First Read
Hits & Takes
JLN Staff
CME Group reported its E-mini S&P 500 futures average daily volume rose 17 percent in April to 2.4 million contracts, E-mini Nasdaq future rose 107 percent to 490,000 contracts and E-mini Dow futures rose 82 percent to 261,000 contracts. It also reported record open interest in copper options, Fed Fund futures and 18 record OI days for soybean futures.~JK
Quartz is holding a free event in London on June 5, “Cryptocurrency’s Journey into Mainstream Culture.” The event will be at The Relay Building, 1st Floor,114 Whitechapel High Street, London.~JJL
The London Stock Exchange Group is to establish operations in Romania.~JJL
JLN has learned that OCC Chief Transformation Officer Adi Agrawal has left the company.~JJL
Here is a terrific Bitcoin resource from Jameson Lopp. H/T to Rumi Morales.~JJL
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OCC’s Evolving Leadership Role in the Options Industry
JohnLothianNews.com
The OCC didn’t always position itself as a thought leader in the derivatives industry, but as exchanges’ business interests shifted over the years to multiple asset classes, OCC is one of the few organizations left that can bring its focus solely to bear on equity options. In this video, OCC CEO and Executive Chairman Craig Donohue talks about the evolution of the OCC and the Options Industry Council.
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Hey crypto bros! Journalism ? advertising
Jemima Kelly – FT
Read more articles in SOMEONE IS WRONG ON THE INTERNET SERIES
On Friday, a cryptocurrency exchange executive decided he’d had enough of dealing with “nocoiner” journalists:
/jlne.ws/2Kxad3A
***** Great line from this story: As the late William Randolph Hearst liked to say (in an adage he most likely did not coin): Journalism is printing what someone else does not want printed; everything else is public relations.
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How to Use Metrics Instead of Being Used by Them; Two new books take on performance measurement from different angles and end up in a similar place.
Justin Fox – Bloomberg
Jerry Z. Muller is a professor of history at the Catholic University of America known for his finely wrought accounts of capitalism’s intellectual origins. John Doerr is the billionaire chairman of venture capital firm Kleiner Perkins Caufield & Byers, known for his early investments in the likes of Amazon.com Inc. and Google. They both have new books out about performance measurement. Muller’s is titled “The Tyranny of Metrics.” Doerr’s is “Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs.”
/jlne.ws/2KvItw8
**Muller asserts that for government and non-profits “the best way to motivate people within these organizations is by attaching rewards and penalties to their measured performance.”~JK
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The world’s first blockchain toothbrush lets you mine coins by brushing your teeth
Technode.com
Blockchain is the biggest buzzword of the year. However, we are just now beginning to see what silly creative ways will this technology be applied. The newest example from China is a blockchain-based toothbrush by Shenzhen-based 32Teeth, currently crowdfunding the project through the JD Finance platform.
/jlne.ws/2I7wwhD
****JB: The coins it mines can be used for new toothbrushes. They worry in the article that someone might give it to their dog to chew on to keep mining coins.
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Tuesday’s Top Three
Yesterday’s top three were led by Bloomberg’s interview with David Solomon, president and COO of Goldman Sachs, in A Goldman Trading Desk That Once Had 500 People Is Down to Three. Second went to the Wall Street Journal’s Did Chicago Exchanges Muscle a Rival Out of Town? A Jury May Soon Decide. Third went to John Lothian News’ piece, TT Appeals to the Crypto Masses with New Crypto Only Trading Platform
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MarketsWiki Stats
124,862,449 pages viewed; 23,086 pages; 212,901 edits
MarketsWiki Statistics
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Lead Stories
Milk Is Risky Business. Got Futures?; Dairy contracts are relatively new to the global markets, but trading is booming.
Shruti Singh, Lydia Mulvany – Bloomberg
Doug Block, a dairy farmer for 45 years, says he grew up in an era when the price of corn feed for cows fluctuated by just 6¢ a bushel. The U.S. didn’t ship much cheese and butter overseas, and the government often bought cheese to buoy the market when prices sagged. Those days are gone. Block’s business depends on pasture conditions in New Zealand, Europe’s inventories, and China’s milk consumption. He also has to deal with wild swings in the market after the U.S. government scaled back support over the last decade.
/jlne.ws/2w18Dn8
***** The great thing about milk futures is the cliches, and none of them are cheesy.~JJL
Large New York Money Manager AllianceBernstein Is Moving to Nashville; Move part of broad cost-cutting effort pressed by index-tracking funds and low-cost investing
Sarah Krouse – WSJ
One of the oldest names on Wall Street is moving to one of the fastest-growing cities in the South, reinforcing a recent shift in finance jobs to cheaper parts of the U.S.
/jlne.ws/2KuLa0N
Economists Invoke Great Depression in Warning to Trump on Trade
Josh Wingrove – Bloomberg
U.S. ‘paid the price’ for tariffs in 1930, letter says; Signatories caution against repeating protectionist history
To some of the biggest voices in U.S. economics, it could be 1930 all over again. More than 1,100 economists, including Nobel laureates and former presidential advisers, have signed a letter warning Donald Trump about his tariff-heavy approach to trade. Many of its passages quote directly from another letter sent in 1930, cautioning against protectionist measures the U.S. imposed at the start of what became the Great Depression.
/jlne.ws/2FzhPic
Global Market Volatility Now a ‘Made in the U.S.A.’ Phenomenon
Luke Kawa – Bloomberg
Implied volatility of U.S. stocks runs higher than in Europe; Rising rates, Trump comments helping America export turbulence
The U.S. is home to the world’s largest economy, the global reserve currency — and now, the rebirth of market volatility.
/jlne.ws/2Fy70wU
World’s largest hedge fund managers predict industry rebound at gathering
The Star Online
Hedge funds, following an extended period of low investor confidence and unspectacular returns, are poised to be great again, according to managers at a West Coast gathering of some of the world’s largest investors.
/jlne.ws/2jppOps
Bond Trader Turns to Lawyer Who Made a Name in Murder Cases
Chris Dolmetsch – Bloomberg
David Demos, formerly of Cantor Fitzgerald, on trial for fraud; Jose Baez handled defense of Aaron Hernandez, Casey Anthony
Jose Baez is better known for helping clear accused killers than defending white-collar cases. Should the Miami-based lawyer win an acquittal for a former Cantor Fitzgerald LP mortgage-bond trader accused of fraud, he might find Wall Street calling more often.
/jlne.ws/2KtWCKf
Goldman Sachs to Pay $110 Million to Resolve Forex Probes
Greg Farrell – Bloomberg
Settlements with Fed, New York state cover 2008-13 conduct; Trader shared tips about order coming from ‘Satan,’ DFS says
Goldman Sachs Group Inc. has agreed to pay about $110 million to resolve allegations that its foreign exchange traders improperly shared information about client orders on an electronic chat room, putting clients at a disadvantage.
/jlne.ws/2jnFA3W
Begging the Question on VIX Manipulation
Streetwise Professor
Stung by yet another allegation of manipulation of the VIX, Cboe Chairman and CEO Ed Tilly and President and COO Chris Concannon fired off an open letter defending the exchange and VIX. To say it begs the key questions is an understatement.
/jlne.ws/2jmNpaj
China Iron-Ore Futures Open to Outside World; Foreign investors will be able to trade in the historically volatile market
Biman Mukherji – WSJ
Barely a month after launching yuan-denominated oil futures, China on Thursday will start allowing foreign investors to trade in its historically volatile iron-ore market.
/jlne.ws/2FAAev3
Exchanges, OTC and Clearing
CME Group Reached Average Daily Volume of 17 Million Contracts in April 2018, Up 4 Percent from April 2017
Press Release
CME Group announced it reached average daily volume (ADV) of 17 million contracts during April 2018, up 4 percent from April 2017. Open interest at the end of April was 126 million contracts, an increase of 4 percent from the end of April 2017, and up 17 percent from year-end 2017.
/jlne.ws/2rcX6MY
Deutsche Börse: Increased Trading Volumes, New Records For ETFs – Cash Market Turnover Totals EUR127.2 Billion In April
Press Release
The high trading volume on the cash markets since the beginning of the year has led to new records in ETF trading on Xetra, Europe’s leading platform for exchange-traded funds. The first quarter of 2018 saw a total of more than 1.9 million orders executed, the highest number since the products were introduced in 2000, and around 30 percent up year on year. The number of tradable ETFs also rose to a new high of 1,264 at the end of April.
/jlne.ws/2jm9RQM
A dark hour for traders as rare outage crippled Canada stock markets
John Tilak and Fergal Smith – Reuters
For about an hour and 11 minutes last Friday afternoon, traders in Canada’s biggest stock exchanges were left in the dark, as the stock market operator battled with a hardware failure.
/jlne.ws/2KweRP5
London Stock Exchange clearing unit expands Asia offering
Reuters Staff
The London Stock Exchange’s clearing arm LCH has begun clearing interest rate swaps denominated in yuan, won and rupees to bolster its Asia base as euro business faces the threat of relocation.
/jlne.ws/2jki1cy
OCC Cleared Contract Volume Up 27 Percent in April; Equity options volume up 32 percent in April and average daily volume up 30 percent year-to-date
OCC
OCC announced today that total cleared contract volume in April reached 405,853,179 contracts, a 27 percent increase from April 2017 volume of 320,547,848 contracts and marking the highest April on record. OCC’s year-to-date average daily cleared contract volume is up 29 percent from 2017 with 22,026,812 contracts compared to 17,027,383 contracts in 2017.
/jlne.ws/2KwzhaL
Cboe Expands Market Data Sales Team with Key Hires; Experienced market data professionals Richard Barden and Stephen Dorrian join Cboe’s London team; Join growing team focused on extending the reach of Cboe’s global suite of market data products
Cboe
Cboe Global Markets, Inc. announced the expansion of its Market Data Services team with two key appointments in its London office
/jlne.ws/2Kxv2vs
Ag Barometer declines for second month amid looming trade war concerns
Tue May 01 2018
CME Group
Trade war concerns continue to drive a sharp decline in producer sentiment toward the agricultural economy, according to the Purdue University/CME Group Ag Economy Barometer.
/jlne.ws/2KwhhgD
2018 Recorded As Best April In MGEX History
MGEX
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), announces an impressive 272,068 contracts recorded for April of 2018. This number topples over the previous reigning April by 24% while also breaking into the top five overall monthly volume charts coming in at fifth-best in MGEX history.
/jlne.ws/2jmjY8n
LCH clears first non-deliverable interest rate swaps; Clearing for Chinese Yuan, Korean Won and Indian Rupee-denominated non-deliverable interest rate swaps
LCH
LCH, a leading global clearing house, today announced that it has begun clearing of non-deliverable interest rate swaps. Market participants are now able to clear this product denominated in Chinese Yuan, Korean Won and Indian Rupee. This is the first time that SwapClear has offered clearing of derivatives denominated in these currencies.
/jlne.ws/2FAxMER
OTC Clear Expands its Services to USD/HKD Cross Currency Swaps and Extends Clearable Tenors of HKD Interest Rate and Basis Swaps to 15 years?
HKEX
OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX) that provides clearing and settlement services for over-the-counter (OTC) derivative transactions, commenced clearing of US dollar – Hong Kong dollar Cross Currency Swaps (USD-HKD CCS) and extended the clearable tenor of both HKD Interest Rates Swaps (IRS) and HKD Basis Swaps from 10 years to 15 years on 30 April 2018.
/jlne.ws/2FzjhBa
Fintech
Israeli company BioCatch helps international banks to prevent fraud and catch criminals by tracking keystrokes and mouse movements.
Nati Yefet – Globes
A few minutes before the beginning of the interview with Howard Edelstein, chairperson and CEO of Israeli company BioCatch, one of the pioneers in financial technology, it turns out that he is almost completely fluent in Hebrew.
/jlne.ws/2w5h94G
Barchart Partners with AFX to Distribute the Ameribor Overnight Interest Rate
Press Release
APIs, Market Data, and Software for Financial Services, Media, and Commodities
Today, Barchart, a leading provider of financial market data and technology, and American Financial Exchange (AFX), an electronic exchange for direct interbank lending and borrowing for American financial institutions, have announced a new data partnership where Barchart has become a distributor of the Ameribor interbank interest rate. Barchart is the first financial data provider to make Ameribor available via API access.
/jlne.ws/2w4v8aP
The AI arms race: China and US compete to dominate big data; Beijing plans to be the world leader in the technology by 2030. The contest will come down to who can better manipulate the data
Louise Lucas in Hangzhou and Richard Waters in San Francisco – FT
Algorithms trained on mountains of Chinese data may soon be making decisions that deeply affect the lives of people in the US.
/jlne.ws/2jofn5y
SPIDERSTREAM -Real-Time Volatility & Greek Feed
Spiderrock
SpiderRock is excited to announce the commercial release of SpiderStream, a Real-Time Volatility & Greek data feed. This feed is available through the SpiderRock Gateway Technologies cloud-based managed infrastructure.
/jlne.ws/2KuQBwJ
Cryptocurrencies
Crypto Startups Hand Out Digital Coins for Free Amid Scrutiny
Olga Kharif – Bloomberg
Startups are giving away crypto tokens to help boost profiles; Free coins usually don’t provide any ownership in enterprise
When Michael Terpin peered inside his cryptocurrency wallet recently, he found several new coins — ones that he didn’t buy.
/jlne.ws/2jkOdwl
Kraft Heinz Issues ‘Bacoins’ in Spite of Buffett’s Distaste for Crypto
Olga Kharif – Bloomberg
Warren Buffett has said cryptocurrencies such as Bitcoin will come to a “bad ending.” He probably wasn’t referring to cholesterol.
/jlne.ws/2jluFb2
Wall Street veteran and CEO of Japanese online broker says cryptocurrencies could take off like derivatives did; Despite some pushback from global regulators, a Wall Street veteran and CEO of Japanese online broker Monex says the new crypto asset class could take off like derivatives did 38 years ago.
Kate Rooney – CNBC
Despite some pushback from global regulators, Wall Street veteran and CEO of Japanese online broker Monex Group says the new crypto asset class could take off like derivatives did 38 years ago.
/jlne.ws/2jmJqdR
Peter Thiel-Backed Venture to Help Big Investors Bet on Bitcoin; Tagomi expects to be the equivalent of a broker-dealer, executing orders to buy or sell cryptocurrencies
Alexander Osipovich – WSJ
Billionaire Peter Thiel’s venture-capital firm is backing a startup that aims to bring Wall Street electronic-trading expertise to the bitcoin market—a bet that cryptocurrencies will continue to gain mainstream popularity.
/jlne.ws/2w1gaT8
4,000 Ethereum, Bitcoin and Litecoin ATMs to Roll Out in Argentina
Trustnodes
Argentina, that forgotten land of sunshine is seemingly trying to catch up with this century by no better method than rolling out some 4,000 ethereum, bitcoin and litecoin bi-directional ATMs.
/jlne.ws/2I6oVjG
More Big Cryptocurrency News at Trading Technologies: Announcing TT Crypto
Michael Unetich – TT
Crypto. TT. And FREE.* Now that’s a combo worth writing about! You can now trade cryptocurrencies for free through what we believe is the world’s greatest trading platform. Traders have been asking us for this functionality, and I’m excited to bring it to market. Yes, any exchange trading commission fees still apply, but we will charge no fees to use TT software. Here’s the scoop on that, with a little background to start.
/jlne.ws/2rczLuJ
Nexo Launches World’s First Instant Crypto-backed Loans Platform; Crypto Fintech Allows Investors to Spend the Value of Their Crypto without Selling it
Nexo
Nexo, powered by 10-year-old leading European FinTech group, Credissimo, launched its platform for instant crypto-backed loans. The release of the product irrevocably alters the blockchain landscape by allowing investors and businesses to access instant cash, while retaining ownership of their digital currency holdings. Nexo’s innovation marks an important milestone for the cryptocurrency space, as the platform has the potential to free up hundreds of billions of dollars for spending.
/jlne.ws/2KtBMuA
Blockchain insiders tell us why we don’t need blockchain
Jemima Kelly – FT
We’ve written before about how blockchain is a belief system, complete with prophets, disciples, traitors, rituals and schisms.
/jlne.ws/2FA69eY
Politics
Milken Party-Goers Courted for Cash in Fight for Congress
Christopher Palmer, Nabila Ahmed, John Gittelsohn – Bloomberg
Mike Pence stars at two fundraisers with conference attendees; Dealmaking get-together lures politicians to pot industry
Mike Pence wasn’t on the roster of speakers or guests at this week’s annual Milken Institute Global Conference in Beverly Hills, California, but he was very much a presence.
/jlne.ws/2FAvbL7
Democracy’s resilience: Is America’s democracy threatened?
Brookings Institution
In the aftermath of the 2016 election and during the tumultuous first year of the Trump presidency, observers across the political spectrum have struggled to anticipate the likely consequences for American democracy. Never before has a sitting president so harshly questioned the integrity of elections, challenged the separation of powers, and verbally threatened the freedom of the press. Partisan polarization is at an all-time high, public trust at a historic low. For many Americans, democracy seems more imperiled now than at any time in living memory. And similar problems are afflicting other democracies around the world.
/jlne.ws/2Kt4Hig
Why Trump’s tariffs threaten Americans’ standard of living
Rick Newman -Yahoo Finance
President Trump thinks new tariffs on certain imports will protect American jobs and make US workers better off. But tariffs can also make some people worse off, and they may even degrade American living standards if Trump goes too far.
/jlne.ws/2jkXUL9
President Trump has made 3,001 false or misleading claims so far
Glenn Kessler, Salvador Rizzo and Meg Kelly May – Washington Post
In the 466 days since he took the oath of office, President Trump has made 3,001 false or misleading claims, according to The Fact Checker’s database that analyzes, categorizes and tracks every suspect statement uttered by the president.
/jlne.ws/2jmn5Nn
The Questions Mueller Wants to Ask Trump About Obstruction, and What They Mean; The questions show the special counsel’s focus on obstruction of justice and touch on some surprising other areas.
Matt Apuzzo and Michael S. Schmidt – NY Times
The special counsel, Robert S. Mueller III, recently provided President Trump’s lawyers a list of questions he wants answered in an interview. The New York Times obtained the list; here are the questions, along with the context and significance of each. The questions fall into categories based on four broad subjects. They are not quoted verbatim, and some were condensed.
/jlne.ws/2jnxaJV
Trump’s Antitrust Bust; The feds failed to make their case against the AT&T-Time-Warner tie.
The Editorial Board – WSJ
You can tell a lawyer is losing a case when he offers the court an exit ramp even before a verdict. That’s how the Justice Department is trying to save its floundering antitrust case against an AT&T – Time Warner merger, and we hope federal Judge Richard Leon doesn’t fall for it.
/jlne.ws/2jqe1ad
U.S. Gives Rusal Path to Escape Sanctions; Aluminum giant’s owner EN+ Group was at risk of a delisting from LSE without Treasury reprieve
Ian Talley – WSJ
The Trump administration on Tuesday amended its Russia sanctions program, paving the way for aluminum giant United Co. Rusal to escape from the blacklist and granting the metals market a reprieve from a supply scare that rocked markets over the past month.
/jlne.ws/2KxbB6i
Former Boehner Aide Eyed for Oil Trade Group CEO
Jennifer A Dlouhy, Ari Nattter – Bloomberg
Mike Sommers now heads the American Investment Council; American Petroleum Institute seeks replacement for Jack Gerard
The American Petroleum Institute is recruiting a former top Republican congressional staffer with financial-sector expertise to lead the oil industry trade group, according to people familiar with the hiring deliberations.
/jlne.ws/2jnxWqj
Trump asks court to dismiss emoluments lawsuit against him
Katelyn Polantz, CNN
President Donald Trump has asked a federal court to dismiss a lawsuit accusing him of violating the Constitution’s Emoluments Clause related to private payments from other governments.
/jlne.ws/2KtzpYI
Rosenstein Says He Won’t Be ‘Extorted’ Amid Impeachment Threat
Chris Strohm, Billy House – Bloomberg
‘We’re going to do what’s required’ despite threats, he says; Some GOP lawmakers have drafted articles of impeachment
Deputy Attorney General Rod Rosenstein, who’s overseeing the Russia investigation, dismissed those trying to intimidate him after a group of House Republicans drafted articles of impeachment against him.
/jlne.ws/2jkiQCa
Regulation
SEC Names Raquel Fox Director of the Office of International Affairs
SEC
The Securities and Exchange Commission today announced that Raquel Fox will succeed Paul Leder as the Director of the Office of International Affairs, which advises the Commission on cross-border enforcement and regulatory matters and coordinates the SEC’s involvement with regulatory authorities outside the United States. Ms. Fox will formally assume the position in July 201
/jlne.ws/2KwwX3x
Japan’s regulators battle over more than just a banking merger; Both FSA and FTC believe they are acting in the best interests of the country
Leo Lewis – FT
In the final trading session before this year’s Golden Week national holiday, investors have a last chance to place their bets on one of Japan’s most fascinating intra-governmental punch-ups in recent memory. Two regulators, both bristling with self-belief, clashing over the fate of two regional banks in the south-western island of Kyushu.
/jlne.ws/2KuO6KR
SEC Shuts Down $85 Million Ponzi Scheme and Obtains Asset Freeze
SEC
The Securities and Exchange Commission today announced the unsealing of fraud charges against a Mississippi company and its principal who allegedly bilked at least 150 investors in an $85 million Ponzi scheme. The defendants agreed to permanent injunctions, an asset freeze, and expedited discovery.
/jlne.ws/2KweJPB
Proposed Rule Change Relating to Statutory Disqualification Application Fees
FINRA
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend Section 12 to Schedule A of the FINRA By-Laws, regarding statutory disqualification application fees.
/jlne.ws/2KtBwf6
FINRA’s Senior Helpline: Addressing the Unique Needs of Senior Investors
FINRA
“Can we make a difference? Can this actually work?” Those are the questions FINRA’s Yvette Panetta and her team asked themselves when they launched the Securities Helpline for Seniors.
/jlne.ws/2KxvycS
Caymans and Bermuda face new corporate transparency laws; UK approves plans for public registers about company owners in overseas territories
Henry Mance and Madison Marriage in London – FT
British overseas territories, including the Cayman Islands and Bermuda, will be forced to lift the veil of secrecy over the ownership of companies based there after the UK approved radical new measures to tackle money-laundering and corruption.
/jlne.ws/2FzMyvB
Goldman to pay $110m over foreign exchange trades; Bank accused of putting clients at a disadvantage in carrying out currency orders
Ben McLannahan in New York – Ft
Goldman Sachs has been ordered by two US regulators to pay $110m for “unsafe and unsound” practices in its foreign-exchange trading business.
/jlne.ws/2FxyKSl
SEC Enforcement Division Issues FAQs for Share Class Selection Disclosure Initiative
SEC
The Securities and Exchange Commission’s Division of Enforcement today issued answers to frequently asked questions (FAQs) on the Share Class Selection Disclosure Initiative, providing additional information about adviser eligibility, disgorgement, and the distribution of funds to clients.
/jlne.ws/2FA9PO4
ESMA launches bond liquidity system under MiFID II
ESMA
The European Securities and Markets Authority (ESMA) has published today its first liquidity assessment for bonds subject to the pre- and post-trade requirements of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
/jlne.ws/2FA7en2
ASIC welcomes AFCA authorisation
ASIC
ASIC welcomes the authorisation by the Minister for Revenue and Financial Services of the operator of the new single external dispute resolution (EDR) scheme for consumer and small business complaints: the Australian Financial Complaints Authority (AFCA).
/jlne.ws/2FyVoKb
Investing and Trading
Facebook Plans a Dating Feature, Sending Match, IAC Plunging
Gerrit De Vynck, Sarah Frier – Bloomberg
Dating app owner Match Group falls most in more than two years; Facebook announcement comes after outcry over data privacy
Facebook Inc. announced it’s rolling out a new dating feature, sending shares in matchmaking app company Match Group Inc. and its owner IAC/InterActiveCorp. plunging.
/jlne.ws/2Kx9xLA
Facebook to Launch Opt-In Dating Feature; CEO says the feature, aimed at 200 million ‘single’ users, would be designed ‘for building long-term relationships, not just hookups’
Deepa Seetharaman and Georgia Wells – WSJ
Facebook Inc. FB 1.08% plans to launch a dating feature on its platform, in an unexpected push into a new business even as the social-media giant battles questions about how it handles users’ data and privacy.
/jlne.ws/2KtZRkV
ADM profit rises on higher soy processing margins
P.J. Huffstutter – Reuters
Archer Daniels Midland Co (ADM.N) on Tuesday reported a 16 percent increase in quarterly profit, as the U.S. grains merchant highlighted higher margins for and record volumes of soybean processing in North and South America.
/jlne.ws/2jnxOHl
How to become an algo trader
Dan Butcher – eFinancialCareers.com
Are you a crack programmer without any financial services experience who wants to become an algorithmic trader? While making that career transition may seem daunting, it actually might not be as difficult as you think.
/jlne.ws/2jppBCG
Another Weird Deal Upsets CDS Traders; Also singing CEOs, banks and guns, bacoin and air-cooled Porsches.
Matt Levine – Bloomberg
Orphan CDS. Man, what a great time it is to be alive, if you like counterintuitive credit-default-swap structuring. Here’s the latest, from Bloomberg’s Sridhar Natarajan:
/jlne.ws/2KwgiwX
Sugar Low: Commodity Plummets on Surplus; The future has a bitter edge
David Hodari – WSJ
For sugar, there’s no sweet ending in sight after a long period of declining prices. And analysts forecast another surplus next season, which begins in October, suggesting a recovery in sugar prices is a long way off.
/jlne.ws/2FzVKjL
It’s Not 2007, and Junk Bonds Can Still Be Dancing; Spreads are tight, but credit markets are functioning as they should.
Marcus Ashworth – Bloomberg
This year’s Milken Institute conference, a Davos-like gathering of the world’s most eminent financial minds but in the sunny climes of Beverly Hills, has one consistent theme: valuations can’t keep rising so the music must be about to stop. References to 2007 or even 1994 abound.
/jlne.ws/2FA5cDF
Bunge plans filing to explore IPO for Brazil sugarcane business
Reuters Staff
Global agricultural trader Bunge Ltd (BG.N) expects to make a filing in Brazil as soon as this month to explore a public offering for its Brazilian sugarcane milling business, Chief Executive Soren Schroder said on Wednesday.
/goo.gl/7cNjYd
Institutions
Why Central Banks’ Dominion Over Markets Is Here to Stay
Policy makers’ meticulous communication has held sway over markets over the past decade—and shows little sign of fading
By Jon Sindreu, WSJ.com
Ten-year Treasury yields’ rise above 3% for the first time in four years last week confirmed the end of a decade of unprecedented monetary stimulus. But central banks’ vast power over markets may not be over.
/goo.gl/UbTcG8
Wall Street Job Exodus Grows as AllianceBernstein Move Leaks
Noah Buhayar – Bloomberg
More than 1,000 staff may go to Nashville, local report says; It’s part of a trend as firms in New York look to lower costs
New York’s hold on finance and investing jobs keeps slipping. On Tuesday, word began leaking in both Manhattan and Nashville, Tennessee, that AllianceBernstein Holding LP plans to relocate its headquarters from the city known for Broadway shows to one more famous for country music. The firm’s senior leaders including Chief Executive Officer Seth Bernstein will move, according to the Wall Street Journal. And they may be joined by more than 1,000 staff, the Nashville Post reported.
/jlne.ws/2Kwi8hw
Legendary Investment Banker Richard Jenrette Left These 24 Rules for Success
Katia Porzecanski – Bloomberg
Richard Jenrette Photographer: Nancy R. Schiff/Hulton Archive via Getty Images
Richard Jenrette, who co-founded the investment bank Donaldson, Lufkin & Jenrette in 1959, spent four decades on Wall Street. When he died last week from complications of cancer at the age of 89, he left behind on his desk 24 rules to succeed — in finance, and in life. The list, titled “What I Learned,” was shared Sunday at an intimate memorial service for family and local friends in Charleston, South Carolina. Here’s what it said:
/jlne.ws/2Kt4g7C
JPMorgan Buys Building in Washington for Regional Headquarters
Michael J Moore, Daniel Taub – Bloomberg
JPMorgan Chase & Co., which is constructing a new corporate headquarters in New York, purchased a building in central Washington, D.C., to serve as its base for that region.
/jlne.ws/2jmhua3
Morgan Stanley names first woman Emea chief
Laura Noonan in Charlotte – FT
Morgan Stanley’s Clare Woodman is set to become the first woman to lead a major investment bank in the City after the US lender named her as its new head of Europe, the Middle East and Africa.
/jlne.ws/2jo1ILS
Rokos Overtakes Howard as Billionaire’s Hedge Fund Loses Assets
Nishant Kumar – Bloomberg
Brevan Howard’s AUM have dropped more than 75% from their peak; Investors are pulling money from firms to bet on startups
The protege has overtaken the master. Chris Rokos’s investment firm manages more money than Brevan Howard Asset Management for the first time as clients continue to quit billionaire Alan Howard’s hedge fund company.
/jlne.ws/2FySS6H
Regions
Hong Kong’s Thriving Broker Bazaar Hit After Regulators Step In
Benjamin Robertson – Bloomberg
Chinese acquirers have bought about 20% of H.K.’s brokers; SFC has tightened scrutiny of the practice amid concerns
Chinese firms splashed out on purchases of Hong Kong brokerages in recent years to get a foothold in the former British colony. That wave is ebbing after regulators tightened scrutiny of the practice.
/jlne.ws/2jlvela
Banks Seeking Hong Kong Deposits Push Rates as High as 3%
Alfred Liu, Emma Rai – Bloomberg
StanChart is among lenders competing in $292 billion business; Banks are securing funding in anticipation of loan growth
Competition in Hong Kong’s $292 billion time-deposit business is intensifying as a surge in short-term borrowing costs forces banks to seek other avenues of funding.
/jlne.ws/2Kt76JO
EU Warns of More U.S. Uncertainty After Tariff Delay
Andrew Mayeda – Bloomberg
Trump gives another 30 days for EU, Canada permanent relief; Allies want unconditional reprieve from American steel duties
The European Union and businesses warned of more market uncertainty following the Trump administration’s decision to delay U.S. steel and aluminum tariffs for the next month.
/jlne.ws/2Kuiw03
Eastern European Currencies Wake Up to Battle Dollar Gains
Adrian Krajewski, Marton Eder – Bloomberg
Poland’s zloty leads rebound after May Day’s steep declines; Investor focus turns to European Union budget proposal: ING
Eastern European currencies recovered some of their losses inflicted in May Day’s thin-liquidity driven sell-off, but still face headwinds.
/jlne.ws/2FBviGb
Singapore Has Just Become Asia’s Best-Performing Stock Market
Abhishek Vishnoi, Nguyen Kieu Giang – Bloomberg
2018 Scorecard: Straits Times Index up 6.2%, VN Index up 4.6%; Investors remain skeptical on whether the rally can continue
There’s been lots of competition for the title of Asia’s best-performing stock market this year. Among the major equity indexes in the region, eight have climbed to records in the first four months alone.
/jlne.ws/2FAT3hv
Hong Kong Takes Steps to Ensure Liquidity When MSCI Adds China
Benjamin Robertson – Bloomberg
Banks asked to stockpile offshore yuan ahead of MSCI rebalance; Plans come after stock connect quota raised to avoid logjams
Hong Kong regulators are taking measures to ensure there will be enough offshore yuan available to investors when Chinese shares are added to MSCI Inc. benchmarks on June 1.
/jlne.ws/2FAZOjA
Emerging Markets Are Under Threat
By Chelsey Dulaney, WSJ
The Federal Reserve’s policy-tightening plans are finally catching up with emerging markets.
The currencies, stocks and bonds of nations from Turkey to South Africa have fallen in recent weeks, pressured by a sudden resurgence in the U.S. dollar, rising expectations for U.S. interest-rate increases and uncertainty over the path for global growth.
/goo.gl/D3aDMR
The Trump Effect May Finally Be Weighing on China’s Exports
Bloomberg News
China’s exporters may be finding it harder to avoid the effect of trade disputes with the U.S., according to the freshest manufacturing purchasing managers index data.
While the official manufacturing gauge and a private counterpart both held up last month, their sub-indexes tracking new export orders both declined. The Caixin Media Co. and Markit Economics Ltd. reading for booked shipments dropped to the weakest level since June 2016.
/goo.gl/yrYToi
Brexit
Founder of pro-Brexit think?tank has link with Russian intelligence, says MP; Bob Seely uses parliamentary privilege to claim billionaire Christopher Chandler was ‘object of interest’ to French intelligence
Luke Harding – The Guardian
A Conservative MP has claimed that a billionaire who founded an influential pro-Brexit thinktank has “a link with Russian intelligence”.
/jlne.ws/2jqcEs5
Miscellaneous
Introducing Behind The Money, a new FT audio show; New podcast takes you inside the biggest business and financial stories of the moment
Aimee Keane – FT
Behind The Money is a new show from the Financial Times that extends the reach of the FT’s corporate and financial coverage. It is hosted by me, Aimee Keane, a multimedia journalist and a producer on Alphachat, Tech Tonic and other FT podcasts.
/jlne.ws/2KuNTax
Drinking frequency increases with income; About 70% of people in managerial and professional jobs have drunk alcohol in past week
Delphine Strauss in London – FT
Professionals and people on higher incomes drink alcohol more frequently than those in routine and manual jobs in the UK, according to figures that have been seized upon by both advocates and critics of Scotland’s new minimum unit price for alcohol.
/jlne.ws/2jkhvLE
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