First Read

CFTC Chairman Timothy Massad Announces Resignation as Chairman
CFTC
Chairman Timothy G. Massad today said he has tendered to President Obama his resignation as Chairman of the U.S. Commodity Futures Trading Commission, effective on January 20, 2017. Mr. Massad issued the following statement:
“For the past two and a half years, I’ve had the privilege of working alongside the very talented CFTC staff, and I thank them for their dedication on behalf of the American people. I also want to express my appreciation to my fellow Commissioners, Sharon Bowen and Chris Giancarlo, for the constructive and collaborative engagement we have had throughout my tenure. I am also very grateful to President Obama for giving me the opportunity to lead this important agency.
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**** Responses to this news from FIA’s Walt Lukken, CFTC Commissioners Sharon Y. Bowen and Chris Giancarlo

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The Patriotic Response to Populism
Editorial Board – Bloomberg
If 2016 was the year of reckless populism, then 2017 must be the year of clear-eyed patriotism. The surest way to confront demagogues like Donald Trump, and to manage ordeals like Brexit, is by appealing not only to reason but also to common purpose and duty.
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***** The power of the press can be a check and balance and a source of inspiration.

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Mince pies and MiFID
Steve Grob -Fidessa Fragmentation Index
I spent the holidays diligently researching the best brand of mince pies in order to settle a pre-Christmas debate here at Fidessa Towers. Naturally my criteria included a number of factors including (but not just) price and, perhaps surprisingly, the winner was Tesco’s in-house bakery. Back at work, my attention turned to my other favourite M word – MiFID II – as a colleague had sent me through the latest Q&A docs from ESMA whilst I was away. I noticed that the bar on best ex has been raised as firms are now expected to take “all sufficient steps” rather than just “reasonable” ones to ensure compliance.
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**JK: I dare Mr. Grob to make his next video about MIFID in a butcher shop in London.

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Review — ‘Rethinking Reputational Risk’; Cultural problems lead to corporate crises, say Anthony Fitzsimmons and Derek Atkins
Stefan Stern – FT
Schadenfreude is not a generous emotion and is rarely a wise response to other people’s problems. This view is confirmed in Rethinking Reputational Risk by Anthony Fitzsimmons and Derek Atkins. Their book offers a thorough analysis of the many ways in which apparently unexpected crises can destroy businesses and reputations. Boards, chief executives and their managers may believe they have a firm grip on the risks they face. They should think again.
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What will you make of 2017?
Sam Furness
In 2016 I set myself a creative challenge: In my spare time I would discover more of the weird and wonderful things us humans do to express ourselves and better the world we live in. This video is the story of my year: a year that changed my life.
jlne.ws/2hS2L6x

**JK: Sam Furness, son of Clive Furness, laid out what he learned from 2016 (you can see each month around 1:45) that will make him even more creative in 2017. What will you do each month this year?

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Wall Street, America’s New Landlord, Kicks Tenants to the Curb
by Prashant Gopal – Bloomberg
Private equity firms snapped up homes after real estate bust; In Atlanta, companies up to twice as likely to file evictions
On a chilly December afternoon in Atlanta, a judge told Reiton Allen that he had seven days to leave his house or the marshals would kick his belongings to the curb. In the packed courtroom, the truck driver, his beard flecked with gray, stood up, cast his eyes downward and clutched his black baseball cap.
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***** Pitchfork sales are bound to get bigger.

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Tuesday’s Top Three
Yesterday’s top read stories went from Tom Sosnoff to the foursome that got kicked off a Trump golf course, to the idea that some traders are treated better than others. The top read piece was the Barron’s article about Sosnoff’s latest effort in Mutual Funds Aren’t an Option at tastyworks, an Online Broker. Second went to People Magazine’s story about a foursome that included John Damgard, who were asked to golf somewhere else by the president elect Author of Unflattering Biography Says Donald Trump Threw Him Off Golf Course. The third most read piece was about the closing of the floor at NYMEX and the long-lasting debate over who gains the advantage in the Streetwise Professor’s For Whom the (Trading) Bell Tolls

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MarketsWiki Stats
91,787,487 pages viewed; 22,290 pages; 202,992 edits
MarketsWiki Statistics

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Lead Stories

CME Group Reached Record Average Daily Volume of 15.6 Million Contracts in 2016, up 12 Percent from 2015
CME
Annual average daily volume records reached in Interest Rates, Energy, Agricultural Commodities, Metals, Total Options and Electronic Options
Fourth-quarter 2016 volume averaged 16.3 million contracts per day, up 24 percent, with quarterly average daily volume records in Interest Rates, Energy and Metals
December 2016 volume averaged 15 million contracts per day, up 15 percent
Five of CME Group’s top ten daily volume days occurred within 2016, with three of those during the fourth quarter. CME Group fourth-quarter 2016 ADV reached a 16.3 million contracts, up 24 percent from fourth-quarter 2015, while December 2016 ADV reached 15 million contracts, up 15 percent compared with December last year. Full-year 2016 options volume averaged a record 3.1 million contracts per day, up 14 percent versus 2016, with electronic options averaging a record 1.7 million contracts per day, up 21 percent over the same period last year. Open interest at the end of December was 103 million contracts, up 13 percent from year-end 2015, and daily open interest reached an all-time high of 122.6 million contracts on December 15, 2016.
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Wall Street Lawyer Jay Clayton Emerges as Top Candidate for SEC Chairman; Clayton would be the latest Trump appointee with Wall Street ties
By DAVE MICHAELS and MICHAEL C. BENDER – WSJ
Wall Street lawyer Jay Clayton has emerged as the leading candidate to be chairman of the Securities and Exchange Commission and could be announced as the nominee as soon as Wednesday, according to an official working with the transition team of President-elect Donald Trump.
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No One Questioned This Hedge Fund’s Madoff-Like Returns
by Zeke Faux – Bloomberg
Red flags abounded while hedge fund claimed 17% annual gains; Platinum was embroiled in rogue trades, Florida Ponzi scheme
In the years before Mark Nordlicht was arrested for what’s alleged to be one of the biggest investment frauds since Bernie Madoff’s, U.S. authorities had plenty of reasons to suspect something might have been fishy about his hedge fund, Platinum Partners.
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China Goes on $26 Trillion Commodity Binge as Shortages Seen
by Alfred Cang – Bloomberg
Commodity futures turnover, aggregate volume rise for 5th year
Intervention by Chinese regulators curbed trading frenzy
Chinese investors traded a record volume of commodity futures last year as speculators poured in and out of the market on bets that shortages are looming.
/goo.gl/IySW1S

Dash and LiquidPoint to Merge to Create Dash Financial Technologies
Dash
Dash Financial announced today that Dash and Convergex have signed a definitive agreement to merge Dash and LiquidPoint (Convergex’s Options Trading and Technology business), creating a leading financial technology company in the options and equities markets. Dash Financial is a leading institutional trading technology, execution and analytics provider devoted to bringing unfettered transparency and superior performance to the U.S. options and equities markets. LiquidPoint is a leader in advanced options technology and routing services with deep penetration into the sell-side and exchange communities.
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Cautious Investors Pose Challenge for Hedge Funds; Institutional investors discourage the high-stakes punts for which hedge funds became famous
By LAURENCE FLETCHER – WSJ
An increase in market volatility should be providing hedge funds with their best moneymaking opportunities in months. The only problem is some of their investors are preventing them from capitalizing.
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30 Under 30 Finance 2017: The Top Young Traders, Bankers And Dealmakers
Antoine Gara, Corinne Jurney and Nathan Vardi – Forbes
From the rise of quantitative trading driven by data to new financial technologies and start-ups, the Wall Street landscape is shifting. The faces of change on Wall Street can be found on this year’s 30 Under 30 Finance list.
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The risks that threaten global growth
Martin Wolf – Financial Times
What is going to happen to the world economy this year? Much the most plausible answer is that it is going to grow. As I argued in a column published at this time last year, the most astonishing fact about the world economy is that it has grown in every year since the early 1950s. In 2017 it is virtually certain to grow again, possibly faster than in 2016, as Gavyn Davies has argued persuasively. So what might go wrong?
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Wall Street debt issuance off to a record start in 2017; The prospect of rates moving higher prompts companies to lock in borrowing costs
by: Joe Rennison and Eric Platt in New York – FT
Wall Street’s debt engine started in record form at the start of 2017, as companies sought to lock in borrowing costs shortly before the inauguration of Donald Trump as US president raises hopes for faster growth and higher interest rates.
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Europe’s Bond Market Time Bomb
By Marcus Ashworth – Bloomberg
It’s a bad start to 2017 for the European Central Bank. The collateral freeze that plagued the 5 trillion-euro ($5.2 trillion) securities lending market at the end of last year is still very much with us, and in fact has got worse.
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One of the Last Big Buyouts Is Now Haunting the CDS Market
by Tracy Alloway – Bloomberg
iHeartMedia triggers credit event with foregone payment; ‘Significant’ deficiency may be seen in CDS product: Barclays
Some 20 years after their invention, credit default swaps are still going through growing pains. Late last month, the International Swaps and Derivatives Association ruled that the decision of iHeartMedia Inc. to forgo payment on $57.1 million of bonds due to an affiliate constituted a “Failure to Pay Credit Event.” That would trigger payouts on as much as $749 million of swaps linked to the U.S. radio broadcaster’s debt.
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S.E.C.’s In-House Judges Face Supreme Court Scrutiny
By PETER J. HENNING – NY Times
Sometimes an obscure provision of the Constitution becomes the focal point of a significant controversy that requires the Supreme Court to straighten things out.
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Brexit

Dimon: ‘I Wish JP Morgan Could Keep It All in London’
WSJ City
The risk of the UK leaving the European Union was always a worry for Jamie Dimon. And now that Brexit is set to happen, the chairman and chief executive of JP Morgan Chase is concerned about more than just his business.
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A Hard Brexit Looms Large With Resignation of U.K. Envoy to EU
by Ian Wishart and Timothy Ross – Bloomberg
Rogers says negotiating expertise ‘in short supply’ in London; European Commission regrets departure of the British diplomat
The chances that the U.K. will make a disruptive break from its biggest market have grown with the resignation of the British envoy to the European Union, an experienced Brussels insider who was reviled by leading Brexit supporters.
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Exchanges, OTC and Clearing

OCC 2016 Cleared Contract Volume Fifth Highest Ever
OCC
OCC, the world’s largest equity derivatives clearing organization, today announced 2016 total cleared contract volume reached 4,167,747,777 contracts, a one percent decrease from the 2015 volume of 4,210,542,258 contracts. The year ended with 337,076,118 cleared contracts in December, a three percent decrease from December 2015. OCC also reported record-breaking volume for cleared futures, with 104,523,581 cleared contracts in 2016; a 56 percent increase from 2015.
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The Big Interview: Lee Olesky
Hayley McDowell – The Trade
The TRADE speaks to chief executive officer at Tradeweb, Lee Olesky, about the firm’s expansion across asset classes and its shift in strategy to make markets more electronic.
/goo.gl/IYZJZC

Euronext Announces Volumes for December 2016
Business Wire
Euronext (Paris:ENX) (Amsterdam:ENX) (Brussels:ENX), the leading pan-European exchange in the Eurozone, today announced trading volumes for December 2016.
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BSE IPO gets Sebi nod; may raise Rs 1,500 crore
Business Standard
Paving the way for BSE’s initial public offering (IPO) launch, the Securities and Exchange Board of India (Sebi) has given its final go-ahead to the draft prospectus for the estimated Rs 1,500-crore IPO by Asia’s oldest exchange.
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MGEX Records 2nd-Highest Annual Volume Of All-Time
Mondovisione
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), has concluded its 2nd-best calendar year volume of all-time, with a total volume of 2,185,098.
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Two STOXX Regional Industry Neutral ESG Indices at Stichting Algemeen Pensioenfonds Unilever Nederland – Kring ‘Progress’ licensed
Deutsche Boerse
STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today announced that the newly launched STOXX Europe Industry Neutral ESG and STOXX North America Industry Neutral ESG 150 indices have been licensed to Stichting Algemeen Pensioenfonds Unilever Nederland – Kring ‘Progress’ (‘Progress’) to be used as benchmarks.
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EEX reaches new records on derivatives markets for dairy and emission allowances
HedgeWeek
At 205.2 TWh, Power Futures for Germany/Austria contributed the largest share to the total volume. Compared to the previous year, volumes in this market increased by 43 per cent (December 2015: 143.8 TWh). Also the Spanish market recorded significant growth with a volume of 6.7 TWh which corresponds to an increase of 52 per cent (December 2015: 4.4 TWh).
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HKEX to Offer RMB Currency Options
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) plans to offer Renminbi (RMB) Currency Options and is aiming to roll out a US dollar/Offshore RMB (USD/CNH) contract in the first quarter of this year, subject to market readiness.
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Investor activity on the WSE Group’s markets – December 2016
WSE
Combined turnover of shares on the Main Market reached PLN 23.0 billion in December 2016, or 24.9% more than a year earlier. Turnover of shares in the order book system grew by 31.2% year on year, to PLN 21.5 billion, and average daily turnover of shares in the order book system reached PLN 1.0 million. The WIG index stood at 51,754.03 points at the end of December 2016, up 11.4% from a year earlier.
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Nasdaq Extended Life Priority Order Attribute under Rule 4703
Comment Letter
IMC Chicago, LLC d/b/a IMC Financial Markets (“IMC”) appreciates the opportunity to submit this letter in response to the proposal by the Nasdaq Stock Market, LLC (“Nasdaq”) to introduce a new priority for displayed orders, the Extended Life Priority Order Attribute (“ELO”) (the “Proposal”). IMC is a proprietary trading firm and registered market maker, engaged in providing liquidity in nearly every listed equities and derivatives market in the U.S. As a member of FIA’s Principal Traders Group (“FIA PTG”), we write in support of FIA PTG’s comment letter regarding the above-referenced filing.
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Politics

Exclusive: Wall Street lawyer Jay Clayton emerges as Trump’s top SEC choice
By Svea Herbst-Bayliss and Steve Holland – Reuters
Wall Street lawyer Jay Clayton, who has worked on high-profile initial public offerings such as Alibaba Group, is a leading candidate to head the U.S. Securities and Exchange Commission in the Trump administration, two sources familiar with the matter said on Tuesday.
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Donald Trump’s desire for longer maturity debt will be a hard sell
Sam Fleming and Joe Rennison – Financial Times
As the self-described “king of debt”, Donald Trump suggested on the campaign trail that he wanted to take a more creative approach to handling America’s public borrowings — with allies recently talking of issuing longer-term debt to lock in low rates. But the president-elect’s aspirations will run up against the highly conservative ethos of the corners of the Treasury that oversee the delicate and market sensitive task of issuing securities that are seen as the bedrock of global finance.
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Le Pen Aims to Redenominate French Debt in New National Currency
by Helene Fouquet and Gregory Viscusi – Bloomberg
National Front presidential candidate Marine Le Pen said she wants to take France out of the euro and redenominate French government debt in a new national currency.
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Democrats Gather Ammo Against Treasury Pick Steven Mnuchin; Working to gather examples of aggressive foreclosure practices by his former bank
By GABRIEL T. RUBIN – WSJ
Liberal groups and Democratic senators are zeroing in on the record of Steven Mnuchin, President-elect Donald Trump’s pick for Treasury secretary, aiming to pressure Republicans into voting against his nomination. The campaign is part of a larger effort by Democrats to derail some of Mr. Trump’s nominees.
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Mnuchin’s Bank Broke Foreclosure Rules, Leaked AG’s Memo Says
by Zachary Mider – Bloomberg
Trump Treasury pick ran OneWest Bank during California probe; Memo leaked to the Intercept urged suit that was never filed
A bank run by Steven Mnuchin, President-Elect Donald Trump’s pick to be Treasury secretary, may have engaged in “widespread misconduct” while foreclosing on homeowners, according to a leaked 2013 memo written by lawyers in the California attorney general’s office.
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‘Widespread misconduct’ at bank run by Steve Mnuchin
By Kevin Dugan – NY Post
California’s attorney general “uncovered evidence suggestive of widespread misconduct” at OneWest, the bank run by President-elect Donald Trump’s pick for Treasury secretary, Steve Mnuchin — but never brought a suit against the company, according to a report.
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Finance in an Era of Trump
Larry Tabb, TABB Group
As President-elect Donald Trump picks his cabinet, his direction comes into much sharper focus: deregulation. If Trump’s picks are confirmed, we could see big finance at its biggest, says Larry Tabb
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Investing and Trading

Calling stockpickers: investors need you in 2017; Investors will no longer be able to rely on central banks to support asset prices
by: David Riley – FT
Investor portfolios are not positioned for the change in investment regime heralded by the election of Donald Trump.
/goo.gl/1S2FvV

Active-Investment Management Never Went Away
Barry Ritholtz – Bloomberg View
This is the year that active-investment management makes its return to form. It is the year, or so we are told, when active fights back, scores some points, and gets its revenge on passive indexers.
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Visualizing Factor Exposures
Craig Lazzara – S&P Indexology Blog
Measuring the away-from-benchmark exposures of active portfolios (or “smart beta” indices) is not inherently complicated. To what degree, for example, is a portfolio cheaper than its benchmark, or more tilted toward high quality stocks?
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Hedge Fund Horseman Capital Suffered Huge Loss on Trump Victory; Horseman’s flagship fund was hit by the sharp rally in markets fueled by Trump’s victory
By LAURENCE FLETCHER – WSJ
The flagship hedge fund at Horseman Capital Management Ltd. was one of the world’s worst-performing hedge funds last year, posting a big loss in the wake of Donald Trump’s U.S. election victory. London-based Horseman runs about $2 billion in assets. Its main $1.7 billion Global strategy fund lost 24% through Dec. 28, according to numbers sent to investors in an email and reviewed by The Wall Street Journal.
/goo.gl/KFAPCG

Asia’s Richest Families Are Abandoning ‘Complacent’ Hedge Funds
by Klaus Wille – Bloomberg
Family offices instead opt for private equity investments
Asian funds set for biggest outflows in 4 years: Eurekahedge
For Michael Preiss, whose firm oversees $1.9 billion mainly for wealthy Asian families, adding hedge funds to his clients’ portfolios was an easy sell some years ago. Not anymore.
/goo.gl/Lgy6VB

Billionaire Hedge-Fund Manager Ties WSJ to “Fake” News Epidemic; Ray Dalio is on the warpath.
BY BESS LEVIN – Vanity Fair
If you’ve opened up a newspaper, turned on the TV, or logged onto the Internet over the past few months, you’ve likely encountered a discussion about the scourge of “fake news.”
/goo.gl/4xNypE

For Cheapest Power on Earth, Look Skyward as Coal Falls to Solar
Christopher Martin, Jessica Shankleman – Bloomberg
Solar power is now cheaper than coal in some parts of the world. In less than a decade, it’s likely to be the lowest-cost option almost everywhere. In 2016, countries from Chile to the United Arab Emirates broke records with deals to generate electricity from sunshine for less than 3 cents a kilowatt-hour, half the average global cost of coal power. Now, Saudi Arabia, Jordan and Mexico are planning auctions and tenders for this year, aiming to drop prices even further. Taking advantage: Companies such as Italy’s Enel SpA and Dublin’s Mainstream Renewable Power, who gained experienced in Europe and now seek new markets abroad as subsidies dry up at home.
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Institutions

Jain of command
Dominic Elliott – Reuters BreakingViews
Anshu Jain is giving himself a shot at investment banking redemption. Deutsche Bank’s former co-chief executive has joined Cantor Fitzgerald as president, with a mandate to help the scrappy capital markets outfit grow. It isn’t the high-profile job Jain might once have coveted, probably because the German lender’s travails have curtailed his options. But it could suit him.
/goo.gl/byAtiL

Deutsche Bank’s Anti-Financial Crime Chief to Quit Post; Peter Hazlewood joined the bank in July last year
By JENNY STRASBURG – WSJ
Deutsche Bank AG’s head of its global anti-financial crime unit plans to leave that position after just six months at the bank, to be replaced as soon as next week, according to a person familiar with the matter.
/goo.gl/5P188P

Germany’s Deutsche Bank Gets Bailout Roadmap From Tiny Italian Lender
Bradley Keoun – TheStreet
Deutsche Bank (DB) investors just got a sneak preview of what a modern European bank bailout looks like. The Italian government would pay 6.6 billion euros ($6.9 billion) under a proposed bailout of the lender Banca Monte dei Paschi di Siena, or three-quarters of the total $9.2 billion cost, the Bank of Italy said last week.
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For some funds, size isn’t the enemy of performance
William Watts – MarketWatch
Everybody knows that when it comes to investing, size is the enemy of performance. But a study of mutual fund performance in 2016 published Tuesday by research firm Birinyi Associates runs against that conventional wisdom—at least in part.
/goo.gl/ATV2uP

BRIEF-Interactive Brokers Group posts 592,000 daily average revenue trades in Dec., down 6 pct
Reuters
Interactive Brokers Group reports brokerage metrics for December 2016, includes Reg.-NMS execution statistics
/goo.gl/QP9aTV

Fintech

$1.44 Billion Chinese Fintech “Fund of Funds” to Focus on Blockchain
Samburaj Das – CryptoCoinNews
Ramping up its efforts to become a dominant Fintech hub in Asia, a 10 billion yuan (approx. $1.44 billion) fund was launched in Beijing, China, focusing mergers and acquisitions in the sector while seeking to nurture enterprises and startups in the industry. Titled ‘Asia Fintech Merger and Acquisition Fund of Funds’, the fund was founded by both state-owned capital and private funds to launch in the last week of December 2016.
/goo.gl/yGwmuI

LightPointe, the Leading Innovator in Radio and Laser Bridges, Announces the Sale of Gigabit Capacity Wireless Bridges for a High Tech Manufacturer and NASA Subcontractor
PR.com via Benzinga
LightPointe, the leading manufacturer of outdoor point-to-point radios and laser bridges used for faster-than-fiber data networks and industrial wireless applications, announced that a leading integrator of wireless network solutions deployed a wireless bridge between a customer’s call center and manufacturing facility. Johnston Technical Services (JTS), the system integrator, installed LightPointe’s AireLink 60 LX and AireBridge LX, combining both laser transmission with 60 GHz radio frequency transmission for unparalleled speed and reliability, while savings tens of thousands of dollars in fiber trenching or recurring leased-line fees for the customer.
/goo.gl/PqBlyY

FinTech Marvel Bitcoin Turns 8
Neha Thakur – NewsBTC
Eight years ago, Satoshi Nakamoto released the Bitcoin Whitepaper on October 31, 2008, ushering in the era of cryptocurrency. And if 2016 is any indication, digital age is here and now as proved by the recent bitcoin high over gold. After having released the Bitcoin whitepaper, On January 3rd, 2009, Satoshi Nakamoto mined the first block of the Bitcoin blockchain, also known as Block 0 or the Genesis block. So today is Bitcoin’s Birthday or Genesis Day.
/goo.gl/EJ9ArH

Regulation

Basel Committee delays meeting on capital requirements proposals
FIA
Today the Group of Central Bank Governors and Heads of Supervision (GHOS) of the Basel Committee on Banking Supervision announced a delay in their planned January meeting to review the latest package of proposals on capital requirements.
/goo.gl/2Xz7Jh

Treasury Nominee Steve Mnuchin’s Bank Accused of “Widespread Misconduct” in Leaked Memo
David Dayenn – The Intercept
ONEWEST BANK, WHICH Donald Trump’s nominee for treasury secretary, Steven Mnuchin, ran from 2009 to 2015, repeatedly broke California’s foreclosure laws during that period, according to a previously undisclosed 2013 memo from top prosecutors in the state attorney general’s office.
/goo.gl/9i0bh4

A year to go – more or less
Christian Voigt – Fidessa
With just 364 days left to go, the MiFID II go-live date looms large. But with complex regulation spanning several hundred pages of text it is no great surprise that some MiFID II deadlines will come in earlier than 3rd January 2018, while others leave more breathing space. For example, trading venues must submit their waiver applications to their relevant competent authorities by 1st February 2017 for equities and no later than 1st June 2017 for bonds and derivatives. Further off, the deadline for investment firms to register as a Systematic Internaliser is 1st September 2018. Non-discriminatory access to and obligation to licence benchmarks doesn’t apply until 3rd January 2020 and the non-equity consolidated tape may not be introduced until beyond September 2019.
/goo.gl/hB6byf

Lukken thanks CFTC Chairman Tim Massad for his service
FIA
Upon the announcement that Commodity Futures Trading Commission (CFTC) Chairman Tim Massad will step down on January 20, FIA president and CEO Walt Lukken released the following statement thanking him for his service to the industry:
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Updated TRACE for Treasury Securities Specifications
FINRA
FINRA has updated the TRACE Technical Specifications for Treasury Securities to reflect a rule filing that includes a change to the definition of a “When-Issued Transaction.” For purposes of the TRACE rules, a When-Issued Transaction now includes transactions in a Treasury Security that is the subject of an auction until the security is issued (formerly, the term applied only to such transactions until the security was auctioned). The change to the definition of When-Issued Transaction does not change how firms report yield or price on reportable transactions; however, firms will be required to include the indicator for When-Issued Transactions, if applicable, until the issuance of the security.
/goo.gl/1s6Xys

Regions

Can Emerging Markets Stand on Their Own Feet in 2017?
Morgan Harting – AllianceBernstein, The AB Blog on Investing
After 10 strong months, investor sentiment toward EMs has soured. Since the US election, rising US interest rates and a strengthening dollar have threatened to hurt EM countries and companies. Trump’s promises of protectionist policies have alarmed countries from Mexico to China. And from Brexit to the recent Italian referendum, there are growing signs around the world that populist trends are threatening to reverse globalization, which has benefited the developing world for decades.
/goo.gl/dMn1jB

China Said to Consider Options to Back Yuan, Curb Outflows
Bloomberg News
Authorities may order state-owned firms to sell dollars; Offshore yuan surges most in a year amid support talk
China has studied possible scenarios for the yuan and capital outflows this year and is preparing contingency plans, according to people familiar with the matter. The offshore yuan surged the most in a year.
/goo.gl/UAOrxi

Indonesia tries to assure banks they won’t be penalized if research is ‘credible’
By Hidayat Setiaji and Eveline Danubrata – Reuters
Indonesia’s finance ministry sought on Wednesday to assure banks and research firms that they will not be sanctioned for their assessment of the country as long as it is “credible”.
/goo.gl/V9QZld

Indonesia: J.P. Morgan Was Tasked to Find Buyers, But Instead Said ‘Sell’; Finance ministry’s cutting of business ties highlights the fine line banks and ratings companies walk
By BEN OTTO, I MADE SENTANA, RACHEL ROSENTHAL and EMILY GLAZER – WSJ
Indonesia has a history of run-ins with J.P. Morgan Chase & Co., which influenced its recent decision to cut business ties with the U.S. bank.
/goo.gl/gNQ4Fx

Miscellaneous

‘Routine’ Jobs Are Disappearing
Lauren Weber – WSJ
One of the most worrying economic trends over the past few decades has been the decline of middle-class jobs in the U.S. As “routine” jobs—often middle-class work based on a relatively narrow set of repeated tasks, such as welding-machine operators or bank tellers—disappear, many workers who would typically have held them have taken on lower-paying low-skill manual work or simply dropped out of the labor force, according to new research from a trio of economists.
/goo.gl/iuP2n2

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