First Read
Get Smart: LSE Looking To Smart Beta
Doug Ashburn – JLN
The word “smart” has been drilled into the marketing lexicon for so long it is sometimes hard to tell what is and isn’t actually, well, smart.
Smart phones, smart cars, smart watches and even a smarter planet. The investment world has seen its own branding with so-called smart beta, which was examined in depth by FTSE Russell in May, the first time the LSE’s FTSE index division put its names together with Frank Russell since the exchange purchased the US index and asset manager last year. Five years ago, LSE bought out Pearson’s share of FTSE to gain full control of Britain’s flagship index line.
Around the same time as the LSE’s $2.7 billion Russell acquisition, Russell published its 2014 “smart beta survey” – a questionnaire targeting various types of institutional investors to better understand how the perception and adoption of smart beta have continued to evolve globally.
Now one year later, “Smart Beta: 2015 global survey findings from asset owners” has been released. A copy may be downloaded HERE. The results show that smart beta interest and usage continues to grow and there is a trend toward strategy indices that incorporate smart beta strategies.
Read the rest of the article on JohnLothianNews.com
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Laugh for Kim with WILD Chicago
Please join us for a co-ed networking event to support Kim Taylor in her fight against colon cancer and make a contribution to The Lisa Fund.
Women in Listed Derivatives: bring your WILD t-shirts if you have them and be ready to “Laugh for Kim” at 5:30 pm.
All proceeds from this event will go directly to The Lisa Fund
WHEN
Thursday, June 18, 4:30-7:30 pm
WHERE
GRK Greek Kitchen, 400 S. Wells St., (Wells and Van Buren), 2nd floor Bar / Patio, Chicago, IL
COST
$5 Donation
Make an additional donation here
jlne.ws/1E5TFrG
RSVP
jlne.ws/1FSaGFq
GRK Greek Kitchen will generously donate 20% of all bar sales at this event to The Lisa Fund
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Maybe Sand Hill is not the new Wall St after all…
Paul Murphy, FT
A Silicon Valley start-up that tried to offer trading in derivatives linked to private SV companies like Uber and Jawbone has been shuttered by the US authorities.
jlne.ws/1ST1CqR
***DA: Best line from the FT’s Murphy regarding the Sand Hill saga – “Never speak to an officer of a three-letter agency without a lawyer.”
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KFC China sues three companies amid eight-legged chicken rumors
Reuters
Yum Brands Inc’s KFC unit in China said on Monday it has sued three companies it claims are using a popular messaging service to spread false rumors about the fried-chicken chain, including allegations that its chickens have six wings and eight legs.
jlne.ws/1M0cPQV
***** Well, there was this chicken ranch near a nuclear power plant.
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Love Locks Removed From Bridge in Paris
WSJ
The weight of love is taking its toll on the Pont des Arts fences in Paris. On Monday, city officials began to remove the famed love locks because of safety concerns.
jlne.ws/1FrlWpO
***** Paris just became a little less romantic, in key and lock kind of a way.
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FinTech Chicago Gets Democratic
JohnLothianNews.com
Today’s financial technology dialog is often about a word you don’t usually associate with it – democracy – bringing software, data, reporting, testing and trading to the masses. And it’s not just one size for everyone – its customizable too. At the FinTech Exchange 2015 Chicago event, 13 firm executives spoke during its lightning round. So John Lothian News took the best of two hours of presentations and condensed into 3 minutes. Here’s how some of those firms are democratizing and customizing technology for all of us.
Watch the video »
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MarketsWiki
MarketsWiki Page of the Day
Euronext
MarketsWiki Recent Updates
People
Julie Menacho; Scott Kenik; Joe Gits; James B. Hobbs; Florencia Panizza; Jacob Bunge; Julie Holzrichter; John D. Markese; Jack Sandner; Kelly Loeffler; Lauren Tara LaCapra; Gordon D. Linn
Companies, Organizations and Groups
Social Market Analytics, Inc.; Euronext; Anova Technologies
Statistics
63,563,541 pages viewed, 8,193 articles, 192,055 edits
MarketsWiki Statistics
Lead Stories
Reflections on Stress and Long Hours on Wall Street
Andrew Ross Sorkin, NY Times
Earlier this year, a 24-year-old first-year analyst at the Goldman Sachs office in San Francisco was feeling overwhelmed by the all-nighters and 100-hour workweeks.
jlne.ws/1KAC63H
Stanley Fischer pushes for harsher banker penalties
Barney Jopson, Washington, FT
A top Federal Reserve official has called for bankers guilty of wrongdoing to be punished individually as he warned that the banking industry was making headway in its fight against tougher regulation.
jlne.ws/1M6QhP7
Deutsche Boerse to open Asia derivatives exchange
Reuters
Deutsche Boerse plans to open a derivatives exchange alongside its planned clearing house in Singapore as part of the German exchange operator’s effort to expand business in Asia, it said on Tuesday. Deutsche Boerse has already submitted its application to regulatory authorities and the exchange should begin operations in the second quarter of next year, it said in presentation slides for an investor day in London.
jlne.ws/1RGYNrb
Texas rainfall will help revive cattle industry
by Megan Durisin, Bloomberg
In the heart of U.S. cattle country, a four- year drought got so bad that Jim Sartwelle’s east Texas ranches looked more like dirt parking lots than pastures. At one point, to keep the animals fed, he bought two truckloads of grass cut from the side of a road in Louisiana, about 200 miles away.
jlne.ws/1M048WP
UK markets regulator warns against systemic risk label for funds
Philip Stafford, FT
Asset managers fighting proposals that could see them labelled as potential threats to the financial system have received backing from the UK markets regulator.
jlne.ws/1FSaAOi
Former Trader Tom Hayes Told Libor Investigators of ‘Collusive’ Price Fixing; Former UBS and Citigroup trader admitted he tried to rig interest rates with a Deutsche Bank employee
By DAVID ENRICH, WSJ
Former bank trader Tom Hayes told British investigators that he was involved in inappropriate attempts at price-fixing with a rival trader, a London court heard Monday.
jlne.ws/1M09qBH
BofA’s Merrill fined $11m over short selling
Ben McLannahan in New York, FT
The Securities and Exchange Commission has fined Bank of America’s Merrill Lynch unit $11m for failing to keep proper records of stock available to borrow, after irregular trades were carried out over at least six years.
jlne.ws/1FSayWA
US dealmaking hits $243bn monthly record
James Fontanella-Khan and Robin Wigglesworth in New York, FT
US dealmaking hit an all-time monthly record in May, surpassing the previous highs seen during the peak of the dotcom bubble and the zenith of the debt boom that led to the 2008 financial crisis.
jlne.ws/1Q2DsLn
ISDA Announces SIMM Licensing Program
ISDA
The purpose of ISDA SIMM is to establish a single model that meets regulatory standards, which all authorized licensees can use to exchange collateral in a manner that is consistent with margin requirement rules. By using a single framework to calculate initial margin, licensed counterparties can reduce the potential for disputes. A common methodology also permits timely and transparent dispute resolution and allows consistent regulatory governance and oversight.
jlne.ws/1RGWKTY
China Energy Exchange Targets a Market Gap; INE aims to serve both individuals and institutional investors; a price benchmark for Asia
By ERIC YEP, WSJ
China may have become the world’s largest importer of crude oil in April, but there is one thing it still lacks: its own oil market. That could change this year if the Shanghai International Energy Exchange Ltd., also known as INE, launches a long-planned oil-futures contract in Shanghai’s free-trade zone. Yang Maijun, the chairman of the Shanghai Futures Exchange, one of the partners in INE, said earlier this year that trading in the new oil contract could begin in 2015.
jlne.ws/1K6JZA4
U.S. Scrutinizes Conduct of Movie Theaters; AMC, Regal say Justice Department has asked for information in investigation
By ERICH SCHWARTZEL, WSJ
Regal Entertainment Group and AMC Entertainment Holdings Inc., the nation’s two largest movie theater chains, have received formal inquiries from the Justice Department’s Antitrust Division, signaling growing government scrutiny of a tactic large theater operators commonly use to keep movies out of competing locations. AMC, which has faced the most backlash in the exhibition industry over the practices, told investors the Justice Department wants information “in connection with an investigation,” according to an AMC notice filed with the Securities and Exchange Commission on Monday, into “potentially anticompetitive conduct” at the company.
jlne.ws/1AKVKKm
Calling out white males, aged 45-54, working in the Washington DC area…
Paul Murphy, FT
The naive/conceited Sand Hill Exchange, which promised to offer speculation on the value of private web 3.0 companies, was closed down by the SEC on Monday. Posts on the matter, published by the company, have since been taken down.
jlne.ws/1K6Hq0J
Regulatory
Clearinghouses quizzed on stress tests as authorities mull guidance
Neil Roland, MLex
Global regulators are questioning more than 30 clearinghouses about their stress tests and will seek public input on how to improve these tests with an eye to ultimately issuing guidance, a US official said.
jlne.ws/1FmihsC
Statement of Commissioner J. Christopher Giancarlo for the Market Risk Advisory Committee Meeting
CFTC
Federal government policies are making America’s Futures Commission Merchants (FCMs) an endangered species. The most recent example is the storied commodities firm, Bache, founded in 1879, that is now being dismembered. A French bank is acquiring a portion of it, while thousands of its clients are being told to find new FCMs to serve their business needs.
jlne.ws/1RH0dC4
European Commission open hearing on the EMIR review
FIA Europe
On 29 May the European Commission held an open hearing on the review of EMIR at its premises in Brussels. The hearing was split into four sessions – covering CCPs; non-financial corporate counterparties; clearing and risk mitigation techniques; and trade repositories and reporting. The hearing was designed to give stakeholders the opportunity to flag areas where the EMIR regulation could be improved, made less burdensome and streamlined. Director General of DG FISMA Jonathan Faull stated that the report taking stock of the issues raised in the hearing and the consultation and outlining areas of improvement will likely be delayed until later in the year (rather than the August publication originally called for in EMIR itself).
jlne.ws/1RGVrEF
1 Year In, Massad Starts To Turn CFTC Ship Around
By Stephanie Russell-Kraft, Law360
After just one year at the helm of the U.S Commodity Futures Trading Commission, Chairman Timothy Massad has managed to salvage relations with the industry he oversees by focusing his efforts on tweaks to Dodd-Frank Act rules and regulations and making end-users a bigger priority than his predecessor did.
jlne.ws/1dILTL1
ASIC consults on remaking of superannuation Class Orders
ASIC
Today, ASIC released a consultation paper proposing to remake two class orders that are due to expire (‘sunset’) on April and October 2016.
jlne.ws/1M08jSA
Self-Regulatory Organization (SRO) Rulemaking and National Market System (NMS) Plans
SEC
CBOE: Notice of Withdrawal of Proposed Rule Change Related to Equipment and Communication on the Exchanges Trading Floor (Release No. 34-75073; File No. SR-CBOE-2015-022; May 29, 2015)
NASDAQ: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Rule 4626(b)(3) (Release No. 34-75072; File No. SR-NASDAQ-2015-057; May 29, 2015); see also Exhibit 5
jlne.ws/1eCTnOv
Lord Hill: No Emir II on the horizon – for now
By James Rundle, Financial News
One of Europe’s senior policy chiefs has allayed market participants’ concerns that supervisors are gearing up for a wholesale revision of the region’s derivatives rulebook, but said they could revisit certain aspects if such a move proves justified.
jlne.ws/1FSaLJf
Kraft’s successors defend wheat trades
Gregory Meyer in New York, FT
Kraft Foods was acting rationally in the face of a “dysfunctional” wheat market when it made a series of aggressive trades in late 2011, the snacks group’s two successor companies said in their first detailed rebuttal of government charges that it manipulated the price of the grain.
jlne.ws/1HIg8sG
Exchanges & Trading Facilities
Summary of May 2015 Activities at TOCOM
TOCOM
The Tokyo Commodity Exchange announced today that average daily trading volume for May 2015 was 94,241 contracts, up 6.6% from April 2015. Year-on-year it gained 27.6%. Gold, which is TOCOM’s most actively traded product, saw volume rise 4.7% to 31,336 contracts and Rubber rose 37.0% to 11,481 contracts. These gains outpaced decreases in Platinum of 11.7% to 11,812 contracts and Crude Oil’s drop of 17.5% to 12,760 contracts.
jlne.ws/1dbKXhi
Exchange figures show improving equity liquidity
The Trade News
Equities trading conditions improved in May according to figures published by European exchange groups. Deutsche Boerse saw total order book turnover on its cash markets increase over 30% from EUR 96.1 billion in May 2014 to EUR 125.6 billion last month.
jlne.ws/1KJN1eG
Equities: Spanish IPO market catches QE fire
by Dominic O’Neill IPO volumes surpass 2014 level by May; smaller deals struggle.
Spain’s equity issuance boom reached new heights in May with the IPOs of telecoms tower firm Cellnex and train manufacturer Talgo. Shares of airports operator Aena – whose EUR 4.3 billon IPO in February is the biggest in Spain so far this year – gave further encouragement to investors, its shares having risen 12% in the first weeks of May to gain 60% on the issue price.
jlne.ws/1I8spt2
ISE Holdings Reports Business Activity for May 2015
ISE
ISE and ISE Gemini combined represent 17.8% of equity options market share, excluding dividend trades.
ISE and ISE Gemini reported a combined ADV of 2.4 million contracts.
Dividend trades made up 1.0% of industry volume in May 2015.
jlne.ws/1K6JzJS
CBOE Holdings Reports May 2015 Trading Volume
CBOE
Total Volume of 85.3 Million Contracts
ADV of 4.3 Million Contracts, Down 8% From Year Ago
jlne.ws/1dIPhWh
CBOE Futures Exchange Reports May 2015 Trading Volume
CFE
VIX Futures ADV, Total Volume Up From Prior Month and Year
3.5 Million VIX Futures Contracts Traded
jlne.ws/1I8ut4q
Cleartrade Exchange Pte (CLTX) launches CLTX TRADER on Deutsche Börse’s trading architecture
CLTX
Cleartrade Exchange (CLTX), the Singapore regulated futures Exchange for the commodity derivatives marketplace, today announced the launch of CLTX TRADER, CLTX’s sophisticated new exchange matching and trading platform. CLTX TRADER will go live on Deutsche Börse’s global trading architecture. Users of CLTX TRADER will benefit from Deutsche Börse’s “M7″ market technology, utilising the derivatives matching engine as well as its integrated front end platform for commodity markets.
jlne.ws/1Jh8I5A
Average daily volume of 10.1 million contracts at Eurex Group in May
Eurex
Segment interest rate derivatives volume with significant increase year-on-year
In May, the international derivatives exchanges of Eurex, part of Deutsche Börse Group, recorded an average daily volume of 10.1 million contracts (May 2014: 8.1 million). Of those, 7.7 million were Eurex Exchange contracts (May 2014: 6.0 million), and 2.4 million contracts (May 2014: 2.1 million) were traded at the U.S.-based International Securities Exchange (ISE), part of Eurex Group. In total, 147.0 million contracts were traded at Eurex Exchange and 48.7 million at the ISE.
jlne.ws/1dIQ1uD
MGEX Extends Streak of High Monthly Volume
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), reports a total volume of 133,836 from May, marking 17 consecutive months that the Exchange has recorded a total volume of more than 125,000.
jlne.ws/1FSaSEJ
CME Group Volume Averaged 14.1 Million Contracts per Day in May 2015, Up 8 Percent from May 2014
CME Group
Foreign exchange (FX) average daily volume rose 49 percent
Agricultural commodities average daily volume rose 27 percent
Energy average daily volume rose 24 percent
Treasury average daily volume rose 12 percent
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that May 2015 volume averaged 14.1 million contracts per day, up 8 percent from May 2014. Total volume for May 2015 was more than 281 million contracts, of which 88 percent was traded electronically. Options volume in May averaged 2.6 million contracts per day, up 13 percent versus May 2014, with electronic options growing 33 percent over the same period.
jlne.ws/bTeVhD
LSEG acquires Exactpro
Automated Trader
Exactpro Systems has announced that London Stock Exchange Group (LSEG) has acquired 100% ownership of the business.
jlne.ws/1FrqXij
Turnover at Boerse Stuttgart around EUR 7 billion in May;Significant year-on-year increase in turnover in securitised derivatives, investment fund units and exchange-traded products
Boerse Stuttgart
Boerse Stuttgart’s turnover in May 2015 was in the region of EUR 7 billion, according to its order book statistics. Due to the public holidays in May, trading volumes were down compared with the high turnover figures for April, but roughly on a par with May 2014. Turnover in securitised derivatives, investment funds units and exchange-traded-products increased significant compared with May 2014.
www.boerse-stuttgart.de
CME Group Clearing Advisories
CME Group
Product Modification Summary: DME Oman Crude Oil Financial Futures Contract Size
New Product Summary: TAS in Livestock Products – June 15, 2015
Product Modification Summary: Delist Calendar Swaps for SRW Wheat, HRW Wheat (also known as KC Wheat), Corn, and Soybeans – June 1, 2015
Product Modification Summary: Delist Soybean-Corn Intercommodity Ratio Options – June 1, 2015
CME OTC IRS USD Valuation Curves – June 1, 2015
jlne.ws/1R9iqZG
Hedge Funds & Managed Futures
Hedge Fund That Bet on Bombing Judgment Takes Early Payouts; RD Legal Capital collects millions before award is issued, while telling investors to wait until ‘illiquidity’ issues pass
By ROB COPELAND, WSJ
When hedge-fund manager Roni Dersovitz began raising money to buy stakes in a nearly $2 billion judgment against Iran for one of the deadliest terror attacks ever aimed at Americans, he billed it as a win-win for families of the victims and investors alike.
jlne.ws/1KAyZJd
Banks & Brokers
BofA wins Supreme Court mortgages case
Demetri Sevastopulo in Washington, FT
The Supreme Court on Monday handed Bank of America a victory by ruling that people with second mortgages cannot void those loans in bankruptcy
jlne.ws/1M6J2a7
E*Trade Finance Chief Leaving to Join LPL Financial; Online broker names risk officer Michael Pizzi as new finance chief
By VIPAL MONGA and MICHAEL WURSTHORN
E*Trade Financial Corp. said Chief Financial Officer Matthew Audette is leaving the company to take the same role at brokerage firm LPL Financial Holdings Inc.
jlne.ws/1G1fKbS
Citi Named Clearing Bank of the Year by Global Capital Derivatives for the Second Consecutive Year
MarketWatch
Citi has been named Clearing Bank of the Year by Global Capital Derivatives, formerly Derivatives Week, at its annual Americas Derivatives Awards gala in New York. The publication recognized the top companies in the financial derivatives industry in the Americas. This is the second consecutive year that Citi has received this honor.
jlne.ws/1RGYI6W
Clearing & Settlement
Alignment and stress-testing key to CCPs, says DTCC
Asset Servicing Times
CCPs should be aligning management and clearing members and implementing standardised stress-testing, according to a new white paper by DTCC. The paper, titled CCP Resiliency and Resources, looked in to CCP governance, default management and continuity in CCPs in times of market distress.
jlne.ws/1Jh9WgV
Ripple Appoints DTCC’s Former CEO as Advisor
Coindesk
Digital currency startup Ripple Labs has appointed Donald Donahue, former CEO of the Depository Trust & Clearing Corporation (DTCC) as an advisor to the company. In his role as COO and then CEO, Donahue is thought to have led the DTCC’s efforts in stabilising the financial system following the 2007-08 market crash.
jlne.ws/1Jh9O17
DTCC Publishes Perspectives On CCP Risk Management – Issues New Paper Highlighting Critical Differences Among CCPs And The Markets They Serve And Promoting Transparency And Certainty Concerning CCP Risk Management Practices
MondoVisione
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today issued a white paper outlining views on CCP governance, stress testing, default management and continuity of CCP services in times of market distress. DTCC’s paper, CCP Resiliency and Resources, contributes to an ongoing dialogue among CCPs, regulators and clearing participants concerning CCP risk management. DTCC operates two CCPs, the Fixed Income Clearing Corporation (FICC) and the National Securities Clearing Corporation (NSCC), both of which have been designated in the United States as Systemically Important Financial Market Utilities (SIFMUs). DTCC’s paper contributes the unique perspective of an industry-owned utility operating cash market CCPs in critical U.S. markets.
jlne.ws/1G1gSw6
Indexes & Products
Questions and Answers from our Passive vs Active Webinar
S&P Dow Jones Indices
In the last post I wrote, I mentioned that I recently moderated a global webinar for financial advisors on the topic of S&P DJI research on passive vs active. We received 20 questions during the course of this webinar. I thought that it would be interesting to share some of those questions from advisors and the answers that our panelists provided. The replay of the webinar is available if you missed it.
jlne.ws/1RGZeBS
Q&A: MSCI considers China A-shares
Josh Noble in Hong Kong, FT
On June 9, index provider MSCI will announce whether it plans to include Chinese A shares — those listed in Shanghai and Shenzhen — in its global emerging markets index from May 2016. The decision, says MSCI, will not really be its own, but rather a “reflection” of the views of its clients, and follows a year-long consultation that began last May. MSCI decided not to include A shares at its last review in June 2014 after pushback from investors.
jlne.ws/1G1bjhj
MSCI Launches Saudi Indexes Following $500+ Billion Equity Market Opening
MarketWatch
MSCI also launched the MSCI GCC Countries International Indexes, the first indexes of their kind that represent the full investable opportunity set available in the Gulf Cooperation Council (GCC) countries: Saudi Arabia, Qatar, United Arab Emirates, Kuwait, Oman and Bahrain. All indexes incorporate Saudi Arabia’s foreign ownership limit restrictions.
jlne.ws/1RGZ2me
New liquidity requirements for Straits Times Index (sti) stocks
FTSE Global Markets
Singapore Press Holdings (SPH), Singapore Exchange (SGX) and FTSE Russell announced today tighter liquidity rules governing the selection of index constituents of the Straits Times Index (STI). STI components will be required to have a higher percentage of their issued shares traded in a given period.
jlne.ws/1RGZ6m0
Smart-Beta Indexes: Simplicity Is Not Always a Virtue
Institutional Investor
So-called smart-beta equity indexes have proliferated in the last several years. Products now number in the hundreds, with most seeking to capture the excess returns of a handful of well-defined risk factors.
jlne.ws/1RGZ7X5
Technology
Live at NY5: McKay Brothers and Quincy Data Expand Lowest Known Latency Footprint
PR Newswire
McKay Brothers and Quincy Data now offer the lowest known latency between key Illinois trading centers and the Secaucus-NY5 data center. One-way latency between Aurora and Secaucus-NY5 is 4.056 milliseconds. One-way latency between 350 E. Cermak and NY5 is 3.885 milliseconds. McKay offers the lowest known latency between Illinois and the eight major New Jersey trading centers.
jlne.ws/1RGWHHV
Metamako launches MetaApp – intelligence at the network edge
Bob’s Guide
MetaApp reduces latency, increases flexibility, simplifies networks
Metamako continues to lead the market in ultra-low latency devices for the trading community, exchanges and telco providers with the launch of MetaApp. The new technology is the latest in a series of innovations from the company and is the first to effectively combine three core components: a layer-1+ switch, an FPGA and an x86 server. MetaApp is designed for flexibility: this unique platform builds on the functionality of Metamako devices (MetaConnect 16, MetaConnect 48 and MetaMux) and allows for easy development of applications by Metamako and, for the first time, third party vendors and financial institutions.
jlne.ws/1Jh8yeo
Why fintech industry is flying high, Commentary
CNBC
The shake-up in financial services in many ways parallels the airline industry following the Airline Deregulation Act of 1978—though for banking, regulation is causing the disruption. While financial services was once dominated by several large banks that maintained a stranglehold over consumers’ options, the sector is now seeing enormous growth in online lending with many small and agile financial technology companies establishing themselves as serious competitors.
jlne.ws/1RGZmkQ
Corporate banking the next frontier for mobile payments – HSBC
Finextra
With mobile banking firmly entrenched in the consumer space, the industry is on the brink of another revolution in the B2B sector, as corporate treasury professionals slowly begin to discard decades-old methods of transferring funds in favour of payments executed on smartphones and tablets, figures from HSBC show.
jlne.ws/1RGZHUG
Enforcement
Merrill Lynch Admits Using Inaccurate Data for Short Sale Orders, Agrees to $11 Million Settlement
SEC.gov
According to the SEC’s order instituting a settled administrative proceeding, Merrill Lynch and other broker-dealers are routinely asked by customers to “locate” stock for short selling, and firms prepare easy-to-borrow (ETB) lists comprised of stocks they have deemed readily accessible for the purpose of granting locates. At times during the course of a trading day, some securities that Merrill Lynch placed on its ETB list that morning became no longer easily available to borrow as determined by lending desk professionals tracking market events and other daily developments.
jlne.ws/1AGfyyF
SEC Charges Investment Adviser With Defrauding Retired Teachers
SEC
The Securities and Exchange Commission today charged an investment adviser in Miami with siphoning money from his investment fund and defrauding investors, including several local teachers and law enforcement officers.
jlne.ws/1Q2AIxP
Eight convicted for role in unauthorised collective investment scheme
UK FCA
In a case brought by the Financial Conduct Authority (FCA) Scott Crawley, Dale Walker, Daniel Forsyth, Brendan Daley, Aaron Petrou, Ross Peters, Adam Hawkins, and Ricky Mitchie have been convicted for their parts in the operation of an unauthorised collective investment scheme which led to 110 investors losing over £4.3 million.
jlne.ws/1dIOgh0
MCELHANNON GROUP INC – WORLEY, PHILIP MACK
NFA
On May 28, 2015, NFA issued a Complaint charging the McElhannon Group and Worley with failing to cooperate promptly and fully with NFA during the course of its examination and investigation of the McElhannon Group and failing to comply with an Order issued by NFA’s Executive Committee. The Complaint also charged the McElhannon Group and Worley with using false and misleading promotional material.
jlne.ws/1dIOMvs
MAWAD, RAJA MICHAEL – RNS HOLDINGS LP
NFA
On May 28, 2015, NFA issued a Complaint charging RNS Holdings and Mawad with failing to uphold high standards of commercial honor and just and equitable principles of trade; knowingly misappropriating customers funds; causing the RNS Fund to make direct or indirect loans and advances of fund assets to Mawad; and failing to comply with an Order issued by NFA’s Executive Committee. The Complaint also charged RNS Holdings with failing to file annual pool reports with NFA.
jlne.ws/1I55qC0
BONDY, CHRISTOPHER TOMAS – GRACE FINANCIAL GROUP LLC
NFA
On May 28, 2015, NFA issued a Complaint charging Grace with failing to keep accurate financial records; failing to maintain required minimum ANC; failing to file telegraphic notice; willfully providing NFA with materially false and misleading information; and allowing an unregistered individual to act in a capacity requiring registration. In addition, the Complaint charged Grace and Bondy with failing to supervise.
jlne.ws/1AL0gZb
Environmental & Energy
Even Big Oil Wants a Carbon Tax
Bloomberg Views (Editorial)
Now that six of the world’s largest oil companies have essentially come out in favor of a carbon tax, it’s getting harder to dismiss the idea as some kind of outlandish lefty plot. And those companies can help their cause by engaging Congress directly, instead of outlining their case in a polite letter to the United Nations.
jlne.ws/1SSDSTu
ADM suspends German biodiesel plant output on uncertain demand
Reuters
U.S. agribusiness giant Archer Daniels Midland Co. is temporarily halting production at its biodiesel plant in Leer in Germany because of uncertainty about the future of biodiesel in the country, it said on Tuesday.
jlne.ws/1BGA5hj
The compelling case for global carbon pricing
Financial Times
Carbon must have a higher price tag if the risk of catastrophic global warming is to be contained.
jlne.ws/1SSCReq
France First to Introduce Mandatory Carbon Reporting for Investors
Environmental Leader
Pension funds, insurance companies and other institutional investors in France will be required to disclose how they are managing climate change risks.
jlne.ws/1KJB7Sc
***LB: Also in this story “The announcement was made by France’s finance minister Michel Sapin at the Climate Finance Day conference in Paris on May 22.”
Strong power volumes in France and Switzerland
EPEX
In May 2015, a total volume of 37.4 TWh was traded on EPEX SPOT’s Day-Ahead and Intraday power markets (May 2014: 31.3 TWh). This is the second best result ever recorded on EPEX SPOT’s power markets. The French and the Swiss power markets stood out amongst overall strong results. Switzerland saw records on both the Day-Ahead (2,305,861 MWh, +12.8% over last record) and the Intraday markets (125,209 MWh, +8.4% over previous record). The French power market confirms its strong growth with a year-on-year increase of 59.4% on the Day-Ahead.
jlne.ws/1M6UqCI
Asia-Pacific
Glut of Chinese Goods Pinches Global Economy; Plants in China keep producing as growth falls, fueling deflationary pressure world-wide
By LINGLING WEI, BOB DAVIS and JON HILSENRATH, WSJ
Liu Zijun built a thriving tire-manufacturing business when China’s economy was roaring ahead. But when China’s growth weakened, he had to cut prices to keep his business afloat.
jlne.ws/1dIMBrI
Hong Kong’s Securities And Futures Commission Bans Yu Chun Chieh For Life
MondoVisione
The Securities and Futures Commission (SFC) has banned Mr Yu Chun Chieh, a former licensed representative, from re-entering the industry for life for misappropriating an investor’s money and misleading him with false account statements (Note 1).
jlne.ws/1G1ii9U
Tides of capital flow in book
The Standard
Good news keeps coming for the local financial market, with the latest being the commencement of the long-awaited mainland- Hong Kong mutual recognition of funds scheme on July 1.
jlne.ws/auZWIx
Frontier Markets
Abu Dhabi Wealth Fund Changing Tack Amid Lower Oil Prices; The fund is taking more control over the management of its money
By ASA FITCH, WSJ
The Abu Dhabi Investment Authority, a sovereign-wealth fund with assets estimated at more than $700 billion, is relying less on external money managers and handling more of its investments in-house as its owner grapples with lower oil prices.
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EM Contrarian: Headwinds Should Abate
Financial Advisor
After nearly four years of disappointing performance, many investors have fallen out of love with diversified emerging market funds. C. Rusty Johnson, co-lead manager of the $2.4 billion Harding Loevner Emerging Markets Fund, thinks it may be time to think about a reconciliation.
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Libya is edging closer to economic collapse as the currency dives
Business Insider
Libya’s public finances, wracked by a dramatic loss in oil revenue that has been exacerbated by a power struggle between rival governments, are foundering.
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