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EU urged to tackle Brexit derivatives uncertainty; Adena Friedman comments on the C-suite

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Hits & Takes
JLN Staff

The LaSalle Street Trading Tech Awards, in support of Pathway to Adventure Council of Boy Scouts of America, will be on November 15 in the Chicago Board of Trade Building. Become a sponsor or buy a ticket to attend HERE.~JJL

Trader and world class sailor Brian Porter won the Melges 24 fall championship last weekend on Geneva Lake in Wisconsin. Another trader, Thomas Freitag, took fourth place.~JJL

Have you paid for your 2018 JLN subscription yet? We can send you an invoice. You can pay with a credit card online, or send us a check. Easy peasy.~JJL

I was rejected from an EXPO week event on cryptomarkets, after being invited by a friendly FCM, because I am a journalist. My standing as a CTA seems to have lost its luster to some entities.~JJL

A Leg To Stand On (ALTSO )is hosting its annual Rocktoberfest charity event tomorrow in Chicago and there are a few tickets still remaining. You can buy them HERE. Also, JLN received a couple of free pairs of tickets. We’ll select two readers randomly from those who click on Matt Raebel’s JLN story Blockchain tokenization: a simplified explanation. (Yes we can track who clicked on what, and we’ll contact you for the tickets.)~JK

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Canada Says There Will Be Enough Marijuana to Meet Demand
Jen Skerritt – Bloomberg
Health Canada says nation ‘well positioned’ to supply product; Government allowed time for orderly transition to legal market
The Canadian government is confident there will be enough marijuana to pass around despite concerns of a looming supply shortage as the nation rolls out legal sales next week.
/jlne.ws/2ytMdZX

***** They have, however, completely run out of brownie mix.~JJL

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Tuesday’s Top Three
Our top read stories on Tuesday were led by JLN’s Women In Listed Derivatives Tackle Sexual Harassment at Work and Bloomberg’s The Next Financial Crisis Is Staring Us in the Face, which tied for first. A close second was another JLN piece, Blockchain tokenization: a simplified explanation

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Lead Stories

Bank and City urge EU to tackle Brexit derivatives uncertainty; Timely action called for as threat of no deal risks rendering void £41tn of derivatives
Caroline Binham, Philip Stafford and Jim Brunsden – FT
The Bank of England and the financial services industry on Tuesday pressed the EU to urgently tackle legal uncertainty surrounding vast amounts of derivatives because of Brexit.
/jlne.ws/2yCFBIT

The CEO of Nasdaq says there’s a marked difference between being a C-suite exec and a CEO
Myelle Lansat and Richard Feloni – Business Insider
When Adena Friedman was named CEO of Nasdaq in 2017, she became the first female leader of a global stock exchangeó but Friedman was a consistent c-suite executive for Nasdaq prior to becoming CEO.
/jlne.ws/2ystyOc

Blockchain Tech Coming to Commodity Markets, Blythe Masters Says
Eddie van der Walt – Bloomberg
Tech will help deal with complex, inefficient supply chains; ‘Tens if not hundreds’ of commodity-blockchain projects coming. The blockchain is coming to commodity markets, Blythe Masters told guests at the London Metal Exchange annual dinner during LME Week.
/jlne.ws/2ysfZhz

Guggenheim Securities: Wall Street and the risk of huge incentives; The dealmaker has become a force in US M&A but it offers big commissions to its bankers
Sujeet Indap and James Fontanella-Khan – FT
During the financial crisis a decade ago, big banks were brought to their knees by reckless traders who made outsized bets on complex mortgage securities. For the dealmakers in other parts of these financial groups, who specialised in advising companies on mergers and acquisitions, this created an additional problem. They were trapped ó first by the crippling debts accumulated by their colleagues and, over time, by tighter regulation of compensation.
/jlne.ws/2yupVY0

HSBC to pay $765 million to settle U.S. mortgage securities mis-selling claim
Reuters
HSBC on Tuesday said it would pay $765 million to the United States Justice Department to settle claims it mis-sold mortgage-backed securities between 2005 and 2007.
/reut.rs/2yu7xOM

Storm shuts nearly 40 percent of U.S. Gulf of Mexico oil output
Reuters
Nearly 40 percent of daily crude oil production was lost from offshore U.S. Gulf of Mexico wells on Tuesday due to platform evacuations and shut-ins ahead of Hurricane Michael.
/reut.rs/2pLOv2G

D.E. Shaw Joins Continental Grain in Pushing for Change at Bunge
Dana Mattioli and Cara Lombardo – WSJ
D.E. Shaw & Co. has boosted its stake in Bunge Ltd. BG -0.68% and is pushing the grain trader to make operational improvements and add board members, according to people familiar with the matter.
/on.wsj.com/2ymhEFe

Cliff Edge Effects under EU Law in a No Deal Brexit Scenario
ISDA
There has been increasing concern that the UK may withdraw from the EU without concluding a withdrawal agreement under Article 50 of the Treaty on European Union and without any transition (or implementation) period to allow market participants time to adjust.
bit.ly/2yrSVzH

Scrapping Libor leaves $500bn of bond contracts in limbo; The documentation for billions of bonds will need rewriting as benchmark ends
Katie Martin – FT
Over $500bn in bonds may need to have their documentation rewritten as a result of the shift away from the Libor benchmark, according to law firm Linklaters.
/jlne.ws/2ysimRv

FCA sets out plans for hard Brexit
Damian Fantato – FT Adviser
The Financial Conduct Authority has published plans for a hard Brexit, with proposals to convert European law into British rules from next year.
/jlne.ws/2yssKZG

Exchanges, OTC and Clearing

Morgan Stanley, Credit Suisse and JP Morgan clear first OTC SOFR swaps with CME; Five major market participants have cleared $200 million in notional of OTC SOFR swaps since CME launched the product in May this year.
Hayley McDowell – The Trade
Five major market participants have cleared the first over-the-counter (OTC) Secured Overnight Financing Rate (SOFR) interest rate swaps with CME Group.
/jlne.ws/2yrnXrp

CME Group Announces First OTC SOFR Swaps Cleared
CME Group
CME Group announced five market participants have cleared trades worth more than $200 million in notional value of over-the-counter (OTC) Secured Overnight Financing Rate (SOFR) interest rate swaps since launching the service on Oct. 1. This builds on the growing liquidity of SOFR futures, which during August and September averaged more than 5,400 contracts per day and traded the equivalent of nearly $1 trillion in notional value since their launch in May 2018.
/jlne.ws/2yu3Fxr

Haitong International (USA) Becomes the First Chinese Market Maker on NASDAQ
PRNewswire
Haitong International Securities (USA) Inc. based in Hong Kong, today launched its market-making business in the United States, becoming the first Chinese market maker on NASDAQ. This move is not only another milestone in the company’s global business, but it also serves as a major breakthrough in filling the gap of the absence of a Chinese market maker on NASDAQ.
/prn.to/2yqD6cq

OCC adds to stock loan data set
Andrew Neil – Global Investor Group (SUBSCRIPTION)
Chicago-based clearing house OCC has added to its stock loan data offering. The firm, which operates two stock loan programs for clearing members, now publishes loan volumes and stock loan balances by securities online on a daily basis.
/goo.gl/J87oD9

LME’s Copper Dominance Tested as Rivals’ Options Trading Jumps
Mark Burton and Jack Farchy – Bloomberg
Options trading volumes are surging in New York and Shanghai; LME to invest more to develop options business next year: CEO
Metals bourses trying to muscle into a copper market dominated by the LME are getting a helping hand from options.
/goo.gl/KJk774

MGEX Board Appoints Public Directors, Officers, Committee Assignments
MGEX
As its October 9, 2018, Organizational Meeting, the MGEX Boards of Directors names 2018-2019 public directors, names Board officers and
approved committee assignments
/goo.gl/YqAvQH

Eurex Exchange’s Fixed Income Highlights October 2018
Eurex
/jlne.ws/2ysuVME

MontrÈal Exchange Launches Trading on London Time; Canada’s Derivatives Exchange Extends Trading Hours to Expand Global Reach
TMX
MontrÈal Exchange (MX), Canada’s derivatives exchange, opened for trading at 2:00 a.m. EDT this morning, or 7:00 a.m. London time.
/jlne.ws/2ysnMfj

London Stock Exchange Group appoints General Manager for Romania
London Stock Exchange Group
London Stock Exchange Group Board Appointments; Andreea Stanescu appointment General Manager, Romania; Andreea will oversee new Business Services Centre in Bucharest, Romania; Bucharest selected as location for one of Group’s operational hubs
London Stock Exchange Group (LSEG) today announces that Andreea Stanescu has been appointed General Manager, Romania. Andreea will be reporting to Dee Liyanwela, Head of Business Services Ltd (BSL) Sri Lanka and Romania. In her new role, Andreea will oversee the Group’ new Business Services centre in Bucharest.
/jlne.ws/2ysvKFe

Moscow Exchange launches gold futures with physical delivery
MOEX
On 11 October 2018, Moscow Exchange will begin trading of deliverable gold futures on its Derivatives Market.
/jlne.ws/2yta9N0

Fintech

Hanweck Enhances Borrow Intensity Indicators; Extended Data History Supports Development of Alpha Generation Strategies
Hanweck
Hanweck, a leading provider of real-time risk analytics on global derivatives markets, has enhanced its Borrow Intensity Indicators with the addition of five years of historical data and new real-time liquidity metrics. Launched earlier this year, the Borrow Intensity Indicators apply machine learning to mine data from the equity options market to generate stock borrow rates and term curves in real time. Indicator data is available for all securities that have listed options.
/goo.gl/rU174B

R.J. O’Brien Completes Its Middle-Office Migration To Lisa Clearing Engine From ATEO Finance
PRNewswire
ATEO Finance, a leading provider of Post-Trade solutions for the Listed Derivatives space, is pleased to announce that R.J. O’Brien & Associates (RJO), the oldest and largest independent futures brokerage and clearing firm in the United States, and its UK affiliate R.J. O’Brien Limited (RJO Limited), have completed their migration from a legacy middle-office solution to ATEO’s LISA Clearing Engine platform.
/prn.to/2yqCS54

Global Payment Firms Hold First Cyber War Game
Yalman Onaran – Bloomberg
Results show variation in defining crisis, engaging government; Firms look for systemic way to share future threat information
Global payment companies held their first joint cybersecurity war games to test their systems’ readiness for simultaneous attacks, uncovering differences in their defenses including even how to define a crisis.
/bloom.bg/2ypz4Rp

New Evidence of Hacked Supermicro Hardware Found in U.S. Telecom; The discovery shows that China continues to sabotage critical technology components bound for America.
Jordan Robertson and Michael Riley – Bloomberg
A major U.S. telecommunications company discovered manipulated hardware from Super Micro Computer Inc. in its network and removed it in August, fresh evidence of tampering in China of critical technology components bound for the U.S., according to a security expert working for the telecom company.
/jlne.ws/2ysbUtW

CQG Partners with ErisX for Trading Technology
CQG
CQG, a leading global provider of high-performance trading, market data, and technical analysis tools, announced today it has collaborated with ErisX, a new exchange for digital asset investors and traders.
/jlne.ws/2yuRmkj

Societe Generale deploys reconciliation and data control system from Duco; Investment bank to automate reconciliation processes across all business areas through new reconciliation and data control systems.
Hayley McDowell – The Trade
French investment bank Societe Generale has reached an agreement with data engineering specialist Duco to implement its reconciliation and data control systems.
/jlne.ws/2ysuCkY

Cryptocurrencies

Crypto Industry on ‘Brink of an Implosion,’ Researcher Says
Olga Kharif – Bloomberg
Declining daily transaction volume, values seen as negative; Quarter-over-quarter transactions are seen plummeting again
Echoing sentiments of mainstream economists, Juniper Research is warning that many of the metrics in the cryptocurrency world are pointing to a market implosion.
/jlne.ws/2yCtbRh

All Hail Satoshi; Bitcoin looks like the way forward in a Ukraine battered by revolution and corruption.
Linda KInstler – Bloomberg
The spot where a statue of Lenin once presided over Kyiv’s downtown is now in a state of mild decrepitude. The plinth remains, but it’s covered with graffiti, its steps painted the blue and gold of the Ukrainian flag. After protesters triumphantly toppled the statue in December 2013, the vacant pedestal served as a memorial to Ukraine’s violent rejection of its Soviet past.
/jlne.ws/2ysW8yS

Tiberius halts sales of metals-backed cryptocurrency
Reuters
Tiberius Technology Ventures has called a temporary halt to sales of its metals-backed digital currency and will refund $1 million to investors, it said on Tuesday, citing high credit card fees that it said made the project unworkable.
/reut.rs/2pLu6KM

‘Bitcoin Jesus’ Mulls Plans to Launch his Own Cryptocurrency Exchange
Aziz Abdel-Qader – Finance Magnates
Bitcoin.com CEO Roger Ver, who is sometimes called “Bitcoin Jesus” because he was one of the first investors of No.1 virtual coin, is gearing up to launch his own cryptocurrency exchange.
bit.ly/2OOBrYp

Swiss Financial Watchdog Issues Country’s First Crypto Asset Management License
Marie Huillet – Cointelegraph
The Swiss Financial Market Supervisory Authority (FINMA) has issued the country’s first cryptocurrency asset management license to a crypto investment fund, Swiss-centered media outlet Swissinfo reports today, Oct. 9.
bit.ly/2CBlBuD

Taiwan Lawmaker Pitches AML Rules Update to Cover Crypto
Nikhilesh De – Coindesk
A Taiwanese legislator wants cryptocurrency transactions to abide by the same money laundering laws that govern traditional financial instruments.
bit.ly/2ysCnHP

IBM, Intel Help Fund San Diego Blockchain Lab
Brittany Meiling – Government Technology
(TNS) ó Tech giants are funding the launch of a research lab at UC San Diego to unravel the mysteries around blockchain, a new way of writing software that’s sweeping industries around the globe.
bit.ly/2ycEGiL

Next Steps In The Integration Of Artificial Intelligence And The Blockchain
Rohan Pinto – Forbes
Having worked in the cryptography space for over two decades, and having been an active participant in the cryptocurrency evolution since its inception, I take a deep interest in the subject. In particular, I believe that the intersection of artificial intelligence (AI) and blockchain is an exciting but challenging new development.
bit.ly/2CACd5x

Beyond CryptoKitties: Is There A Place For Blockchain In The B2C Market?
Andrew Arnold – Forbes
CryptoKitties, for anyone who is not familiar, is a virtual game in which players buy, collect, breed, and even sell virtual cats. But the uniqueness of the game is that it is built on the blockchain technology developed by Ethereum. Sales and ownership of each unique pet is validated through this network and no transactions can occur without the participants’ permission. It was launched in in October, 2017 and went viral by December, jamming the Ethereum network.
bit.ly/2OhWeUy

I Can’t Believe This Blockchain Is Free
Michael J. Casey – Coindesk
As anger has grown over the power wielded by internet gatekeepers such as Facebook and Twitter, many blockchain advocates argue we could fix social media if it were built on decentralized, consensus-based networks instead of corporate-centralized platforms.
bit.ly/2INOVhA

Blockbid Partner with Whale Tech and TMA Solutions to Create Blockchain Development Centre; Project to help upskill and educate developers in Blockchain principles, theory and development languages
Blockbid
Cryptocurrency Exchange Blockbid has teamed up with Whale Tech and TMA Solutions to offer end-to-end Blockchain development solutions to external companies.
/jlne.ws/2ysBi2w

Politics

Trump renews Fed criticism, says raising rates too fast
Reuters
U.S. President Donald Trump on Tuesday again criticized the Federal Reserve, telling reporters the central bank is going too fast in raising rates when inflation is minimal and government data points to a strong economy.
/reut.rs/2pRQgLP

Michael Bloomberg Registering as Democrat as He Weighs 2020 Bid
Mark Niquette – Bloomberg
Former New York mayor spending millions on midterm election; Bloomberg has been vocal critic of Trump, Republican leaders
Former New York City Mayor Michael Bloomberg announced that he is formally changing his voter registration to Democrat, a possible step toward running for president in 2020.
/jlne.ws/2ysSC7E

Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump’s Trade Tariffs, Report Says
Kevin Kelleher – Fortune
Ford is having a bad year in 2018. Its stock is down 29%, and the tariffs imposed by President Trump have reportedly cost the company $1 billion, as the company is in the midst of a reorganization. Now, the company is announcing layoffs.
/jlne.ws/2yvVsZk

Glock’s Gun Sales Plummet in First Year of Trump Presidency; In a rare look at its corporate finances, the maker of some of America’s favorite handguns reported a 35% plunge in revenue.
Boris Groendahl – Bloomberg
Before Donald Trump and the Republicans won the 2016 elections, Americans stockpiled guns like there was no tomorrow. Turns out the end of that panic-buying weighed heavily on the sales of Glock GmbH, the Austrian maker of some of America’s most popular handguns.
/jlne.ws/2ytKt2P

Mnuchin warns China on currency devaluations; US Treasury secretary says in interview he wants issue raised in trade talks
Sam Fleming – FT
The US Treasury secretary has warned China not to engage in competitive devaluations of the renminbi as the two countries spar over their economic relations and engage in an escalating trade war.
/jlne.ws/2ywavlS

Regulation

CFTC Proposes to Streamline Regulations for Commodity Pool Operators and Commodity Trading Advisors
CFTC
The Commodity Futures Trading Commission (CFTC) unanimously approved proposed rules as a part of CFTC’s KISS Initiative to simplify regulations for commodity pool operators (CPOs) and commodity trading advisors (CTAs).
/goo.gl/Wh37QJ

Statement of CFTC Chairman J. Christopher Giancarlo on Proposed Amendments to Registration and Compliance Requirements for Commodity Pool Operators and Commodity Trading Advisors
CFTC
In response to the Request for Information issued as part of Project KISS, the Commission received a number of letters from members of the asset management industry suggesting areas of potential rulemaking that, in their view, would make the Commission’s regulations more efficient and less burdensome. I believe that today’s notice of proposed rulemaking furthers both of those interests.
/jlne.ws/2ytUPQf

At least two U.S. attorneys general investigating Google glitch
Angela Moon, Arjun Panchadar – Reuters
At least two U.S. states are investigating a breach at Alphabet Inc’s Google that may have exposed private profile data of at least 500,000 users to hundreds of external developers.
/reut.rs/2yrSaqf

Currency `Cartel’ Traders on Trial for Chats That Cost Billions
Lananh Nguyen and David McLaughlin – Bloomberg
Three accused of rigging euro-dollar trades against customers; Banks have paid $14 billion but few people facing prison time
The three British currency traders who were part of an exclusive online chat group referred to by members as “the cartel” go on trial this week for alleged market manipulation that’s already cost global banks $14 billion in penalties.
/bloom.bg/2yu99rO

CFTC seeks civil monetary penalty of over $1 million for commodity futures trader
Maria Nikolova – FinanceFeeds
The United States Commodity Futures Trading Commission (CFTC) is seeking the imposition of a civil monetary penalty of $1,083,038 on self-proclaimed commodity futures trader William H. Powderly IV, who lost more than $1 million of investors’ money before the collapse of the fraudulent scheme he operated.
/goo.gl/DyfmY3

Securities Regulation Daily’s top 10 developments for September 2018
Lene Powell – Wolters Kluwer: Jim Hamilton’s World of Securities Regulation
In a major caution for companies to take a close look at their social media policies, the SEC decisively reined in Elon Musk, the famously glib chief of Tesla, Inc., in the wake of his August tweet that he had secured a deal to take Tesla private. In late September, the SEC charged Musk with securities fraud and Tesla with having inadequate disclosure controls. When the dust settled two days later, Musk and Tesla each agreed to pay a $20 million penalty, and Musk agreed to be removed as Tesla chairman. The settlements are subject to court approval.
/goo.gl/b7ZEjj

The United Nations Climate Change Report Could Give Green Companies a Lift
Daren Fonda – Barron’s
Climate change may not be a driving factor in the stock market on a day-to-day basis. But news out Monday adds to growing evidence that it’s becoming a long-risk factor that investors shouldn’t ignore.
/jlne.ws/2ysU0XU

FCA steps up UK plans to prepare for hard ‘no-deal’ Brexit
Caroline Binham in London – FT
The UK’s financial regulator has stepped up its plans for a hard Brexit where the UK crashes out of the EU next year with no deal and no transition period.
/jlne.ws/2ysj1m8

SPMW’s CRA registration withdrawn
ESMA
The European Securities and Markets Authority (ESMA) has today withdrawn the credit rating agency (CRA) registration of the Polish SPMW Rating Sp z.o.o. (SPMW).
/jlne.ws/2yuyl1y

The FCA consults on its approach ahead of the UK’s exit from the EU
UK FCA
The Financial Conduct Authority (FCA) today published two consultation papers, setting out its proposals in the event the UK leaves the European Union on 29 March 2019 without an implementation period. It also set out its approach to the regulation of Credit Rating Agencies, Trade Repositories and Data Reporting Services Providers.
/jlne.ws/2ywamie

Registering as a credit rating agency
UK FCA
When the UK leaves the EU, the FCA will become the UK regulator of credit rating agencies.
/jlne.ws/2ywShR9

Registering as a trade repository
UK FCA
When the UK leaves the EU, the FCA will become the UK regulator of trade repositories.
/jlne.ws/2yrpIF1

Investing and Trading

Big Oil’s Bet on Natural Gas Is a Slow Burn
Sarah Kent and Sarah McFarlane – WSJ
Big Oil is betting on natural gas as the fuel of the future, but companies face a challenge to show they can make as much money producing and selling cargoes of gas as they could from tankers of crude.
/on.wsj.com/2yu6sqc

The New Economics of Natural Gas
Neil Somma – CME Group OpenMarkets
Historically, weather patterns have been the major driver behind price movement in the natural gas market. But with U.S. natural gas now being exported globally in the form LNG, there is a new variable adding potential volatility to the market.
/goo.gl/81khLp

How High Does Carbon Need to Be? Somewhere From $20-$27,000
Mathew Carr – Bloomberg
Scientists say market forces could help rein in global warming; World is on track to warm 3 degrees Celsisus, double UN’s goal
The idea that carbon markets can help rein in greenhouse gas emissions got fresh momentum this week from a panel of scientists convened by the United Nations.
/jlne.ws/2yrdkov

Ackman’s Pershing Square unveils new position in Starbucks -sources
Svea Herbst-Bayliss – Reuters
William Ackman’s activist hedge fund Pershing Square Capital Management has taken a new position in Starbucks Corp, according to attendees at a conference where the billionaire investor spoke on Tuesday.
/reut.rs/2yviFLg

Self-Indexing: Not as easy as it looks
Susan Quintin – FTSE Russell Blog
As passive investing has captured significant assets and mind share among investors, indexes have become firmly embedded in the investment process. So it should come as no surprise that as investors have grown more comfortable with index-based investing, the complexity of developing and managing indexes remains underappreciated in some pockets of the industry. In turn, the industry sees more asset managers considering self-indexing as a means to lower cost despite the fact that index costs are typically a small portion of a fund’s expenses.
bit.ly/2yAAfOj

Soaring Pot Stock of the Moment Went by Different Name Weeks Ago
Arie Shapira – Bloomberg
The latest company to join the pot stock craze is Pyxus International Inc., a newcomer to the marijuana market that went by a different name for the past 145 years up until a month ago.
/bloom.bg/2yr9OdI

Two-Decade Rupture in Stock-Bond Link Flashes Global Market Pain
Sid Verma, Emily Barrett and Sarah Ponczek – Bloomberg
U.S. equity and Treasury co-movement is at weakest in years; Inflation fears make stocks more sensitive to yield: Leuthold
The biggest post-crisis shift in the investment landscape may be looming, threatening more pain for investors besieged by an uptick in real interest rates and cross-asset volatility.
/jlne.ws/2yp1Z8i

Thousands of Southerners Planted Trees for Retirement. It Didn’t Work; Too much pine and not enough saw mills spell years of depressed prices for plantations
Ryan Dezember – WSJ
Over the past hundred years, the George family’s farm has been sharecropped, grazed by cattle and planted with cotton. By the late 1980s, Clayton George was growing soybeans and struggling to make ends meet.
/jlne.ws/2yoPcm8

Institutions

Julius Baer ‘Whistleblower’ to Learn Fate in War Over Bank Data Leak
Hugo Miller – Bloomberg
Swiss Supreme Court upholds acquittal by vote of 3 to 2; Verdict may hold implications for Swiss banks’ foreign units
A former Julius Baer banker who leaked documents from a Cayman Islands subsidiary was cleared of breaking Swiss banking secrecy by Switzerland’s top court, creating possible problems for how the Alpine nation’s banks manage their foreign units.
/jlne.ws/2ysltJa

Ex-Assistant Accused of Stealing $1.2 Million of Wine From Goldman Sachs CEO Jumps to His Death; Nicolas De-Meyer, who previously worked for David Solomon, had been expected to plead guilty in federal court in Manhattan
Corinne Ramey – WSJ
A former personal assistant to Goldman Sachs Group Inc.’s chief executive killed himself by jumping from the 33rd floor of a hotel Tuesday, at the same time he had been scheduled to plead guilty for what prosecutors had said was stealing more than $1.2 million worth of his boss’s wine.
/jlne.ws/2yqR9i9

Bank Earnings: Expect Big Profits, But Buyer Beware; Big U.S. banks are set to report record postcrisis profits for the third quarter, but underneath the blockbuster numbers are reasons for caution
Telis Demos – WSJ
Big U.S. banks are set to report their most profitable third quarter since the financial crisis. But underneath the blockbuster numbers are reasons for caution.
/jlne.ws/2yrXv0z

Regions

Exclusive: EU supervisors monitoring Italian banks’ liquidity, no cause for alarm – source
Francesco Guarascio – Reuters
European banking supervisors have stepped up their monitoring of liquidity levels at Italian banks after a sharp increase in the country’s government bond yields, although there is no cause for alarm, a senior EU source said on Tuesday.
/reut.rs/2pIgNLi

Turkey Reveals Plans to Tame Inflation
Yeliz Candemir – WSJ
The Turkish government unveiled measures aimed at reining in double-digit inflation that has helped erode investor confidence in the country and contributed to a sharp depreciation of the currency this year.
/on.wsj.com/2pLvPzK

Swiss top court knocks down bid to extend banking secrecy
Stephanie Nebehay – Reuters
Switzerland’s highest court ruled on Wednesday that prosecutors cannot extend Swiss banking secrecy rules to all corners of the globe to pursue whistleblowers.
/jlne.ws/2yuf6Fm

IEA Urges OPEC to Open the Taps as Oil Market Enters ‘Red Zone’
Javier Blas, Grant Smith and Francine Lacqua – Bloomberg
Venezuelan output is in free-fall, Iran sinking: Fatih Birol; ‘Expensive energy’ is back when global economy already shaky
The International Energy Agency made a direct appeal to OPEC and other major oil producers to boost output, warning that high prices are inflicting damage on the global economy.
/jlne.ws/2ysqnWt

China’s About to Sell Dollar Bonds in Middle of a Trade War
Carrie Hong and Lianting Tu – Bloomberg
Ministry of Finance prepares $3 billion issuance on Thursday; Investors seen pressing for bigger premiums than last year
A year after its first sovereign sale of dollar bonds in well over a decade, China’s about to tap that well again. This time around, the reception isn’t likely to be quite as enthusiastic.
/jlne.ws/2yttRbj

Banning Rupees Didn’t Work. This Might; How a low-key government effort is making mobile payments easier and could bring more Indians into the financial system.
Saritha Rai, Antony Antony – Bloomberg
Venkatesh Munivenkatappa runs his roadside stall in the Koramangala neighborhood of Bengaluru, formerly known as Bangalore, with help from a mobile phone loaded with digital payment apps. Customers can buy his colorful sandals and handcrafted shoes and belts using Google Pay, WhatsApp Pay, Paytm, PhonePe, and an app promoted by India’s central bank called Bharat Interface for Money, or BHIM.
/jlne.ws/2yscpEk

Brexit

German firms would face billions in extra tariffs in hard Brexit: study
Michelle Martin – Reuters
German firms would face extra tariffs of more than 3 billion euros ($3.4 billion) a year if Britain quits the European Union without a trade deal, and their exports to Britain might drop by up to 57 percent, Germany’s IW institute said on Tuesday.
/reut.rs/2pLvk8X

Will Brexit Make The Digital Skills Gap Worse For British Banks?
Vishal Marria – Forbes
Britain already has a sizeable digital skills gap. As a technologically-advanced country, we have a lot of different cutting-edge technologies in both development and implementation. The problem is that we don’t have the labor capacity to maintain and operate these technologies and, as such, our innovation sector is at risk of stagnation. As our finance sector becomes increasingly technological, the demand for digital skills grows further still – so, how will Brexit affect this?
/jlne.ws/2ysUnlg

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