million, a 9 percent year-over-year rise.
In a move to bolster such growth, SGX announced the opening of SGX America and a corresponding Chicago office on October 17. The opening represents the exchange's first brick-and-mortar presence in the United States. The office may have started with just two people in a temporary workspace, but SGX CEO Loh Boon Chye sees the American branch as integral for the company's overseas plan.
Read the rest HERE.
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Bridging the Gap in Capital Markets: How Divento Academy Is Reaching New Talent
Brian Mehta - Trading Technologies
At Trading Technologies, we are always in support of bringing fresh new talent, whether trader or programmer, into the trading industry. We also love seeing and supporting others who are creating their own initiatives. To that end, we're very excited about Divento Academy, a new program that one of our clients, London-based Divento Financials, is spearheading.
jlne.ws/2A7Kolm
**The path for new talent can take many routes. Divento's is worth following.~JK
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Americans Are Officially Freaking Out; Almost two-thirds say this is the lowest point in U.S. historyÂand it's keeping a lot of them up at night.
Deena Shanker - Bloomberg
For those lying awake at night worried about health care, the economy, and an overall feeling of divide between you and your neighbors, there's at least one source of comfort: Your neighbors might very well be lying awake, too.
/goo.gl/o7JNaa
***** I do have problems sleeping, but it is because of physical pain, not political pain. It is a pain in my back side, not a pain in the Trump.~JJL
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Americans Are Renouncing Citizenship at a Record Pace; Third-quarter numbers point to another annual high.
Suzanne Woolley - Bloomberg
In the third quarter of this year, 1,376 Americans renounced their U.S. citizenship, putting the annual tally on track to top 2016's record, data from the Treasury Department show.
/goo.gl/dnXR1b
***** Stupid is as stupid does.~JJL
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TP ICAP appoints Eric Sinclair as CEO of its Data and Analytics Division
TP ICAP
TP ICAP, the world's largest interdealer broker, is today pleased to announce the appointment of Eric Sinclair as CEO, Information Services.
/goo.gl/ZAcKUE
**Sinclair for Page of the Day!~JK
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Papa John's Blames the NFL for Hurting Pizza Sales
Craig Giammona and Eben Novy-Williams - Bloomberg
Schnatter says controversy reflects league's poor leadership; The stock tumbled on Wednesday after sales missed estimates
Papa John's International Inc. founder John Schnatter is going after NFL Commissioner Roger Goodell, saying weak handling of the league's national-anthem controversy has hammered sales of his pizza.
/goo.gl/gSChbn
**Does below average pizza have any impact on sales?~JK
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Wednesday's Top Three
Our top three pieces from Wednesday were led by John Lothian's column, Are you on the right side of Bitcoin history?. Second when to the CME's Bitcoin Futures landing page. Third was Business Insider's piece Some of the biggest trading firms in the world are getting in on the bitcoin business
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MarketsWiki Page of the Day: Eric Sinclair
MarketsWiki
Eric Sinclair was just appointed CEO of the Data & Analytics Division at TP ICAP, effective November 13, 2017. He succeeds Frank Desmond, who left the company after 12 years of service.
/goo.gl/32DzdD
| MarketsWiki Statistics Sponsored by Level Trading Field | 110,589,162 pages viewed 22,891 pages 210,328 edits
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| Lead Stories | Trump to Tap Fed's Jerome Powell for Fed Chairman
Kate Davidson, Peter Nicholas and David Harrison - WSJ
The White House has notified Federal Reserve governor Jerome Powell that President Donald Trump intends to nominate him as the next chairman of the central bank, according to a person familiar with the matter.
jlne.ws/2io0LlF
UK fintechs take market share from dominant high-street banks
Financial Times
Britain's leading financial technology start-ups are celebrating a record-setting week as they accelerate their push to take market share from high-street banks in areas such as payments and lending. TransferWise will on Thursday announce that it has collected $280m from investors, a record fundraising round for a UK fintech, to finance expansion of its cross-border payments service into more countries around the world.
jlne.ws/2io5y6x
Robots in Finance Bring New Risks to Stability, Regulators Warn
Silla Brush - Bloomberg
Financial Stability Board issues paper on AI, machine learning; Firms are rapidly adopting artificial intelligence, FSB says
Banks and hedge funds that rely on artificial intelligence threaten to inject risks into the financial system that could exacerbate a future crisis, according to global regulators.
/goo.gl/V8ThKB
Robots Will Take Your Bank Job. Just Not Yet
By David Fickling - Bloomberg
For more than a year now, a sort of phony war has been going on in the financial-services industry.
/goo.gl/DAXhFL
Robinhood Is Eating E*Trade's Lunch, Millennials
Owen Davis - Dealbreaker
Robinhood, the brokerage app that aims to "democratize the American financial system" by encouraging millennials to day-trade, announced Wednesday that it's taking a momentous step: It's moving from your pocket to your lap. No longer will its users be confined to the 4-inch screens of their iPhones; now they can make commission-free trades on overhyped IPO stocks from the comfort of their MacBooks.
jlne.ws/2imk7Yx
U.S. SEC Warns Over Crypto ICO's & 'Potentially Unlawful' Celebrity Promotion
Roger Aitken - Forbes
With a gob of money being thrown at Initial Coin Offerings (ICOs) of late and breaking records amid the price of Bitcoin hitting new highs, the U.S. Securities & Commission (SEC) has issued a statement in relation to "celebrities and others" using social media networks to encourage the public to purchase stocks and other investments.
/goo.gl/g5MLYQ
Fed keeps rates unchanged, remains on road to December rate hike
Lindsay Dunsmuir, Howard Schneider - Reuters
The Federal Reserve kept interest rates unchanged on Wednesday and pointed to solid U.S. economic growth and a strengthening labor market while playing down the impact of recent hurricanes, a sign it is on track to lift borrowing costs again in December.
jlne.ws/2il8f9d
A University Endowment of Money Made in the Real World
Richard Beales - NY Times
Oh the irony. The University of Chicago is getting a $125 million gift from Ken Griffin, the founder of the hedge fund Citadel. The "Chicago school" of economics, as it is called, leans heavily toward free and efficient markets. Mr. Griffin's name and cash  earned in a business that depends on markets being inefficient  will now endow the university's economics department.
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**What would Richard Thaler say about this behavior?~JK
SocGen Execs Are Drawn Into U.S. Libor Probe
Tom Schoenberg, Gaspard Sebag and Fabio Benedetti Valentini - Bloomberg
Senior bank leaders received emails about scheme, filings say; Rare scrutiny of senior people as France declines to cooperate
The U.S. Justice Department's investigation into interest-rate manipulation at global banks is piercing the executive suite, with prosecutors scrutinizing the activities of senior Societe Generale SA officials, according to people familiar with the matter.
/goo.gl/HsXruL
Scrambling on MiFID? Don't Forget the Coming Benchmark Change
Julie Edde - Bloomberg
Scope of the benchmarks rules broader than appreciated: IIA; MiFID II already consuming time, resources at compliance units
Banks racing to be ready for MiFID II in January are overlooking a separate regulation designed to combat the kind of Libor-style manipulation that cost them billions of dollars in fines.
/goo.gl/ySYVq3
From Oil to Ruthenium, Here's How Commodities Are Bouncing Back
Luke Kawa, Alex Longley and Eddie Van Der Walt - Bloomberg
Commodities are booming again. The Bloomberg Commodity Index is up more than 9 percent from its late-June lows, outpacing the S&P 500 Index's 6 percent advance over the same stretch.
/goo.gl/KM9iGy
Can the U.S. Crack the $90 Billion LNG Market?
Naureen S Malik and Anna Shiryaevskaya - Bloomberg
The $90 billion global market for liquefied natural gas will be reshaped in 2018 as a number of large, long-term contracts start to expire. Growing supplies from the U.S., higher demand in Europe and Asia, and geopolitical tension surrounding Russia and Qatar, the world's two biggest gas suppliers, promise to shift long-established trading patterns.
/goo.gl/kpR3gb
Bitcoin Surges Past $7,000 to Extend Record Rally
Eric Lam - Bloomberg
Cryptocurrency is up as much as 640 percent this year; Rally got impetus this week from CME Group futures plan. Bitcoin climbed past $7,000 for the first time, breaching another milestone less than one month after it tore through the $5,000 mark.
/goo.gl/TxG3du
As Credit Booms, Citi Says Synthetic CDOs May Reach $100 Billion
Tracy Alloway - Bloomberg
Products blamed for fueling the credit crisis are coming back; Low yields, shrinking volatility has boosted their appeal
The comeback in complex credit derivatives blamed for exacerbating the global financial crisis is picking up pace.
/goo.gl/jVeqHm
Libor uncertainty is sting in the tail for perpetual bonds; Unintended consequences from demise of scandal-ridden benchmark causes debt headaches
Robert Smith - FT
Investors in perpetual bonds are growing increasingly nervous about the phasing out of a floating rate benchmark that could leave some stuck with mispriced securities that will never be redeemed.
/goo.gl/RS2gtY
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Intercontinental Exchange Announces Board Approval of New $1.2 Billion Repurchase Authorization and Fourth Quarter 2017 Dividend of $0.20 Per Share
ICE
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced its Board of Directors has authorized a new share repurchase program and its quarterly dividend of $0.20.
/goo.gl/dSpvFq
NYSE owner ICE reports 7 pct jump in profit
Reuters Staff
Intercontinental Exchange Inc, which owns the New York Stock Exchange, on Thursday reported a 7 percent rise in quarterly profit, boosted by higher revenue from its market data services business.
/goo.gl/H6WWtu
Intercontinental Exchange Reports Strong Third Quarter 2017 GAAP Diluted EPS of $0.62 on Revenues of $1.1 billion, +6% y/y; Adjusted Diluted EPS of $0.73, +14% y/y
ICE
$1.1 billion of revenues in 3Q17, up 6% from the prior third quarter; 2017 synergies now expected to be at least $70 million, up from $60 million previously; Through October 31, 2017, $1.15 billion returned to shareholders via buybacks and dividends; $1.2 billion share repurchase program authorized to begin January 1, 2018, 20% increase from prior authorization
/goo.gl/nG8XE9
CME Group Announces WTI Light Sweet Crude Oil Futures Open Interest Reaches Record 2.5 Million Contracts
Mondovisione
CME Group, the world's leading and most diverse derivatives marketplace, today announced WTI Light Sweet Crude Oil futures open interest surpassed 2.5 million contracts for the first time on Tuesday, October 31.
jlne.ws/2imCKLU
CME Group Reached Average Daily Volume of 14.9 Million Contracts in October 2017, up 14 Percent from October 2016
CME Group
CME Group, the world's leading and most diverse derivatives marketplace, today announced that October 2017 average daily volume (ADV) reached 14.9 million contracts, up 14 percent compared with October 2016. CME Group October 2017 options volume averaged 3.6 million contracts per day, up 44 percent versus October 2016, with electronic options averaging 2.3 million contracts per day, up 50 percent from the same period last year. Open interest at the end of October was 121 million contracts, up 16 percent from the end of October 2016.
/goo.gl/rpszwe
Initial margin, compression volumes and why the time to optimise is now
Chris Barnes - Clarus Financial Technologies
CCP disclosures show that total Initial Margin held at CCPs is increasing, mainly driven by increasing IM held by clients.
We see a steady increase in the number of client accounts at CCPs, which is likely a key driver of Client IM heading higher.
jlne.ws/2il9epO
RHI AG: Merger with Magnesita Refratários S.A and delisting of the share at the Vienna Stock Exchange
Eurex
The companies RHI AG and Magnesita Refratários S.A. have decided to merge.
/goo.gl/kuTiFK
Regulatory Reporting Hub: first reporting solution launched; EMIR reporting service available since October 30 / Smooth delivery of initial reports to Trade Repository
Deutsche Börse
Deutsche Börse successfully launched the first reporting solution of the Regulatory Reporting Hub on Monday, October 30th. EMIR reporting includes all reporting services relevant to EMIR II, including an interface to the REGIS-TR trade repository. This new service is already being used by several banks. With this solution, Deutsche Börse supports users of the hub in complying with their respective reporting obligations in accordance with the revised EMIR technical standards that came into effect on November 1.
/goo.gl/yVSf7j
BNP Paribas first custodian to use ASX's new ReferencePoint ISO 20022 Corporate Action Service
ASX
/goo.gl/by7MVW
Nasdaq and Bermuda Stock Exchange Sign New Market Technology Agreement
GlobeNewswire
Nasdaq Inc. (Nasdaq:NDAQ) and the Bermuda Stock Exchange (BSX) have signed a new agreement with Nasdaq continuing to deliver its trading technology via the Nasdaq Financial Framework. The platform has been instrumental in solidifying Bermuda's status as a premier off-shore securities market for attracting international as well as domestic capital, and allowing for asset scalability and high-order capability.
/goo.gl/fxzoAp
Japan Exchange Group released Trading Overview in October 2017.
JPX
Cash Equity Market - In October 2017, the daily average trading value for the TSE 1st Section (domestic common stocks) reached JPY 3.1077 trillion, a high in 2017.
Derivatives Market- In October 2017, total derivatives trading volume was 28,686,801 contracts, the second highest record for October; Total derivatives trading value was JPY 208 trillion.
/goo.gl/JiNPAi
NEX Markets Volumes - October 2017
NEX
/goo.gl/fzqSzS
Shenzhen Stock Exchange Earnestly Studied And Implement The Spirit Of The 19th National Congress Of The Communist Party Of China
Mondovisione
The 19th Communist Party of China (CPC) National Congress was a significant conference convened on the critical phase of China's securing a decisive victory in building a moderately prosperous society in all respects, and of Socialism with Chinese Characteristics crossing the threshold into a new era.
/goo.gl/GFA3Ni
Bitcoin Futures May Be Coming, But a Bitcoin ETF Is No Lock; SEC's opposition to bitcoin ETF proposals suggests bitcoin futures would need to build up a trading history before an ETF can be approved
Paul Vigna - WSJ
CME Group 's CME -0.75% decision to create a bitcoin-futures contract could pave the way for a bitcoin-based exchange-traded fund, but it is no sure thing.
/goo.gl/Nu41rd
The Heavy Metal Battle Between JPMorgan and This Historic Exchange
Jack Farchy - Bloomberg
LME is planning new fee charging dealers for OTC contracts; JPMorgan is one of the biggest OTC metals traders in London
In its battle to restore its place in the market, the London Metal Exchange is taking aim at one of its largest customers: JPMorgan Chase & Co.
/goo.gl/nqB6GB
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Cryptocurrencies now worth more than Goldman and Morgan Stanley combined
Reuters
The aggregate value of all cryptocurrencies hit a record high of around $184 billion on Wednesday, according to industry website Coinmarketcap, making their reported market value worth around the same as that of Goldman Sachs and Morgan Stanley combined.
/goo.gl/DRAABN
Bitcoin is a commodity, not a currency, Allianz's Mohamed El-Erian says; Bitcoin has attracted a lot of interest, but it has not achieved the kind of stability a currency should, Allianz Chief
Yen Nee Lee - CNBC
Bitcoin, despite the large amount of interest it has attracted, has not achieved the kind of stability a currency should possess, Allianz Chief Economic Advisor Mohamed El-Erian said, adding that he agrees with the notion that the cryptocurrency is more of a commodity.
/goo.gl/Z5aTQ2
Credit Suisse CEO skeptical about Bitcoin 'bubble'
Reuters Staff
Credit Suisse Chief Executive Tidjane Thiam on Thursday expressed caution about Bitcoin, saying the current interest in the crypto-currency could eventually subside.
/goo.gl/aTQvpw
Bitcoin soared above $6,900 despite strong regulatory warning from the Securities and Exchange Commission on ICOs
Frank Chaparro - Business Insider
Bitcoin blew past $6,900 Wednesday even after the Securities and Exchange Commission warned investors about celebrity endorsements for certain cryptocurrency-based fundraising efforts.
/goo.gl/Amwwxr
Canada's Rapidly Growing FinTech Ecosystem Produces World-leading RegTech Companies
Markets Insider
Over $250m was invested in 10 RegTech companies in Canada since the beginning of 2012, according to FinTech Global, a specialist data and research firm, which was has just published the Global RegTech Review.
jlne.ws/2iorNJM
TransferWise raises $280 million from Old Mutual and IVP at $1.6 billion valuation
Businessinsider.com
International money transfer service TransferWise has raised $280 million (£211.2 million) from asset manager Old Mutual Global Investors and Silicon Valley venture capital firm IVP.
jlne.ws/2inw7Jb
When AI becomes too big to fail
FT
There is the potential for natural monopolies or oligopolies. These competition issues - relevant enough from the perspective of economic efficiency - could be translated into financial stability risks if and when such technology firms have a large market share in specific financial market segments. These third-party dependencies and interconnections could have systemic effects if such a large firm were to face a major disruption or insolvency. - Financial Times
That ladies and gentlemen is a fun way of saying that when it comes to AI "there can be only one".
jlne.ws/2iouSJG
The Wrong Way to Lure Tech Firms; Dual-class shares won't draw many startups to Hong Kong. But they may cause lots of problems.
The Editors - Bloomberg
Hong Kong has tried just about everything to attract technology companies. It has incubators and accelerators, hubs and clusters, a Cyberport and an InnoCentre. The government has even established a lavish fund to invest in cutting-edge companies. Yet all this has produced nearly no startups of note. Don't expect its latest idea to fare much better.
/goo.gl/GUrAb3
The bitcoin bubble; There may be good reasons for buying bitcoin. But the dominant reason at the moment is that it is rising in price
The Economist
Put the word Bitcoin into Google and you get (in Britain, at least) four adverts at the top of the list: "Trade Bitcoin with no fees", "Fastest Way to Buy Bitcoin", "Where to Buy Bitcoins" and "Looking to Invest in Bitcoins". Travelling to work on the tube this week, your blogger saw an ad offering readers the chance to "Trade Cryptos with Confidence". A lunchtime BBC news report visited a conference where the excitement about Bitcoins (and blockchain) was palpable.
/goo.gl/tLuHPn
Amazon just bought three domain names related to cryptocurrency
Eugene Kim - CNBC
Amazon has secured three new domain names related to cryptocurrency, sparking speculation that the e-commerce giant could be preparing a move into the cryptocurrency space.
/goo.gl/VUcJJY
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| Politics | | An overview of politics as it relates to the financial markets | Russia-Financed Ad Linked Clinton and Satan
Cecilia Kang, Nicholas Fandos and Mike Isaac - NY Times
Lawmakers released scores of political ads on Wednesday purchased by Russian agents on Facebook and Twitter that showed the extent of the Kremlin's attempts to polarize the American voting public on issues like race, police abuse and religion.
/goo.gl/cEYXR2
Mueller and the fate of the US republic; The ex-FBI chief has a zealous G-man quality to send shivers down White House spines
Edward Luce - FT
There are two words for those who think the US republic is teetering: Donald Trump. There is also a two-word riposte: Robert Mueller. While Mr Mueller stays in his job, the US system is working as it should. Credit where it is due. The single-minded former Federal Bureau of Investigation chief was appointed as special counsel by Mr Trump's administration. If a nation's politics is judged on how it responds to alleged crime in high places, America is acting in textbook fashion. In the words of his biographer, Mr Mueller is "America's straightest arrow". He is entrusted with the integrity of the system.
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Manafort's 'lavish lifestyle' laundered illicit cash through property loans - and Airbnb
Dominic Rushe - The Guardian
Paul Manafort may be about to become the most infamous Airbnb host in America. The former chair of the Trump campaign was charged - along with his "right-hand man" Rick Gates - with conspiring against the United States, money laundering and acting as unregistered agents of a foreign power, according to an indictment unsealed on Monday.
/goo.gl/msfjvY
***** A new purpose for airbnb.~JJL
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | Regulator warns AI could create 'black boxes' in decision-making; The Financial Stability Board publishes report highlighting potential risks of using artificial intelligence technology.
Hayley McDowell - The Trade
The use of artificial intelligence (AI) for functions like trade execution and portfolio management could create issues around accountability and decision-making, according to research.
/goo.gl/B2Z1XB
David Glockner, Regional Director of Chicago Office, to Leave SEC
SEC
The Securities and Exchange Commission today announced that David Glockner, Director of the Chicago Regional Office, is planning to leave the agency later this month.
jlne.ws/2ilJREi
SEC: Petroleum Engineer Settles Charges Of Insider Trading Ahead Of Oil Discovery Announcement
Mondovisione
A petroleum engineer who worked at Texas-based energy company Apache Corporation has agreed to settle SEC charges that he conducted insider trading ahead of a market-moving announcement about the company's discovery of a significant new oil source.
jlne.ws/2imvzTS
SEC Letter to Guggenheim Questions Disclosure of African Banking Investment; Agency is asking why investment firm doesn't deem Atlas Mara an affiliate
Justin Baer and Margot Patrick - WSJ
Guggenheim Partners LLC received a July letter from U.S. regulators that raised concerns about its relationship with companies connected to former Barclays PLC Chief Executive Bob Diamond, people familiar with the matter said.
/goo.gl/6Nf3oM
Guggenheim faces allegations of self-dealing; An FT investigation reveals that the firm's own compliance team raised concerns about favouritism
James Fontanella-Khan, Sujeet Indap, Joe Rennison and Kara Scannell - FT
Top executives at Guggenheim Partners carried out a series of deals with companies close to the Wall Street firm's leadership that have triggered concerns over possible favouritism and self-dealing from its own internal compliance, auditing and investment teams, a Financial Times investigation has found.
/goo.gl/45rfL6
HSBC accused of 'possible criminal complicity' in Gupta scandal
Joseph Cotterill, Martin Arnold and Caroline Binham - Financial Times
A British peer has accused HSBC of "possible criminal complicity" in ignoring internal warnings over alleged money-laundering by the Gupta business family who are at the heart of a corruption scandal in South Africa.
jlne.ws/2ilVeMB
ASIC updates work on fee transparency for super and managed investment schemes
ASIC
ASIC is committed to improving the transparency and comparability of fees and costs for managed investment and superannuation funds, through its work on Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements (RG 97).
/goo.gl/Vm5EWT
FCA Explores How To Include More SMBs In FinServ Protections
PYMNTS
In business banking news, the U.K.'s Financial Conduct Authority (FCA) plans to propose an extension of its jurisdiction from serving individuals and micro-businesses to also include small and medium-sized businesses (SMBs). The proposal comes in the wake of multiple small business banking scandals, reports in the Financial Times said Wednesday (Nov. 1).
/goo.gl/nBFuHT
S.E.C. Warns Celebrities Endorsing Virtual Money
By NATHANIEL POPPER - NY Times
The boxer Floyd Mayweather promoted a coin offering for a project known as Centra. Credit Richard Shotwell/Invision
The Securities and Exchange Commission took a first step on Wednesday to head off the recent trend of celebrities endorsing new virtual currencies, warning that they could be breaking laws.
/goo.gl/F9i2Dq
Trump kills class-action rule against banks, lightening Wall Street regulation
Lisa Lambert - Reuters
President Donald Trump signed a Congressional resolution on Wednesday that lets banks block customers from filing class action lawsuits, partly delivering on his election campaign promise to lighten U.S. financial regulation.
/goo.gl/6mYgeU
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Bank of England raises interest rates for the first time in a decade
Jasper Jolly - City A.M.
The Bank of England's top economists today voted to raise its key interest rate, bringing to an end an extraordinary 10-year period without a hike despite internal dissent about its decision.
/goo.gl/q3d8o8
From Oil to Ruthenium, Here's How Commodities Are Bouncing Back
Luke Kawa, Alex Longley and Eddie Van Der Walt - Bloomberg
Global growth, Chinese environmental crackdown boost prices; Even a rising dollar isn't enough to keep raw materials down
Commodities are booming again. The Bloomberg Commodity Index is up more than 9 percent from its late-June lows, outpacing the S&P 500 Index's 6 percent advance over the same stretch.
/goo.gl/KM9iGy
Icahn refinery cuts biofuels short amid reform standstill
Jarrett Renshaw, Chris Prentice - Reuters
Carl Icahn's oil refining company CVR Energy has significantly unwound a large short position in the U.S. biofuel credit market, more than halving its outstanding blending obligation, the company said on Wednesday.
jlne.ws/2ilYTdh
Short-seller Muddy Waters seeks to unmask Google Gmail fraudster
Jonathan Stempel, Jennifer Ablan - Reuters
Muddy Waters, the investment firm run by prominent short-seller Carson Block, on Wednesday asked a New York court to force Google to help it identify someone who impersonated a Wall Street Journal reporter to uncover its strategy toward a French retailer it was betting against.
jlne.ws/2in02B5
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Credit Suisse Profit Jumps as Focus on the Wealthy Pays Off; Swiss bank is pivoting toward more predictable wealth-management operations
Brian Blackstone - WSJ
Credit Suisse Group AG CS -0.70% on Thursday reported a sharp rise in third-quarter profit on strong growth at its wealth-management division, indicating the Swiss banking giant's strategic shift toward managing wealthy clients' money is paying off.
/goo.gl/oqGtox
Blackstone returns cash to investors as commodities sour; Group farmed out money to hedge fund luminaries who are now shutting operations
Gregory Meyer in New York - FT
A fund that backed luminaries of the commodities hedge fund world is returning money to investors after half of the star managers announced they were shutting operations.
/goo.gl/BM4uGs
Credit Suisse says strong results vindicate strategy; Swiss bank posts earnings above forecasts as it fends off activist pressure
Ralph Atkins in Zurich and Laura Noonan in London - FT
Credit Suisse has pointed to better than expected results for the third quarter as vindication of its restructuring strategy, emboldening its efforts to resist pressure from an activist shareholder wanting to break up the group.
/goo.gl/JyuVwR
Bond prince Dan Ivascyn drives Pimco's renaissance; Star manager's Income fund has attracted $62bn in new cash so far this year
Attracta Mooney - FT
When Dan Ivascyn and his colleague Alfred Murata won one of the biggest awards in the fund industry in 2014, it marked a rare bright spot during a notoriously difficult time for Pimco.
/goo.gl/LcJKB3
Quants Are Key to Survival for This Boutique Manager
Sarah Jones - Bloomberg
Automation is not about replacing jobs with robots: Frick; She says firm must grow 5-10% a year to invest in technology
Unigestion SA boss Fiona Frick says her firm needs to grow 5 percent to 10 percent a year just so it can keep investing in the technology that will safeguard the asset manager's future.
/goo.gl/qKCSGh
Thiam Emerges From Siege as Wealth Management Drive Accelerates
Jan-Henrik Foerster - Bloomberg
Bank sees no need to change strategy after activist challenge; Asia Pacific, International Wealth divisions beat estimates
Tidjane Thiam is no longer a man under siege. As Credit Suisse Group AG enters the final phase of a three-year turnaround plan -- instigated when Thiam replaced Brady Dougan as chief executive officer in 2015 and faced calls to reshape the bank -- the strategy to focus on wealth management is paying off. Net new money rose 8 percent to 10.4 billion francs ($10.4 billion) in the third quarter, while earnings at the international wealth management and Asia Pacific units are surging.
/goo.gl/cJ86eQ
Fixed income hurts Credit Suisse's trading business; Global markets division sees revenues decrease 7% as low levels of volatility hits client activity.
Hayley McDowell - The Trade
Fixed income sales and trading brought down Credit Suisse's global markets business in the third quarter, as revenues for the sector declined 7% this year.
/goo.gl/uPbaHt
Goldman jokes, takes 'bites' out of pizza to attract borrowers
Olivia Oran - Reuters
Goldman Sachs Group Inc hosted an event at a New York comedy club on Wednesday night to create some buzz for its new lending platform by poking fun at hidden fees that have frustrated and outraged consumers.
/goo.gl/RgMqk2
Ex-JPMorgan Wealth Manager Recounts Life-Altering Firing
By Bob Van Voris - Bloomberg
Jennifer Sharkey says she blew the whistle on red-flag client; Sharkey's firing 'like taking your life away,' she testifies
More than eight years after she was fired from JPMorgan Chase & Co.'s private wealth management group, Jennifer Sharkey told jurors the experience was "like your whole life is taken away from you."
/goo.gl/dSa8CW
JPMorgan's $4 Billion Texas Verdict May Be Pared to $71 Million
By Hugh Son - Bloomberg
JPMorgan Chase & Co. was ordered by a Dallas jury in September to pay more than $4 billion in damages for mishandling a client's estate. It looks like the bank is going to be paying significantly less than that.
/goo.gl/2jLyKw
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Santander's Brazil unit to expand in trading, credit for agribusiness
Reuters
Banco Santander Brasil SA will offer hedging contracts and expand its loan book to Brazilian commodities producers, as the bank tries to grab market share in the booming sector, a bank executive told Reuters.
jlne.ws/2ilUM0F
Andy Lau's Wall Street style TV series Trading Floor secret weapon of Fox+ in Hong Kong; The online streaming service is spending big on local TV series
Jane Li - South China Morning Post
Fox Networks Group Asia, the multimedia arm of American media giant 21st Century Fox, has launched its video streaming platform Fox+ in Hong Kong - the latest entrant in a market overcrowded with television content providers.
/goo.gl/x1FwTc
Singapore seeks to muscle in on market for catastrophe bonds; City state prepared to pay upfront costs for issuers as it seeks to tap Asian demand
Oliver Ralph in London - FT
Singapore has fired the latest shots in the growing global battle for the catastrophe bond market, promising to pay the upfront costs of new issues.
/goo.gl/P5sTu8
Japanese stocks, long shunned, attract billions of foreign dollars
Trevor Hunnicutt, Hideyuki Sano - Reuters
Japan is shaking off currency gains that typically punish its stocks, enticing foreign investors including Goldman Sachs Group Inc and BlackRock Inc, which are pumping billions of dollars into the country's equities.
/goo.gl/wbp6qm
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | Government may bow to pressure to release Brexit impact studies
Peter Walker - The Guardian
The government seems likely to be forced to release unredacted versions of dozens of documents assessing the impact of Brexit on the economy after a Labour motion was passed unanimously in the Commons.
jlne.ws/2im8K2C
HSBC says it will wait as long as possible before moving jobs out of UK
Jill Treanor - The Guardian
The chief executive of HSBC has said Britain's biggest bank will wait as a long as possible before shifting jobs out of London as a result of Brexit, but warned that continued uncertainty could curtail foreign investment in the UK.
/goo.gl/u8xnek
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| Miscellaneous | | Stories that don't quite fit under the other sections | When Internships Don't Pay, Some Colleges Will
Anemona Hartocollis - NY Times
As the child of a divorced, unemployed mother, Shira Eisenberg learned to get by, she says, "on the kindness of strangers." But even she was surprised when she arrived at the University of Chicago and was told that if she jumped through a few hoops, like going to seminars on how to behave at a job interview, she would be guaranteed a paid internship, financed by the university if no other source of money was available.
/goo.gl/v3LrF6
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