Breaking News

Regulator Wants Financial Industry to Self-Report Wrongdoing

First Read

Hits & Takes

Do you know of a college student looking for an internship? Have them submit their resume to our MarketsWikiEducation.com site for our October 16 event. They don’t have to attend, but there are added bonuses for being there. Besides our lineup of industry leaders speaking, we will even shoot a photo studio quality picture for the students to use. ~JJL

Help us spread the word for our October 16 MarketsWiki Education recruiting event. We have a great list of sponsors for the event, including CBOE, Nasdaq, OCC, NFA, Geneva Trading, HC Technologies, ED&F Man Capital Markets and Fidessa. ~JJL

If your firm would be interested in being a sponsor of our MarketsWiki Education recruiting event, but can’t be present on October 16, please contact John Lothian or Jessica Darmoni. Your firm can still be a sponsor and have access to our database of college student resumes even it you don’t display. We have a limited number of tables at our event, but a big desire to help young people find an opportunity to our event. ~JJL

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My Affiliate’s Keeper?; CFTC Flexes Cryptocurrency Muscle; Can SEC Keep a Secret?
Gary DeWaal – Bridging the Week
Last week, the Commodity Futures Trading Commission required a futures commission merchant to pay a fine of US $2.5 million to resolve charges it failed to supervise a response to a CME Group investigation when the FCM relied on an affiliate’s analysis of the affiliate’s own block trades – and the analysis turned out to be misleading. Separately, the FCM’s affiliate agreed to pay an additional fine of US $2.5 Million in connection with an investigation by the US Attorney’s Office for the Western District of North Carolina for trading ahead of customers in connection with block trades. Also, the CFTC dramatically expanded its footprint in the oversight of cryptocurrencies when it brought an enforcement action against two persons in connection with an alleged Ponzi scheme involving Bitcoin. Importantly, the CFTC’s complaint included no allegations regarding futures or swaps.
bit.ly/2fLDiKE

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How to Survive the Apocalypse
Alex Williams – NY Times
President Trump threatens to “totally destroy North Korea.” Another hurricane lashes out. A second monster earthquake jolts Mexico. Terrorists strike in London. And that’s just this past week or so. Yes, the world is clearly coming to an end. But is there anything you can do to prepare? That is not a philosophical question, or a theological one. And if it is a question that seems to beg any explication, you may stop reading now.
/goo.gl/JwZtNU

***** Find a Boy Scout; he has most of what you will need. ~JJL

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Springsteen Tickets Hit $10,000, and Wall Street Gets Scalped
By Laura J Keller , Eben Novy-Williams , Bob Van Voris , and Katherine Burton – Bloomberg
Hedge-fund money chases soaring ticket prices in new era; Alleged frauds ensnared Michael Dell, Paul Tudor Jones
We ain’t in Asbury Park anymore: prime tickets to “Springsteen on Broadway” are now going for as much as $10,000 on StubHub. Even a cheap seat will cost you $1,400. Never mind that it says $75 on the ticket.
/goo.gl/y545Uz

****** Unregulated ticket brokers are fleecing sophisticated investors. Funny thing, regulation. ~[JJL]]

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‘War-Torn’ Chicago Is More Popular With Tourists Than Ever
By Nikki Ekstein – Bloomberg
Chicago, described by President Trump and others as a hellish, dystopian crime scene akin to a “war-torn nation” and “worse than Afghanistan” is about to shatter all of its tourism records, including the one it set last year.
/goo.gl/qYaExb

****** Chicago is a beautiful city full of mostly very good people. There are exceptions in some bad neighborhoods, but that is an opportunity to change lives. ~JJL

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Friday’s Top Three
Friday’s top items were led by a LinkedIn entry for RJO’Brien’s employee appreciation day, RJO Celebration for Employees. Second went to Lanre Sarumi‘s rant again Jamie Dimon and other things in Bitcoin, Gold, and Jamie Dimon. Third went to Doug Ashburn‘s piece for TD Ameritrade’s publication called Ticker Tape, Put-Call Parity and Dynamically Hedging Stock Options. (Honorable mention to an event we posted, FinTank’s The Most Influential Gathering of Blockchain Influencers in the World.

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MarketsWiki Stats
108,165,328 pages viewed; 22,788 pages; 209,396 edits
MarketsWiki Statistics

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Lead Stories

Regulator Wants Financial Industry to Self-Report Wrongdoing
David Enrich – NY Times
After years as a sleepy federal backwater, the Commodity Futures Trading Commission became one of Wall Street’s most aggressive watchdogs during the Barack Obama administration.
/goo.gl/WqT9Y1

Merkel must now address Germany’s biggest problems
www.cnn.com
It was supposed to look effortless, German Chancellor Angela Merkel gliding to victory in this year’s federal election. But the roughly 33.5% of seats that she won — according to exit polls — was less than anticipated, even though she secured her conservative party, the Christian Democrats (CDU), a fourth term in office.
cnn.it/2wN2o6l

Equity Traders Act Like There’s Little Risk Left in Europe
By Sofia Horta E Costa – Bloomberg
‘Nobody’s excited and nobody’s worried,’ Morgan Stanley says;l Trading on benchmark Stoxx 600 is the quietest since 2000
All’s quiet on the European front, if stock traders are to be believed. With Germany’s election — the fourth major one in the region this year — now out of the way, equity trading is the quietest since 2000 and a gauge of volatility hovering near a record low. Sentiment has been supported by steady economic growth and low interest rates, and strategists at banks including Goldman Sachs Group Inc. and Morgan Stanley say only a big shock will put an end to market resilience.
/goo.gl/GAxZSb

China to bring back gold in international settlement with new oil futures; China is working on crude oil settlement in yuan backed by gold to circumvent US dollar settlement
Rajesh Bhayani – Business Standard
China is planning to bring back gold standards for international payment after several decades. Being the world’s largest importer of yellow metal, China is now preparing to launch an oil futures contract denominated in yuan and redeemable in gold. While the yuan is not yet a global trade settlement currency, China will make the plan possible by backing the yuan with gold for settling crude oil imports. China is also the largest importer of crude oil.
/goo.gl/PjAFKE

Emerging markets poised to lead pack on renewable energy
James Kynge – FT
Emerging markets are set to eclipse developed nations next year in their capacity to generate wind and solar power as equipment costs fall and the energy market approaches “peak coal”, according to Moody’s, the credit rating agency.
/goo.gl/HpPr87

Market forces and competition are not necessarily detrimental to sustainability; Paul T.M. Ingenbleek and Machiel J. Reinders study the case of coffee roasters and supermarkets in the Netherlands
London School of Economics and Political Science
The consumption of sustainable foods and drinks is becoming common in certain categories. This provides us with an opportunity to study markets that have transformed from merely “unsustainable” to “sustainable” consumption. As approximately three fourths of the coffee consumed in the Netherlands is being produced in a sustainable way, the Dutch coffee market is a market from which we can draw lessons. To this end we analysed the case in a historical way by using available documents and conducting interviews with actors that played key roles in the transformation of the market.
/goo.gl/mTXGRC

The Global Stock Market’s Hidden Juice; Rising margin lending from Swiss and U.S. wealth managers can make a downturn far more painful
By Paul J. Davies – WSJ
One common sign of trouble ahead is people borrowing heavily to buy equities. Investors should be worried then that stocks are being supported by record amounts of margin debt, according to research released last week from the Bank for International Settlements, the Switzerland-based central bank for central banks.
/goo.gl/meSZaB

The return of the stock picker; Index funds have outperformed most equity managers for a decade, but tighter monetary policies lead active investors to believe it is their moment
Robin Wigglesworth – FT
Next January the Omaha branch of Girls Inc, a venerable charity dedicated to helping young women across the US, will receive a $1m cheque in the mail from a New York hedge fund, after a bet entered into a decade ago went horribly awry.
/goo.gl/SC8Gp7

First electronic inflation swap traded on Tradeweb; Tradeweb completes first inflation swap on European interest rate swaps platform.
By Joe Parsons – The Trade
The first cleared inflation swap has been executed on Tradeweb’s European interest rate swaps platform, as trading of OTC derivatives continues to shift on to electronic venues with the onset of MiFID II fast approaching.
/goo.gl/MNgAwG

SEC chairman faces grilling over hack defense
By Josh Kosman – NY Post
SEC boss Jay Clayton better wear his asbestos suit on Tuesday, when he’s likely to come under fire while testifying before a Senate committee bent on knowing what the regulator is doing to prevent another embarrassing cyberattack.
/goo.gl/reQnQV

SG loses veteran global markets sales head
Risk.net
Societe Generale Corporate & Investment Banking (SG CIB) has parted ways with Marc El-Asmar, the long-serving head of sales for its global markets business. His plans are not known.
/goo.gl/jygSqx

S.E.C. Rules to Protect Investors From Cyberthreats Fall Short
By GRETCHEN MORGENSON – NY Times
At first glance, the hacking disclosed by the Securities and Exchange Commission on Wednesday didn’t seem too much of a concern to investors.
/goo.gl/vJTD8F

When All Else Fails, Sue Wall Street; There’s a lot of blame to go around, but banks have deep pockets and a history of municipal-debt settlements.
By Lisa Abramowicz – Bloomberg
Disagreements about money often have a clear solution: Everyone sues each other. That’s the American way.
/goo.gl/aAjQdh

Spread betting raises profile before a regulatory clampdown; Firms chase endorsements and sponsorships from Europe’s biggest sports names
Hannah Murphy and Philip Stafford – FT
Spread betting and foreign exchange brokers are chasing endorsements and sponsorships from Europe’s biggest sports names while regulators prepare to clamp down on their marketing to retail investors.
/goo.gl/ABjLM1

The Growing Clout of ETF Strategists; Centrally managed portfolios have a big impact on how money moves in the ETF market
By Asjylyn Loder – WSJ
The morning after Donald Trump’s surprise victory in November, BlackRock Inc. quickly sold millions of dollars of shares in an emerging-markets exchange-traded fund, sales that rippled through thousands of client accounts totaling about $1 billion.
/goo.gl/mJvr8Z

Exchanges, OTC and Clearing

Deutsche Börse cooperates with SmartStream
Deutsche Börse
The European market infrastructure provider will use the SmartStream RDU service for its future regulatory reporting hub. RDU is a managed service that provides reference data, among other things, for use in regulatory reporting products. These reference data include data from ESMA, GLEIF (Global Legal Identifier Foundation), as well as data on the beginning and end of trading of different markets, which are part of the transparency service offered by the Regulatory Reporting Hub.
/goo.gl/yeXzu1

A celebrity listing crashes Japanese exchange’s party
Yoshiyuki Osada and Marika Tsuji – Reuters
On Japan’s newest exchange, fame can pay off. That may not be so great for investors though. Last month, Hikaru, a Japanese YouTube star so famous he can go by a single stage name, listed himself on Valu, a platform for people to raise money, often for personal projects or businesses, by essentially selling shares in themselves.
/goo.gl/XpXTk7

Nadex aims to amend Order Entry rules to prevent disruptive activity
Finance Feeds
Any Member submitting orders to Nadex must ensure adequate controls are in place to prevent excessive messaging or other activity that may be deemed detrimental or disruptive to the Exchange.
/goo.gl/8cjJSz

EGX Holds A Meeting With The Nominated Advisors Of NILEX To Discuss Ways Of Developing The Market Structure
Mondovisione
The Egyptian Exchange (EGX) held its first meeting with 20 representatives of Nominated advisors of Nilex, aiming to develop the working system of listed in the SMEs Stock market.
/goo.gl/CePbVd

DGCX’s Dubai India Crude Oil Futures Named Best New Derivatives Contract By FOW Global Investor
Mondovisione
The Dubai Gold and Commodities Exchange’s Dubai India Crude Oil Futures (DICO) contract has been recognised as the ‘Best New Derivatives Contract’ at this year’s FOW Global Investor Asia Capital Markets Awards 2017.
/goo.gl/2N3dvK

DIFC’s GFF Will Explore Opportunities For Emerging Markets In The ‘New Order
Mondovisione
Dubai International Financial Centre (DIFC), the leading international financial hub for the Middle East, Africa and South Asia (MEASA) region, has today announced the preliminary speaker list for its inaugural Global Financial Forum (GFF). To be held on Tuesday 14 November 2017 under the patronage of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC, the Forum is set to convene an exclusive gathering of invited delegates to focus on ‘Navigating the New Order’.
/goo.gl/4oanAs

MarketAxess approved as market operator in Singapore; Firm gains regulatory approval to act as Recognised Market Operator in Singapore.
By Hayley McDowell – The Trade
MarketAxess has gained approval to operate as a Recognised Market Operator (RMO) in Singapore by the financial regulatory authority.
/goo.gl/Zp3Lav

Dragan Radanovic appointed Member of the Management Board at Boerse Stuttgart; Supervisory Board fills vacant position on management boards of Boerse Stuttgart GmbH and EUWAX AG
Boerse Stuttgart GmbH
Dragan Radanovic (40) will take up the positions of Member of the Management Board at Boerse Stuttgart GmbH and EUWAX AG on 1 October 2017.
/goo.gl/B1jWdq

SIX Swiss Exchange Joins xyt Hub For Tick Data Distribution And Analytics – Helps Trading Participants Develop, Backtest And Optimise Trading And Execution Strategies
MondoVisione
big xyt, the independent provider of high-volume, smart data and analytics capabilities, announced today that SIX Swiss Exchange has joined the xyt hub to provide high quality tick data to its trading participants, enabling them to develop, evaluate and backtest new trading and execution strategies while providing greater transparency over trading activity.
/goo.gl/5PB3qa

Fintech

The ICO Craze is Bull****
Jeff Carter – Points and Figures
I am calling bullshit on the ICO craze. Was talking to someone who told me a startup with no customers and a skeleton business plan raised mid-double digits in the millions of dollars on an ICO. They aren’t the only one.
bit.ly/2xtKcgP

**Jeff Carter takes aim at ICO after seeing things like Pets.com and something called J-Coin.~JK

ICOs are where the frauds will take place
by Joshua M Brown – The Reformed Broker
Jeff Carter has been around the block a few times…
Jeff’s a friend of mine but he comes at these things from a Chicago floor trader – turned angel investor’s mentality. I come at these things from a reformed stock broker’s perspective. We don’t always see eye to eye but, in this case, we’ve arrived at exactly the same place. ICOs are where the frauds will take place.
/goo.gl/CXk2Nc

McKay Brothers to Connect London with Milan and Zurich at Lowest Known Latency
Press Release
McKay Brothers International (MBI) will connect UK data centers Slough-LD4 and Basildon with trading hubs in Milan and Zurich at lowest known latencies. The company expects its new private bandwidth service between the UK and Milan’s I.Net data center to go live in mid-October. The private bandwidth service between the UK and Zurich is expected to be live in the first quarter of next year.
prn.to/2xue3Ev

$70m edge data centre opens in downtown Montreal
data-economy.com
Although the size does not fall into what many call edge or micro data centres, its central location close to the financial district will boost in-town connectivity. A $70m data centre has opened for business in Montreal, Canada, to serve as a global telecom node, providing close proximity to major US cities.
bit.ly/2xuaZrL

Boat Services Partners With KiteEdge To Offer Innovative Search Tool, Apex, To Clients
Mondovisione
Boat Services have announced a partnership agreement with KiteEdge to offer Apex, a next generation customisable search layer, to clients.
KiteEdge provides asset managers with the tools to find, collaborate, and leverage content across complex, multi-asset, siloed organizations and helps firms meet their MiFID II regulatory/transparency requirements.
/goo.gl/GpJQ2G

Global FinTech Leaders Making Their Way To Abu Dhabi For FinTech Abu Dhabi Summit
Mondovisione
Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, has brought together a dynamic line-up of global FinTech leaders, innovators, financial regulators and trend-setters at the upcoming FinTech Abu Dhabi in October 2017. This will also be the first appearance in the Middle East region for many of the key speakers. FinTech Abu Dhabi Summit promises to be an exciting exchange of new ideas, experience and business opportunities.
/goo.gl/qHh3iT

Pump more money into Hong Kong fintech start-ups, EU chamber boss urges; Tackle city’s sky-high property prices and international school fees to keep foreign investors coming, he adds
Phila Sir – South China Morning Post
Hong Kong needs to pump more government funding into local fintech start-ups to help find the next big thing, the city’s European Chamber of Commerce chairman said, as he urged tackling sky-high property prices and international school fees to keep foreign investors coming.
/goo.gl/HoS61Y

Hedge fund legend predicts nearly half of all jobs will be replaced by AI
By Fox Business
Bridgewater Associates founder Ray Dalio said Friday that almost half of the jobs in the next two decades will be replaced by artificial intelligence
/goo.gl/hXtfGC

EU regulators signal greater fintech supervision; ESAs have a ‘role to play’
Mike Sheen – InvestmentWeek
European Supervisory Authorities (ESAs) have identified the evolution of fintech as among the key risks facing European markets today, highlighting issues in areas including robo-advice and data protection.
/goo.gl/tB35bj

Politics

Trump’s global vision is a nightmare. The UN has to act
Mark Seddon – The Guardian
The presidential cavalcades have departed Manhattan. But the aftershocks of Donald Trump’s speech to the UN general assembly still reverberate. “You can be sure of one thing,” a veteran UN official whispered to me during the speech: “Trump never fails to disappoint.” https://goo.gl/pnLmN8

Congressional aides risk conflicts with stock trades; Senior staffers buy and sell shares in companies that benefit from legislation in their committees.
By MAGGIE SEVERNS – Politico
On Sept. 28, 2016, three members of the Senate Judiciary Committee sent a letter to the Justice Department suggesting that the drug company Mylan was violating Medicaid laws.
/goo.gl/yW8RXz

Regulation

U.S. watchdog settled for small fine over Wells Fargo phony accounts: report
Pete Schroeder – Reuters
A consumer watchdog agency could have levied $10 billion in penalties against Wells Fargo & Co last year for opening unauthorized customer accounts, but settled for a fraction of that to resolve the matter quickly, according to regulatory documents released on Tuesday.
/goo.gl/dkzLge

Should the U.S. Require Companies to Report Breaches?; Companies like Equifax don’t like you knowing they’ve been hacked—but it would be better for consumers and businesses if they were quicker to report it
By Christopher Mims – WSJ
There are two things we can count on in the wake of the Equifax EFX 6.91% breach, already credited with exposing a majority of American adults to the possibility of identity theft. The first is that more and potentially worse breaches are in our future. The second is that companies will need to be prodded toward smarter cybersecurity practices and faster reporting of breaches.
/goo.gl/91pbAW

Charles River and TRADEcho partner to automate MiFID II trade reporting
InstitutionalAssetManager
Charles River Development has formalised a partnership agreement with TRADEcho to automate Trade reporting under the European Union’s Markets in Financial Directive II (MiFID II), which goes into effect in January of 2018.
/goo.gl/QgVnHb

LTCG case: Sebi revokes trading ban on 14 entities; This case was related to Kamalakshi Finance Corporation Ltd wherein various entities were prima-facie found to have artificially inflated the company’s share price to make illegal gains
Press Trust of India
Regulator Sebi has lifted trading ban on 14 entities which were alleged to have misused the stock market platform for money laundering and tax evasion as it did not find any “adverse evidence” against them.
/goo.gl/ipfN1Y

SEC Suspends Trading in Company Purporting Involvement in Hurricane Harvey Relief Efforts
SEC
The Securities and Exchange Commission today suspended trading in a company amid questions surrounding its statements about sending response teams and equipment to help with Hurricane Harvey disaster recovery efforts in Houston and surrounding areas.
/goo.gl/HAKPqW

Pharmaceutical Company Paying Penalty for Misleading Investors About Sales Metric
SEC
The Securities and Exchange Commission today filed fraud charges against a Massachusetts-based biopharmaceutical company that exaggerated how many new patients actually filled prescriptions for an expensive drug that was its sole source of revenue.
/goo.gl/xdr3kj

SEC Announces Agenda for October 12 Investor Advisory Committee Meeting; Welcomes New Members Allison A. Bennington and Mina Nguyen
SEC
The Securities and Exchange Commission today announced the agenda for the October 12 meeting of its Investor Advisory Committee. The meeting will begin at 10 a.m. in the Multipurpose Room at SEC headquarters at 100 F Street, N.E., Washington, D.C., and is open to the public. The meeting will be webcast live and archived on the committee’s webpage for later viewing.
/goo.gl/UzQqjZ

SIFMA Recommends Revisions to Volcker Rule in Comments to OCC
SIFMA
SIFMA today responded to the Office of the Comptroller of the Currency (OCC) request for comment on how the regulations implementing the Volcker Rule should be revised to better accomplish the purposes of the underlying statute and its impact on the efficient functioning of markets to facilitate growth.
/goo.gl/dy1R5L

SEBI removes wall between stock, commodity brokers
TheHinduBusinessline.com
Providing a major fillip to the ease of doing business, commodity and capital market regulator SEBI on Thursday paved the way for integration of stock and commodity brokers.
/goo.gl/Dt9QL5

Investing and Trading

Plentiful oil will sustain the age of hydrocarbons
Nick Butler – FT
Last week, I wrote about the likelihood of a long plateau of oil demand at something around 100m barrels a day for the next two to three decades. That figure reflects a balance between falling consumption of petrol as electric vehicle numbers grow and continuing increases in demand for diesel for the freight business, aviation fuel and oil for the petrochemicals industry.
/goo.gl/6c4Vwg

Shorting volatility: Rising risks mean itchier trigger fingers
Saqib Iqbal Ahmed -Reuters
A long stretch of low volatility for U.S. stocks has made betting on continued calm a popular and lucrative trade, but traders and strategists warn that risks to the trade have mounted, while the potential for profits has shrunk.
/goo.gl/Q3zSQr

Ignore the Fed’s Yield Sign at Your Peril; If the Federal Reserve’s rate projections come true, the yield curve is bound to get flatter
By Justin Lahart – WSJ
The Federal Reserve is telling investors it will flatten the yield curve. They should listen.
/goo.gl/yWPSAJ

Aite Report: Cross-border issues of bonds up to 2025 “the norm”; T2S will revolutionize bond issuance in Europe and stimulate demand for European bonds / 80% of respondents expect demand to rise by 2025 in multi-currency central custodial services
Deutsche Börse
According to a report released today, cross-border bond issues will become the norm by 2025. Another finding is that the European settlement system TARGET2-Securities (T2S) will boost the demand for European bonds. At the same time, the authors expect a significant change in the European emission environment and a higher strategic significance of Asia and the US for international investors. The report entitled “The Future of Global Debt Issuance: 2025 Outlook” was prepared by the research and consulting company Aite Group and commissioned by Clearstream.
/goo.gl/8ExF9w

Buy-side bond trading desks look to team up for access to liquidity; Survey finds 78% of heads of fixed income at asset management firms would team up with other trading desks to source liquidity.
By Hayley McDowell – The Trade
Fixed income buy-side trading desks would consider partnering with each other in order to access liquidity more efficiently, according to a survey.
/goo.gl/yC8ase

This Stock Coil Will Likely Unwind Quickly; The S&P 500 notched its smallest trading range last week in 45 years
By Kevin Kingsbury – WSJ
Much has been said the past year or more about the lack of market volatility. But even on that score, last week was one for the ages.
/goo.gl/x2gtoJ

World’s Largest Money-Market Fund Will Lower Its Returns, Shed Risk; Alibaba spinoff Yu’e Bao is making changes to comply with new Chinese investment rules
WSJ
The manager of the world’s largest money-market fund said it would take steps to reduce risk in its investments and lower the lofty yields that have helped draw a flood of cash into the fund over the past year.
/goo.gl/GQ9zdF

In World’s Hottest Oil Patch, Jitters Mount That a Bust Is Near; Ups and downs are so ingrained in this business that crazy success in the Permian Basin is seen as an omen that a crash looms.
By Dan Murtaugh – Bloomberg
Steve Pruett has seen more than his share of booms in three decades in the oil business. None, though, as strange as the one gripping the Permian Basin right now.
/goo.gl/trSXJp

Hedgie says SEC is ‘very wrong-footed in what they do’
By Carleton English – NY Post
Leon Cooperman is still smarting from his battle with the Securities and Exchange Commission.
/goo.gl/JSsBc4

Aladdin: The genie in BlackRock’s money machine; More than 85 fund managers are running $18tn in assets on the software platform, and BlackRock hopes it will prove to be a cash cow
By Tabby Kinder
On a sunny morning in early June a High Court judge and officials and lawyers from the UK’s tax revenue authority convened at BlackRock’s London headquarters for a demonstration.
/goo.gl/rwzvfQ

Institutions

Litigation costs to rub salt in RBS investor wounds
Kirstin Ridley and Andrew MacAskill – Reuters
Some RBS shareholders, who lost most of their money after a credit crisis-era rights issue, could receive less than a quarter of their settlement after litigation costs, according to a letter seen by Reuters.
/goo.gl/qhXm1P

Why a BlackRock Legal Victory Could Make It Harder for ETF Investors to Sue; A California court’s decision may limit investors’ ability to sue ETF providers for leaving out or misrepresenting risks in fund documents
By Sarah Krouse – WSJ
Investors could have a more difficult time suing exchange-traded fund managers for misrepresenting risks following a California court decision in favor of ETF giant BlackRock Inc.
/goo.gl/x6E6Bt

AIG to restructure operations into three business units
Reuters Staff
American International Group Inc (AIG.N) said on Monday it would reorganize into three new business units and will no longer have Commercial and Consumer businesses.
/goo.gl/TKiQnN

OASIS Investment Strategies Broadens Services to Meet Cash, Collateral and Margin Management Needs of All Types of Financial Institutions
CHICAGO, Sept. 25, 2017 /PRNewswire/ — Chicago-based OASIS Investment Strategies, LLC, the cash management affiliate of R.J. O’Brien & Associates (RJO), announced today that it has now opened its global cash, collateral and margin management service to all types of financial institutions with excess cash on deposit.
/goo.gl/tWSqkv

Regions

Hong Kong’s Stock Rally Killer Is Back; Chinese companies are cashing in. That augured the end of the last rally.
By Shuli Ren – Bloomberg
Pay attention, anyone who’s concerned that Hong Kong stocks are looking toppy: China Inc. is cashing in, and that presages a real test.
/goo.gl/b2UaZG

China’s Banks Don’t Share Investors’ Enthusiasm for Steel; State banks being asked to convert loans into inflated stocks
By Nathaniel Taplin – WSA
The stock market has fallen in love again with China’s beleaguered state-owned steel titans, which are up roughly 60% since the dark days of early 2016 due to higher steel prices. But China’s banks don’t share investors’ enthusiasm.
/goo.gl/F6rKgZ

Gold companies take a shine to China’s Silk Road
Tom Daly – Reuters
As far as China’s miners are concerned, the modern-day Silk Road is paved with gold.
/goo.gl/5HV8Mv

S&P’s China downgrade may deter forex liberalisation plans; Market turbulence arising from the S&P downgrade could see Beijing hold off relaxing controls in foreign exchange ahead of the 19th Party Congress
Xie You – South China Morning Post
The decision by prominent US financial agency S&P Global Ratings to downgrade China’s sovereign rating is likely to deter some financial liberalisation plans under consideration in Beijing, particularly as the decision was made at a sensitive time, analysts said.
/goo.gl/whJHEt

Hong Kong insider buying remains high while insider selling wanes
Robert Halili – South China Morning Post
The buying remained high while the selling among directors fell based on exchange filing from September 18 to 22 with 53 companies that recorded 285 purchases worth HK$251 million versus 22 firms with 87 disposals worth HK$192 million.
/goo.gl/Ftftov

Colombia coffee farmers tackle many foes in fight to do it right; World’s third-largest producer faces constant battle to safeguard future
Gideon Long in Venecia, Colombia – FT
On the El Rosario coffee farm, high in the lush, green mountains of the Colombian province of Antioquia, Carlos Ariel Ángel reels off a list of the bugs and diseases that constantly threaten the coffee harvest.
/goo.gl/uprBcv

Environmental, social and governance regulations turn risk into opportunity for Hong Kong businesses; Companies discover that being green can help the environment, boost their public image, and save money
Peter Sabine – South China Morning Post
New rules enacted by the Hong Kong stock exchange will strengthen environmental, social and governance (ESG) reporting for upcoming financial statements, placing the spotlight on professional services firms which need to ensure both they and their clients comply.
/goo.gl/3nsnsm

Investors should wake up to Japan’s robotic future; Unfavourable demographics are spurring innovation — and investment opportunities
Joseph Quinlan – FT
Due largely to unfavourable demographics, few countries have had more obituaries written about it than Japan. In the hierarchy of economic geriatrics, Japan stands at the apex, and for good reason.
/goo.gl/WhFXSH

Brexit

Labour Party conference day two live: Senior figures suggest there could be second Brexit referendum
Kate McCann, senior political correspondent Jack Maidment, political correspondent – Telegraph
Labour heavyweights have suggested the party could back holding a second Brexit referendum as the UK’s withdrawal from the EU continues to dominate conference in Brighton.
/goo.gl/Ja8RSJ

Brexit Sound and Fury Fades as EU Moves On to Bigger Themes
By Kati Pohjanpalo – Bloomberg
EU Commissioner Katainen says defense, trade dominate agenda; Poland is emerging as a key worry for the EU, Katainen says
The European Union is making it abundantly clear that it has more important issues to worry about than Britain’s departure from the bloc.
/goo.gl/H1Zqws

Brexit Department Loses 20% of Workers in 14 Months
By Alex Morales – Bloomberg
A total of 124 civil servants leave department; 482 remain; Freedom of information data reveal scale of staff turnover
Oliver Robbins, the onetime top official at Britain’s Department for Exiting the European Union, is just the tip of the iceberg of the exodus of officials from the government body created to handle the brunt of divorce.
/goo.gl/BJo34t

Miscellaneous

The next financial crisis is coming, I just don’t know when; ‘For us humble savers, just one thing is clear: the next crisis is coming, and it is essential we prepare for it’
David Dodwell – South China Morning Post
Twenty years ago this weekend I sat in the newly-minted auditorium of the Hong Kong Convention Centre in Wan Chai as Hong Kong played host to the World Bank and IMF meetings. I spectated first-hand on the complacent myopia of the world’s smartest and most powerful financial sector minds.
/goo.gl/QeTRTE

Uber Tries Compromise With London Regulators; Ride-hailing app is looking at what kind of concessions it could make to get operating license back
By Sam Schechner – WSJ
After a stinging regulatory rebuke from the city of London, Uber Technologies Inc. is seeking to negotiate.
/goo.gl/DXnL6a

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About Author

Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.