New Energy: Nasdaq’s Greifeld Looks To Shake Up Energy Space
Nasdaq’s CEO Robert Greifeld shook things up at the FIA Boca Conference with the announcement the company plans to launch a new futures exchange that will focus on energies, bringing new competition to the Intercontinental Exchange and CME Group. Greifeld spoke with John Lothian News editor-in-chief Jim Kharouf about the new pricing and clearing model, as well as his views on regulation, technology and how Nasdaq is positioned going forward.
“The statement of the problem is this, we do not have a single customer who says “I would prefer to be in a vertical monopoly, I prefer to be in a situation where my open interest is trapped in a clearing house and locked into the trading,’ ” he said. “That’s the fundamental problem we’re trying to solve.”
Watch the video »
Lyle Gramley, Inflation Tamer, Dies at 88
By JAD MOUAWAD, NY Times
Lyle E. Gramley, who served as a White House economic adviser and a Federal Reserve governor in the late 1970s and early 1980s, as the economy fought exceptionally high inflation and a deep recession, died on Sunday at his home in Potomac, Md. He was 88.
***** 88 is a good number.
Sheldon Jacobs, Author in Rise of No-Load Funds, Dies at 84
by Stephen Miller, Bloomberg
Sheldon Jacobs, whose books and No-Load Fund Investor newsletter advocated do-it-yourself investing to thousands of readers and helped fuel the growth of mutual funds starting in the 1970s, has died. He was 84.
****** 84 is 88, but with fees.
Continuum provides futures market data to Money.Net
Continuum, CQG’s enterprise API division, today announced its partnership with Money.Net, an online platform for market monitoring and analysis, to provide Money.Net’s customers with access to futures market data and futures trading capabilities.
****** When APIs get their own division, it is time to look out.
An Anniversary Thought for Berkshire Hathaway Investors: Diversify Into Managed Futures (PDF)
Amidst the 50-year celebration of the legendary investment returns of Berkshire Hathaway, the managed futures adviser Drury Capital wondered if the Berkshire portfolio could be improved with the addition of other, non-correlated assets. A research project ensued by combining Drury’s own returns, that have provided similarly strong returns on a stand-alone basis with almost zero correlation to Berkshire. The results? Positively intriguing.
***DA: The study offers a compelling argument for managed futures as a diversification tool. I would like to hear Buffett’s response. He has spoken unfavorably toward alternatives in the past, but he also sold long-term puts on several equity indexes. But today he is more interested in combining ketchup and mac & cheese than traditional and alternative portfolios.
Forex Transactions; A Regulatory Guide
March 2015 Revisions: Updated to incorporate amendments to Bylaw 301, NFA Financial Requirements Section 1, 13 and 14; NFA Compliance Rule 2-38 and 2-48; Interpretive Notice: NFA Compliance Rule 2-10: The Allocation of Bunched Retail Forex Orders for Multiple Accounts; and Interpretive Notice: NFA Compliance Rules 2-4 and 2-36: Prohibition on the Use of Certain Electronic Funding Mechanisms
****** Read this before you get ripped off trading forex.
FFK Day, May 15
Futures for Kids
Did you know that London City workers spend, on average, GBP 10.59 a day on coffee, lunch and miscellany? Futures for Kids (FFK) suggests that, on May 15, bring a sack lunch, make your own coffee, and take the ten-and-a-half quid (about $16) and donate to the organization. You’ll be glad you did.
MarketsWiki Page of the Day
MarketsWiki Recent Updates
James R. Boris; Susan M. Phillips; William J. Brodsky; Edward T. Tilly; Duane Kullberg; David Fisher; Stuart Kipnes; Samuel Skinner; Mark Duffy; Farhan Husain; Suzanne Cosgrove
Companies, Organizations and Groups
Hotspot FX; KCG Holdings Inc. (KCG); Eurex
London Bullion Market Association
60,344,034,792 pages viewed, 8,161 articles, 190,731 edits
CME urges tougher US response to EU clearing dispute
Philip Stafford, FT
The head of the US’s largest derivatives exchanges has suggested European clearing houses be restricted from US markets, if a long-running regulatory spat between the world’s two main regions for derivatives trading is not resolved soon.
Terry Duffy, executive chairman of CME Group, will tell an agriculture committee of the US House of Representatives on Wednesday that equivalent recognition of US clearing houses by European regulators is “the one overriding issue” facing the country’s derivatives markets.
Did Dodd-Frank Create a ‘Hotel California’?
by Ryan Tracy, Ted Mann and Paul Vigna, WSJ
You can check out any time you like, but you can never leave. Once a U.S. company is designated a “systemically important financial institution,” is there anything it can do to shake that label?
The Tiny Broker Who Won on the Swiss Franc Shock
by Maciej Onoszko, Bloomberg
Some of the big guys lost on the Swiss franc. Turns out, one of the little guys won.
While the likes of Citigroup Inc. and Saxo Bank A/S got stung when Switzerland abruptly let the franc soar in mid-January, Jakub Maly says the brokerage he runs made enough money to start dreaming about expansion.
CME says no decision yet on EU wheat contract launch
CME Group said on Tuesday it could not yet confirm whether it would launch a European Union wheat contract, as it cannot guarantee sufficient deliverable capacity after failing to seal deals with local companies. The Chicago-based group had been planning to launch its EU wheat futures by the end of April, in a challenge to Euronext’s regional supremacy in wheat, according to a draft document seen by Reuters.
Why Wall Streeters’ Defections to Silicon Valley Are Good News for the Economy
Neil Irwin, NY Times
It’s easy to understand why Ruth Porat, the chief financial officer of the venerable investment bank Morgan Stanley and one of the most powerful women on Wall Street, would want to head west to become C.F.O. of Google.
Wall Street Women Heading to Silicon Valley Could Narrow Gap
by Carol Hymowitz, Bloomberg
Ruth Porat shows how Wall Street could help Silicon Valley solve its woman problem.
FXCM to Sell Japanese Business for $62 Million; Move is part of foreign-exchange brokerage’s plan to sell noncore assets
By Chelsey Dulaney
FXCM Inc. said Wednesday that it has agreed to sell its Japan business to a brokerage unit of e-commerce giant Rakuten Inc. for $62 million, as part of its effort to sell noncore assets to repay its debt.
How Does Wall Street Get Back the Trust of Americans?
Forbes Media Chairman and Editor-in-Chief Steve Forbes discusses Wall Street and high-frequency trading. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)
Morgan Stanley Turns to Adviser to CEOs as New Finance Chief; Pruzan led team that counseled banks and other financial firms
By Justin Baer, WSJ
In picking his next finance chief, Morgan Stanley Chief Executive James Gorman once again went with a candidate who had spent a lot more time advising other bank CEOs than counseling him.
Tech groups prove a lure for Wall Street
Tom Braithwaite and Ben McLannahan in New York, FT
Not long ago being offered the position of Morgan Stanley chief financial officer would have been considered the industry’s poisoned chalice.
BATS expands currency trading platform to London
Roger Blitz and Philip Stafford, FT
The second-largest US stock exchange operator by volume has revealed plans for expanding its currency trading by opening a UK-based foreign exchange platform.
Justices Rule Opinions May Sometimes Be Basis for Securities Fraud Suits
By Sarah Lynch, Reuters
Securities and Exchange Commission Chair Mary Jo White told lawmakers on Tuesday the agency would not try anew to craft rules to make it easier for shareholders to nominate corporate directors but that she was closely watching activists’ attempts to do just that.
Liquidnet: Sourcing Liquidity Takes Center Stage As Confidence In Equity Inflows Returns, According To Global Survey Of Buy Side Traders – Conflicts Of Interest Are Among The Top Concerns For Institutional Investors – Trading Venue Consolidation Is Seen As Inevitable; Confidence In Regulators Globally Remains Low
Sourcing sufficient liquidity to get large trades done is the top concern of institutional traders globally, according to a survey conducted by Liquidnet, the global institutional trading network. Even as confidence in equity inflows returns, 84% of the survey’s respondents were either “concerned” or “very concerned” about being able to source liquidity in the current market. Liquidnet’s annual Institutional Voice survey canvassed the views of more than 115 buy-side equity traders around the globe.
Liquidity is drying up.
By JosephAdinolfi, MarketWatch
Sovereign bonds aren’t the only market facing a liquidity shortage. As volatility in the foreign-exchange market has risen over the past eight months, currency traders are finding that liquidity has become much patchier than it once was.
Clarus Financial Technology Makes The Case For Greater Transparency Under EMIR
Highlighting Variations Between US And Europe And The Negative Impact On Market Participants
Clarus Financial Technology, which provides content, data and analytics for derivatives markets is pushing for greater debate around the format and extent of data made public on reporting under EMIR. Responding to the recent ESMA consultation paper on Article 9, Clarus highlighted the significant variation between the data available in the US and Europe, and the negative impact this is having on market participants.
A New Rule Could End Up Punishing the Wrong Banks
by Yalman Onaran, Bloomberg
A rule designed to reduce risk in the financial system could end up punishing the wrong banks. That’s what analysts, economists and some banks say will happen if regulators adopt guidelines proposed last year by the Financial Stability Board, which coordinates banking policy for the biggest economies. The rule, which would require banks to hold a minimum level of long-term debt that can be converted to equity if they fail, benefits lenders with big securities-trading businesses, the kind that led to the 2008 credit crisis.
A Banker’s Seven-Year Fight for His Reputation Against FINRA
by Richard Williamson, The Bond Buyer
Mel Schonhorst devoted 24 years of his life to a career in public finance; he spent the next seven trying to clear his name after being caught up in an El Paso, Texas, corruption scandal that led to convictions of bond industry executives and dozens of local officials.
Though Schonhorst won a multi-million dollar arbitration award from RBC Capital Markets for wrongful termination and defamation, he was unable to get the same Financial Industry Regulatory Authority arbitration panel to remove a statement that said he was under investigation.
Will The SEC Force All Brokers Under FINRA Control?
Annette L. Nazareth and Jeffrey T. Dinwoodie, Traders Magazine.com
On March 25, the SEC plans to vote on a proposal that may require all brokers to be subject to FINRA regulation. Here’s a look at the implications of the SEC’s plans to amend Rule 15b9-1.
Proposed FINRA Rule Would Require Associated Persons Who Develop Algorithmic Trading Strategies To Register as Equity Traders
By Harry Frischer and Edward Canter, The National Law Review
In the latest regulatory action addressing high frequency and other algorithmic trading, a recent FINRA Regulatory Notice seeks comment on a proposed rule change under which persons associated with a member firm would be required to register as Equity Traders under Rule 1032(f) if they are primarily responsible for the design, development or significant modification of an algorithmic trading strategy that generates orders routed to an exchange or traded over the counter. Persons responsible for supervising this type of activity must also register.
FINRA Issues Report on Cybersecurity Practices
by David Smyth, JD Supra
Following up on our post from last week on the SEC’s cybersecurity exam sweep, you should also know about FINRA’s recent report on this area. Last month, FINRA published a Report on Cybersecurity Practices that really could be useful reading for anyone in a complex business that hopes to keep its electronic data secure
Subcommittee examines reauthorization of the CFTC
Today, Rep. Austin Scott (R-GA), Chairman of the House Agriculture Committee’s Subcommittee on Commodity Exchanges, Energy, and Credit Subcommittee, held a public hearing to examine the reauthorization of the Commodity Futures Trading Commission (CFTC) and the challenges end-users face as they use these markets.
House panel aims to clarify CFTC rules for hedgers
By Sarah Gonzalez, Agri Pulse
The House Agriculture Committee is considering reauthorization of the agency that oversees swaps and futures market. During a subcommittee hearing today, Democrats and Republicans on the panel agreed that legislation for the Commodity Futures Trading Commission (CFTC) should allow end-users who are legitimate “commercial market participants” to avoid bein
Remarks of CFTC Commissioner Sharon Y. Bowen before the 17th Annual OpRisk North America
In today’s speech, I will lay out the major trends in operational risks that I believe the market is facing at present. Then, I will provide you with some thoughts on what we need to do to address them. Also, in an effort to provide all of you with some specific insights into a major CFTC rule, I’ll explain how I view our new regulation governing the risk management practices of swap dealers and major swap participants.
Testimony on “Examining the SEC’s Agenda, Operations and FY 2016 Budget Request” by Chair Mary Jo White, Before the United States House of Representatives Committee on Financial Services
BATS: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Adopt New Rule 21.17, Exchange Sharing of User Designated Risk Settings (Release No. 34-74565; File No. SR-BATS-2015-22; March 23, 2015); see also Exhibit 5
FINRA: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Section 4(c) of Schedule A to the FINRA By-Laws to Increase Qualification Examination Fees (Release No. 34-74568; File No. SR-FINRA-2015-006; March 24, 2015)
ICC: Notice of Filing of Proposed Rule Change Relating to Physical Settlement of CDS Contracts (Release No. 34-74563; File No. SR-ICC-2015-004; March 23, 2015)
MSRB: Notice of Filing of a Proposed Rule Change Consisting of Proposed Amendments to the MSRB Rule G-14 RTRS Procedures, and the Real-Time Transaction Reporting System and Subscription Service (Release No. 34-74564; File No. SR-MSRB-2015-02; March 23, 2015); see also Exhibit 2 and Exhibit 5
MSRB: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Consisting of Amendments to MSRB Rule A-16, on Examination Fees (Release No. 34-74561; File No. SR-MSRB-2015-01; March 23, 2015); see also Exhibit 5
NYSE: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 13 Relating to Pegging Interest (Release No. 34-74570; File No. SR-NYSE-2015-12; March 24, 2015); see also Exhibit 5
NYSE Arca: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Period for the Exchange’s Retail Liquidity until September 30, 2015 (Release No. 34-74572; File No. SR-NYSEArca-2015-22; March 24, 2015); see also Exhibit 5
NYSE Arca: Notice of Filing of Proposed Rule Change Relating to Listing and Trading of Shares of Principal EDGE Active Income ETF under NYSE Arca Equities Rule 8.600 (Release No. 34-74562; File No. SR-NYSEArca-2015-15; March 23, 2015)
NYSEMKT: Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 13 – Equities Relating to Pegging Interest (Release No. 34-74571; File No.
SR-NYSEMKT-2015-19; March 24, 2015); see also Exhibit 5
OCC: Petition for Review (March 20, 2015)
FCA arrives late to the dark pool party
By Tim Cave, Financial News
The UK’s Financial Conduct Authority said today it would investigate potential “conflicts of interest” in dark pools over the next year. But with the private trading venues already squarely in the spotlight, the UK financial watchdog appears to be acting after the horse has bolted.
Exchanges & Trading Facilities
ICE Futures U.S. President Benjamin Jackson to Testify on CFTC Reauthorization
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, announced today that ICE Futures U.S. President Benjamin Jackson will appear before the House Agriculture Subcommittee on Commodity Exchanges, Energy and Credit to discuss reauthorization of the Commodity Futures Trading Commission.
CME Group’s Duffy to Appear before the U.S. House Agriculture Subcommittee on Commodity Exchanges, Energy, and Credit
CME Group Via MarketWatch
CME Group Executive Chairman and President Terry Duffy will appear before the U.S. House Agriculture Subcommittee on Commodity Exchanges, Energy, and Credit, Wednesday, March 25, to discuss reauthorizing the Commodity Futures Trading Commission (CFTC).
Equity options with weekly expirations (“Weekly Options”): Change of product codes
For technical reasons, the equity options with weekly expirations on Novartis AG and Zurich Insurance Group AG have to be admitted to trading with other product codes than those announced in Eurex circular 032/15, as detailed in the attachments.
LSE Presses to Ensure U.K. Is Home to a Global Exchange
There’s room for only a handful of firms to provide trading venues, clearing and related services around the globe, and the U.K. must ensure one of its companies is among them, according to London Stock Exchange Group Plc’s chief executive officer.
London Stock Exchange Group Board Changes
London Stock Exchange
London Stock Exchange Group plc (LSEG) today announces that Robert Webb QC, Senior Independent Director and Chairman of the Remuneration Committee, will step down from the Board following LSEG’s Annual General Meeting on 29 April 2015. He has been a Non-Executive Director of the Group for 14 years.
First Chinese Money Market ETF lists in London
London Stock Exchange
First London listed RMB denominated money market ETF to be traded and settled in RMB, GBP and EUR
Commerzbank CCBI RQFII Money Market UCITS ETF gives European investors access to China Interbank Bond Market securities
Confirms London’s leading role in continuing RMB internationalisation
Economic Secretary to the Treasury, Andrea Leadsom MP joins Market Open Ceremony at London Stock Exchange
London Stock Exchange today welcomes the ‘Commerzbank CCBI RQFII Money Market UCITS ETF’ to list in London. The new Exchange Traded fund (ETF) is the first to offer both institutional and retail investors exposure to money market instruments which invest in China’s CIBM.
HKEx chief Li eyes Chinese derivatives
Futures & Options World
Extending the trading link between Shanghai and Hong Kong to include derivatives is central to Hong Kong Exchanges and Clearing’s plan to develop its home city as a pre-eminent financial centre, said Charles Li, the chief of the exchange group. Li opened FOW’s Derivatives World Asia on Wednesday by saying the Asian exchange group was looking to launch both commodity and derivatives contracts on Stock Connect, which currently links HKEx with the Shanghai and Shenzhen stock exchanges.
Nominations For Directors – NZX Limited
As previously announced, NZX will hold its 2015 Annual Meeting of shareholders on 21 May 2015. Further details will be advised in the Notice of Meeting in due course.
Euronext announces detailed dividend payment schedule for 2015
Euronext today announced its dividend payment schedule for 2015. In 2015, the yearly gross dividend amounts to 0.84EUR per share, subject to shareholder approval at the company’s Annual General Meeting on 6 May 2015. Payment of the annual dividend would then occur on 13 May 2015.
Euronext Announces Debt Repayment
Euronext today announced that on 23 March 2015 Euronext NV repaid EUR140 million as an early repayment of the EUR250 million Term Loan drawn on 19 June 2014. Simultaneously, Euronext NV increased the undrawn Revolving Credit Facility to EUR390 million. The term of both instruments is three years starting on 23 March 2015, with two one year extension possibilities. The related terms and conditions remain unchanged.
CME Group Notices
Amendment to Gold Producer Requirements
New Product Summary: Asia Coal (API 8 and Indo Sub-bit) Option Contracts – March 30, 2015
Summary Fines for Reporting Infractions
Amendment to Gold Producer Requirements
Milling Yield Premium and Discount Schedule Effective September 1, 2015 in Rough Rice Futures
Implementation of Caps on Storage and Handling Charges for Precious Metals
Implementation of Caps on Storage and Handling Charges for Precious Metals
Hedge Funds & Managed Futures
Madoff Trustee Strikes $93 Million Deal with Feeder Fund; The deal is one of several trustee Irving Picard has struck with so-called feeder funds that pooled cash and funneled it to Madoff
By Sara Randazzo, WSJ
A fund that invested exclusively in Bernard Madoff’s massive Ponzi scheme has struck a deal that frees up $93 million to pay back victims of the fraud.
Swiss Private Bank Vontobel Buys Majority Stake in British Asset Manager
By CHAD BRAY, WSJ
The Swiss private bank Vontobel said on Wednesday that it had agreed to buy a majority stake in TwentyFour Asset Management of Britain and that it was in talks over the potential acquisition of a German asset manager owned by Bank of New York Mellon.
Hertz Global Holdings Gets Notice That It Is Out of NYSE Listing Compliance; Stock exchange’s notification relates to late filing of car-rental company’s annual report
By Lisa Beilfuss, NYSE
Hertz Global Holdings Inc. said it received notification from the New York Stock Exchange that it is out of listing compliance because of the late filing of its annual report.
Ex-Fed Governor to Join Hedge Fund; Stein to work part time for BlueMountain Capital
By Rob Copeland, WSJ
A former Federal Reserve governor who expressed concern that central bank policies could spark financial instability is headed for the world of hedge funds.
Jeremy Stein signed up as a paid consultant to BlueMountain Capital Management LLC, the New York hedge-fund firm confirmed.
Banks & Brokers
Deutsche Bank Doesn’t Want Checking Accounts
By Leonid Bershidsky, Bloomberg
Deutsche Bank is considering the sale of all or part of its retail business or, at the least, serious cuts in the retail division. These days, it seems dealing with private clients may be becoming too much of a hassle — and not just for Deutsche Bank.
Clearing & Settlement
Barclays, Sungard see future for clearing
Futures & Options World
Tech firm Sungard signed this month Barclays as the first customer of a new clearing utility which seeks to bring various banks together to share the back office service, signalling a possible new model for the embattled clearing industry. Sungard said the new futures and swaps clearing service will help derivatives brokers cut costs and achieve greater efficiency, as well as reducing operational risk and total cost of ownership by leveraging economies of scale in the middle and back office.
Leaving EU would be ‘disastrous’ for Britain -Standard Life chairman
Yahoo Finance UK
Britain successfully challenged a policy from the European Central Bank which required clearing houses that handled large amounts of euro-denominated securities to be based in the single currency area. Unchallenged, it could have forced clearers in Britain, such as LCH.Clearnet, to shift operations to continental Europe.
Indexes & Products
European share index provider STOXX sets up shop in Australasia
Sydney Morning Herald
Deutsche Börse- and SIX Group-owned index provider STOXX has set up in Australia for the first time to take advantage of growth in exchange-traded funds and Australia’s super funds. Its global competitors include S&P Dow Jones, MCSI and FTSE. STOXX is also the marketing agent for Deutsche Börse’s and SIX Swiss Exchange’s indices, which include the DAX, Euro STOXX 50 and SIM, as well as the STOXX Australia 50.
ChinaAMC MSCI China A ETF Offers an Opportunity to Capture the Momentum of A Share Market
With the listing of China’s first MSCI China A Index tracking exchange-traded fund (“ETF”) on the Shanghai Stock Exchange managed by China Asset Management Co., Limited (“ChinaAMC”), foreign and domestic investors are now able to capture the opportunity of A share market through the aforementioned listed vehicle.
With RAFI Style Indexes Terminated, PowerShares Turns To Russell
Without too much of an explanation, Research Affiliates has announced that it will discontinue its RAFI Fundamental U.S. Style Index Series. The index series was launched on March 31, 2011, and the decision to discontinue the index series was made after determining that the ongoing calculation and maintenance of this index family was incompatible with the firm’s long-term strategy, according to a March 16 statement.
The Investor Rush To Index Funds And ETFs Has Left A Lot Of Unloved, Undervalued Stocks – Sprott’s Whitney George – GuruFocus.com
Whitney George has joined Sprott, bringing over two value-oriented funds currently with around $285 million in assets. He says that investors have lost sight of the businesses they own because they’re looking at indexes, not individual stocks. George says this opens the door for value investors in the school of Graham and Dodd or Warren Buffett.
Unconstrained Sector Weighting: A Feature, Not a Side Effect
S&P Dow Jones Indices
Although the low volatility anomaly was first documented more than 40 years ago, it was the trepidation and volatility in the years following the most recent financial crisis that propelled the concept to the forefront of investor interest. In recent years, the phenomenon has been well covered, by both academics and the investment community, in the form of innovative financial instruments that exploit the anomaly and subsequent attraction of assets to those vehicles. The low volatility anomaly exists not just in the U.S., but instead seems to be universal. The current debate is less focused on the existence of a low volatility effect and more on the construction of various strategies to exploit the phenomenon.
NSE, MSCI Sign Agreement to Develop, Commercialise Indexes, Articles
MSCI Incorporated, a leading provider of investment decision support tools worldwide, and the Nigerian Stock Exchange (NSE), Monday in Lagos announced a strategic co-operation agreement to develop and market a co-branded family of indexes for the Nigerian equity markets.
Fidessa Selected by Fiera Capital for Fixed Income and Derivatives; Canadian investment manager extends use of fully managed buy-side solution
Fidessa group plc (LSE: FDSA) today announced that Fiera Capital Corporation (“Fiera Capital”) (FSZ.TO), a leading independent Canadian investment manager, has deployed Fidessa’s investment management system (IMS) across its fixed income operations. The managed service, which includes compliance, order management, portfolio management and connectivity, has enabled Fiera Capital to quickly scale its fixed income business and accelerate time to market in a cost-effective manner. Derivatives will follow later this year.
Banks ‘under attack’ from fintech startups
Memphis Business Journal
Banks are under attack. And though given recent headlines, you’d think it’s a cybersecurity issue, there’s a whole other army of financial services technology startups taking up arms. That’s according to a report from CB Insights, a market research firm, which said banks are likely to be out-innovated and lose their edge not because of their incumbent, large competitors, but because emerging startups are taking a methodical approach to finding better alternatives to traditional banking services.
Aussie banks lead world on fintech
Digital disruption is fast approaching the global financial system, but the Australian banks have a competitive advantage, says veteran equity researcher Paul Schulte.
GBST and SAP sign financial transaction tax processing agreement
GBST a provider of software for capital markets and wealth administration, has signed an original equipment manufacturer (OEM) agreement with SAP . Through the agreement, GBST will integrate and offer the in-memory computing capabilities of the SAP HANA platform with its financial transaction tax product, GBST Syn~FTT. The bundled solutions are expected to allow investment banks and stockbrokers to process equities trades in compliance with the European financial transaction tax, which is active in France and Italy and expected to be implemented by 10 European countries effective 1 January 2016.
Neonet strikes deal to push out algos on SimCorp
The Trade News
Neonet has made its full suite of algorithms available via SimCorp’s investment management software solution.
Stock Exchanges Are Beginning to Take Bitcoin Seriously
by Olga Kharif, Bloomberg
The biggest U.S. stock exchange operators are taking steps to embrace bitcoin, spurring speculation the digital currency is coming up from underground.
SunGard’s MarketMap Adds Platts Real-Time Services to Help Traders Enhance Competitive Advantage
SunGard’s MarketMap market data solution now provides Platts Real-Time news, data and alerts to help traders visualize market behavior as it occurs and respond quickly to new trading opportunities.
Service of Bureau Decision
The publication of this press release constitutes the method of service authorized by the Bureau de décision et de révision (“Bureau”) of a decision issued on February 24, 2015 in respect of Jean-Marc Lavallée and related to the matter of Alain Péloquin,¹ Isabelle Cantin² and Jean-Marc Lavallée.
Environmental & Energy
China should link southern carbon markets ahead of nationwide scheme -study
Academics that advise the government on carbon trading in China have proposed linking two emissions exchanges in the southern province of Guangdong as a first step towards integrating all seven of the country’s pilot markets.
Biggest Polluters to Miss Climate Deadline
By Alex Nussbaum and Alex Morales – Bloomberg
Less than a week before the United Nations deadline for countries to file greenhouse-gas pledges necessary to keep a global climate change deal on track, it looks like most of the world is missing in action.
Bet big on trapping CO2 from industry, (UK’s) government told
By Will Nichols – BusinessGreen
Spending on carbon capture and storage may need to rise significantly if the UK is to reduce emissions from heavy industry cost-effectively, a leading think tank will say today.
Low returns drag down US shale oil industry
By Ed Crooks – Financial Times
In the boom years of the US shale oil industry, profitability was something of an optional extra. Companies were focused on growth, it was easy to raise capital, and making a decent return on investment could be put off for another day.
Citic Ltd confirms $2.5bn hit from Australian iron ore venture
Jennifer Hughes in Hong Kong and Jamie Smyth in Sydney, FT
China’s Citic Ltd has confirmed a $2.5bn writedown at its disastrous iron ore joint venture with Clive Palmer as commodity prices plunge — forcing the Australian politician and businessman to deny he is going broke.
Hong Kong regulator feels heat over decision on dual-class shares
What have Jack Ma, Li Ka-shing and a Dodge automobile got in common? Skip the jokes about the unlikeliness of Asia’s richest men travelling in an American muscle car and Hong Kong’s bankers, investors and lawyers could find out soon.
This is still nuts, Chinese equities edition
David Keohane, FT
Sentences to remind us of the nuttiness of Chinese equities over the past few months from BNP Paribas’ Richard Iley (and yeah, the Shanghai Comp fell 0.8 per cent today we have to admit, but that just broke “a 10-session winning streak — the longest in 23 years, according to Bloomberg data — that had taken the index to its highest since May 2008?):
Citigroup Names New Head of China Investment Banking
By NEIL GOUGH, WSJ
Citigroup has hired a longtime China banker from Bank of America’s Merrill Lynch unit to be head of its investment banking in the country.
China planning to channel local pension funds into stock market
China is drawing up plans to allow a proportion of the country’s pension funds to be invested in the stock market, according to a report in today’s 21st Century Business Herald.
The policy proposal by the Ministry of Human Resources and Social Security is on track to be submitted to the State Council, the equivalent of China’s cabinet, in the second half of this year, according to what an unnamed ‘informed source’ told the newspaper.
RBI steps up interventions to prevent rupee gains
The rupee has gained substantially since hitting a two-month low of 63.0025 on March 13, forcing heavy intervention from the RBI, capping what could have been broader gains, says traders.
Two sides of the Sebi-FMC merger; The proposed merger will present more opportunities to the exchanges but could also pose serious challenges for the watchdog
Rajesh Bhayani, Business Standard
The proposal to merge the Securities and Exchange Board of India (Sebi), the stock market regulator, with the Forward Markets Commission (FMC), which regulates the commodities market, was proposed by Finance Minister Arun Jaitley in his Budget for 2015-16. So that it doesn’t require separate parliamentary approval, the legal changes required for the merger were incorporated in the Finance Bill. Once the president gives his assent to the Bill, the changes will get automatically notified.
READ MORE: John Lothian Newsletter: CME urges tougher US response to EU clearing dispute; The Tiny Broker Who Won on the Swiss Franc Shock; Did Dodd-Frank Create a ‘Hotel California’?.