Eurex plans to appeal CME antitrust case ruling; Blockchain platform goes live for North Sea crude oil trading

Dec 3, 2018

First Read

Tether: The Cryptocurrency Markets’ Sword of Damocles
Matt Raebel, JLN

If 2018 was the year of the ICO (initial coin offering), then October of 2018 was “Stablecoin Month.” Between the launch of new “stablecoins” like the Gemini Dollar and the ominous news surrounding Tether (the most commonly-used stablecoin in the crypto markets), last month was one of the most significant months ever for these new coins.

For the first time, Tether’s price fell to $0.92 per coin in October. For much of November, it was trading between $0.95-$0.98 per coin. It’s normal for the prices of cryptocurrencies to fluctuate rapidly; it isn’t normal for a stablecoin to do that. This has caused many to revisit long-standing concerns about Tether’s business practices that could potentially threaten the stability of the entire crypto market.

To read the rest of this report, go here.

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Hits & Takes
JLN Staff

The New York Stock Exchange, NYSE American, NYSE National, NYSE Arca, and the Chicago Stock Exchange, part of the Intercontinental Exchange (ICE) global network of exchanges, will be closed on Wednesday, December 5, 2018 in observance of the National Day of Mourning for President George H. W. Bush.~SR

The CME Group is shutting down U.S.-based equity and interest rate futures and options products on Wednesday, Dec. 5, 2018, the national day of mourning. All other CME markets will remain open.~JJL

Kenny Polcari received a clap-off from the floor traders at the NYSE because after 38 years at the NYSE he is moving on. If you want to see one of the most animated, engaging and entertaining MarketsWiki Education presentations, see Kenny’s 2016 talk here. ~JJL

Via Priceonomics – “Internal corporate spending makes up $23 billion of AI investment, nearly three times more than the current levels of venture capital and private investment in the space.”~SD

Lawsuits stemming the OptionSellers implosion, new volatility indices and more get a look in this week’s episode of “The Spread,” a weekly recap of options-related news. See video below.~SD

FOW is holding Derivatives World London: The Debates 2018 at the Grange City Hotel, London, United Kingdom tomorrow.~JJL

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The Spread – “Florida Man” Edition – 11/30
JohnLothianNews.com

Sadly, it appears no one had a funny VIX-related sign at a sporting event this week, but never fear, there’s plenty of content in this edition of “The Spread” – the Florida options trading firm blow-up, volatility products in Israel, (non-Keanu) Matrix news, and more!

The Spread is sponsored by MIAX.

Watch the video and see the stories referenced here »

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George Bush, 41st President, Dies at 94
Adam Nagourney – NY Times
George Bush, the 41st president of the United States and the father of the 43rd, who steered the nation through a tumultuous period in world affairs but was denied a second term after support for his presidency collapsed under the weight of an economic downturn and his seeming inattention to domestic affairs, died on Friday night at his home in Houston. He was 94.
/jlne.ws/2RqcRem

***** Here is the Bloomberg version of this news and here is the WSJ version.~JJL

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Opinion: Bitcoin is close to becoming worthless; Bitcoin is now entering a death spiral
Atuyla Sarin – MarketWatch
Just one year has passed since bitcoin enthusiasts forecasted that the cryptocurrency would hit a price of $1 million. But that was then. With the price of bitcoin having fallen almost 80% from its peak, and now trading well-below the support level of $6,000, everyone is wondering where it goes from here. The answer is, a swift and painful drop to zero.
/jlne.ws/2RvZBEW

***** Sell futures, mine cheaper and do it until you squeeze the last ounce of profit out of the trade. Then what happens when the miners shut down as the cost of production exceeds the price?~JJL

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A Wall Street Rule for the #MeToo Era: Avoid Women at All Cost
Gillian Tan and Katia Porzecanski – Bloomberg
Controversial strategies risk isolating women in finance; An idea from one man in the business: Try not to be a jerk
No more dinners with female colleagues. Don’t sit next to them on flights. Book hotel rooms on different floors. Avoid one-on-one meetings. In fact, as a wealth adviser put it, just hiring a woman these days is “an unknown risk.” What if she took something he said the wrong way?
/jlne.ws/2Rw3k5x

***** I am not sure this is progress.~JJL

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Bridging the Weeks: November 19 – 30 and December 3, 2018 (Investment Profits; ICOs; Taxes by Bitcoin; Spoofing)
Gary DeWaal – Bridging the Week
The Securities and Exchange Commission’s view that most cryptoassets issued as part of initial coin offerings and presales to ICOs are securities was challenged by a federal court in California when it denied the agency’s request for a preliminary injunction in an enforcement action against an individual and his company that purportedly defrauded investors in connection with a digital asset’s ICO. The court held that the SEC, at least for now, had not demonstrated that investors in the relevant cryptoasset expected to profit through the efforts of others – a key requirement to demonstrate that an investment is a security. Unrelatedly, the Chicago Board of Trade penalized an individual over US $100,000 for engaging in three different types of spoofing activity.
/goo.gl/Jhcc53

****The rule of threes has a new application – spoofing.~SD

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Friday’s Top Three
If there’s a story that gets readers interested, it’s about CME B-shares. Crain’s Chicago Business led Friday’s top stories with CME loses vote to shrink board of directors. The question is, what happens next? Our second most read story was by JLN’s Thom Thompson, The Business Bitmain Dominates. Third was the FT’s piece Deutsche Bank hit by second day of money laundering raids

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Lead Stories

Eurex plans to appeal CME antitrust case ruling
Philip Stafford – FT
Eurex plans to appeal against the loss of a 15-year old lawsuit it brought against CME Group alleging the Chicago exchange had violated US antitrust laws to stop a rival venture from getting off the ground. The group, the derivatives bourse of Deutsche Boerse, filed a notice confirming its intention in an Illinois district court late on Friday.
/jlne.ws/2Rwi5VU

***** That CME Group press release comment after winning the suit about the quality of the Eurex trading platform was an unforced error. It demanded a response from Eurex and here we have it.~JJL

Blockchain platform goes live for North Sea crude oil trading
Julia Payne – Reuters
Oil majors and trading firms can start finalizing crude oil deals on a live blockchain-based platform for the first time, in a move that could revolutionize the market.
/jlne.ws/2Rqd15s

Nikkei 225 Beats Topix by Most in 20 Years on ‘Abnormal’ Move
Min Jeong Lee – Bloomberg
Blue-chip stock gauge is outperforming due to certain stocks; Nikkei 225 seen as flawed because it is price-weighted
In Japanese equities, a gauge of the country’s biggest shares is beating the general market by the most in two decades.
/jlne.ws/2RuVLvT

Bitcoin Miner Consolidation Increases Risk of More Crypto Mayhem
Olga Kharif – Bloomberg
Threat of hacks, fights over network control seen rising; More than 100,000 mining operations likely ceased activity
One of the consequences of the recent rout in Bitcoin is well underway. And it’s likely to have a profound effect on the leading cryptocurrency.
/jlne.ws/2RvEbIh

Deutsche Bank investors fear criminal probe will hinder turnround; Shareholders voice concern over investigation into suspected money laundering
Olaf Storbeck in Frankfurt – FT
Investors in Deutsche Bank are concerned that the criminal investigation into the suspected money laundering activities of the lender’s wealth management unit will make it harder for chief executive Christian Sewing to execute his crucial turnround agenda.
/jlne.ws/2Rrug6t

Deutsche Bank chief dismisses takeover speculation
Reuters
Deutsche Bank is not at risk of a takeover, its chief executive told a German weekly paper after its shares fell to a record low on Friday in the wake of a two-day raid related to money laundering allegations.
/jlne.ws/2RqguB0

New York Stock Exchange and Nasdaq to close Wednesday for Bush mourning day; Stock markets also plan Monday moments of silence in memory of President George H.W. Bush, who died Friday at the age of 94
Michael Wright – MarketWatch
President Trump declared Wednesday a national day of mourning for former President George Herbert Walker Bush and canceled a scheduled Saturday news conference at the Group of 20 summit in Buenos Aires.
/goo.gl/mTGLQ1

Successful innovation needs a shared vocabulary; If a company cannot communicate ideas, chances of progress are low
Andrew Hill – FT
Curtis Carlson, the entrepreneur who helped revive SRI and turn it into the company that created the iPhone’s voice assistant Siri, often asks groups of would-be innovators to write their definition of “innovation” on Post-it notes. The definitions never agree. In fact, he told me, “sometimes they don’t even make sense”.
/jlne.ws/2Rw0EVo

Business schools bring AI and VR into the classroom; Institutions are increasingly using cutting edge tools to teach a tech-savvy generation of students
Seb Murray – FT
As an online MBA student, studying whenever it is convenient, it can take a day for James Connor to get a professor’s help ó “a long time when you’re on a deadline”, says the 36-year-old Briton. Soon there may be a more efficient solution for London’s Imperial College Business School students: a smartphone chatbot that will answer queries almost immediately.
/jlne.ws/2RtAgvp

Occupy Jamie Dimon: Activists Are Chasing the Billionaire Across the U.S.; JPMorgan’s CEO is dogged by protesters on stages and flagpoles.
Michelle Davis, Max Abelxon – Bloomberg
Jamie Dimon was on stage at a community college in Ohio in November, telling students not to get scared by the snakes and alligators they’ll see in life.
/jlne.ws/2Rwe3gq

Your Personal Data Is Being Used by Investors. Here’s the Potential ó and the Risks.
Avi Salzman – Barron’s
Even before the hip teenagers realized that nobody goes to the mall anymore, about a dozen math and science Ph.Ds packed into a co-working office in downtown Manhattan already knew it. On their computers, the Ph.Ds started to see a decline in the number of “pings” from cellphones that they were tracking in those malls. And that drop-off became an important signal for the stock market well before some malls announced disappointing financial results.
/jlne.ws/2RwbHhA

Qatar pulls out of Opec as relations with neighbours sour; World’s largest exporter of liquefied natural gas to quit oil cartel in the new year
Anjli Raval and Simeon Kerr – FT
Qatar plans to quit Opec from next year as relations with its Arab neighbours sour, ending a near six-decade-long membership of the oil price cartel.
/jlne.ws/2RB5yAQ

Exchanges, OTC and Clearing

New York Stock Exchange to Honor President George H. W. Bush ; Moment of Silence on Monday, December 3, 2018; NYSE Group Markets to close for Day of Mourning on Wednesday, December 5, 2018
ICE
On Monday, December 3, 2018, the NYSE will observe a one-minute moment of silence at 9:20 a.m. Eastern Time (ET) in honor of President George H.W. Bush. A single strike of the NYSE Bell at 9.20 a.m. ET will indicate the start of the minute of silence.
/jlne.ws/2Rqh7um

Cboe Global Markets’ Exchanges to Close Wednesday for Day of Mourning to Honor President George H.W. Bush
Cboe
Cboe Global Markets, Inc. announced its U.S. exchanges will close on Wednesday, December 5, in observance of the national Day of Mourning to honor Former President George H. W. Bush, who passed away November 30.
/jlne.ws/2RxC1YA

SIFMA Recommends Full Market Close Wednesday December 5 In Honor Of Former President George H. W. Bush
Mondovisione
SIFMA yesterday recommended all fixed-income cash markets close Wednesday December 5, 2018 in honor of the national day of mourning for former U.S. President George H.W. Bush. SIFMA made its recommendation following President Donald Trump’s announcement that the U.S. government will be closed on Wednesday in honor of Mr. Bush.
/jlne.ws/2Rwfqf4

CME Group U.S. Equity, Interest Rate Markets to Close for National Day of Mourning
CME Group
CME Group today announced that it will observe the passing of President George H. W. Bush with a moment of silence at 7:18 a.m. Central Time on Monday, Dec. 3, 2018, and closure of its U.S.-based equity and interest rate futures and options products on Wednesday, Dec. 5, 2018, the national day of mourning. All other markets on CME Globex, CME ClearPort and the trading floor will remain open for regular trading hours on Dec. 5.
/jlne.ws/2Rvfqfn

Nasdaq Announces the Closure of its U.S. Markets in Honor of a National Day of Mourning for President George H.W. Bush
GlobeNewswire
Nasdaq announces that it will observe the passing of President George H.W. Bush by closing all Nasdaq U.S. equities and options markets on Wednesday, December 5, 2018.
/jlne.ws/2QeGlj2

DGCX Wins ‘Exchange Of The Year’ Accolade At Global Investor MENA Awards 2018
Press Release via Mondovisione
DGCX’s outstanding performance over the last 12 months saw it beat competition from region’s leading exchanges
The Exchange’s exceptional growth continued in November as it broke its all-time annual volumes record
/goo.gl/mZrA5a

CME Group Chief Financial Officer and Global Head of Financial and OTC Products to Present at Goldman Sachs Conference
CME Group
CME Group announced today that John Pietrowicz, Chief Financial Officer, and Sean Tully, Senior Managing Director and Global Head of Financial and OTC Products, will present at the Goldman Sachs U.S. Financial Services Conference in New York on Tuesday, December 4, at 11:40 a.m. (Eastern Time).
/jlne.ws/2RweAyW

LCH SwapClear sees $1 quadrillion notional cleared record
As of 30 November LCH SwapClear’s cleared notional volumes year to date totalled just over $1 quadrillion.
Hayley McDowell – The Trade
The London Stock Exchange Group’s (LSEG) clearinghouse LCH has set a new record for its over-the-counter (OTC) interest rate swaps clearing service after surpassing the $1 quadrillion mark.
/goo.gl/q7He5Q

This week’s topic: T7 – a true success story
Eurex
Our trading architecture T7 really is an ongoing success story. Now, with Release 7.0 ready to go live on 3 December 2018, the time is just right to look back on the beginnings and to attempt an outlook on the years to come. How did it all start, what are the reasons for its success, and are there new advancements and enhancements coming with Release 7.0.? Jonas Ullmann, Head of Market Functionality, has all the answers.
/jlne.ws/2QauIcz

Cash markets will turnover 140.4 billion euros in November
Deutsche Boerse
Deutsche Boerse’s cash markets generated sales of EUR 140.4 billion in November (previous year: EUR 154.2 billion).
/jlne.ws/2Q8SV36

ICE Data Services Selected as the New Benchmark Provider for BlackRock iShares U.S. Preferred Stock ETF
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Data Services has been selected as the new benchmark provider for BlackRock’s iSharesÆ U.S. Preferred Stock ETF (PFF), which currently represents $14.7 billion in assets under management1.
/jlne.ws/2Q6Vkew

HKEX to Add Mini-HSCEI Options to After-Hours Trading from Tonight; Addition of Mini-HSCEI Options will complete roll-out of eight major stock index products in AHT; Index futures and options’ average daily AHT volumes are up sharply from their initial levels
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is adding Mini-Hang Seng China Enterprises Index (HSCEI) Options to its after-hours trading (AHT) from this evening.
/jlne.ws/2QaPclF

SGX partners Nanhua Futures to help investors capture Belt and Road Initiative investment opportunities
SGX
SGX Index Edge will collaborate with Nanhua Fund, the wholly-owned subsidiary of Nanhua Futures, to develop indices that are representative of China’s Belt and Road Initiative
/jlne.ws/2QcLyb1

SGX launches world’s first high-grade iron ore derivatives; Shift in China’s environmental policy spurs increased use of premium iron ore; 65% Fe Fines swaps and futures complement SGX’s benchmark 62% Fe contracts
SGX
Singapore Exchange (SGX) today launched the world’s first high-grade iron ore derivatives to meet demand for new risk-management tools amid a structural shift in China’s environmental policy.
/jlne.ws/2Q6ov1r

Trading Overview in November 2018; Japan Exchange Group released Trading Overview in November 2018.
JPX
Cash Equity Marke – In November 2018, the daily average trading value for the TSE 1st Section (domestic common stocks) was JPY 2.9815 trillion; The daily average trading value for the ETF market was JPY 220.7 billion.
Derivatives Market- In November 2018, total derivatives trading volume was 31,173,138 contracts.
/jlne.ws/2Q9Csfa

Boerse Stuttgart records November turnover of EUR 5,3 billion; Emerging market government bonds show increase in trading volume compared with October figures
Boerse Stuttgart
Based on the order book statistics, Boerse Stuttgart generated turnover of around EUR 5.3 billion in November 2018. Securitised derivatives made up the largest share of the turnover. The trading volume in this asset class was more than EUR 2.4 billion. Leverage products generated around EUR 1.5 billion. Investment products contributed EUR 966 million to the total turnover.
(NO LINK)

Fintech

FCA says reported technology outages at firms has more than doubled
Hayley McDowell – The Trade
Technology outages at financial institutions reported to the UK’s regulator has more than doubled over the past year, according to its executive director of supervision.
/goo.gl/F5AuBV

ECB takes on PayPal with instant payment system
Reuters
The European Central Bank launched on Friday a new system aimed at letting banks settle payments instantly across Europe, helping them to compete with PayPal and other global tech giants.
/reut.rs/2Rs1P8C

Fintech company Calastone to shift fund network to blockchain
Tom Wilson and Simon Jessop – Reuters
Calastone, an investment funds transaction network, said on Monday it will shift its entire system to blockchain in May, a move that could slash costs for the sector by billions of dollars a year.
/jlne.ws/2RvxsOx

FinTech offers “huge” opportunity for Islamic banks to serve unbanked people
Deena Kamel
Bahrain is urging Islamic banks to embrace financial technology (FinTech) to grow their business by catering to unbanked populations as the kingdom seeks to position itself as a regional financial hub. FinTech provides a “huge” opportunity for Islamic finance institutions to reduce their costs, increase their investment assets and add more transparency while also promoting financial inclusion by serving people without access to banks, Khalid Saad, chief executive of Bahrain Fintech Bay, told The National.
/jlne.ws/2FX9wlO

Barclays bullish on equities business ahead of new algo and SOR platform launches; Barclays’ reinvestment will see the launch of new SOR and algo platforms, with a recent SOR upgrade producing a 10% increase in hit rates.
Hayley McDowell – The Trade
UK investment bank Barclays has said reinvestment in its equities trading business is beginning to pay off, as it prepares to launch new algo and smart order router (SOR) platforms.
/jlne.ws/2QdDYN9

Cryptocurrencies

Bitcoin ETF Seekers Met With SEC Monday In Latest Pitch for Approval
Nikhilesh De – Coindesk
Members of VanEck, SolidX and the Cboe BZX Exchange met with U.S. Securities and Exchange Commission (SEC) staff earlier this week to present a new argument on why the bitcoin market is ready for an exchange-traded fund (ETF).
/jlne.ws/2RtClaH

Hunker down, crypto owners, the worst is yet to come: Fred Wilson
Aaron Hankin – MarketWatch
Crypto owners got a much-needed reprieve on Wednesday with bitcoin and major digital currencies posting double-digit gains, breathing life into their portfolios that have been shredded to pieces of late.
/jlne.ws/2RurAoH

From Banks to Bitcoin: Goldman Sachs employees who have left Wall Street for the crypto world
by Steven Zheng – The Block Crypto
Since it was founded, Goldman Sachs has established itself as the Mecca for financial talent. The 149-year-old investment bank has produced Secretaries of Treasury, presidential advisors, and CEOs of billion-dollar companies. Goldman Sachs alumni have established themselves as pillars in many industries, from finance to politics to tech, and crypto is not an exception.
/jlne.ws/2Ruhsw1

Novogratz Remains Steadfast on Crypto, Says Wait Until Next Year
By Vildana Hajric – Bloomberg
Bitcoin’s down 37% this month, the most since August 2011; Galaxy Digital lost $136 million in first nine months of year
Billionaire investor Michael Novogratz is resolute when it comes to cryptocurrencies, even after his firm lost millions this year as the embryonic market continued to tumble in value.
/jlne.ws/2RxGLNS

I Bought Bitcoin When the Price Was Soaring. Here’s What I Learned
Alessandra Freitas – Barron’s
A year ago, Bitcoin was practically a foreign language to me. Then I watched an episode of Grey’s Anatomy in which the hospital featured in the show was attacked by a group of hackers, who demanded 4932 Bitcoins in ransom (worth $20 million in the setting of the program). After doing some research and consulting with friends who had bought Bitcoin, I thought, well, maybe I should put some money on it, too. That was my first investment, made before I really understood anything about finance.
/jlne.ws/2RuuMkb

Blockchain study finds 0.00% success rate and vendors don’t call back when asked for evidence
Where is your distributed ledger technology now?
Andrew Orlowski – The Register
Though Blockchain has been touted as the answer to everything, a study of 43 solutions advanced in the international development sector has found exactly no evidence of success. Three practitioners including erstwhile blockchain enthusiast John Burg, a Fellow at the US Agency for International Development (USAID), looked at instances of the distributed crypto ledger being used in a wide range of situations by NGOs, contractors and agencies. But they drew a complete blank.
/jlne.ws/2RAKQ45

Japanese Crypto Exchange BitTrade to Relaunch Under Huobi
Celeste Skinner – Finance Magnates
Japanese cryptocurrency exchange BitTrade, one of the 16 licenced digital asset exchanges in the country, announced via a statement that it is closing its trading platform to relaunch its operations under the Huobi Group brand.
/jlne.ws/2KRTcBE

Breaking: G20 Discusses International Cryptocurrency Tax
Simon Golstein – Finance Magnates
The G20 conference, which is happening at this moment in Buenos Aires, has produced a decision which will be interesting to the cryptocurrency world. The attendant politicians have signed a document which indicates their intention to begin working on a solution to the issue of cryptocurrency tax, and that they will collaborate to this end.
/jlne.ws/2PhE9BF

Politics

The new American dream? Northern Europe; ‘Recent polls shows most Democrats and young Americans now believe in “socialism”‘
Simon Kuper – FT
The northern European dream looks something like this: get home from work in time for dinner with the kids; no stress about paying for their education or healthcare; safe streets in a safe region; an affordable home near your extended family; frequent holidays and a long life. You won’t get rich, but you won’t need to either.
/jlne.ws/2RqHCjb

Lagarde warns G20 leaders that trade tensions threaten global economy
Reuters
International Monetary Fund Managing Director Christine Lagarde called on G20 leaders to urgently de-escalate trade tensions and reverse tariff hikes, warning that they risked slowing global growth.
/jlne.ws/2RAOCdL

Senators Blame Trump’s Tariffs and Corporate Greed for GM Cuts
Katia Dmitrieva – Bloomberg
Cardin says duties cost jobs while Brown blames company more; Senators react to GM cutting jobs, production in their states
Donald Trump’s trade war and corporate greed contributed to General Motors Co. cutting jobs and closing plants, Democratic senators in states affected by the decisions said ahead of an expected meeting this week with lawmakers and Chief Executive Officer Mary Barra. But they differed on what weighed more heavily.
/jlne.ws/2Rw1h1c

Trump says China to cut tariffs on U.S.-made autos after trade war truce
David Lawder, Christian Shepherd – Reuters
China has agreed to “reduce and remove” tariffs below the 40 percent level that Beijing is currently charging on U.S.-made vehicles, U.S. President Donald Trump said, as a trade war truce between the two countries gathers pace, cheering markets.
/jlne.ws/2RtB7w7

Regulation

Supreme Court to Rule on Kavanaugh Appeals Court SEC Case; Kavanaugh dissented on appeals court case testing how far the SEC can go in holding stockbrokers accountable for disseminating false statements
Brent Kendall – WSJ
Supreme Court justices on Monday will effectively be asked to rule on the jurisprudence of their newest colleague in a fraud case that tests how far the Securities and Exchange Commission can go in holding stockbrokers accountable for disseminating false statements to clients.
/jlne.ws/2RvwHVH

CFTC Approves a Proposed Rule to Provide Exception to Annual Privacy Notice Requirement
CFTC
The Commodity Futures Trading Commission (CFTC) today approved a proposed rule to revise a CFTC regulation that requires certain futures commission merchants, retail foreign exchange dealers, commodity trading advisors, commodity pool operators, introducing brokers, major swap participants, and swap dealers to provide annual privacy notices to customers. Under the proposed rule these annual privacy notices would no longer be required where certain conditions are satisfied.
/goo.gl/nVJHLE

Call to crack down on multibillion-euro tax tricks as scandal bites; ATP chief resigns in wake of allegations over questionable dividend trades
Chris Flood – FT
One of the world’s biggest tax scandals involving an estimated EUR55bn and 12 European governments last week claimed its first high-profile casualty from the investment industry. The resignation of Christian Hyldahl as chief executive of ATP, the largest pension fund in Denmark, may prove to be just the first of many departures related to complex dividend-related trades that exploited loopholes in tax laws.
/jlne.ws/2RuC0EQ

ESMA registers A.M. Best (EU) Rating Services B.V. as credit rating agency
ESMA
The European Securities and Markets Authority (ESMA), the EU’s direct supervisor of credit rating agencies (CRAs), has registered today A.M. Best (EU) Rating Services B.V. as a CRA under the CRA Regulation.
/jlne.ws/2Q6KTYB

SEC Adopts FAIR Act Rules Promoting Research Reports on Investment Funds
SEC
The Securities and Exchange Commission today adopted rules and amendments designed to promote research on mutual funds, exchange-traded funds, registered closed-end funds, business development companies, and similar covered investment funds. These changes reduce obstacles to providing research on investment funds by harmonizing the treatment of such research with research on other public companies. The Commission took this action in furtherance of the mandate in the Fair Access to Investment Research Act of 2017 (FAIR Act).
/jlne.ws/2Qa8cAR

Investing and Trading

We Went to a Steak Dinner Annuity Pitch. The Salesman Wasn’t Pleased.
Ron Lieber – NY Times
The pitch arrived in my aunt’s mailbox, just after her 80th birthday and in the wake of a few frightening weeks for retirement investors.
“Tired of the stock market roller coaster ride? Want to protect your principal and lock in interest earnings?” the invitation read.
/nyti.ms/2E6VdZZ

Here’s How Carbon Gets Priced Around the World
Mathew Carr and Shawn Hasto – Bloomberg
It’s an idea that’s been around for more than two decades: To slow climate change, make polluters pay for the damage they cause. Worldwide, more than 50 nations, states and cities have adopted what’s known as carbon pricing, an approach held up by environmentalists, politicians and even many oil companies as an elegant, free-market approach to slow global warming. It’s done either through a tax on each metric ton of carbon dioxide emitted or by creating a market to trade permits to pollute. Carbon prices of $40 or more per ton are crucial if the world is to meet greenhouse-gas reduction targets in the Paris agreement to halt climate change, according to scientists.
/jlne.ws/2RqfEnQ

BlackRock warns investors to ‘build resilience’ against recession; Biggest money manager launches economic forecasts for institutions
Chris Flood – FT
BlackRock has warned clients to “build resilience” into investment portfolios with the help of new asset-class performance forecasts that it will release this week.
/jlne.ws/2RweKq7

New Rules for a Volatile Market
Steve Garmhausen – Barron’s
As co-head of Morgan Stanley Wealth Management, Andy Saperstein helps lead 15,632 brokersóthe largest force in the industry. Needless to say, he’s one of the most powerful people on Wall Street.
/jlne.ws/2RuAeDG

Shell yields to investors by setting target on carbon footprint; Cutting emissions to be linked to executive pay in industry first
Anjli Raval, Leslie Hook and Attracta Mooney – FT
Royal Dutch Shell will set carbon emissions targets next year and link these to executive pay, reversing its chief executive’s opposition and following intense pressure from shareholders who want fossil fuel companies to take greater responsibility for their contribution to global warming.
/jlne.ws/2Rud545

Yes, Market Moves Are More Extreme. But It’s Not the Apocalypse
Samuel Potter, Eddie van der Walt and Vildana Hajric – Bloomberg
Data show bigger moves more common but far from extraordinary; ‘Recency bias’ makes recent swings seem especially brutal
U.S. stocks posted the strongest rally in eight months on Wednesday, just a few days after the largest Bitcoin slump since February. That followed the biggest crude-oil drop for three years. In October, tech shares had their worst day since 2011.
/jlne.ws/2RwldRE

Institutions

Losses at Einhorn’s hedge fund Greenlight grow in November
Reuters
Billionaire investor David Einhorn told investors on Friday that losses at his hedge fund Greenlight Capital grew this month, leaving the fund down nearly 28 percent for the year.
/jlne.ws/2RxEvWU

UBS to take majority stake in China joint venture; Swiss bank will hold a landmark 51% in a local securities operation
Don Weinland – FT
UBS will become the first foreign bank in China to increase its stake in a local securities joint venture to 51 per cent, in a sign that the country is making good on promises to open up its financial sector to overseas competition.
/jlne.ws/2RwgzDo

Goldman eyes monitoring of high-risk staff after 1MDB; Bank looking to show officials that ‘lessons have been learned’ over scandal
Laura Noonan – FT
Goldman Sachs is considering a special surveillance programme to monitor higher risk employees in far-flung locations so the bank can demonstrate that “lessons have been learned” from the 1MDB scandal.
/jlne.ws/2RCqkQc

Volatility Is Only Making Matters Worse for Hedge Funds
Saijel Kishan and Nishant Kumar – Bloomberg
Managers counting on price swings to boost returns were burned; ‘They should have made money,’ says one hedge fund investor
This was meant to be Deepak Gulati’s moment. The hedge fund manager has been waiting for the return of market volatility to help him recover losses after years of calm markets hurt his $955 million firm. Yet even with the recent whipsaw in stocks, Gulati hasn’t made any money through the first 10 months of the year.
/jlne.ws/2RwoHnk

Regions

Japan brokers readying for new client surge ahead of SoftBank’s mammoth IPO
Taiga Uranaka – Reuters
Japan’s stockbrokers are rubbing their hands ahead of SoftBank’s record-breaking $21 billion share sale, banking on the telco’s brand power and unprecedented marketing campaign to boost business in a country replete with IPO-hungry investors.
/jlne.ws/2Rx1120

Pot Is So Hot in Canada That Firms Are Importing Workers
Kristine Owram – Bloomberg
Biggest companies are recruiting for 1,700 open positions; Soft-gel encapusulation manager is just one open position
It was mid-summer, less than three months before Canada legalized recreational marijuana, and Vic Neufeld had a problem.
/jlne.ws/2Rwjyvw

Why is Canada’s Alberta forcing oil production cuts?
Julie Gordon – Reuters
Alberta Premier Rachel Notley said on Sunday that the Western Canadian province would mandate temporary oil output cuts to deal with a pipeline bottleneck that has led to a glut of crude in storage and driven down Canadian crude prices.
/jlne.ws/2RwZjh6

Australia’s GrainCorp receives $1.8bn buyout bid; Shares jump by a quarter on offer that comes 5 years after Canberra blocked takeover by ADM
Jamie Smyth – FT
Australian agricultural group GrainCorp said it has received a A$2.4bn ($1.8bn) takeover bid from Long-Term Asset Partners, an asset management company, sending its shares up by more than a quarter.
/jlne.ws/2Rwe6Jd

Brexit

EU Doctors Quit Britain as Brexit Looms; An exodus of medical specialists is putting new strains on the U.K.’s National Health System
Donato Paolo Mancini and Jason Douglas – WSJ
Pioneering transplant surgeon Paolo Muiesan is returning to Italy after about 1,000 operations and 26 years in the U.K. The reason, he says, is Brexit.
/jlne.ws/2RAOmLP

Regulator warns banks over Brexit moves out of City; FCA urges lenders to limit number of clients transferred overseas
Barney Thompson – FT
The UK’s financial regulator has urged a group of international banks in the City to limit the number of clients they move overseas as part of their Brexit preparations.
/jlne.ws/2RxtqFs

Two banks begin moving swaps out of London, pre-Brexit
Helen Bartholomew – Risk.net
Time has run out for London-based banks pinning their hopes on a Brexit deal that will save them from transferring swaps contracts to EU27 hubs. At least two dealers have now kick-started processes that will allow contracts to be moved en masse, with the mooted UK and European Union withdrawal agreement facing fierce opposition in the UK Parliament.
/goo.gl/EyWx6d

Miscellaneous

Nexstar to Buy Tribune Media for $4.1 Billion in TV Megadeal
Gerry Smith, Nabila Ahmed, and Eric Newcomer – Bloomberg
Deal would unseat Sinclair as biggest local-TV company in U.S.; Sinclair’s earlier plan to acquire Tribune hit FCC roadblock
Nexstar Media Group Inc. agreed to buy Tribune Media Co. for about $4.1 billion, creating the largest owner of local-TV stations in the U.S.
/jlne.ws/2RAOiM5

Romanee-Conti Burgundy Wine Collection Auctioned for $12 Million
Corinne Gretler – Bloomberg
An auction of top Burgundy wines garnered $12 million in Geneva on Sunday, another success for upstart auctioneer Baghera Wines, which is on track for a record year.
/jlne.ws/2Rtzi2f

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