Breaking News

Deutsche Boerse says about 20 banks join its clearing programme; Goldman Sachs has struck a deal with Bloomberg to help its stock trading business; CME says bitcoin futures coming this year, but date not set

First Read

Hits & Takes
By JLN Staff

My former employer from my First American Discount days back in the 1980s, William Mallers, Jr., opined on a recent email exchange he had with me about bitcoin on the Coindesk website. Bill has traded bitcoin since 2013 and is a big supporter of the crypto-currency. ~JJL

NFA was named among the Dave Thomas Foundation for Adoption’s Top 100 Adoption-Friendly Workplaces in 2017. ~JJL

The market cap of all companies listed on HKEX’s #HK markets hit $33.5 trillion today, setting a new all-time record. ~JJL

HKEX is sponsoring “Realising the China Opportunity” webinar on 28 Nov to explore ways to access China via ETFs. ~JJL

Yesterday’s JLN Options is available HERE. ~JJL

Asia Pacific Financial News from John Lothian News for November 20, 2017. ~JJL

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Boat Services rebrands to Simplitium
Simplitium
Transparency services provider undergoes rebrand to highlight expansion of services in existing and new industries and to align with other subsidiaries in the Cinnober Group.
The firm has revealed its new name: Simplitium. The new brand highlights Simplitium’s core values of Transparency, Integrity and Confidentiality.
bit.ly/2B0P7Fg

**I am a simpleton challenged to use the name Simplitium by Cinnober, which has another subsidiary called Minium. ~JK

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Wake Up and Smell the Traffic? London Tries Coffee to Power Buses
Alan Cowell – NY Times
It was part of the imagery of much earlier times: a red double-decker bus nudging through London streets shrouded in smog created in part by its own exhaust fumes.
/goo.gl/VnZBYG

***** If coffee works to power Nasdaq’s Allan Schoenberg, then it can work on London buses too. ~JJL

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Millions Face Pain, Withdrawal as Opioid Prescriptions Plummet; Stuck inside the opioid gray zone.
By Robert Langreth – Bloomberg
Six months after surgery to repair a damaged urinary tract in 1998, computer technician Doug Hale woke one morning with excruciating, burning pain. Hale’s suffering persisted for years, despite all sorts of treatments. Finally, in 2006, he was prescribed strong doses of opioids.
/goo.gl/Pn4Fw6

***** I have had chronic long-term pain and opioids were the only thing that could make it bearable. Before my last surgery on my back I would not have made it to the surgery date without them. I understand the huge issue with addiction and its impact on society. It is a tough balancing act. ~JJL

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Monday’s Top Three
Our top three stories from Monday were led by Bitcoin and blockchain stories – again. Bloomberg’s Blockchain Gets a Wall Street Win: ‘We Know the Thing Works Now’ was the top read piece. Second was our link to Cboe’s A Look at Cboe Bitcoin (USD) Contract Specs. Third went to Crain’s Will futures trading in bitcoin be worth the risks?

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MarketsWiki Page of the Day: Simplitium
MarketsWiki
Boat Services, the trade reporting platform owned by Cinnober, has rebranded to the new name Simplitium, as the company celebrates its 10th anniversary of providing MiFID reporting services.
bit.ly/2BaHtZG

 

MarketsWiki Statistics Sponsored by Level Trading Field
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Lead Stories

Deutsche Boerse says about 20 banks join its clearing programme
Reuters Staff
About 20 banks have signed up to Deutsche Boerse’s (DB1Gn.DE) profit-sharing scheme on interest rate swaps at its clearing business, the company said on Monday.
/goo.gl/oToHHG

Goldman Sachs has struck a deal with Bloomberg to help its stock trading business
Frank Chaparro – Business Insider
Goldman Sachs will begin executing trades made on Bloomberg Tradebook, the brokerage arm of the financial-services and media giant; The arrangement will allow the two firms to focus on their respective value proposition ahead of MiFID II, a European regulatory overhaul set to go live in January.
/goo.gl/w9zaAC

CME says bitcoin futures coming this year, but date not set
Reuters
CME Group Inc, the world’s biggest futures exchange, said on Monday it still plans to launch a futures contract for bitcoin this year, but that a notice on its website stating the contract would begin trading on Dec. 11 was posted in error.
reut.rs/2B0nOKT

Deutsche Börse eyes City of London’s euro clearing crown; More than 20 banks sign up with German exchange amid Brexit uncertainty
Philip Stafford – FT
More than 20 investment banks and market makers have signed up for Deutsche Börse’s attempt to draw London’s prized swaps clearing business from its City home.
/goo.gl/43nYXV

Paris wins battle to host European banking regulator; Amsterdam chosen as post-Brexit home for medicines agency
Jim Brunsden and Mehreen Khan in Brussels – FT
Paris and Amsterdam have been chosen as the new homes for two prized EU agencies, after ministers in Brussels resorted to picking names from a hat to decide where the two organisations and combined 1,000 staff should move after Brexit.
/goo.gl/9Hcrrd

Bitcoin Mania Moves from Wall Street to Main Street
Suzanne Woolley – Bloomberg
Advisers say recover principal investment, brace for losses; Some advisers buy bitcoin to learn about the cryptocurrency
At 74, Cumberland Advisors’ David Kotok has guided wealthy clients through a long career’s worth of bubbles and crashes. Now he’s being inundated with questions about the latest soaring asset to confound investors — bitcoin.
/goo.gl/EPPXxq

Big commodity traders to seek scale in pursuit of prosperity; Consultant report finds size will matter as revenues and margins come under pressure
David Sheppard and Neil Hume – FT
The world’s biggest commodity traders are set to get even bigger as they scale up to try to reverse the first serious dip in revenues this decade and combat margin pressure across oil, metals and grains markets.
/goo.gl/HSaspg

Could Robots Take Away This Classic Wall Street Job?
Julie Verhage, Alistair Barr, and Brad Stone – Bloomberg
For a decade, Ken Sena has had a classic Wall Street job as an equity analyst, which means he researches companies to help investors decide which stocks to buy and sell. Last year, he met developer Bryan Healey, who helped build the AI assistant Alexa at Amazon. The two of them embarked on a curious challenge: to make a computerized version of Ken that can dole out its own stock recommendations.
/goo.gl/Pkqh1o

Plot to save London Stock Exchange chief executive Xavier Rolet risks triggering a messy exit
Julian Harris – City AM
Successful leaders can be difficult to work with. From Margaret Thatcher to Alex Ferguson, people at the top are frequently characterised as stubborn, uncompromising and aggressive, provoking inevitable feuds with anyone who questions their approach.
/goo.gl/yYsxuc

Yellen Will Leave Federal Reserve Next Year
Binyamin Appelbaum – NY Times
Janet L. Yellen, chairwoman of the Federal Reserve, said on Monday that she would step down from the Fed’s board at the same time that she ends her term as chairwoman.
/goo.gl/GkSuxU

Wall Street Will See Washington in Court; AT&T and Time Warner may have a decent shot at challenging the Trump administration’s suit against the deal
Ken Brown – WSJ
Wall Street was sailing into the end of 2017 with markets calm, deal making on a tear and high confidence that one of the biggest media deals in history would be approved by a business-friendly administration.
/goo.gl/kn3Qrr

trueEX appoints Kevin Lupowitz as CTO
Automated Trader
trueEX has appointed Kevin Lupowitz to oversee the expansion of its execution services from interest rate swaps to encompass the broader Rates market.
Lupowitz was a founding employee and Chief Information Officer at Liquidnet. Previously he was CIO at trading platform FXAll where he was responsible for the technology transition and integration with Thomson Reuters.
bit.ly/2AZKTO0

Will the non-execs rock the boat?
The Times
Mary Schapiro Independent non-executive director. Her appointment to the LSE board in 2015 was seen as a coup for the exchange. As chairwoman of the Securities and Exchange Commission, appointed by President Obama, she took a tough line with the banks, blaming deregulation for the financial crisis. Her career, spent mostly in the United States, has included stints on the boards of several US corporates, including Kraft Foods.
/goo.gl/eJeshb

Exchanges, OTC and Clearing

Eurex Clearing’s partnership program gains broad market support
Deutsche Börse
Eurex Clearing’s offer to accelerate the development of a liquid, EU based alternative for the clearing of interest rate swaps gains broad market support. Around 20 market participants from the US, the United Kingdom and Continental Europe already decided to participate in Eurex Clearing’s partnership program. The early sign-up period expires on November 20, and the participants will be disclosed on the Eurex Clearing website.
/goo.gl/eeA3Fc

Xetra trading celebrates its 20th birthday; Introduction of fully electronic trading revolutionized stock market trading / launch on November 28, 1997 with 109 shares
Deutsche Börse Group
Xetra trading on the Frankfurt Stock Exchange will be 20 years old: on 28 November 1997, the starting signal for the then “X-Day” was given punctually at 8.30 am For the first time, shares in Germany were traded using a fully electronic system that automatically handles buy and sell orders in the order book. This has fundamentally changed the trading of securities in the following years.
/goo.gl/33MrNf

Eurex Clearing’s profit sharing scheme gains ground in euro clearing battle; Major institutions have registered for Eurex Clearing’s partnership programme which shares profit of interest rate swaps business.
Hayley McDowell – The Trade
Eurex Clearing’s recently established partnership programme for its interest rate swaps clearing service has gained significant ground with more than 20 market participants signed up.
/goo.gl/9d7KNA

Off-Exchange Trading Surges as Volatility Hits All-Time Low
TABB Forum
The VIX average close fell to an all-time low in October 2017, decreasing month-over-month from 10.4 to 10.1, while off-exchange market share increased to 38.8%, the highest off-exchange market share in seven years. Industry average daily volume decreased 2% month-over-month, to 6.1 billion shares, in October, but TABB-reported ATS/SDP volume increased 2%. Every month, TABB Group’s Equities LiquidityMatrix provides the industry with metrics from 25 ATS/SDPs, including stock capitalization distribution, block and demi-block % (shares & notional), midpoint %, and inside NBBO %, as well as a breakdown of exchange market share.
bit.ly/2AYDGxN

AFTER-HOURS TRADING (T+1) EXTENSION PROVES POPULAR WITH INVESTORS
Market Operations
HKEX
Seventeen per cent1 increase in Equity Index Futures volume in the After-Hours Trading Session (the T+1 Session) after being extended to 1 am on 6 November; Investors actively use the T+1 Session to respond to news in the US time zone. Per-hour trading volume in the T+1 Session is 72 per cent higher in the period that overlaps with US trading hours
Trading of Hong Kong Exchanges and Clearing Limited’s (HKEX) four most active equity index futures increased 17 per cent to an average daily volume of over 32,000 contracts in the past two weeks since the enhancement to after-hours trading (AHT) was introduced on 6 November 2017.
/goo.gl/oHxqkv

ADJUSTMENT OF SOHO CHINA FUTURES
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to SOHO China Ltd (SOHO China) futures to account for SOHO China’s special interim dividend.
/goo.gl/qjLuAK

SGX welcomes Qantex Capital as Derivatives Trading Member
SGX
Singapore Exchange (SGX) today welcomed Hong Kong-based Qantex Capital Markets (Qantex Capital) to its derivatives market as a Trading Member.
/goo.gl/kRpNKX

Fintech

10 of the most innovative fintech firms right now: KPMG, H2 Ventures
CNBC
Financial technology — a sector focused on developing new technologies to disrupt traditional financial markets — is growing rapidly. Last year alone, $17.4 billion in venture capital investment was pumped into the space, according to industry body Innovate Finance.
cnb.cx/2B0sAIx

FlexTrade upgrades cross-OMS aggregation tool ahead of MiFID II; Consolidation trend in asset management has increased demand for FlexTrade’s cross-OMS aggregation tool.
By Hayley McDowell – The Trade
FlexTrade has confirmed plans to roll out an upgraded version of its multi-order management system (OMS) aggregation service.
/goo.gl/DaWGnX

MIFID II Fuelling Demand For Esprow Compliance Solutions In Europe And US
Esprow
Esprow Pte. Ltd., a global provider of enterprise testing technology for the financial markets, is pleased to announce the opening of their New York office supporting the company’s growing client base in North America. The latest US clients include OpenDoor Securities and a bulge bracket global investment bank.
bit.ly/2B04qxX

Simplitium Delivers New MiFID II Transparency Service For Trading Venues
Press Release
Simplitium™, financial services transparency specialist, today announced the delivery of a new service that will help Trading Venues meet their transparency obligations under MiFID II. The solution was launched in November 2017 to enable Trading Venues to meet their regulatory needs in advance of MiFID II.
bit.ly/2AZCBFY

Brighterion’s Artificial Intelligence Software Wins Morgan Stanley’s First Fintech Award
share
Forbes
Morgan Stanley has announced that Brighterion, Inc., a Mastercard company providing innovative artificial intelligence and machine learning technologies, has won its inaugural Morgan Stanley Fintech Award.
/goo.gl/rUyZcP

Square is taking on the big cryptocurrency exchanges — and it represents a $30 million opportunity
Frank Chaparro – Business Insider
Square, the online payments company founded by Twitter’s Jack Dorsey, has been running a trial that allows users of its Cash App to buy and sell bitcoin.
/goo.gl/xSuFBX

More than $30 million worth of cryptocurrency was just stolen by hackers, company says; Tether, a start-up that offers dollar-backed digital tokens, claimed that its systems had been hacked, according to CoinDesk; About $30 million worth of Tether tokens were stolen, the company reportedly said; In a deleted post on its website, Tether said it was attempting to recover the stolen tokens and prevent them from entering the broader cryptocurrency market
Saheli Roy Choudhury – CNB
Tether, a start-up that offers dollar-backed digital tokens, claimed Monday that its systems had been hacked, according to cryptocurrency news site CoinDesk.
/goo.gl/NPedCa

Politics

Ex-Fox News Employee Says She Was Blocked From Investigating Trump-Russia Ties
Joe Mayes – Bloomberg
Golloher says she was blocked from going to Moscow to report; Former workers meet U.K. lawmakers on proposed Fox-Sky deal
A former Fox News employee said the network blocked her from going to Moscow to investigate President Donald Trump’s links with Russia, one of several claims of news bias at 21st Century Fox Inc. made by former and current workers opposing its takeover of Sky Plc.
/goo.gl/q7UC5W

No End in Sight for the Mueller Investigation
By Chris Strohm and Shannon Pettypiece – Bloomberg
President Donald Trump’s lawyer says the criminal investigation into possible collusion with Russia in last year’s election could be over by December, but Special Counsel Robert Mueller’s probe is expected to continue well into next year, according to a U.S. official.
/goo.gl/eZnn9h

House Tax Bill Is Littered With Loopholes for Wall Street’s Wealthiest
By Zachary Mider – Bloomberg
‘Glitches’ in measure might benefit investors, fund managers
Senate is working on its own provisions; changes are likely
Lawmakers who sped a bill through the U.S. House last week may have handed a few more goodies to Wall Street’s wealthiest than they realize.
/goo.gl/nEKwpC

Regulation

Binary options slammed as UK’s ‘biggest investment con’
Ruth Emery – The Times
The consumer group Which? has issued a warning about what it calls the “biggest investment con in Britain”, after an investigation into binary options companies revealed customers are being scammed out of millions of pounds.
/goo.gl/j2eGHm

ESMA updates Q&A on MAR
ESMA
The European Securities and Markets Authority (ESMA) has updated its Questions & Answers (Q&A) document regarding the implementation of the Market Abuse Regulation (MAR).
/goo.gl/6RsQxg

Proposed Rule Change to Extend the Tier Size Pilot of Rule 6433 (Minimum Quotation Size Requirements for OTC Equity Securities)
FINRA
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend FINRA Rule 6433 (Minimum Quotation Size Requirements for OTC Equity Securities) to extend the Tier Size Pilot, which currently is scheduled to expire on December 8, 2017, until June 7, 2018.
/goo.gl/8J3BaL

DTCC Connectivity Problem
FINRA
Due to an issue at DTCC this morning, no FINRA Over the Counter Reporting Facility (ORF) trades have been sent for clearing at this time. FINRA will issue an update to this problem as more details are known.
/goo.gl/SLkR2u

SEC Names Paul G. Cellupica as Deputy Director of the Division of Investment Management
SEC
The Securities and Exchange Commission announced today that Paul G. Cellupica has been named Deputy Director of the agency’s Division of Investment Management.
/goo.gl/bMgj1H

CFTC’s Division of Clearing and Risk Extends No-Action Relief for Shanghai Clearing House
CFTC
The Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) today issued a no-action letter extending the relief provided to Shanghai Clearing House (SHCH) in CFTC Letter 16-56, which, as extended by CFTC Letter No. 17-26, expires November 30, 2017. The extension will last until the earlier of February 28, 2018 or the date on which the CFTC exempts SHCH from registration as a derivatives clearing organization (DCO).
/goo.gl/gdnzNe

CFTC Division of Market Oversight Issues No-Action Relief from Certain Timing Requirements Regarding SEF Chief Compliance Officer Annual Compliance Reports and Fourth Quarter Financial Reports
CFTC
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (Division) today issued no-action relief to swap execution facilities (SEF) from the timing requirement within CFTC regulation 37.1501(f)(2), which requires a chief compliance officer (CCO) of a SEF to submit an annual compliance report (ACR) to the CFTC not later than 60 days after the SEF’s fiscal year end.
/goo.gl/PGTh5F

CFTC Division Of Market Oversight Issues No-Action Relief From Certain Timing Requirements Regarding SEF Chief Compliance Officer Annual Compliance Reports And Fourth Quarter Financial Reports
Mondovisione
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (Division) today issued no-action relief to swap execution facilities (SEF) from the timing requirement within CFTC regulation 37.1501(f)(2), which requires a chief compliance officer (CCO) of a SEF to submit an annual compliance report (ACR) to the CFTC not later than 60 days after the SEF’s fiscal year end.
/goo.gl/YozCHx

HSBC Has Fine Over Lehman Products Reduced in Hong Kong
Alfred Liu and Benjamin Robertson – Bloomberg
Private-banking unit fined HK$400 million by appeals tribunal; SFC originally imposed HK$605 million penalty on HSBC
HSBC Holdings Plc’s private-banking unit was fined HK$400 million ($51 million) over sales of structured products linked to Lehman Brothers Holdings Inc. in Hong Kong, a smaller penalty than the city’s securities regulator initially imposed.
/goo.gl/PpQ6pR

India’s SEBI asks for trading data as it probes WhatsApp messages: source
Abhirup Roy – Reuters
India’s market regulator has asked for trading data on companies mentioned in a Reuters story last week about prescient messages on company earnings in social media chatrooms, a person familiar with the matter told Reuters on Tuesday.
/goo.gl/n7LF7D

Investing and Trading

FANG Stocks May Not Be ‘Tech’ Stocks in 2018
Chris Dieterich – WSJ
What does Netflix do, exactly?
Shares trade like it’s a tech darling and the company spends billions creating movies and television shows. Yet Netflix sits next to Yankee Candle owner Newell Brands in the S&P 500’s “consumer discretionary” sector. A change is coming next year following a rare revamp of index rules that govern how index providers classify stocks.
on.wsj.com/2AWJ4l2

BlackRock plans new active sector ETFs curated by robots
Trevor Hunnicutt – Reuters
BlackRock Inc (BLK.N) is turning to the robots for its next big investment idea.
reut.rs/2AYdL9e

Bitcoin Is Creeping Into Real Estate Deals; Several states have changed laws to allow the technology to be used in property transactions
Peter Grant – WSJ
The real-estate industry is taking its first steps in adopting cryptocurrencies and the technology that backs them in what could eventually produce important changes in the way property is bought and sold.
/goo.gl/1o7efW

Bitcoin Falls on $31 Million Hack of Cryptocurrency Peer Tethe
Justina Lee – Bloomberg
Theft follows a string of hacks on cryptocurrency exchanges; Tether is used by bitcoin venues to help facilitate trades
Bitcoin slipped from a record after the $31 million theft of a cryptocurrency peer renewed concern about the security of digital coins.
/goo.gl/sC89yu

Trafigura focuses on securitising its inventory of metals and oil; Special purpose vehicle will secure term financing for trading activities
Neil Hume and David Sheppard – FT
Trafigura, one of the world’s biggest commodity merchants, plans to securitise its stocks of refined metals and crude oil to help raise cash for trading, as tougher regulations raise the cost of financing.
/goo.gl/YVp4PL

European Giants Are Making a Bad Month Worse for Stock Market
Sofia Horta E Costa – Bloombderg
A handful of Europe’s largest equities including Siemens AG and Sanofi are dragging the Euro Stoxx 50 Index toward its worst November since 2010, thanks to their heavy weighting on the gauge. A basket of stocks that is free of capitalization biases is holding up better, and is now on track to beat the conventional benchmark by the widest margin in more than three years.
/goo.gl/ky3c3v

Harvard Is in Talks to Have Bain Manage Real Estate Assets
Michael McDonald and Melissa Mittelman – Bloomberg
Bain would hire about 20 from endowment’s real estate group; Plan may let Bain diversify and Harvard overhaul endowment
Harvard University’s endowment is in talks to move the management of a portion of its real estate investments to Bain Capital, according to people familiar with the matter.
/goo.gl/AnX3zv

Ex-Treasury Secretary Jacob Lew Joins Private-Equity Firm; Lew to help run Lindsay Goldberg, becoming latest high-level government official to join private-equity industry
By Jacob M. Schlesinger and Laura Kreutzer – WSJ
Former Treasury Secretary Jacob Lew is joining a midmarket New York private-equity firm, adding his name to the long list of high-ranking government officials entering the sector in recent years.
/goo.gl/SYJSPm

Opinion: Jim Rogers says bitcoin ‘looks and smells’ like all other investment bubbles
By Michael Brush – MarketWatch
At 75, veteran investor Jim Rogers remains as sharp and feisty as he was two decades ago when I first met him at Columbia Business School.
/goo.gl/VYZrM3

Institutions

Goldman Sachs to trade equities for Bloomberg Tradebook; A broker arrangement will see Bloomberg Tradebook’s clients gain access to Goldman Sachs’ equities execution platform.
Hayley McDowell – The Trade
Goldman Sachs is to offer its equities execution services to Bloomberg Tradebook’s clients under a recently established broker agreement.
/goo.gl/Vy5m4i

Citi and BNP Seen as Less Risky in Global Regulators’ Ranking
By Silla Brush – Bloomberg
Financial Stability Board recommends capital surcharge levels; Credit Suisse falls; Royal Bank of Canada added to ranking
Citigroup Inc. and BNP Paribas SA dropped in global regulators’ ranking of banks that pose the biggest threat to the financial system, and authorities recommended they face lower capital surcharges.
/goo.gl/YFPEYC

Some Fund Ads Misrepresent Morningstar Ratings; A WSJ review found some asset managers are using incorrect ads to promote funds, and there is little policing of the practice
By Sarah Krouse and Kirsten Grind – WSJ
Money managers are sometimes misrepresenting ratings from Morningstar Inc. MORN 1.69% in advertisements aimed at investors, a Wall Street Journal review has found.
/goo.gl/rjQPTs

Regions

Workers Lured to Australia Find Low Pay and Tough Conditions
Jacqueline Williams – NY Times
Like many young South Koreans, Gabi Cho moved to Australia for the chance to learn English, breathe its famously clean air and make some money.
/goo.gl/GCbRua

Wealthy Asian Buyers Scoop Up Trophy Properties in London; Private investors from China, Hong Kong often price out institutions, and cash-only bids keep U.K. lenders on the sidelines
Olga Cotaga – WSJ
The ever-growing appetite among rich Asians for trophy assets in London is leaving some institutional investors on the sidelines
/goo.gl/ATsqAf

At the Ritz in Riyadh, Detained Saudis Negotiate for Freedom; Businessmen and members of the royal family are among those held at the hotel amid corruption probe
Summer Said and Asa Fitch – WSJ
Crown Prince Mohammed bin Salman has become a regular visitor to the Ritz-Carlton on the western side of his nation’s capital, which is now a luxurious detention center for wealthy Saudis caught up in a widening corruption probe, according to Saudi officials.
/goo.gl/TxQw9a

Turkey Lifts Bank-Funding Cost as Lira Drops to All-Time Low
Tugce Ozsoy and Constantine Courcoulas – Bloomberg
Central bank tightens liquidity by cutting overnight funding; Scenario building for an emergency rate meeting, BlueBay says
The Turkish lira weakened to a record low and bonds tumbled, pressuring policy makers to find ways of staunching a market rout that’s putting them at odds with President Recep Tayyip Erdogan.
/goo.gl/nXeN4e

Asia’s Richest Banker Spots a Once-in-a-Lifetime Opportunity
By Anto Antony , George Smith Alexander , and Candice Zachariahs – Bloomberg
Sovereign wealth and pension funds also interested, Kotak says; Bankruptcy court process, deep discounts are key attractions
For India, it’s a $207 billion mess, a pile-up of bad loans years in the making that’s dragging on growth. For the nation’s wealthiest banker, it’s the kind of opportunity that very rarely presents itself.
/goo.gl/E5Vd6P

China Is Stepping Up the Fight Against Its Mountain of Debt
Bloomberg News
Regulators are now focusing on asset-management products; They’re just one piece of China’s complex leverage burden
China’s drive to reduce its debt burden has shifted into a higher gear following the Communist Party’s twice-a-decade congress in October.
/goo.gl/9UWmhy

Risks in China’s Risk Curbs
By Shuli Ren – Bloomberg
In attempting to head off a Bernie Madoff moment, China has set the stage for an even deeper bond market rout.
/goo.gl/WmbWBs

Brexit

Frankfurt prepares for Brexit: ‘It has put extra wind into our sails’; Recently praised by the chief of Goldman Sachs, Germany’s financial capital is in pole position to gain banking jobs from the UK
Philip Oltermann – The Guardian
Peter Ferres, founder-headteacher of Frankfurt’s Metropolitan school, knows a thing or two about London bankers: he used to be one. For seven years, Ferres worked as a managing director for Credit Suisse in the City, marshalling billion-dollar stock market flotations of emerging market companies.
/goo.gl/7oKihq

It’s Frankfurt … and Paris: Goldman Sachs names post-Brexit hubs; Lloyd Blankfein says cities would be main hubs for handling business no longer possible in London, with American staff ‘probably preferring Paris’
Jill Treanor – The Guardian
Goldman Sachs has stepped back from identifying a single European city as its post-Brexit EU home and has instead chosen to split its business between Frankfurt and Paris.
/goo.gl/jEZwwg

Goldman Sachs to have post-Brexit EU hubs in both Frankfurt and Paris
David Keohane – FT
Goldman Sachs chief executive Lloyd Blankfein confirmed his bank would have hubs in both Frankfurt and Paris after Brexit as he prepares to shift jobs out of the UK.
/goo.gl/vVTY5i

Paris and Amsterdam Win Brexit Races for London-Based EU Agencies
Jonathan Stearns – Bloomberg
London loses European banking, drug regulators on EU departure; French capital wins EBA, No. 1 Dutch city to host EMA
France and the Netherlands won the contests to host two London-based European Union agencies in the first concrete political victories in the battle for Brexit spoils.
/goo.gl/T5fZT3

Theresa May’s cabinet agrees to pay more to break Brexit deadlock; Divorce bill may total £40bn but senior leave campaigners insist it will be withheld if EU does not offer acceptable deal
Anushka Asthana Political editor – The Guardian
Theresa May’s cabinet is prepared to increase its financial offer to the EU in an attempt to break the deadlock in Brexit talks but will make clear that any figure is contingent on the final deal, including the shape of a future trading arrangement
/goo.gl/7qUESq

Miscellaneous

FCC to Outline Plan to Roll Back Net-Neutrality Rules; Move could fundamentally reshape internet economy and consumers’ online experience
John D. McKinnon – WSJ
Federal regulators this week are expected to unveil their plans for reversing Obama-era rules that require internet-service providers to treat all web traffic equally, a move that could fundamentally reshape the internet economy and consumers’ online experience.
/goo.gl/dsW8Yh

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About Author

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