Week InReview

Too hot to trade.
As the U.S. northeast sizzled, time became unhinged.

"High humidity is impeding radio transmissions Tuesday among three New Jersey data centers where U.S. stocks trade, according to a note Nasdaq Inc. sent customers. It's taking about 8 microseconds longer to send information from Nasdaq's facility in Carteret to the New York Stock Exchange data center in Mahwah, and an extra 2 microseconds to send data to Cboe Global Markets Inc.'s exchange in Secaucus."

Friday | Jul 6, 2018
From junk bonds to emerging-market stocks, market turnover is through the roof, reaching multi-year highs. Within the S&P 500 Index, investors traded more than $2.9 trillion worth of shares in each of the past two quarters, a feat last achieved in early 2008. (Bloomberg Quint | Jul 5)

Binary options trading is dead - though few will mourn it
It had the trappings of stock market trading - yet was closer to a punt at a bookie. Traded by risk-hungry speculators, binaries brought riches to the few and hefty losses to the many. They inhabited that tantalising grey area between financial investment and gambling, luring us in with promises of mega returns and pictures of people on Twitter with Lamborghinis. Instead, most were left red-faced with empty pockets. (Financial Times | Jul 5)

Rising Fed funds rate is reverberating through debt markets
Rising money-market rates have forced Federal Reserve officials to take unprecedented steps to maintain control over their key policy benchmark -- and the job is about to get harder. With the Treasury continuing to ramp up bill issuance and the central bank's balance sheet unwind accelerating, the front-end is poised to take center stage in the second half of the year. (Bloomberg Economics | Jul 3)

Lehman collapse: 10 years later, four major risks
As the Bank for International Settlements has repeatedly warned, there is a record level of indebtedness  in the global economy. There is now  $63 trillion  of sovereign debt outstanding, with total debt at  $237 trillion , a full $70 trillion above pre-Lehman levels. There are only 11 sovereigns and only  two U.S. firms  left with a AAA rating, and there is a continuing decline in the average credit quality of outstanding loans and bonds. (Bloomberg Opinion | Jul 3)

New refs, new rules: Morgan Stanley, Goldman got help from Fed on stress tests
Banks had option to freeze their payouts at recent levels, get a 'conditional non-objection' grade and avoid failing. (The Wall Street Journal | Jul 2)
The Cyber Cafe
Cybersecurity news every Friday
Tech's 'dirty secret': The app developers sifting through your Gmail
Google has stopped scanning the inboxes of Gmail users to personalize ads. But it still lets outside software developers  look inside.

FSB proposes cyber lexicon at G20 request
The Financial Stability Board published a draft lexicon of 50 core terms related to cyber security and cyber resilience in the financial sector. the FSB plans to complete the lexicon for delivery to the G20 leaders' summit in Buenos Aires in November.

Global cyber risk for the financial sector
A working paper documents global cyber risk for financial institutions by analyzing the different types of cyber incidents (data breaches, fraud and business disruption) and identifying patterns using a variety of datasets.
Binge reading disorder
Hand-curated, chosen with love
Secrets of honeymoon planners for billionaires
Lining up a dream postnuptial vacation can be just as high-stakes as planning the big day itself. Nobody knows that better than the planning team at Ovation Vacations, a leisure travel consultancy for ultrahigh-net-worth individuals.
Ready for vacation? Here's the best tech for trip planning
Smartphone? Check. Spare battery? Check. Power cables? Check. Flipping through printed travel guides and paper maps is passé. Tech tools are far more efficient at keeping your plans organized and easily accessible.
Three scenarios for the future of geopolitics
Will the current Western-dominated paradigm manage to overcome its current weaknesses and disunity? Could the challengers to the Western-led paradigm - primarily, but not exclusively, Russia and China - succeed in taking advantage of its contradictions? Or will the rise of the multi-polarists turn violent