Breaking News

Moves to seize HFT code “dead”; Complex Math Could Make Blockchain Work for Wall Street; SEC’s CAT

First Read

Hits & Takes

Over the last quarter Eris Exchange hit an all-time high of 200,000 contracts ($20bn) of open interest (OI) in their IRS swap futures contracts cleared by CME Group.~JJL

On November 3, 2017, Chicago-Kent College of Law will host the 9th Annual Conference on Futures and Derivatives. This is a full day program covering important topics for compliance officers, in house counsel, regulators, accountants and attorneys who work within the Futures industry. Register HERE.~JJL

Rosenblatt Securities in their Trading Talk Market Structure Analysis reported
year-to-date equities average daily volume is down 11.57 percent y/y and off 10.41 percent compared with full-year 2016.~JJL

We are looking for a firm to sponsor the water and granola bars for our MarketsWiki Education Recruiting event on October 16. Contact John Lothian if you are interested in sponsoring this.~JJL

John J. Lothian & Company, Inc. has agreed to become an in-kind media sponsor of the Econ Illinois American Dream event for 2018 which will feature speaker Howard Tullman, CEO of 1871 and will be held at the Union League Club of Chicago on May 17, 2018. More details will be forthcoming as they are made available.~JJL

Crain’s Chicago Business columnist Greg Hintz reports that “Chicago is now the nation’s best-educated big city.”~JJL

Asia Pacific Financial News from John Lothian News is available HERE.~JJL

Nick Colas, the former chief market analyst with Convergex known for his morning notes, is back with a newsletter, now under the header DataTrek Research, which will, similar to his Convergex offering, attempt to connect the dots in markets.~SD

We have created/updated pages in MarketsWiki for Kurt Eckert, Rachelle Keller and Stephen Luparello, who have joined the OCC’s board of directors as member directors. ~SR

Public relations professionals should NOT start a press release like this: FinTech Studios, a leading cloud platform of AI-based financial information, FinTech apps and big-data analytic products operated in partnership with top FinTech startups, financial institutions, data providers and strategic partners, announced today….~JK

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This One-Man Show Features Harsh Lessons About Finance and Fatherhood; The son of Alan “Ace” Greenberg brings his real-life experiences to the theater.
James Tarmy – Bloomberg
In 2013, Alan “Ace” Greenberg was dying. The former ≠chairman of Bear Stearns Cos. had been diagnosed with cancer, and “I had a limited amount of time to find out how my dad thought and operated,” says Ted Greenberg. “So when it looked like he might not have that much time left, I told him that there was some stuff I wanted to know.”
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**Line of the story: “But as Ace demonstrates in multiple scenes, the qualities that endear so-called Great Men to the world seldom endear them to their children.”`~JK

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Banks team up with IBM in trade finance blockchain; System will track goods and release payments as they move around the world
Martin Arnold – Banking Editor
A group of banks are teaming up with IBM to build a new global system for trade finance using blockchain technology that is designed to track goods and automatically release payments as they move around the world by plane, ship or truck.
/goo.gl/dS7h9T

***** You know the old saying, “No one ever got fired for hiring IBM.”~JJL

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Wednesday’s Top Three
Our top read pieces were led by Bloomberg’s Dark Trading Could Triple in Europe Under New Market Rules. Second went to the Business Insider piece about David Gurle of Symphony in The CEO of ’email killer’ Symphony tells employees to ‘buckle up’ and apologizes for driving colleagues ‘crazy’. Third went to our note about CFTC’s request for comments about reforming Dodd-Frank and many of you checked them out at Comments for KISS Initiative Executing

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MarketsWiki Stats
108,726,709 pages viewed; 22,851 pages; 209,868 edits
MarketsWiki Statistics

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Lead Stories

US regulator declares ‘dead’ moves to seize HFT code
Gregory Meyer in New York – Financial Times
A US proposal to allow the government to seize trading firms’ secret computer code is “dead,” a senior regulator has declared, a pronouncement that will delight the high-frequency trading industry. Brian Quintenz, a new member of the Commodity Futures Trading Commission, said in his first public remarks that the agency must start from scratch on its embattled automated trading rule, meant to reduce the risk of market chaos from software going haywire.
jlne.ws/2fSmsx0

‘Mind-Boggling’ Math Could Make Blockchain Work for Wall Street
Matthew Leising – Bloomberg
Ethereum upgrade will allow users to be totally anonymous; ‘A game of cat and mouse’ as privacy matters gain attention. A major breakthrough in cryptography may have solved one of the biggest obstacles to using blockchain technology on Wall Street: keeping transaction data private.
/goo.gl/XYTwgF

SEC chair floats potential delay to fund data rules following hack
Michelle Price – Reuters
Chairman Jay Clayton told the U.S. House Financial Services Committee on Wednesday the SEC was reviewing whether it can adequately protect data it would require funds to report on their monthly performance, since this information could be market sensitive.
jlne.ws/2fSvIkK

Bloomberg offers cheaper chat to silence Symphony; Data powerhouse unbundles messaging service to counter rival’s social network ambitions
Ben McLannahan and Robin Wigglesworth in New York – FT
Bloomberg is offering cut-price subscriptions to its messaging tool in an effort to fend off competition from Symphony, the rival service backed by some of the biggest names on Wall Street.
/goo.gl/xfizW4

Wall Street Regulator Is Also an InvestoróWith Meager Returns; Finra’s $1.6 billion portfolio has returned 3.4% annually, versus 6% for a half-stock, half-bond portfolio
Dave Michaels – WSJ
The Financial Industry Regulatory Authority is more than just a Wall Street regulator. Rare among regulators and little known to many industry participants, Finra is also an investoróand one whose subpar returns are compounding its members’ financial challenges, say some of the brokerages that pay its fees.
/goo.gl/eLvm7e

Inside the Revolt Threatening to Split Guggenheim Partners
John Gittelsohn and Sonali Basak – Bloomberg
Top executives clash in tense confrontation, insiders say; Promotion feeds anxiety as dozens of employees depart
It was an unusual Wall Street formula. Take the Los Angeles Dodgers. Add NBA Hall-of-Famer Magic Johnson. And stir in Guggenheim, one of the grand old names of American business.
/goo.gl/iAA8Gk

Dutch Regulator Warns Banks and Insurers to Factor In Climate Change
Alessandro Speciale and Eric Roston – Bloomberg
Global warming increases chances of costly high-impact storms; Central bank is working on developing climate stress tests
Banks, insurers, and other financial institutions must do more to take into account the risks posed by climate change to their business, a Dutch Central Bank study said.
/goo.gl/FfrnYw

SEC security failed to raise alarm over cyber attack
David J Lynch in Washington – Financial Times
Jay Clayton, chairman of the Securities and Exchange Commission, said he could not explain the apparent failure of security officials at the agency to inform then-chair Mary Jo White of a 2016 cyber attack on its Edgar online filing system.
jlne.ws/2fR1q1K

Key Lawmaker Calls for SEC to Delay Trading Database; Rep. Jeb Hensarling urges SEC Chairman Jay Clayton to postpone Consolidated Audit Trail in wake of hack
Dave Michaels – WSJ
One of Congress’s leading overseers of Wall Street urged regulators on Wednesday to delay the launch of a vast database of stock-market trades that is increasingly seen as a major target for hackers.
/goo.gl/WzN1zb

OCC Appoints Three New Members to Board of Directors
OCC
OCC, the world’s largest equity derivatives clearing organization, today announced that Kurt Eckert, Partner and Head of Market Structure at Wolverine Trading, Rachelle Keller, Chief Operating Officer for Prime, Futures and Securities Services at Citi, and Stephen Luparello, Managing Director and General Counsel for Citadel Securities, have joined the Board of Directors as Member Directors.
/goo.gl/PM597N

NEX forex trading volume hits 10-month high in Sept
Reuters
Average daily currency trading volume reached a 10-month peak in September as the euro retreated from its recent rally and the dollar recovered from a 20-month low, according to data from NEX Group Plc released on Wednesday.
jlne.ws/2fR6YJO

Bond Traders Embrace Tech That Shrank Their Universe; Big firms respond as smaller rivals eat into market share.
Lisa Abramowicz – Bloomberg
U.S. government bond dealers are finally emerging from years of widespread layoffs with an eye toward the future.
/goo.gl/UA8Y8D

Europe’s Bond Markets Are Only Getting Uglier; High-yield securities have entered a sort of “no-man’s land” where the risk-pricing mechanism has defaulted to government intervention.
Mark Grant – Bloomberg
It is not a single story, but a series of incidents, that is moving me to the view that Europe is in real trouble. The politicians will say how well things are going on the Continent, but a broad assessment of what is happening leads to a very different conclusion.
/goo.gl/TgSPBh

Exchanges, OTC and Clearing

CBOE Holdings Reports September 2017 Trading Volume
CBOE
CBOE Holdings, Inc. today reported September monthly trading volume and average revenue per contract (RPC)/net revenue capture data at www.cboe.com/monthlyvolrpc.
jlne.ws/2xYs52S

Eris Exchange Newsletter – September 2017
Eris
As we head into Q4 of this year and the European market prepares for the implementation of Mifid II, I felt it would be a great time to reflect on recent developments at Eris.
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TMX Group – Consolidated Market Statistics January 2010
TMX
TMX Group Limited today announced September 2017 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha), MontrÈal Exchange (MX) and NGX.
jlne.ws/2fRUkdg

Irish Stock Exchange 2016 Profits Up 21% To EUR8m
Mondovisione
The Irish Stock Exchange (ISE) plc has recorded another strong financial year with results published today showing a 21% rise in profit after tax to EUR8m (2015: EUR6.6m).
jlne.ws/2fRtT7B

ASX Monthly Activity Report – September 2017
ASX
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Fintech

Bloomberg offers cheaper chat to silence Symphony
Ben McLannahan and Robin Wigglesworth – Financial Times
Bloomberg is offering cut-price subscriptions to its messaging tool in an effort to fend off competition from Symphony, the rival service backed by some of the biggest names on Wall Street.
jlne.ws/2fShal3

KPMG and Exiger enter into exclusive multi-year partnership to leverage AI-based technology; DDIQ set to streamline compliance solutions for KPMG and its global clients
PR Newswire
Global regulatory and financial crime, risk and compliance firm, Exiger has today announced a partnership with professional services firm KPMG LLP in the UK to help enrich and streamline compliance solutions for its global corporate and financial institution clients.
/goo.gl/yZi1HC

FinTech Studios Announces FTS Widgets on Symphony
PRNewswire
FinTech Studios, a leading cloud platform of AI-based financial information, FinTech apps and big-data analytic products operated in partnership with top FinTech startups, financial institutions, data providers and strategic partners, announced today that FTSWidgets, a library of AI-based financial data and analytics widgets, will be available in the fourth quarter of 2017 on Symphony’s cloud-based messaging and collaboration platform. FinTech Studios will demonstrate the FTSWidgets technology during the Symphony Innovate 2017 event in New York City, and Jim Tousignant, the founder and CEO of FinTech Studios, will also speak on the Research and Content Panel at the event.
/goo.gl/X8XbSW

FundSeeder Technologies Hires Trading Executive from Franklin Templeton Investments
FundSeeder Technologies
FundSeeder Technologies, a data and performance analytics platform for the trading industry announced the appointment of Bill Stephenson as Chief Strategy Officer. In his role, Stephenson will join the management team and provide strategic direction to the firm’s goal of disrupting the asset management industry by sourcing, seeding, and distributing undiscovered trading and investment talent. Stephenson will report to Emanuel Balarie, CEO and co-founder of FundSeeder Technologies.
/goo.gl/z4VK79

Franklin Templeton’s global trading head departs for role with analytics firm;mBill Stephenson has been Franklin Templeton Investments for more than two decades.
Hayley McDowell – The Trade
The global head of trading at Franklin Templeton Investments has departed after two decades to join trading performance analytics firm, FundSeeder.
/goo.gl/39zo35

Bitcoin may soon be a ‘rational, expected’ part of a portfolio, Bitstamp’s Dan Morehead says
Evelyn Cheng
Bitcoin may soon be a ‘rational, expected’ part of a portfolio, Bitstamp’s Dan Morehead says; Dan Morehead was addressing portfolio managers and asset allocators at the Sohn investment conference in San Francisco; He said bitcoin is “essentially going to revolutionize currency, or money,” similar to how certain protocols created the internet as it exists today; Crypocurrencies take the lion’s share of the industry profits, compared with digital-token exchanges, he noted
/goo.gl/KGcqNn

Intensified focus on new markets and broadened target group
Cinnober
Moving forward, Cinnober will market its subsidiaries using a new Group profile. This will more clearly position the offering toward the respective market segments and showcase the synergies within the Group. At present, the Group has three separate subsidiaries with the following focus areas: reporting services, client clearing and market surveillance. The first subsidiary to change its profile is Boat, which in conjunction with the tenth anniversary of its founding, is being rebranded as Simplitium. The remaining two subsidiaries will be re-profiled in forthcoming quarters in conjunction with industry events.
/goo.gl/WbJNH4

Politics

Senators Rip Credit-Reporting Model in Wake of Equifax Breach; Ex-Equifax CEO faces questions about how the company handled the breach and whether an industry overhaul is needed
AnnaMaria Andriotis, Michael Rapoport and Christina Rexrode – WSJ
Senators questioning Equifax Inc.’s EFX 1.34% former chief Wednesday attacked the business model of the credit-reporting industry, asking why consumers shouldn’t have power over the data that these companies collect on them.
/goo.gl/HwfFN7

Trump sends Puerto Rican bonds into tailspin; US president suggests island’s Wall Street creditors will be wiped out by hurricane
Eric Platt in New York and Sam Fleming in Washington – FT
President Donald Trump sent Puerto Rico’s $74bn of outstanding bonds plunging on Wednesday after he said “you can say goodbye” to the territory’s debt in the wake of the devastation caused there by hurricane Maria.
/goo.gl/dEgZ18

Russia Needed Help Targeting U.S. Voters, Two Former CIA Leaders Say
Chris Strohm – Bloomberg
Two former heads of the Central Intelligence Agency said Russia probably didn’t have the ability to microtarget U.S. voters and districts in the 2016 presidential campaign on its own, meaning some sort of assistance would have been necessary.
/goo.gl/Gz7SuY

U.S. budget deficit could obstruct Trump’s tax cut plan
David Morgan, Susan Cornwell
The U.S. budget deficit is proving to be a major obstacle to the tax reform plan being offered by President Donald Trump and top congressional Republicans, with one leading Senate hawk saying a week after the plan was introduced that any enlarging of the fiscal gap could kill his support.
/goo.gl/P6TCWA

U.S. lawmakers seek to shut banks that harm consumers
Pete Schroeder – Reuters
U.S. House Democrats introduced legislation on Wednesday to direct banking regulators to review operations at the country’s largest banks and consider shutting them down if they exhibit repeated wrongdoing to consumers.
/goo.gl/mN7zr1

Regulation

Testimony On Examining The SEC’s Agenda, Operation, And Budget, SEC Chairman Jay Clayton, Washington D.C., Oct. 4, 2017, Before The Committee On Financial Services, United States House of Representatives
Mondovisione
jlne.ws/2fRSv0h

Senate panel sets hearing for agriculture trade negotiator nominee
P.J. Huffstutter – Reuters
The Republican-led Senate Finance Committee on Thursday set an Oct. 5 confirmation hearing for Gregory Doud, President Donald Trump’s nominee for the top agricultural negotiator job at the U.S. Trade Representative.
reut.rs/2xLsUvN

No ‘one’ venue type will replace BCNs, says panel; MiFID II will ban broker crossing networks leaving a ‘big hole’ in liquidity.
Hayley McDowell – The Trade
Order flow from broker crossing networks (BCNs) will not shift to systematic internalisers (SIs) immediately following MiFID II implementation, according to market participants.
/goo.gl/NgRdWW

RSRCHXchange upgrades platform ahead of MiFID II; RSRCHXchange adds new functionalities to its research platform and hires new managing director of sales in North America.
Hayley McDowell – The Trade
RSRCHXchange has launched the latest version of its research management platform to include mobile and desktop apps, a chatbot and a virtual library.
/goo.gl/oYdu89

Yellen Says Fed Should Make Sure Bank Rules Aren’t Too Burdensome; Federal Reserve chairwoman says regulators have taken steps to cut red tape recently
Harriet Torry – WSJ
Federal Reserve Chairwoman Janet Yellen voiced support for making sure bank rules aren’t unduly burdensome, underscoring her potential flexibility on postcrisis financial regulation as President Donald Trump weighs whether to nominate her for a second term as central bank chief.
/goo.gl/Uz5AFJ

U.S. financial regulator must beef up cyber security: inspector
Lisa Lambert – Reuters
The U.S. Consumer Financial Protection Bureau (CFPB), one of Wall Street’s top regulators, must strengthen its protections against hacking, according to a report the agency’s internal inspector released on Wednesday as the financial sector reels from recent revelations of two major data breaches.
/goo.gl/AcQYGA

Keynote Remarks of Commissioner Brian Quintenz before the Symphony Innovate 2017 Conference
CFTC
Thank you Gary for that very kind introduction and thank you for your generous welcome. A big thank you to Symphony for hosting such an amazing conference. This is only your second conference, yet, in terms of your experience hosting conferences versus mine of giving speeches, you have me beat, so hopefully this isn’t the point where everything goes off the rails. But I appreciate the opportunity to speak with you today about the ways in which the government can advance and promote innovation in financial marketplaces. Before I begin, let me quickly say that the views contained in this speech are my own and do not represent the views of the Commission. Somewhere an ethics attorney is smiling.
/goo.gl/osjAaj

SEC Approves Amendments to Arbitration Codes to Revise the Definition of Non-Public Arbitrator
FINRA
FINRA’s proposed amendments to the definition of non-public arbitrator in the Customer and Industry Codes of Arbitration Procedure have been approved by the SEC. The amended definition provides that a non-public arbitrator is a person who is otherwise qualified to serve as an arbitrator, and is disqualified from service as a public arbitrator under the Codes. The amendments are effective on October 9, 2017.
/goo.gl/bhCbZk

Saving For College: UGMA and UTMA Custodial Accounts
KAITLYN KIERNAN – FINRA
When it comes to saving for college, you have a lot of options, from 529 plans to Coverdell Education Savings Accounts and pre-paid tuition plans. But old-fashioned custodial trust accounts are also an option.
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Challenges for the regulator – consumer credit, long-term savings and an ageing population
UK FCA
Speech by Andrew Bailey, Chief Executive at the FCA, delivered at City Banquet, Mansion House.
/goo.gl/3gs3ng

Investing and Trading

Fed has no reliable theory of inflation, says Tarullo; Former Fed governor calls for more attention to actual data
Sam Fleming in Washington – FT
Central bankers are steering the economy without the benefit of a reliable theory of what drives inflation, a former top Federal Reserve policymaker said, as he called for policymakers to pay less attention to theoretical models and more to actual data.
/goo.gl/arZrcw

Managed Futures Correlation
RCM Alternatives Blog
We talked last week about AIMA’s research on what a Managed Futures can do for your portfolio. But the paper is full of other interesting data and charts that we didn’t get to cover our first time round, detailing unique aspects of Managed Futures as it relates to correlations.
jlne.ws/2fRTBsT

Three in ten institutional investors make more than 50 ETF trades a month – study
Philip Stafford – FT
Big investors in Europe are executing as many as 50 exchange-traded fund (ETF) deals a month, according to a wide-ranging survey of global ETF trading trends.
/goo.gl/VSoAmf

Brevan Howard’s master fund performance drops
Rachel Levy – Business Insider
Brevan Howard’s flagship fund, run by billionaire Alan Howard, is down for the year as the firm continues to lose money.
jlne.ws/2fR9boj

Gold-Coin Sales Drop to Decade Low as Retail Buyers Flee: Chart
Luzi-Ann Javier – Bloomberg
These days, even coin collectors have turned sour on bullion. Sales of gold coins in the first nine months of the year shrank to the lowest in a decade, U.S. Mint data show. The metal’s appeal is waning as retail investors seek better returns in equities, lured by the S&P 500 Index’s climb to records, said Peter Thomas, a senior vice president at Zaner Group LLC in Chicago.
/goo.gl/quqHbm

This Is How to Create the Top Emerging-Markets ETF; Entrepreneur Kevin Carter went looking for China exposure and ended up starting a fund that’s risen 62 percent this year.
Jon Asmundsson – Bloomberg
Chinese consumers are optimistic this year. In fact, consumer confidence in China reached its highest level in more than 20 years in the second quarter. That’s good news for plenty of people.
/goo.gl/CPddHv

Institutions

Goldman Sachs partners with FlexTrade for large block trade; FlexTrade has added an indication of interest functionality to its EMS for executing trades.
Hayley McDowell – The Trade
FlexTrade has executed a large block trade from an indication of interest (IOI) sent by Goldman Sachs within the FlexTRADER EMS.
/goo.gl/WWQvb4

Lloyds and the HBOS time bomb; When Lloyds took over its rival bank in 2009, it also inherited the legacy of a massive fraud. Its response? To dismiss the victims and any evidence of wrongdoing
Jonathan Ford in London – FT
On October 14 2008, a bulky envelope addressed to Sir Victor Blank arrived at Lloyds TSB’s headquarters in the City of London.
/goo.gl/v5KNTC

Hedge Fund Seized Indian Tycoons’ Jet. Their Yacht May Be Next
Kit Chellel and Kaye Wiggins – Bloomberg
Davidson Kempner says family-run Essar owes $200 million; Essar director questioned in London court about assets
First, Davidson Kempner Capital Management turned up the heat in its legal dispute with one of India’s wealthiest families by seizing a private jet. Now, the New York hedge fund has set its sights on something else many billionaires can’t live without: a luxury yacht.
/goo.gl/ajGZow

Testing Europe’s Resolve on Failing Banks; The Single Resolution Board was off to a good start, but there are causes for concern.
Ferdinando Giugliano – Bloomberg
Here is the most important European institution most people have never heard of — and they won’t hear about it until a crisis hits. But is it ready?
/goo.gl/FhVvcp

Activist funds with fewer assets outperforming big name rivals
Svea Herbst-Bayliss – Reuters
Several activist investor funds with a fraction of the assets of their bigger rivals are posting strong returns, as they win board seats and drive change at companies, an analysis of their performance shows.
/goo.gl/PuwPLJ

SoFi’s Plan to Become the Bank of the Future Isn’t Going So Well
Julie Verhage and Selina Wang – Bloomberg
Insurance and wealth management units have missed targets; Sexual harassment allegations are scaring off some customers
Just a few years after Mike Cagney co-founded Social Finance Inc., he was already talking about how his new venture was going to “kill banks.”
/goo.gl/UyVuZX

UBS chairman joins in bitcoin bashing by bankers
Joshua Franklin – Reuters
UBS Chairman and former Bundesbank President Axel Weber said on Wednesday bitcoin does not fulfil some of the most important functions of currency, the latest senior banker to express scepticism about the cryptocurrency.
/goo.gl/6pLFNj

Unwinding QE could trigger financial crisis, warns JP Morgan
Lucy Burton – Telegraph
JP Morgan has warned that another financial crash could be round the corner as the decade of ultra-loose money comes to an end.
/goo.gl/N9Roh4

Marathon Gears Up for a Global Recession, Plans a Distressed Fund
Suzy Waite – Bloomberg
CEO plans distressed hedge fund to take advantage of a slump; ‘Default rates are low; we only have one way to go from here’
Marathon Asset Management boss Bruce Richards is gearing up for the next global recession, which he reckons could be less than two years away.
/goo.gl/7Sp4w5

Broker TP Icap chases hedge fund cast-offs from banks; New hires highlight the opportunities for interdealer brokers as investment banks scale back their markets divisions
By Samuel Agini – Financial News
The interdealer broker TP Icap has made a series of hires in a bid to win more trading business from hedge funds and other investment firms ó historically the clients of the City’s big bank dealers.
/goo.gl/fYNNck

Regions

Comparing Active and Passive in Latin America – SPIVA Latin America
Phillip Brzenk – S&P Dow Jones Indices Indexology Blog
The SPIVA Latin America Mid-Year 2017 Scorecard was released this week. The report covers Brazil, Chile, and Mexico in selected fund categories. In line with the rest of the world, widespread gains were seen in both fixed income and equity markets in Latin America in the first six months of 2017.
jlne.ws/2y02SFo

Russian Group EN+ Plans $1.5 Billion Offering in London and Moscow
Chad Bray – NY Times
The Russian energy and aluminum company EN+ said on Thursday that it planned to raise $1.5 billion in an initial public offering in London and Moscow.
/goo.gl/Zr9EvY

OPEC Pushes Russia to Continue Helping on Oil Prices; Saudis worry that Moscow’s commitment to crude-output cuts has wavered
Benoit Faucon and Summer Said – WSJ
Saudi Arabia and OPEC are lobbying Russia to stay on board with their efforts to raise oil prices, amid signals that Moscow wants to end its participation in costly petroleum-production cuts.
/goo.gl/cqKQ56

Top Banker Says Hungary May Adopt the Euro Sooner Than Expected
John Micklethwait, Zoltan Simon and Balazs Penz – Bloomberg
Hungary to adopt euro despite official rhetoric, OTP head says; Euro-area budget won’t mean need to give up full sovereignty
Hungary may adopt the euro sooner than its government is willing to admit, as Europe’s renewed integration drive pulls even countries reluctant to join into the common currency, the nation’s top banker said.
/goo.gl/ZqL33o

A North Korea Nuclear Strike on Tokyo, Seoul Could Kill 2.1 Million
Andy Sharp – Bloomberg
As U.S. President Donald Trump threatens to destroy North Korea, even some of his closest aides have warned of the potentially disastrous effects of a war. New research published on the 38 North website points to just how catastrophic the impact might be on the regime’s neighbors.
/goo.gl/2RKMsv

Russian Price Gauge Is Sinking So Low It Could Outdo U.K.
Olga Tanas – Bloomberg
Russian core inflation slowed to record last month, poll shows; Food prices crucial in shaping Russian inflation expectations
Russia has done so well in vanquishing inflation that it pushed the core index of consumer prices to the cusp of falling below its level in the U.K. for the first time.
/goo.gl/zrVyUH

Brexit

Bank of England says Brexit transition deal needed by Christmas
Huw Jones – Reuters
Britain’s banks need a watertight Brexit transition deal by Christmas to avoid a potentially disorderly shift of people and operations to the European Union, a top Bank of England official said on Wednesday.
jlne.ws/2fQXu0Y

UK supervisor warns that Brexit plans could complicate bank regulation
Caroline Binham – Financial Times
The UK’s top banking supervisor implored his counterparts in Europe and beyond to work together, as he warned that UK banks will become more complex ó and therefore more risky ó as a result of their Brexit plans.
Sam Woods, the chief executive of the Bank of England’s Prudential Regulation Authority, said on Wednesday that a transitional deal to smooth the effects of Brexit needed to be secured by Christmas, before firms started to execute their worst-case contingency plans.
jlne.ws/2fRTPzU

May Says U.K. Will Be Ready for No-Deal Brexit If EU Talks Fail
Tim Ross – Bloomberg
The U.K. is preparing itself to leave the European Union without a deal if Brexit talks fail, Theresa May said on Wednesday, in comments that reinforce warnings from her officials over the slow progress of negotiations.
/goo.gl/oWR9vP

Europe Could See Another Brexit-Like RuptureóBeyond Spain; Rumblings in Catalonia may only be the beginning. Tensions are growing in Eastern Europe.
John Micklethwait – Bloomberg
Some of the great moments of history sneak up on businesspeople. Two years ago, Britain looked to be Europe’s most economically rational country; now its companies seem to be rolling from one economic earthquake to another, with Brexit looking increasingly likely to be followed by the election of a near-Marxist prime minister, Jeremy Corbyn.
/goo.gl/71udCn

Brexit transition deal needed by Christmas, says Bank of England
Reuters
Britain’s banks need a watertight Brexit transition deal by Christmas to avoid a potentially disorderly shift of people and operations to the European Union, a top Bank of England official said on Wednesday.
/goo.gl/QfCbB8

Goldman Sachs Agrees on Lease for Frankfurt Office Tower Space
Jack Sidders, Sharon R Smyth and Steven Arons – Bloomberg
Deal is said to be for enough space for about 1,000 workers; Bank has previously said that it could quadruple staff in city
Goldman Sachs Group Inc. agreed to lease offices at a new building in Frankfurt as it seeks additional space ahead of the U.K.’s departure from the European Union.
/goo.gl/DRk5sx

Miscellaneous

U.S. Shale Juggernaut Shows Signs of Fatigue; Forecasts that abundant American oil can permanently meet global needs may be ‘myth,’ company leaders warn
Bradley Olson and Lynn Cook – WSJ
American shale drillers, which defied expectations and upended traditional oil markets by increasing production in the face of lower prices, are finally showing signs of slowing down.
/goo.gl/wTkxzw

Hedge Fund CEO in $1.3 Billion Divorce Says He Wasn’t Married
Kaye Wiggins – Bloomberg
No legal ceremony took place, says Criterion Capital Ltd. CEO; Case is among the biggest to go before U.K. court, lawyers say
A U.K. hedge fund executive is fighting to keep the bulk of his 1.1 billion pound ($1.3 billion) fortune in a divorce case that will turn on whether he was really married.
/goo.gl/5gg2Wx

Hurricane Irma Means Your Orange Juice Could Soon Taste More Sour
Fabiana Batista – Bloomberg
That morning cup of orange juice could start to taste more tart. After Hurricane Irma wreaked havoc on Florida citrus crops last month, U.S. beverage companies could be forced to start using larger amounts of less-sweet Brazilian orange juice in their blends to make up for output losses.
/goo.gl/V83hca

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Graduate of University of Minnesota School of Journalism and Mass Communication