Breaking News

SEC’s Edgar System Hacked; Neuberger Berman acquires Breton Hill; S&P Cuts China’s Credit Rating

First Read

Hits & Takes
By JLN Staff

The LME Metals Seminar is fast approaching, and it’s set to be one of the best yet. What’s in store for the flagship event of LME Week? You can see the full agenda HERE. Or you can register, HERE.~JJL

Exchange Analytics is offering a new Anti-Money Laundering training course. You can see a preview video HERE.~JJL

A Leg To Stand On is extending its buy three get one free deal for its Chicago Rocktoberfest event on October 5 at City Winery. Just enter the name Lothian in the promo code for your extra free ticket. If you haven’t been to Rocktoberfest, it is a great time with great bands from our industry.~JK

Yesterday’s Asia Pacific Financial News from John Lothian News can be found HERE.~JJL

OIC has a webinar today called “Why Do Options Prices Move So Much?” from 3:30-4:30 p.m. CT. You can register HERE. ~SD

Eurex’s Annual Derivatives Forum in Frankfurt takes place today, like right now. The exchange’s London Derivatives Forum is scheduled for October 12. ~SD

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The Birth of Fintech – Anna Irrera
Education.MarketsWiki.com

“[Fintech] is an incredibly broad term. It means the ATM you’re using in a bodega, but it also means the sophisticated software used to spot fishy behavior in markets.”

In this video from MarketsWiki Education’s World of Opportunity event in New York, Anna Irrera, a fintech correspondent for Reuters, breaks down how fintech is revolutionizing the financial industry. While fintech is a broad term, Irrera talks about four main areas: payments, online lending, digital wealth management and blockchain projects.
Watch the video »

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CME Group Launches CME FX Link
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, today announced it will launch spot foreign exchange (FX) basis spreads called ‘CME FX Link’ on CME Globex, CME Group’s electronic trading platform. This will create the first ever central limit order book between the over-the-counter (OTC) spot FX and CME Group FX futures markets. It is expected to launch in Q1 2018 and will provide OTC FX market participants with a more efficient way to access and use FX futures as part of their overall trading activity.
/goo.gl/TMcwDW

***** Launching links during Oktoberfest time is a good idea.~JJL

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QuantHouse Acquires Victory Networks
MarketsMedia
QuantHouse, the independent global provider of end-to-end high-performance market data and trading through API based technologies, today announced that the company has entered into a definitive Asset Purchase Agreement with Victory Networks inc, the provider of high-speed networks.
/goo.gl/k2qrAQ

**A Victory for QuantHouse.~JK

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CFTC Chairman Giancarlo Appoints Matthew B. Kulkin as Director of the Division of Swap Dealer and Intermediary Oversight; Eileen T. Flaherty Departs as the Division’s Director
CFTC
U.S. Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo today announced the appointment of Matthew B. Kulkin to serve as Director of the CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO). Kulkin comes to the CFTC from the law firm Steptoe & Johnson LLP, where, as a partner, he advised financial market participants on legislative and regulatory issues.
/goo.gl/k9gRPQ

***** Thank you to Eileen Flaherty for her service.~JJL

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MarketsWiki Page of the Day: QuantHouse
MarketsWiki
QuantHouse (see above story) today announced it plans to acquire Victory Networks, a provider of high-speed networks.
/goo.gl/RH2Du1

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Wednesday’s Top Three
Yesterday’s top story by far was about another prop shop trying to find a path forward, Sun Trading up for sale as sector struggles with low volatility. Second most clicked was Sun Trading’s MarketsWiki page. In third was John’s piece Business and Friendship Went Together For Leo Melamed, Bob Wilmouth and Leslie Rosenthal.

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MarketsWiki Stats
107,947,551 pages viewed; 22,786 pages; 209,348 edits
MarketsWiki Statistics

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Lead Stories

SEC Discloses Edgar Corporate Filing System Was Hacked in 2016; Breach may have allowed trading that profited from nonpublic information, regulator says
Dave Michaels – WSJ
The top U.S. markets regulator disclosed Wednesday that hackers penetrated its electronic system for storing public-company filings last year and may have traded on the information.
/goo.gl/P9D4gY

****SD: Reuters on the Edgar hack here.

Neuberger Berman acquires Canadian quant firm Breton Hill
Investmentweek.co.uk
Based in Toronto, the firm has $2bn assets under management (AUM) investing for a range of clients including institutions, ultra-high-net-worth individuals and retail investors.
jlne.ws/2wBps83

S&P Cuts China’s Credit Rating, Citing Risk From Debt Growth
Bloomberg News
Reduction comes just before key 19th Party Congress next month; Credit growth ‘diminished financial stability’ S&P says
S&P Global Ratings cut China’s sovereign credit rating for the first time since 1999, citing the risks from soaring debt, and revised its outlook to stable from negative.
/goo.gl/fThjeR

Wall Street’s Best-Kept Secret Is a 72-Year-Old Russian Chess Expert
James Tarmy – Bloomberg
On East 83rd Street there’s a squat brick walk-up that’s a viable contender for the least fancy apartment building on Manhattan’s Upper East Side. But for the past 25 years, Wall Street machers and captains of industry have marched up to its gray-carpeted third floor to learn the secrets of attack and defense from Lev Alburt, a three-time U.S. chess champion and one of the most prominent Soviet defectors of the 1970s. Alburt has long been giving ≠patter-filled private lessons to New Yorkers from all walks of life, encouraging, cajoling, and reprimanding men and women as they attempt to learn the so-called game of kings.
/goo.gl/4rxYRu

EU-US Mifid II accord will go down to the wire, official warns; European authorities reveal they have hit a stumbling block due to rules’ reach
Philip Stafford – FT
An agreement between EU and US authorities to prevent new European rules from fragmenting global markets may only be reached with weeks to spare, a senior EU official has warned.
/goo.gl/YfJret

Have Bitcoin, Can’t Travel: Crackdown Grounds China Cryptocurrency Executives; Concerns have grown about a speculative bubble building in cryptocurrencies
Gregor Stuart Hunter and Chao Deng – WSJ
China’s widening crackdown on bitcoin trading resulted in a travel ban of sorts for two executives from the country’s largest commercial bitcoin exchanges, which regulators are closing down.
/goo.gl/QvxMPm

Wall Street’s Newest Puzzle: What Passive Buying and Selling Means for Individual Stocks; Even active investors have resigned themselves to the influence of indexingóand are looking to profit from it
Chris Dieterich and Corrie Driebusch – WSJ
Stock pickers, who for so long decried the rise of passive investing, are now trying to profit from it.
/goo.gl/eoXepL

Internet Giants Face New Political Resistance in Washington
Cecilia Kang – NY Times
Last month, Facebook and Google came out forcefully against a bill that would hold companies accountable for hosting sex trafficking on their websites. They said that while they worked hard to combat sex trafficking, changing the law “jeopardizes bedrock principles of a free and open internet” that have been crucial to innovation for decades.
/goo.gl/bMaiKN

Chinese online stockbroker Tiger Brokers gets investment from US firm Interactive Brokers; The Chinese company, which is backed by billionaire investor Jim Rogers, did not disclose the amount received in its latest fundraising
Meng Jing – South China Morning Post
Tiger Brokers, a Chinese online securities brokerage start-up backed by Wall Street billionaire investor Jim Rogers, said on Thursday it has landed an investment from Interactive Brokers Group, one of the largest electronic brokers in the United States.
/goo.gl/aEyMsT

Warren Buffett Says the Dow Is Going Over One Million
Ben Eisen – WSJ
You heard it from Warren Buffett first: the Dow Jones Industrial Average is headed above one million.The blue-chip stock benchmark is likely to be above that milestone in a hundred years’ time, the Berkshire Hathaway Inc. chief executive and chairman said Tuesday night. It sounds eye-popping, but judging by past history, it’s actually a fairly conservative bet.
“The Dow will be over a million and that is not a ridiculous forecast at all if you do the math,” he said.
jlne.ws/2wHIG78

****SD: The Reformed Broker – Is Buffett’s “Dow One Million” Call Ludicrous?

CME Halts CDS – Where’s The CDS Business?
Tod Skarecky – Clarus Financial Technology
Last week, CME announced it would end it’s clearing offering for Credit Default Swaps, and instead focus it’s effort on other innovations in clearing services for Interest Rate and FX, including: FX Options launched by 2017 year end; Interest Rate swaps for 3 more currencies – CNY, CLP, and COP by early 2018; [and] Further capital efficiencies within listed & OTC products. The presumption here is that the incumbent CDS clearing house (ICE) is just too competitive. So I thought it appropriate to evaluate the CDS clearing space.
jlne.ws/2xnOFSt

Trading Technologies Extends TT Platform Into Hong Kong
Trading Technologies
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, today announced the availability of execution and client connectivity services through the Hong Kong Exchange and Clearing (HKEX) data center via its TT platform.
/goo.gl/GSa3s1

How the Fed’s Balance Sheet Unwind Will Ripple Through Banks
Aaron Back – WSJ
The gradual wind down of the Federal Reserve’s balance sheet will have far-reaching effects throughout the banking system. For the most part, major banks stand to benefit.
The Fed confirmed on Wednesday that it will begin shrinking its portfolio in October, initially by allowing $6 billion of Treasurys and $4 billion of mortgage-backed securities to mature every month without reinvesting the principal.
jlne.ws/2wIce4M

After Shrinking In 2016 Hedge Fund Firms See Assets Growing Again
Rupert Hargreaves – ValueWalk
In 2016, the financial press seemed convinced that the hedge fund industry as we know it, was dying a slow death. Asset flows data seemed to confirm this conclusion with the industry bleeding $100 billion of assets throughout the year. In the fourth quarter alone, investors redeemed a staggering $43.1 billion from hedge fund firms according to data provider Preqin.
jlne.ws/2wHPd1D

Citadel hires Gottlander for swaps trading
Reuters Staff
Citadel Securities has hired Daniel Gottlander as head of swaps trading. He will begin his new role in October.
/goo.gl/HqXoM1

Rise of an ‘Asiadollar’ market or temporary boom?; Rocketing sales of dollar bonds in Asia-Pacific could signal shift of investing power from US
Jennifer Hughes in Hong Kong – FT
Mention the creation of the eurodollar market these days and be prepared to feel like a financial fossil. International markets as we know them are so established that referring to their development from dollars held overseas in the 1960s feels quaint.
/goo.gl/YBewyt

U.S. expects Madoff $4 billion fund payout to start this year
Jonathan Stempel – Reuters
The U.S. government expects this year to begin payouts from a $4 billion fund for Bernard Madoff’s victims, ending their nearly nine-year wait to begin recouping losses from his Ponzi scheme.
/goo.gl/EYFRtC

Exchanges, OTC and Clearing

CME Group partners with Citi for FX link; New FX trading link integrates futures and OTC FX markets on CME’s Globex trading platform.
Hayley McDowell – The Trade
CME Group has announced plans to launch spot FX basis spreads on its electronic trading platform, in partnership with Citi’s FX prime brokerage business.
/goo.gl/zcosaH

ICE Benchmark Administration To Launch LBMA Silver Price on 2 October 2017
ICE
Intercontinental Exchange, a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Benchmark Administration (IBA) expects to start administering the London Bullion Market Association (LBMA) Silver Price benchmark and operate the underlying auction from 2 October 2017.
/goo.gl/f8xoS5

Switzerland’s SIX looks at potential $2 billion sale of payments unit: sources
Arno Schuetze, Pamela Barbaglia, Oliver Hirt – Reuters
Swiss stock exchange operator SIX Group has hired JPMorgan (JPM.N) to look at options for its payments unit, including a sale worth up to 2 billion Swiss francs ($2.1 billion), sources familiar with the plans told Reuters.
jlne.ws/2wHhdT7

CEGH Czech Gas Market To Join PEGAS Platform In December
PEGAS
Paris based Powernext SA, the Austrian Central European Gas Hub AG (CEGH) and Power Exchange Central Europe (PXE) have today finalised their plans for the launch of the PEGAS CEGH Czech Gas Market. All spot products and futures contracts currently available on the PXE gas market will be opened on PEGAS on the 8th December 2017.
/goo.gl/Nre2Uv

BEST Inc., Largest US IPO of a Chinese Company This Year, Lists on the New York Stock Exchange
ICE
The American Depositary Shares of BEST Inc. (“BEST”), a leading Chinese supply chain technology firm, began trading today on the New York Stock Exchange (NYSE) under the ticker symbol “BSTI.” The company raised $450 million in gross proceeds and is the largest U.S. IPO of a Chinese firm year-to-date. GTS is the NYSE Designated Market Maker (DMM) for the company’s shares.
/goo.gl/4frK2S

Eurex won GlobalCapital awards
Eurex
GlobalCapital awarded Eurex Exchange twice this year. For the third time in a row, Eurex was honoured as “European derivatives exchange of the year”. The award as “Global derivatives exchange of the year” is a first. With no less than two awards our overall offering and product diversity to trade and hedge risks across a broad range traditional and alternative asset classes has been widely recognized.
/goo.gl/AZRfuV

Fixed Income Highlights – September Edition
Eurex
Fixed income markets have remained relatively resilient despite the slow-down in global markets overall. Both futures and options volumes are up versus previous years as geopolitical risks and central bank divergence continue to be the main drivers. Open interest across fixed income markets remains robust despite the underperformance of realized volatility. Although government bond spreads have remained in relatively tight ranges, we have seen a small widening, which has helped volumes in periphery products. The flat Euro yield curves are helping suppress volatility in the long-end. When we do witness spikes in volatility they continue to be short term and a lot of risk premium had been taken off the table in the summer month. Implied volatility also remains low and hence there is the concern that the market is underpricing geopolitical and event risk.
/goo.gl/XPHMf4

Eurex Daily Futures on KOSPI 200 derivatives: No trading at the Eurex Exchanges on 2 October 2017 due to public holiday in the Republic of Korea
Eurex
The Korea Exchange (KRX) has made a Market Closing Announcement for 2 October 2017. According to the Contract Specifications for Daily Futures on KOSPI 200 derivatives (OKS2, FMK2), the Eurex Exchanges (Eurex Deutschland and Eurex Z¸rich) will also be closed for trading in the respective products
on 2 October 2017.
/goo.gl/ZWVEJH

HKEX proposes latest ‘Connect’ system – this time to lure more foreign listings and then link them with Chinese shareholders; Charles Li Xiaojia, HKEX chief executive, says it and the SFC are working flatout to make the city more attractive as a listing destination for foreign firms, especially new economy companies
Enoch Yiu – South China Morning Post
Hong Kong Exchanges and Clearing (HKEX) is working closely with both Hong Kong and mainland regulators on further moves to try to connect mainland and foreign investors with each other, Charles Li Xiaojia, chief executive of HKEX, told an audience at the Hong Kong Securities Institute on Thursday.
/goo.gl/uHBDUx

Fintech

Trading Technologies adds services to HK data center; Expanded Hong Kong presence is latest step in expanding Trading Technologies’ global footprint.
John Bakie – The Trade
Trading Technologies has extended its platform into the Hong Kong market.The move means that Trading Technologies’ execution and client connectivity services will both be available through the Hong Kong Exchange and Clearing data center.
/goo.gl/ojBGqm

FCA strikes third fintech pact with Hong Kong
Fnlondon.com
The Financial Conduct Authority has expanded its fintech co-operation initiative with Hong Kong to span the full financial spectrum, after sealing a collaboration with the territory’s insurance regulator.
/goo.gl/jAVZrT

QuantHouse Buys Low-Latency Network Provider Victory; The deal will accelerate QuantHouse’s expansion into the US.
connectivity-global-network
Joanne Faulkner – Waters Technology
Victory Network manages high-speed networks for banks, boutique financial firms, and hedge funds across the US. The deal will expand QuantHouse’s market share in the US and will expand the reach of the vendor’s QuantLINK global proprietary network. Victory Networks clients will now be able to access QuantHouse’s API-based trading technologies.
/goo.gl/eUK83j

Tokens for Climate Change? How We Can Rise Above ICO Mania
Michael J. Casey – CoinDesk
A surefire way to be accused of over-hyping blockchain technology is to make some sweeping, breathless statement like, “It can solve climate change!” Even better: declare you have a token that can do that.
Well, bring it on.
jlne.ws/2wHjsWR

Quant hedge funds are gorging on “alternative data” in pursuit of an investing edge
John Detrixhe – Quartz
Kumesh Aroomoogan has come a long way from his days at Wall Street bank Citigroup, where his job was to stay on top of breaking news. He remembers getting yelled at by a trader because he stopped watching news feeds to go the bathroom and missed a market-moving headline. Now, he’s the co-founder and CEO of Accern, a company that automates his old job.
jlne.ws/2wHl0jh

Colt appoints CTO Datta as COO
James Pearce – CapacityMedia.com
Colt Technology Services has named current CTO Rajiv Datta as its new chief operating officer, reporting directly to CEO Carl Grivner.
/goo.gl/n1XLv3

How banks and financial institutions are implementing blockchain technology
Andrew Meola – Business Insider
Blockchain technology, less commonly known as distributed ledger technology (DLT), is the underlying foundation that can create shared digital databases of entries that are unchangeable
/goo.gl/Cd3Z2r

Politics

For Trump Aides Caught in Russia Probe, Legal Bills and Paranoia
Shannon Pettypiece – Bloomberg
Communications adviser says he bought guns after threats; Probes cast ‘dark shadow’ over White House, Panetta says
Four months as a communications adviser to Donald Trump’s campaign have turned Michael Caputo’s life upside down.
/goo.gl/cxUoBe

House Finance Committee delves into unusual Equifax options trades: CNBC
Reuters Staff
The House Financial Services Committee is seeking information about certain Equifax Inc (EFX.N) options trades made weeks before the credit reporting company disclosed a data breach, according to CNBC report on Wednesday.
/goo.gl/V8Q3Eg

Regulation

SEC Chairman Clayton Issues Statement on Cybersecurity; Discloses the Commission’s Cyber Risk Profile, Discusses Intrusions at the Commission, and Reviews the Commission’s Approach to Oversight and Enforcement
SEC
SEC Chairman Jay Clayton today issued a statement highlighting the importance of cybersecurity to the agency and market participants, and detailing the agency’s approach to cybersecurity as an organization and as a regulatory body.
/goo.gl/h9ENjN

Thomas J. Butler Named an Associate Regional Director for Examinations in New York Regional Office; Jessica Kane Appointed Acting Director, Office of Credit Ratings
SEC
The Securities and Exchange Commission today announced that Thomas J. Butler has been named an Associate Regional Director for the Investment Adviser and Investment Company examination program in the agency’s New York Regional Office. Mr. Butler is leaving his current position as Director of the SEC’s Office of Credit Ratings (OCR), a position he has held since June 2012.
/goo.gl/thqGr2

Executive Representative Reminder and Board and Nominating Committee Members Whose Terms Will Expire at the Board’s 2018 Regular Annual Meeting; Executive Representative Reminder
NFA
In August 2016, NFA’s Bylaws were amended to implement an electronic voting process for Directors’ elections, contested Nominating Committee member elections, and Articles’ amendments approval votes. If elections are necessary, NFA has engaged Corporate Election Services (CES), a third-party service provider, to administer the electronic voting process. To facilitate the electronic voting process, each Member shall designate an Executive Representative who will have the Member’s sole authority to sign nominating petitions, receive notices of Member meetings and proxy materials, complete proxy cards, and provide voting instructions and cast votes on behalf of the Member. Members may designate an Executive Representative through NFA’s website. Only those firm personnel who are the Security Manager or are authorized to view, update, and file information in ORS may complete the Executive Representative Contact form.
jlne.ws/2wJ47F7

FCA warns Mifid II will bring greater scrutiny
Caroline Binham – Financial Times
New European rules coming into force in January will enable the UK financial watchdog to spot market abuse and manipulation like never before, as it wrestles with an already burgeoning number of investigations, its head enforcer has warned.
jlne.ws/2wHry1i

FCA publishes findings from the Ageing Population Project
UK FCA
The Financial Conduct Authority (FCA) has today published an Occasional Paper outlining the findings from a project that explored how the ageing population would impact the Financial Services industry.
/goo.gl/gdVgXd

FCA and Hong Kong Insurance Authority sign Fintech co-operation agreement
UK FCA
The Financial Conduct Authority (FCA) announces today that it has entered into a co-operation agreement with the Hong Kong Insurance Authority (IA) to enhance collaboration in supporting Fintech innovation.
/goo.gl/r2GhfN

Margin for Non-Cleared Derivatives
Amir Khwaja – Clarus Financial Technology
In September 2016, I wrote the article “How Large will Initial Margin be for Uncleared Swaps?” , which looked at an estimate in an ISDA paper from November 2012, of $800 billion using approved internal models.
jlne.ws/2xnKOox

CEO Charged With Using Secret Accounts for Insider Trading in Company Stock
SEC
The Securities and Exchange Commission today charged the former CEO of a Silicon Valley-based fiber optics company with insider trading in company stock by using secret brokerage accounts held in the names of his wife and brother.
The SEC alleges that Peter C. Chang, who also was the founder and chairman of the board at Alliance Fiber Optic Products, generated more than $2 million in illicit profits and losses avoided by trading on nonpublic information and tipping his brother ahead of two negative earnings announcements and the company’s merger.
jlne.ws/2wI1tzq

SEC discloses hack, says info may have been used in illegal financial trades
Post Wires
The electronic database that stores public-company filings, including regulatory announcements, was hacked, the Securities and Exchange Commission said late Wednesday.
/goo.gl/5MWdWB

SEC’s EDGAR system hacked for ‘trading gains’; SEC says system hack resulted in access to non-public information for illicit trading gains.
Hayley McDowell – The Trade
The Securities and Exchange Commission (SEC) in the US suffered a cyber attack last year, which it says could have led to illicit gains through trading.
/goo.gl/L11VyM

New Working Group on a Risk-Free Reference Rate for the Euro Area
ESMA
Today, the Financial Services and Markets Authority (FSMA), the European Securities and Markets Authority (ESMA), the European Central Bank (ECB) and the European Commission announce the launch of a new working group tasked with the identification and adoption of a risk-free overnight rate which can serve as a basis for an alternative to current benchmarks used in a variety of financial instruments and contracts in the euro area.
/goo.gl/ZxRjU2

Be Wary of Stock Fraud Following Natural Disasters
FINRA
It may not be possible to predict when the next natural disaster will take place. What you can count on is that when it happens, scammers will try to take advantage of the situation. These tips will help you spot and avoid investment scams.
/goo.gl/VeqUQ8

HomeFor Industry ProfessionalsRegulatory Filing & ReportingMarket
FINRA
FINRA has updated the ORF API for OTC Reference Data by adding values to the Daily List Reason Code to describe changes to the IEX Market Center. The document’s revision history provides a summary of changes.
/goo.gl/zPdKbU

CFTC extends and revises relief for position aggregation requirements and notice filings
Shearman & Sterling LLP via Lexology
The Commodity Futures Trading Commission (CFTC) has extended and revised no-action relief that provides an exemption from compliance with certain aggregation requirements for CFTC-specified position limits for futures and option trading. CFTC staff have indicated that they may consider further modifications to these requirements during the term of the relief.
/goo.gl/NjJMrN

Investing and Trading

Traders Getting on Board With One More Rate Increase This Year
Ben Eisen – WSJ
Traders are coming around to the idea that the Federal Reserve will lift rates one more time this year. The market for fed funds futures contracts, where traders bet on the path of interest rates, suggested a 72% chance of at least one more increase before year-end, according to CME Group data as of 2:26 p.m. Eastern. That probability tends to bounce around, but it has been rising in recent days, and was up from 53% a few minutes before the Fed statement hit. A month ago, the chances sat at just 39%.
jlne.ws/2wHkxhl

Beat or Miss? MiFID Will Make It Harder to Tell on Earnings Day
Julie Edde and Rebecca Penty
Shrinking pool of analysts undermines consensus estimates; Small and mid-cap stocks would be most vulnerable to changes
Just how good or bad were those earnings? That’s going to get tougher to answer next year as Europe redraws the way investors pay for analyst research.
/goo.gl/PV83Fv

Federal Reserve issues FOMC statement
US Federal Reserve
Information received since the Federal Open Market Committee met in July indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have remained solid in recent months, and the unemployment rate has stayed low. Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters. On a 12-month basis, overall inflation and the measure excluding food and energy prices have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
/goo.gl/BK9KxK

The one big thing economist Robert Shiller says is preventing a 1929-like stock market crash
Stephanie Landsman – CNBC
It’s a comparison no one wants to hear ó that this stock market bears striking similarities to that of 1929.
/goo.gl/EqaqUt

Bitcoin Is Likely to Split Again in November, Say Major Players
Lulu Yilun Chen and Eric Lam – Bloomberg
Key miners and developers see a split as increasingly likely; Three versions of bitcoin could exist in November after split
Bitcoin is looking increasingly likely to splinter off again in November, creating a third version of the world’s largest cryptocurrency as miners and developers pursue separate visions to scale its rapidly growing marketplace.
/goo.gl/jRceue

Nobody seems to know why there’s no US inflation; As the Federal Reserve meets this week, officials are flummoxed by restrained price rises
Sam Fleming in Washington – FT
Ron Paul, at least, has no regrets. The former Texas Congressman is one of the most prominent voices among those Americans who have long been deeply suspicious of the US central bank and its power to print money. When he ran for president in 2012, he assailed then Federal Reserve chairman Ben Bernanke for debasing the currency and risking an inflationary upsurge by pumping trillions of dollars into the financial system.
/goo.gl/Luh4Dg

Institutions

Citigroup Joins Corporate Climate Fight With Swift Energy Pledge
Eric Roston – Bloomberg
Citigroup Inc. plans to purchase or produce all of its energy from renewable sources by 2020, the company said during Climate Week New York, an annual affair of energy- and climate-related events timed to correspond with the United Nations General Assembly.
jlne.ws/2wHOeyE

RBC Capital Markets upgrades eFX TCA with BestX; Upgrade will see independent TCA made available to RBC’s buy-side clients.
Hayley McDowell – The Trade
RBC Capital Markets has upgraded its transaction cost analysis (TCA) tools for eFX with the addition of BestX for independent TCA alongside its existing TCA offering.
/goo.gl/eQu5dd

Citadel hires Gottlander for swaps trading
Reuters Staff
Citadel Securities has hired Daniel Gottlander as head of swaps trading. He will begin his new role in October.
/goo.gl/HqEqVX

Regions

Exclusive: Greece considers bond swap as looks to bailout exit – sources
Lefteris Papadimas – Reuters
Greece is considering swapping 20 small bond issues for four or five new ones, government sources said, as it prepares to exit its international bailout and resume normal financing operations
/goo.gl/pBeryi

Abe Says Kim Jong Un Is Worse Than Any Dictator Since Cold War
Isabel Reynolds – Bloomberg
Now isn’t the time for dialogue with North Korea, Abe says; Abe says Japan supports U.S. keeping all options on table
Japanese Prime Minister Shinzo Abe stepped up his rhetoric against North Korea in a speech to the United Nations, saying Kim Jong Un was getting away with worse behavior than any dictator since the end of the Cold War.
/goo.gl/HxNfzT

Hong Kong Dollar’s Not So Boring Now After Options Top $100 Billion
Bloomberg News
Implied volatility in the pegged currency has jumped; HKMA cash drains, Fed rate hikes seen spurring more swings
Hong Kong’s dollar is shedding its image as one of the world’s most boring currencies. As swings in the pegged exchange rate increase to the highest level in six months, traders are piling into wagers that stand to benefit from further volatility. The notional value of outstanding Hong Kong dollar options has swelled to about $103 billion from $73 billion at the start of the year, and expectations for future price swings in the currency are jumping at the fastest pace worldwide.
/goo.gl/K5Bafr

India Discusses Booster Shot for Economy as Growth Falters
Vrishti Beniwal and Shruti Srivastava – Bloomberg
The Indian government is considering measures to boost growth after last year’s ban on high value notes and the July introduction of a national sales tax slowed down Asia’s third biggest economy.
/goo.gl/ARxcBk

Thirst for oil returns in wealthy nations; Crude crash reverses decade of oil conservation as consumers return to gas guzzlers
David Sheppard and Anjli Raval – FT
A decade’s worth of efforts to cut oil consumption in industrialised countries is at risk of being reversed, as low fuel prices boost demand and send motorists flocking back to larger gas-guzzling cars.
/goo.gl/uYZQjU

Russia to nationalise big private lender B&N; Central bank takes majority stake to prevent second collapse in three weeks
Max Seddon in Moscow – FT
Russia’s central bank said on Thursday it would nationalise B&N, the country’s 12th-largest bank by assets, to avert the collapse of the second top privately held lender in the past three weeks.
/goo.gl/KovzVU

Brexit

Brexit bill battle switches from principle to price
Alex Barker in Brussels – Financial Times
After months of political chest-beating and legal jousting over whether Britain should pay a Brexit bill, the focus of negotiations is about to switch to the question of whether Britain is offering enough.
Theresa May, the UK prime minister, is expected to make her first offer on Friday: a promise that no EU country will be required to make further financial contributions because of Brexit before the next long-term budget is negotiated in 2020.
jlne.ws/2wHeqcC

Miscellaneous

Google in talks with news publishers to help their subscriptions; News Corp, New York Times and Financial Times discuss AI tools with search group
Matthew Garrahan and Madhumita Murgia in London – FT
Google is working with three publishers to improve their subscription services using data and artificial intelligence in a move that signals a new willingness by the search company to help news organisations generate revenue from their journalism.
/goo.gl/AhGNAs

Preet Bharara, Ousted Federal Prosecutor, Will Join CNN
Michael M. Grynbaum and Kate Kelly – NY Times
Preet Bharara, the former United States attorney in Manhattan, has been far from silent since being ousted from his job in March. He is writing a book, regularly muses on politics and legal matters to his 438,000 followers on Twitter, and just started a podcast. (First episode: “That Time President Trump Fired Me.”)
/goo.gl/6gSBNM

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Graduate of University of Minnesota School of Journalism and Mass Communication