First Read
Hits & Takes
By JLN Staff
On Monday, MarketsWiki Education World of Opportunity in Chicago begins with the first session at 3 PM at the Stuart School of Business at Illinois Tech. Registration is still open.~JJL
Our second video from the New York series of MarketsWiki Education World of Opportunity is out, featuring Kevin McPartland, managing director, market structure and technology with Greenwich Associates. This is a not to miss video of why staying in tune with market structure is really important to your career.~JJL
Deutsche Boerse reported its second quarter earnings, up 10 percent to EUR687 million. Among its exchange groups, Eurex led net revenues with EUR239 million, up from EUR212 million a year earlier. Second was EEX, its power, gas and carbon and commodities exchange, which posted EUR61.1 million for the quarter, up from EUR51.7 million.~JK
Bravo to EuroCCP for handing over its CEO spot from one woman to another. Cecile Nagel is the new CEO beginning in September, replacing Diana Chan.~JJL
Yesterday was the 23rd anniversary of my racing out of the office at 3:15 PM after receiving a call from my wife that she was ready to give birth to our first child. Timothy James Lothian was breach and so he was delivered by C section and his first act in the world was to moon the doctor as he came out.~JJL
This story from the New York Post called “New diet claims you can lose weight eating only steak and burgers” contains the sentence: “Many carnivores are also passionate about cryptocurrency, and see a common thread between their unorthodox diet and an aversion to traditional banking.” No, not The Onion.~SR
A new VIX suit was filed on Monday. I guess it’s time for another round of the Lethal Weapon VIX meme. (You need to know your Danny Glover cinema to get this one.) ~SD
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Margin rules pose “legal, operational” challenges – CloudMargin
Luke Jeffs – FOW
More trading firms must over the coming years tackle the legal and operational challenges posed by the extension of margin rules designed to protect firms from the demise of a trading counterparty, a new report has warned. Global regulators are extending each year for the next three years the scope of initial margin (IM) rules for non-cleared swaps trading firms so that all but the smallest will be bound by the rules by 2020.
This poses many legal and operational challenges for firms, according to a new paper by technology firm CloudMargin.
/goo.gl/5mVu7U
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MWE World of Opportunity – Market Structure: Why You Should Care
JohnLothianNews.com
“I’m not a particularly good investor. I don’t know if my own portfolio is set up the way it should be. But I can certainly explain to you exactly how an equity trade comes from a pension fund and makes its way all the way down through the market and settles and all the other pipes and plumbing that come with it.”
In this video from MarketsWiki Education’s World of Opportunity event in New York, Kevin McPartland, managing director, market structure and technology with Greenwich Associates, takes a step back from the minutiae of markets to talk about the big structural picture through the lens of a few key themes.
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Women Need To Take More Risks To Become Leaders
Roger Trapp – Forbes
The publication earlier this month of the latest report from Cranfield School of Management on the numbers of women on the boards of Britain’s biggest quoted companies makes dismal, if predictable, reading. The study found that, while the percentage of female non-executive directors in the FTSE 100 was at an all-time high of 35.4%, female executive positions had flat-lined for a fourth consecutive year at 9.7%. Meanwhile, at the FTSE 250 the number of female executive directorships dropped from 38 to 30 between October 2017 and June 2018. Female directors were on average nearly two years younger than their male counterparts, but served for less time and had an average tenure of 3.7 years compared to 5.4 years for men.
/jlne.ws/2LrjEFy
***** We need more women leaders.~JJL
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Face of Finance May Soon Be More Female, at Least in China
Natalie Obiko Pearson – Bloomberg
More women than men in China are taking the notoriously difficult Chartered Financial Analyst exams, an indication that a gender shift may be underway — at least in the world’s second-largest economy.
In the latest CFA exam in June, 52 percent of test takers in China were women, compared with just 29 percent in the U.S.
/bloom.bg/2uODBMw
**** This is a 2 X event.~JJL
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A New Exchange In Town: Biva Launches In Mexico City; Bolsa Institucional de Valores (BIVA) becomes the second exchange to operate in Mexico.
Mark Driscoll, AVP, Market Technology, Americas, Nasdaq
Today is a symbolic day in Mexico as the Bolsa Institucional de Valores (BIVA) starts trading, and becomes the second exchange to operate in Mexico. We sat down with María Ariza, BIVA’s CEO, to discuss their ambitions for the new venue.
/jlne.ws/2Lp501Q
***** Larga vida a la competencia!
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Wednesday’s Top Three
Our top three stories could be read as all about power – power to compete, grabbing power and the power of the EFPs. Topping our most read stories was the FT’s Bloomberg snatches trade data partner from rival Reuters. Second was Quartz’s article on identifying those looking to move up the ladder, with Giving advice can be a sign of power hungry colleagues. Gotta love the classic picture that goes with the story. Third was the CCN piece Institutional Investors Swap Bitcoin Futures for Physical BTC in Wall Street First. All the power you need is right here.
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MarketsWiki Stats
130,033,792 pages viewed; 23,212 pages; 214,364 edits
MarketsWiki Statistics
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Lead Stories
How Traders Have Changed Since the Massive Selloff Earlier This Year
Elena Popina and Lu Wang – Bloomberg
S&P 500 is less than 1% away from its all-time high in January; Concerns from slowing growth to trade war weigh on sentiment
One by one, the milestones are falling, as stocks claw back from their nightmare winter. One thing that isn’t recovering as fast: the euphoria that foreshadowed the horrors of February and March.
/jlne.ws/2Lo7hdA
NYSE Completes Historic First Half of 2018
NYSE
Holds #1 spot among global exchanges for capital raising and ETFs; Expands trading to include all U.S. securities; Successfully executes launch of the first direct listing
The New York Stock Exchange (NYSE), a wholly owned subsidiary of Intercontinental Exchange (NYSE:ICE), extended its leadership as the premier venue for global capital raising, and the exchange of choice for issuers. The NYSE marked a number of milestones in the first half of 2018, positioning itself for continued growth, including:
/jlne.ws/2v8kEnd
Singapore and Indian exchanges resume talks after derivatives spat
Stefania Palma in Singapore – FT
Singapore’s bourse and India’s National Stock Exchange have resumed talks, according to statements issued by both exchanges on Wednesday, in what was the first sign of realignment following a derivatives dispute that unfolded earlier this year.
/jlne.ws/2LlZGvY
From Exchanges Old To Exchanges New: Chicago Mercantile Exchange and Alt 5 Sigma
Steve Kanaval – Equities.com
As digital currencies move to the center of new asset discovery for investors, many of these nascent management teams seek traction with similar goals to those of the exchanges in the 1980s. One important thing I learned working the derivative trading pits in Chicago in the 70s and 80s as a member of the Chicago Mercantile Exchange (CME[NGS] – $169.52 Trade ) is that experience, skill and voracity of the management team will always be a critical factor in the eventual success or failure of any venture.
/jlne.ws/2Ls4EYg
FCA approves ION-Fidessa deal; The UK regulator has determined to approve the proposed acquisition of Fidessa by ION Bidco.
Finance Magnates
Approximately three months after Fidessa Group plc (LON:FDSA), a provider of trading, investment and information solutions to the financial services sector, decided to recommend the offer made by ION Bidco, an indirect wholly owned subsidiary of ION Investment Group Limited, the deal has secured the nod of approval of the UK Financial Conduct Authority.
/jlne.ws/2v8OHLl
Disrupters could be good for markets — but I’m playing safe; Who knows where the US trade war threat could lead us?
John Redwood – FT
The FT fund has benefited in recent weeks from its relatively cautious stance. The 47 per cent weighting in short-term bonds and cash is largely immune to the fears gripping share markets.
/jlne.ws/2Lme9rX
LIBOR Fallbacks
Chris Barnes – Clarus Financial Technology Blog
ISDA have launched a consultation for a fallback mechanism in the event that a LIBOR rate ceases to be published. This would mean that any contract referencing the LIBOR rate and governed by the ISDA 2006 Definitions would use these proposed “fallback” rates.
/goo.gl/nry7rJ
Charting a Course for a Successful XVA Program
Satyam Kancharla – Numerix
XVA, in the simplest terms, is about capturing the costs of running an OTC derivatives
operation. Doing so, however, is far from simple. As valuation adjustments represent a real
cost and are having increasingly onerous impacts on balance sheets, they must be factored in
everywhere OTC derivative pricing and valuations live within an organization, and should not
be limited to the XVA desk, risk management, or accounting operation.
/goo.gl/bNQYNx
Is there more to Adam Smith than free markets?; He championed laissez-faire economics but also recognised the need for strong social institutions
John Kay – FT
No one is more widely quoted by people who have not read his work. Even those who have never visited a library, far less opened a copy of The Wealth of Nations, know that Adam Smith extolled the public benefit of individual selfishness and the necessity of maximally free markets, excoriating the malign impact of government intervention in economic matters. They are familiar with his metaphor of “the invisible hand” and know that it is “not from benevolence” that the baker provides our daily bread. Smith provided inspiration for Margaret Thatcher and Ronald Reagan, and occupies a place as an icon of economic liberalism. When Gordon Brown invited Alan Greenspan to Kirkcaldy, where Smith was born and Brown educated, Greenspan could suggest that the something in the air was not the smell of linoleum — which hung over that town for a century — but a contagious miasma of economic genius.
/jlne.ws/2Lp84em
‘The next frontier for us’: Inside State Street’s multi billion dollar bet on financial data
Frank Chaparro – Business Insider
“The front-office has been the next frontier for us.” Lou Maiuri, who heads up businesses spanning research, trading, tech and innovation at State Street, is talking about the trading floors across Wall Street that execute trades on behalf of investors. For State Street, which is best known for its sleepy custody business, it’s a new focus, one which has been taken to the next level with the recent deal to buy financial data firm Charles River Development for $2.6 billion.
/jlne.ws/2veYZtN
IOSCO To Launch 2018 World Investor Week To Promote Investor Education
Mondovisione
The International Organization of Securities Commissions (IOSCO) is preparing to launch its second annual World Investor Week (WIW) from 1 through 7 October 2018, following the success of last year´s event in promoting investor education and protection and highlighting the various initiatives of securities regulators in those two areas around the globe.
/jlne.ws/2v8ANZE
Exchanges, OTC and Clearing
Senior LSE markets head appointed CEO at EuroCCP; Cécile Nagel, head of LSE markets global product development and LSE exchange traded products has been named as EuroCCP’s new CEO.
Hayley McDowell – The Trade
EuroCCP has appointed a senior markets business head at the London Stock Exchange (LSE) as its new chief executive officer.
/jlne.ws/2LnFOZs
EuroCCP Appoints Cécile Nagel As CEO
MondoVisione
EuroCCP, Europe’s leading equities clearinghouse, today announces the appointment of Cécile Nagel as Chief Executive Officer. Ms Nagel joins from the London Stock Exchange Group (LSEG) where she was most recently Head of LSE Markets Global Product Development and LSE Exchange Traded Products.
/jlne.ws/2v41Y89
CMC Markets posts profit lift ahead of trading crackdown
Hannah Murphy in London – FT
CMC Markets, the online trading platform, said earnings in its latest quarter were “moderately above” the same period last year as it lured wealthier, experienced traders to its site ahead of a regulatory crackdown on the products it can offer to more amateur punters.
/jlne.ws/2LmFquh
Data and technology businesses drive 17% rise in Nasdaq profits
Nicole Bullock – FT
Nasdaq, the exchanges operator, reported a 17 per cent increase in adjusted quarterly earnings, as demand for its trading technology and data services surged.
/jlne.ws/2LpjvT3
New chairman of Taiwan’s TAIFEX takes office
Sophia Yang, Taiwan News
The Taiwan Futures Exchange (TAIFEX) welcomed former Minister of Finance Sheu Yu-jer as incoming chairman on Monday.
/jlne.ws/2Lq9Vj6
“Data analytics may change the perspective on risk scenarios”
Eurex
From the return of volatility and non-financial risks to the influence of artificial intelligence and data analytics: we spoke to Thomas Laux, Member of the Executive Board and Chief Risk Officer at Eurex Clearing, about current and future topics in risk management.
/jlne.ws/2v6fmbO
Q2 / 2018: Deutsche Börse AG with further high growth
Deutsche Börse AG
Net revenues up 10 percent to EUR 687 million in Q2 / 2018 / Earnings per share (adjusted) in Q2 / 2018 up 14 percent on the previous year / In the first half of 2018, net revenues increased to EUR 1.4 billion (+11 percent) ) / The adjusted consolidated profit for the period of EUR 533 million (+15 percent) in H1 / 2018 / result for the first half of 2018 was thus fully in line with the forecast
/jlne.ws/2v9CN3W
Fintech
How ‘too-big-to-fail’ banking giants limit ways fintech firms can handle your money
Sam Taussig – MarketWatch
Innovative fintech companies let us refinance a loan from home, trade stocks in line at the pharmacy, and buy Girl Scout cookies with a mobile wallet, curbside.
Convenience isn’t the only advantage. Financial technology companies (fintechs) are changing financial behaviors, improving access to credit, increasing savings and investment returns, and providing customized products to meet evolving financial needs. The task of protecting customers and the economy from harm falls to financial regulators who may struggle to differentiate each new business model and the respective risks.
/on.mktw.net/2JXIVlh
What’s an ancient olives broker got to do with artificial intelligence?
MarketBrains
Founded in 2008 in the wake of the Lehman collapse, The Thalesians have progressed through the bleeding edge of quantitative finance, settling recently as an artificial intelligence company specializing in the digital economy, consulting and education.
It was created by quants who saw the unwinding of the financial system from the vantage point of Lehman’s collapse in London: Saeed Amen, who also founded consultancy Cuemacro and is a regular speaker in the financial press, as well as the author of Trading Thalesians; Matthew Dixon, assistant professor of statistics and finance at the Illinois Institute of Technology; and Paul Bilokon, a senior quantitative consultant at BNP Paribas and visiting lecturer at Imperial College.
bit.ly/2uQify5
Rival Systems further expands into equities market with CTA and UTP feed handlers
Rival Systems
Rival Systems (Rival), an award-winning provider of trading and risk management software, today announced the rollout of CTA and UTP feed handlers within its Rival Trader platform. Native support for these equity feeds will provide Rival clients with easy access to equity data.
(NO LINK)
FinTech-Investor Sharks Bite on New Robo
Steve Garmhausen – Barron’s
Three big RIA firms have thrown their backing behind a new, multi-strategy robo-advisor known as Investment POD.
Investment POD was one of three finalists in a startup competition sponsored by
ScratchWorks, a fintech accelerator. The finalists made their pitches to a high-profile group of ScratchWorks-affiliated advisors at Barron’s Top Investment Advisors Summit in March.
bit.ly/2LPT8lo
Maven Wave Achieves the Enterprise Collaboration Partner Specialization in the Google Cloud Partner Specialization Program; Google Cloud Recognizes Maven Wave’s Technical Proficiency and Proven Success In Enterprise Collaboration
Sys.com
Maven Wave today announced that it has achieved the Enterprise Collaboration Partner Specialization in the Google Cloud Partner Specialization Program. By earning the Partner Specialization, Maven Wave has proven its expertise and success in building customer solutions in the Enterprise Collaboration field using Google Cloud Platform technology.
/jlne.ws/2v6JnZ3
Cryptocurrencies
Steve Bannon is creating a ‘deplorables’ cryptocurrency to boost global populism
Gian Volpicelli – WIRED
Bannon will launch a token to power the global populist movement, according to people with knowledge of his plans
/goo.gl/MwFS6M
Bitcoin: No-Fee Cryptocurrency Trading App Takes on Robinhood
Jen Wieczner – Fortune
More competition is coming to the commission-free cryptocurrency trading market. Voyager, a startup backed by an Uber co-founder as well as an early investor in the ride-hailing company, revealed plans Wednesday to offer no-fee trades of at least 15 different cryptocurrencies, including Bitcoin, Ethereum and others.
/for.tn/2LTON0V
Coinbase Finds No Insider Trading of Bitcoin Cash; Popularzier: Brian Armstrong founded Coinbase to make cryptocurrency accessible to the masses; he calls the online exchange “Gmail for digital currency.”
Jeff John Roberts – Fortune
Coinbase, the biggest U.S. cryptocurrency exchange, launched an inquiry last December into whether its employees engaged in improper trading related to the digital currency known as Bitcoin Cash. Now, Fortune has learned, the company has wrapped up the investigation and concluded no wrongdoing took place.
/jlne.ws/2Lrh42k
Coinbase launches gift cards so you can spend your cryptocurrency at the mall
Matthew Beedham – The Next Web
Coinbase is putting a new spin on the cryptocurrency wallet and turning it into a gift card – well, sort of.
The popular exchange desk has partnered with digital gift card provider WeGift to offer a direct route for customers to convert the funds in their wallets into currency for the high street.
bit.ly/2mMXaAi
USAVE Blockchain partners with GMEX Group to build secure digital exchange for physical gold
Hedgeweek
USAVE Blockchain (USAVE) is to partner with GMEX Group (GMEX), a provider of exchange, post-trade and digital technology solutions, to build the digital Monaco Gold Spot Exchange (MGX) which will enable secure trading of physical eco-responsible gold.
/goo.gl/7Knxje
Decentralized Exchange Waves Scored a $6 Million Debut. Then It Got Hacked
Leigh Cuen – Coindesk
When a decentralized cryptocurrency exchange supports fiat tokens and courts banks, yet makes customer identification optional, all bets are off.
/jlne.ws/2LqBrwP
Politics
Judge lets emoluments lawsuit against Trump move ahead
Lorraine Woellert and Stephanie Murray – Politico
A lawsuit arguing President Donald Trump is violating the Constitution by benefiting from business with foreign governments can proceed, a judge for the U.S. District Court in Maryland ruled Wednesday. The president’s lawyers had sought to dismiss the case, but the motion was denied.
/jlne.ws/2LpNhHD
Trump, E.U. announce deal to avert escalation of trade tensions
Damian Paletta and Jeanne Whalen – Washington Post
The United States and the European Union stepped back from the brink of an escalating trade war Wednesday, with the unexpected announcement of a process to ease tensions and avoid further tariffs.
/jlne.ws/2LtehWM
How the Trump Tax Cut Is Helping to Push the Federal Deficit to $1 Trillion
Jim Tankersley – NY Times
The amount of corporate taxes collected by the federal government has plunged to historically low levels in the first six months of the year, pushing up the federal budget deficit much faster than economists had predicted.
/jlne.ws/2Lni73r
Trump Has No Idea What His Tariffs Have Unleashed for Farmers; His trade war will hurt business at a time when the rural population is aging, and it will probably hollow out farm communities.
Robert Leonard – Mr. Leonard is the news director for the radio stations KNIA and KRLS.
Today President Trump is visiting Dubuque, Iowa, where every year at harvest time, millions of tons of grain come via rail and truck to be loaded onto barges on the Mississippi River and shipped to Mexico, China and much of the rest of the world. Harvest puts coin into the hands of farmers, and they and their communities — indeed all of America — profit. Not this year.
/jlne.ws/2LrLhP5
U.S., Europeans Agree to Iron Out Trade Differences; Trump, Juncker agree to hold off on further tariffs as they work to reduce trade barriers
Valentina Pop, Vivian Salama and Bob Davis – WSJ
President Donald Trump and European Commission President Jean-Claude Juncker turned down the heat on a trade dispute between two of the world’s largest economic powers, suggesting Wednesday they would hold off on further tariffs while they talk through their differences.
/jlne.ws/2LmG62N
Regulation
MiFID II spurs EUR20 million additional costs at Deutsche Asset Management; Deutsche Bank’s CFO says external research costs related to MiFID II reached EUR20 million in the first half of the year.
MiFID II spurs EUR20 million additional costs at Deutsche Asset Management; Deutsche Bank’s CFO says external research costs related to MiFID II reached EUR20 million in the first half of the year.
Hayley McDowell – The Trade
Deutsche Bank’s asset management business incurred an additional EUR20 million in MiFID II-related costs in the first half of this year, according to the bank’s financial chief.
/jlne.ws/2LnjCi5
Ex-Deutsche Bank Traders Charged in Expanding Spoofing Probe
Chris Dolmetsch – Bloomberg
James Vorley, Cedric Chanu indicted in Chicago federal court; Charges indicate federal probe into practice still widening
Two former Deutsche Bank AG employees were charged with fraudulent and manipulative trading involving precious metals futures contracts through a practice known as spoofing as a federal probe on illegal market practices continues to widen.
/jlne.ws/2LnRLyd
Bitcoin Ponzi Schemer Fined $1.9M, Disappears From Longmont; Where is Dillon M. Dean? He was fined for defrauding 120 investors in a Bitcoin scheme, but never responded or showed up in federal court.
Jean Lotus, Boulder Patch
A Longmont man who ran an online Bitcoin investment scheme that allegedly bilked up to 600 investors of $1.2 million was ordered July 9 in federal court to pay more than $1.9 million in penalties and restitution. But Dillon Dean, 26, has disappeared.
/jlne.ws/2Lm91UJ
ASIC obtains orders against investment scheme operator Daniel Ali
ASIC
ASIC has obtained final orders in the Supreme Court of Queensland against Daniel Farook Ali, former director of DanFX Trade Pty Ltd (DanFX).
/jlne.ws/2v9kc8b
Final Production Test for TRACE Trade Reporting FIX Tag Changes
FINRA
On Monday, August 20, 2018, FINRA will require a change to all FIX trade reporting related to the processing of execution time during Daylight Savings Time (DST) changes. FIX Tag 60 (TransactTime) will be used to indicate the Execution Time for all products and Tag 22007 (ExecutionTime) will be retired from processing use.
/jlne.ws/2v93RR1
July 2018 Board Update
FINRA
FINRA President and CEO Robert Cook, Chairman Bill Heyman, Board members and FINRA staff provide updates on the July 2018 FINRA Board of Governors meeting.
/jlne.ws/2v2FBje
Testimony of Chairman J. Christopher Giancarlo before the House Committee on Agriculture, Washington, D.C.
CFTC
Thank you, Chairman Conaway, Ranking Member Peterson, and members of the Committee. I appreciate the opportunity to appear before you today to discuss my priorities and the work of the Agency.
/jlne.ws/2vaMnDY
Who’s afraid of regulation?
Thomas Hale – FT
The market for bank capital – already, it’s fair to say, a pretty odd place – has played host to a particularly unusual development over the past few months.
/jlne.ws/2v45XS9
Investing and Trading
How the World’s Governments Are Approaching Earth-Friendly Investing
Nathaniel Bullard and Daniel Shurey – Bloomberg
Green bonds are a fast-growing financial instrument, with annual issuances of less than a billion dollars a decade ago having grown to more than $170 billion last year. They’re increasingly popular as a way to fund environmentally friendly infrastructure, energy efficiency and clean energy. As the market grows, an intriguing split is emerging between green bond markets: Asia gets carrots, and Europe gets sticks.
/bloom.bg/2LOeqjq
What a difference a day makes
Matt Roberts-Sklar – BOE Bank Underground Blog
Often when analysing financial markets, we want to know the statistical distribution of some financial market prices, yields or returns. But the ‘true’ distribution is unknown and unknowable. So we estimate the distribution, based on what we’ve observed in the past. In financial markets, adding one data point can make a huge difference. Sharp moves in Italian bond yields in May 2018 are case in point – in this blog I show how a single day’s trading drastically alters the estimated distribution of returns. This is important to keep in mind when modelling financial market returns, e.g. for risk management purposes or financial stability monitoring.
/goo.gl/9U4qi6
ExxonMobil’s Darren Woods vows engagement and openness; Oil group’s central message has not changed but how it communicates has, says chief
Ed Crooks – FT
“My personal style is I think a constructive conversation is good, it’s healthy,” says Darren Woods. “I don’t mind being challenged on what we’re doing and why we’re doing it.” It is hard to imagine either of Mr Woods’ two predecessors as chief executive of ExxonMobil, Lee Raymond and Rex Tillerson, enthusing as wholeheartedly about the importance of “engagement, discussion, debates”.
/jlne.ws/2LnUNCB
Banker to the Queen Hunts U.K. Startups for Risk-Hungry Clients
Edward Robinson – Bloomberg
Coutts, RBS’s 326-year-old private bank, uses investment club; Wealthy investors want to meet entrepreneurs, not just invest
When British entrepreneur James Dean decided to raise money for his tech startup this year, he did what company founders usually do — he talked to venture capitalists. Yet Dean disliked what he heard, so he sought an alternative. He didn’t choose equity crowd-funding or peer-to-peer loans. Instead, Dean turned to Coutts & Co.
/jlne.ws/2LpV1sT
Institutions
Macquaire Group names head of asset management as first female CEO; Shemara Wikramanayake to succeed Nicholas Moore as Macquaire chief executive and managing director at end of November.
John Brazier – The Trade
Macquaire Group has announced Shemara Wikramanayake the group’s first female chief executive, following the confirmation that current chief executive Nicholas Moore is set to retire.
/jlne.ws/2LqEpBt
Vanguard Sent Erroneous Text Messages to Some 401(k) Customers; Messages said loans had been processed against clients’ retirement savings
Sarah Krouse and Katy Stech Ferek – WSJ
Money management giant Vanguard Group sent some of its 401(k) customers erroneous text messages Tuesday evening saying that the firm processed loans against their retirement savings.
/jlne.ws/2Lrv786
Quant hedge funds lose their allure as performance sags; Inflows into computer-powered quant funds are running at their slowest pace since 2009
Robin Wigglesworth in New York and Lindsay Fortado in London – FT
Investor inflows to computer-powered “quantitative” hedge funds have halved this year to the most sluggish pace since 2009, after a spate of poor performance from many of the industry’s biggest players.
/jlne.ws/2LsyJqw
Banking’s Most Powerful Club Just Got a Shy New Member
Emily Cadman and Matthew Burgess- Bloomberg
Shemara Wikramanayake replaces retiring Nicholas Moore Nov. 30; Company lifer turned asset management arm into profit machine
The little-known Shemara Wikramanayake has just been catapulted into the ranks of the most powerful women in the global financial industry.
/jlne.ws/2LswXpm
Nomura net profits tumble 91% on slump in fixed income and equities; Japanese brokerage suffers worst quarter since 2016 as trade frictions take toll
Leo Lewis and Kana Inagaki in Tokyo – FT
Nomura Holdings suffered its worst quarter since 2016 as trade war jitters turned profit into loss at its flagship wholesale division and Japan’s biggest investment bank failed to match the recent strong results of its Wall Street rivals.
/jlne.ws/2v6EFKR
Regions
Biggest Nordic Bank Warns Election Mess Could Sink Swedish Krona
Ellen Milligan – Bloomberg
Nordea sees krona sliding to about 10.5 per euro ahead of vote; Nationalist could emerge as biggest party in general election
The normally stable affair of Swedish politics is getting interesting for the currency markets.
/jlne.ws/2LrrQFQ
Why even a tweak from the BoJ can shake global markets; Speculation the central bank may scale back stimulus programme has investors on edge
Save to myFT
Leo Lewis in Tokyo, Kate Allen in London and Robin Wigglesworth in New York – FT
The July 30-31 meeting of the Bank of Japan was sitting on the calendar as an ‘interesting’ event for markets. Important because it is Japan, but nothing too white-knuckled.
/jlne.ws/2LoSYFC
Europe to Become ‘Massive’ Buyer of U.S. LNG, Trump Says
Naureen S Malik and Ryan Collins – Bloomberg
More import terminals coming for shipped American gas: Juncker; Trump, European Commission reach agreement to avoid trade war
Europe will build more terminals to import U.S. liquefied natural gas, the head of the European Commission told U.S. President Donald Trump during a meeting aimed at averting a transatlantic trade war.
/jlne.ws/2Lp6GIG
The EU will stand up for rules-based trade; Too often progress at the WTO has been held up by states pursuing narrow interests
Cecilia Malmström – FT
The international trading order is confronting its deepest crisis to date. The threat of a global trade war is looming over us. Some now believe it is time to pull the plug on 70 years of trade diplomacy and pursue trade goals by other means. There is no doubt that if this happens, it will be the public that takes the hit.
/jlne.ws/2v7FPG2
Brexit
A Bad Brexit Deal for Banks Threatens Cities Across the U.K.
Thomas Penny – Bloomberg
Centre for Cities think tank publishes report on Thursday; London is less reliant on financial services than Edinburgh
Cities outside London are more exposed to the effects of a bad deal for financial services after Brexit than the U.K. capital, according to a report published on Thursday.
/jlne.ws/2LnAjKi
Be Ready for Any Brexit Market Hit, U.K. Regulator Tells City
John Glover – Bloomberg
BOE’s Woods speaks in interview about contingency planning; Post-crisis capital rules mean banks are stronger, Woods says
The Bank of England is war-gaming with lenders and insurers for potential market turmoil on Brexit day.
/jlne.ws/2LnzJw6
Miscellaneous
A Non-Gamer’s Guide to Fortnite, the Game That Conquered All the Screens
Sandra E. Garcia – NY Times
Fortnite has taken over. Videos of people playing the game have more than two billion views on YouTube. Drake has played it with Ninja, a celebrity among Fortnite fans. The gaming expo E3 hosted a 100-player tournament that included the rapper Vince Staples, the actor Jon Heder and the mixed martial arts fighter Demetrious Johnson.
/jlne.ws/2LrZnQj
The post How Traders Have Changed Since the Massive Selloff Earlier This Year appeared first on John Lothian News (JLN).