https://www.djcomprod.dowjones.com/scoops/ Dow Jones Mon, 02 Jul 2018 20:18:49 +0000 en-US hourly 1 https://www.dowjones.com/scoops/u-s-regulators-demand-trading-data-from-bitcoin-exchanges-in-manipulation-probe-2/ Sun, 08 Jul 2018 17:20:58 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16516 The post U.S. Regulators Demand Trading Data From Bitcoin Exchanges in Manipulation Probe appeared first on Dow Jones.

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]]> AmericasEquitiesFinancial ServicesBy Gabriel T. Rubin, Dave Michaels and Alexander Osipovich WASHINGTON — Government investigators have demanded that several bitcoin exchanges hand over comprehensive trading data to assist a probe into whether manipulation is distorting prices in markets linked to the cryptocurrency, according to people familiar with the matter. The investigation followed the launch of bitcoin futures on CME Group Inc.’s exchange six months ago. CME’s bitcoin futures derive their final value from prices at four bitcoin exchanges: Bitstamp, Coinbase, itBit and Kraken. Manipulative trading in those markets could skew the price of bitcoin futures that the government directly regulates. CME, which launched bitcoin futures in December, asked the four exchanges to share reams of trading data after its first contract settled in January, people familiar with the matter said. But several of the exchanges declined to comply, arguing the request was intrusive, the people said. The exchanges ultimately provided some data, but only after CME limited its request to a few hours of activity, instead of a full day, and restricted to a few market participants, the people added. The dispute frustrated CME’s regulator, the Commodity Futures Trading Commission, these people said. In response, the commission subpoenaed the exchanges for the data. CFTC officials backed the launch of bitcoin futures, saying they viewed it as a risky but worthwhile project. The CFTC was upset CME didn’t have in place agreements that would compel bitcoin markets to share trading data tied to futures contracts, these people said. Such agreements would detail what information the cryptocurrency venues would have to provide to CME, including the time of trades, unfilled or canceled orders, the size of orders, and traders’ identities. CME initially sought the data through a third-party firm that calculates the bitcoin index price it uses for its futures contract, a person familiar with the matter said. The bitcoin exchanges were opposed to handing over so much sensitive trading data to the London company, which also operates a platform for trading cryptocurrencies, the people said. The fight over access to bitcoin trading data was a factor in the CFTC opening an investigation into whether traders have colluded to manipulate bitcoin prices, people familiar with the matter said. The CFTC is coordinating with the U.S. Justice Department, which is separately looking into potential manipulation of other cryptocurrencies, the people added. The investigation, in its early stages, shows how Washington is pressing virtual-currency exchanges that have r esisted comprehensive government oversight. Futures allow traders to bet on the direction of the price of assets such as oil, gold or bitcoin. CME offers an array of bitcoin futures for a number of months into the future. The final price of each contract is set on the last Friday of its month, based on the average of the price of bitcoin at the four exchanges during an hour-long window. CME and the CFTC are supposed to monitor trading during that hour to ensure that individual trades don’t skew the price of the futures. A CME spokeswoman said that its index provider has an information-sharing agreement with each bitcoin exchange. “All participating exchanges are required to share information, including cooperation with inquiries and investigations,” CME spokeswoman Laurie Bischel said. A spokesman for Bitstamp declined to comment. A spokeswoman for Coinbase didn’t respond to a request seeking comment. Kraken Chief Executive Jesse Powell said in a statement Friday the CFTC’s “newly declared oversight” of bitcoin prices that drive futures “has the spot exchanges questioning the value and cost of their index participation.” Mr. Powell said in an interview earlier this week that worries about bitcoin market manipulation were exaggerated. “If there is any kind of attempted manipulation, whoever is doing it is taking a huge amount of risk for very little possible upside,” he said. Investigators are looking for trading schemes that can be used to manipulate the price at which a cryptocurrency trades, the people said. In one example, akin to a practice known as spoofing, a trader enters large orders with the intention of tricking others into thinking there had been a fundamental change in the supply and demand of bitcoin. That might induce others to raise their prices to buy, which can allow the spoofer to sell at an artificially high price. The CFTC has said bitcoin is a commodity and believes that designation gives it authority to look for fraudulent trading on exchanges, even if the venues aren’t subject to the panoply of rules that futures markets face. The CFTC in May issued a warning spelling out expectations for approval of new cryptocurrency derivatives. The CFTC said “a heightened level of monitoring” of the bitcoin market is “warranted” for exchanges that want to launch new futures products. “We have definitely entered an unknown area where it is clear there is a desire for tightened oversight,” said Paxos Chief Executive Charles Cascarilla, whose firm operates itBit. The company declined to comment further. –Aruna Viswanatha contributed to this article. Write to Gabriel T. Rubin at gabriel.rubin@wsj.com, Dave Michaels at dave.michaels@wsj.com and Alexander Osipovich at alexander.osipovich@dowjones.com https://www.dowjones.com/scoops/wells-fargo-plans-to-restructure-wealth-management-business/ Mon, 18 Jun 2018 17:23:31 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16523 The post Wells Fargo Plans to Restructure Wealth Management Business appeared first on Dow Jones.

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]]> AmericasEquitiesBusiness/Consumer Services https://www.dowjones.com/scoops/prosecutors-investigating-michael-cohen-for-possible-illegal-lobbying/ Thu, 14 Jun 2018 14:23:11 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16522 The post Prosecutors Investigating Michael Cohen for Possible Illegal Lobbying appeared first on Dow Jones.

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]]> AmericasEquities https://www.dowjones.com/scoops/greystar-in-exclusive-talks-to-buy-education-realty-trust/ Wed, 13 Jun 2018 14:19:36 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16520 The post Greystar in Exclusive Talks to Buy Education Realty Trust appeared first on Dow Jones.

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]]> AmericasEquitiesReal Estate/Construction https://www.dowjones.com/scoops/senior-white-house-official-white-house-to-try-to-block-zte-language-in-senate-defense-bill/ Wed, 13 Jun 2018 14:00:34 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16519 The post Senior White House Official: White House to Try to Block ZTE Language in Senate Defense Bill appeared first on Dow Jones.

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]]> AmericasEquitiesTechnology https://www.dowjones.com/scoops/online-retailer-revolve-is-preparing-ipo/ Tue, 12 Jun 2018 11:53:09 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16518 The post Online retailer Revolve Is Preparing IPO appeared first on Dow Jones.

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]]> AmericasEquitiesConsumer Goods https://www.dowjones.com/scoops/stryker-has-made-takeover-approach-to-boston-scientific/ Mon, 11 Jun 2018 10:30:10 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16506 The post Stryker Has Made Takeover Approach to Boston Scientific appeared first on Dow Jones.

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]]> AmericasTechnologyBy Dana Mattioli, Ben Dummett and Dana Cimilluca Stryker Corp. has recently made a takeover approach to rival Boston Scientific Corp., a move that would create a medical-device giant with a combined value of more than $110 billion, according to people familiar with the matter. It is unclear whether Boston Scientific is receptive to the approach, and it is far from guaranteed there will be a deal. It comes amid a flurry of deal activity in the health-care sector as companies respond to industry and regulatory changes, demands for lower medical costs and the pressure to find new sources of growth. A deal, should one be inked, would be one of the biggest of the year, given Boston Scientific’s market value of $44 billion Monday morning. Write to Dana Mattioli at dana.mattioli@wsj.com, Ben Dummett at ben.dummett@wsj.com and Dana Cimilluca at dana.cimilluca@wsj.com   https://www.dowjones.com/scoops/mcdonalds-shares-details-of-restructuring-plan-in-new-memo/ Mon, 11 Jun 2018 06:04:05 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16508 The post McDonald’s Shares Details of Restructuring Plan in New Memo appeared first on Dow Jones.

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]]> AmericasEquitiesConsumer GoodsBy Julie Jargon McDonald’s Corp. is expected Tuesday to detail the changes to its organizational structure in the U.S., which it says entails providing more resources to franchisees. In a new memo sent ahead of a town hall meeting planned for Tuesday morning, McDonald’s USA President Chris Kempczinski sought to reassure U.S. employees and franchisees that they will get more support from the company even though some positions will be eliminated. In the memo, which was reviewed by The Wall Street Journal, Mr. Kempczinski said all employees who will be laid off will be notified by June 28, but didn’t say how many would lose their jobs in the restructuring. McDonald’s already has cut an undisclosed number of corporate jobs in the last two years and said it is reinvesting some of its cost savings in technology, such as digital ordering, that it believes will lead to growth. In a document posted to the investor relations section of its website on Monday, the company said it expects to record a pretax charge of $80 million to $90 million in the second quarter of this year because of employee severance costs and other costs associated with the closing of field offices. That document said the transition to the new field structure will be completed in the third quarter. One of the biggest changes will be creating a single point of contact to help each franchisee build business plans and get the corporate resources they need to solve problems, Mr. Kempczinski said in Monday’s memo. McDonald’s field consultants, who once primarily graded restaurants on such things as cleanliness and service, will now spend less time doing that and at least 50% more time helping franchisees improve their business, according to the memo. McDonald’s also is creating a new executive position called Chief Transformation Officer to oversee the changes. “By shifting from too many supervisory layers to a more field first-focused structure, we will better support owner/operators and their restaurants, and be smarter and more responsive in the field,” Mr. Kempczinski wrote. The changes come after the company in April reported that customer visits in the U.S. fell in the first quarter. Last week, Mr. Kempczinski told staff in an emailed video message that the company was reducing the number of layers between field consultants and Chief Executive Steve Easterbrook to six from eight, in an effort to facilitate faster decision-making. In that memo, he said the new structure would better support franchisees and help the company be “more dynamic, nimble and competitive.” Write to Julie Jargon at julie.jargon@wsj.com https://www.dowjones.com/scoops/kkr-nears-deal-to-buy-envision-healthcare/ Sun, 10 Jun 2018 13:07:58 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16504 The post KKR Nears Deal to Buy Envision Healthcare appeared first on Dow Jones.

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]]> AmericasHealth Care/Life SciencesBy Dana Mattioli, Miriam Gottfried and Dana Cimilluca KKR & Co. is nearing a deal to buy Envision Healthcare Corp. for $46 a share, or about $5.5 billion, according to people familiar with the matter, in one of the largest recent leveraged buyouts. The Nashville, Tenn., provider of physician services to hospitals and other health-care facilities has been conducting an auction after announcing a strategic review last fall. A deal with the private-equity firm could be announced as soon as Monday, the people said. The price represents a 5% premium to Envision’s closing price of $43.64 on Friday and nearly 70% above where the stock traded when the review was announced. The deal would be one the largest private-equity buyouts in recent years. Buyout firms are sitting on more than $1 trillion of cash, which poses a challenge with markets near all-time highs and big companies on the prowl for deals of their own. Write to Dana Mattioli at dana.mattioli@wsj.com, Miriam Gottfried at Miriam.Gottfried@wsj.com and Dana Cimilluca at dana.cimilluca@wsj.com https://www.dowjones.com/scoops/u-s-regulators-demand-trading-data-from-bitcoin-exchanges-in-manipulation-probe/ Fri, 08 Jun 2018 17:20:53 +0000 https://djadmin.dowjones.com/dowjones/?post_type=scoop&p=16507 The post U.S. Regulators Demand Trading Data From Bitcoin Exchanges in Manipulation Probe appeared first on Dow Jones.

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]]> AmericasEquitiesFinancial ServicesBy Gabriel T. Rubin, Dave Michaels and Alexander Osipovich WASHINGTON — Government investigators have demanded that several bitcoin exchanges hand over comprehensive trading data to assist a probe into whether manipulation is distorting prices in markets linked to the cryptocurrency, according to people familiar with the matter. The investigation followed the launch of bitcoin futures on CME Group Inc.’s exchange six months ago. CME’s bitcoin futures derive their final value from prices at four bitcoin exchanges: Bitstamp, Coinbase, itBit and Kraken. Manipulative trading in those markets could skew the price of bitcoin futures that the government directly regulates. CME, which launched bitcoin futures in December, asked the four exchanges to share reams of trading data after its first contract settled in January, people familiar with the matter said. But several of the exchanges declined to comply, arguing the request was intrusive, the people said. The exchanges ultimately provided some data, but only after CME limited its request to a few hours of activity, instead of a full day, and restricted to a few market participants, the people added. The dispute frustrated CME’s regulator, the Commodity Futures Trading Commission, these people said. In response, the commission subpoenaed the exchanges for the data. CFTC officials backed the launch of bitcoin futures, saying they viewed it as a risky but worthwhile project. The CFTC was upset CME didn’t have in place agreements that would compel bitcoin markets to share trading data tied to futures contracts, these people said. Such agreements would detail what information the cryptocurrency venues would have to provide to CME, including the time of trades, unfilled or canceled orders, the size of orders, and traders’ identities. CME initially sought the data through a third-party firm that calculates the bitcoin index price it uses for its futures contract, a person familiar with the matter said. The bitcoin exchanges were opposed to handing over so much sensitive trading data to the London company, which also operates a platform for trading cryptocurrencies, the people said. The fight over access to bitcoin trading data was a factor in the CFTC opening an investigation into whether traders have colluded to manipulate bitcoin prices, people familiar with the matter said. The CFTC is coordinating with the U.S. Justice Department, which is separately looking into potential manipulation of other cryptocurrencies, the people added. The investigation, in its early stages, shows how Washington is pressing virtual-currency exchanges that have r esisted comprehensive government oversight. Futures allow traders to bet on the direction of the price of assets such as oil, gold or bitcoin. CME offers an array of bitcoin futures for a number of months into the future. The final price of each contract is set on the last Friday of its month, based on the average of the price of bitcoin at the four exchanges during an hour-long window. CME and the CFTC are supposed to monitor trading during that hour to ensure that individual trades don’t skew the price of the futures. A CME spokeswoman said that its index provider has an information-sharing agreement with each bitcoin exchange. “All participating exchanges are required to share information, including cooperation with inquiries and investigations,” CME spokeswoman Laurie Bischel said. A spokesman for Bitstamp declined to comment. A spokeswoman for Coinbase didn’t respond to a request seeking comment. Kraken Chief Executive Jesse Powell said in a statement Friday the CFTC’s “newly declared oversight” of bitcoin prices that drive futures “has the spot exchanges questioning the value and cost of their index participation.” Mr. Powell said in an interview earlier this week that worries about bitcoin market manipulation were exaggerated. “If there is any kind of attempted manipulation, whoever is doing it is taking a huge amount of risk for very little possible upside,” he said. Investigators are looking for trading schemes that can be used to manipulate the price at which a cryptocurrency trades, the people said. In one example, akin to a practice known as spoofing, a trader enters large orders with the intention of tricking others into thinking there had been a fundamental change in the supply and demand of bitcoin. That might induce others to raise their prices to buy, which can allow the spoofer to sell at an artificially high price. The CFTC has said bitcoin is a commodity and believes that designation gives it authority to look for fraudulent trading on exchanges, even if the venues aren’t subject to the panoply of rules that futures markets face. The CFTC in May issued a warning spelling out expectations for approval of new cryptocurrency derivatives. The CFTC said “a heightened level of monitoring” of the bitcoin market is “warranted” for exchanges that want to launch new futures products. “We have definitely entered an unknown area where it is clear there is a desire for tightened oversight,” said Paxos Chief Executive Charles Cascarilla, whose firm operates itBit. The company declined to comment further. –Aruna Viswanatha contributed to this article. Write to Gabriel T. Rubin at gabriel.rubin@wsj.com, Dave Michaels at dave.michaels@wsj.com and Alexander Osipovich at alexander.osipovich@dowjones.com