Futures Exchange Reins In Runaway Trading Algorithms

Oct 30, 2019

First Read

Hits & Takes
By JLN Staff

Over 1200 signatures are on the petition for Justice for Jitesh that I started on Change.org. Join the movement and help us let key politicians know there is support to see justice done in this CFTC case against Jitesh Thakkar.~JJL

There will be a game seven in the World Series of baseball between the Washington Nationals and the Houston Astros tonight in Houston.~JJL

John Lothian News will be shooting video interviews in the Eurex exhibit booth at FIA EXPO in Chicago today and tomorrow. Thank you to Eurex for sponsoring the video series we will produce and for giving us this space and opportunity. Thank you to our friends at FIA for being so helpful as well. If you are looking for me, or my team, that is where you can most likely find me.~JJL

Spencer Doar and other folks at 3Points Communications put together an homage to their favorite moments from FIA Expo, which will be taking place in Chicago this week until Thursday evening. Brian Mehta, CMO at Trading Technologies, and Carl Gilmore, President at Integritas Financial Consulting, also contributed. Here’s a preview, from Gilmore’s contribution – “Who says compliance officers, lawyers, and regulators don’t know how to party?! And, believe it or not, the lawyer jokes have gotten better over time.”~MR

Brian Mehta also offers a brief glimpse of Trading Technologies’ past and future plans re Expo in the TT blog, modestly titled, “The World in the Palm of the TT Platform.” ~SR

Trading Technologies will launch connectivity to Mexder, they said. Somewhere Gary Flagler is dancing.~JJL

Adena Friedman, Nasdaq’s CEO, has an article on Investopedia about “The Future of Stock Exchanges where she imagines the future of the first electronic exchange.~JJL

The CME Group is holding a webinar about SOFR Discounting and Price Alignment. The webinar will discuss CME’s proposal for transitioning price alignment and discounting of cleared interest rate swaps from the daily effective federal funds rate (EFFR) to SOFR. The webinar is at 10 am Eastern Time (ET) on Friday, November 1.~JJL

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Nasdaq Global Compliance Survey; How do you benchmark against your peers?
NASDAQ
Ever wonder what’s going inside the minds of your compliance peers?
How are they structuring their teams and spending their budgets? Where are they leveraging specialized technology? And perhaps, more importantly, what are their biggest regulatory concerns and top compliance drivers?
bit.ly/2BXbGNv

***** Sounds like another effort I know.~JJL

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Japanese media group Nikkei loses $29m in alleged money transfer fraud; FBI investigates ‘fraudulent instructions’ sent by party posing as management executive
Leo Lewis, Kana Inagaki and Robin Harding – FT
Japan’s largest financial media organisation, Nikkei, has lost $29m in an alleged fraud involving international transfers of money from its US subsidiary.
/on.ft.com/32ZSoD2

*****I know some people who feel better right now.~JJL

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AQR’s Israel Joins With Holocaust Museum to Fight Global Hate
Amanda L Gordon – Bloomberg
He’s among financiers who helped raise $3.2 million for museum; Gala honors Glenwood’s Jacob and volunteer Stacey Saiontz
Ronen Israel, a principal at AQR Capital Management, stood with his son and mom at the U.S. Holocaust Memorial Museum’s New York gala, recalling their annual visits to see his grandmother in Haifa.
/bloom.bg/2BSFhr9

*****Never forget.~JJL

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Obama Will Kill the Stock Market. No, Trump Will. No, Warren Will
Sarah Ponczek and Vildana Hajric – Bloomberg
Paul Tudor Jones warns Warren will cause 25% plunge in S&P 500; Before 2016 election, strategists said Trump would tank market. Wall Street’s best minds are falling over themselves to describe the cataclysms that would befall equities should Elizabeth Warren get elected. It’s a brand of analysis whose recent track record is abysmal.
/bloom.bg/32ZuIhZ

*****What do you think Paul Tudor Jones will be doing if the stock market goes down 25% after a Warren win? He will be buying it. That is what he will be doing.~JJL

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This foundation will pay you $10,000 to move to Tulsa, Oklahoma
Lauren M. Johnson – CNN
If you work remotely and want to make an extra $10,000, relocating to Tulsa might be your next move. Tulsa Remote, a program funded by the George Kaiser Family Foundation, is offering 250 people the opportunity to make $10,000 by simply moving to Oklahoma, the organizers announced Tuesday. The money comes in the form of a grant and is distributed to the recipient over the course of a year.
/cnn.it/2Pv7koP

****Oklahoma is OK.~JJL

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Tuesday’s Top Three
Our top read item of the day was TT’s announcement about Russ Cotton and Craig J. Mohan in Trading Technologies to Add Chief Operating Officer and a Chief Growth Officer to Management Team. Second was Bloomberg’s How Jim Simons Built the Best Hedge Fund Ever. Third was CQG’s FIA 2019

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Lead Stories

Futures Exchange Reins In Runaway Trading Algorithms; CME takes emergency measures to combat surging data volumes in Eurodollar futures
Alexander Osipovich – WSJ
The Chicago Mercantile Exchange is cracking down on runaway algorithms in one of the world’s biggest futures markets. Over the past two months, the volume of data generated by activity in CME’s Eurodollar futures soared 10-fold, according to exchange statistics. The torrent of data strained trading systems and prompted complaints to the exchange, traders said. It subsided Monday after CME took emergency measures to halt it.
/on.wsj.com/2N17Vgq

Rise of machine trading forces data providers to pivot; FactSet chief says information sellers are focusing on companies rather than traders
Philip Stafford – FT
Financial information suppliers are on the hunt for new markets such as wealth management and corporate audiences, according to the chief executive of Factset, as the decline of the traditional dealing floor makes it harder to sell data to traders.
/on.ft.com/2Wqiw7p

‘Hubble Telescope for markets’ attracts new criticism; Wall Street and supporters raise threat of hackers in bid to derail consolidated audit trail
Patrick Temple-West and Robert Armstrong – FT
Republican politicians and regulators, along with securities industry advocates, are making another push to derail the US Securities and Exchange Commission’s plan to create a single, real-time record of trade prices, arguing it will become a tool for government over-reach or a target for hackers.
/on.ft.com/34fOupY

India’s shadow banking crisis raises spectre of contagion; Financial groups such as Indiabulls see shares fall as crisis grows
Benjamin Parkin – FT
At the turn of the millennium, a group of entrepreneurs in their twenties banded together in a cramped office near a New Delhi bus terminal to start what they hoped would be India’s answer to Charles Schwab.
/on.ft.com/2MZP1Xh

Derivatives Market Watchdog Promises Movement on Long-Stalled Measures; Approach could be friendlier to industry than that of Democratic predecessors
Dave Michaels – WSJ
The Trump administration’s pick to oversee the nation’s derivatives markets plans to take a more industry-friendly approach than some of his Democratic predecessors and wrap up unfinished business.
/on.wsj.com/2q9XQED

Deutsche Boerse in Buying Mood With $2.2 Billion in War Chest
Viren Vaghela – Bloomberg
Deutsche Boerse Group AG has about 2 billion euros ($2.2 billion) in its war chest as it looks to join rivals in buying up trading platforms.
/bloom.bg/320S45s

Citi plans to withdraw from two-thirds of foreign exchange platforms; Market’s third biggest dealer is whittling down its list of third-party price aggregators
Eva Szalay- FT
One of the biggest banks in the currencies market is learning to say no to customers. Citi, the third biggest dealer in the $6.6tn-a-day foreign-exchange market, plans to whittle down the number of websites and systems on which it competes with other banks on prices to win business from clients.
/on.ft.com/32ZR03g

HK stock exchange CEO says ‘one country, two systems’ flawed; Charles Li’s comments on relationship with mainland China come as protests roil city
Harry Dempsey and Hudson Lockett – FT
Charles Li, chief executive of the Hong Kong stock exchange, has publicly questioned the framework underpinning the city’s relationship with mainland China, just weeks after concerns about his company’s autonomy from Beijing helped scupper its unsolicited £32bn bid for the London Stock Exchange.
/on.ft.com/31Xqhmw

How the euro helped Germany avoid becoming Japan; Berlin should be thankful for what the single currency, and Mario Draghi, have given it
Martin Wolf – FT
To think that two and two are four/And neither five nor three/The heart of man has long been sore/And long ’tis like to be.” Anybody thinking about the economy needs to recall these lines by the English poet AE Housman. Things must add up. The question is how. People responsible for large economies cannot ignore this. A tragedy of the eurozone, especially of Germany’s role within it, is that the transition to thinking about how income and expenditure add up at eurozone and global levels has so far failed to occur.
/on.ft.com/2MVOYeO

US retirement accounts offer tempting target for cyber attacks; Industry under pressure to bolster defences for nearly $6tn of 401(k) plans
Jennifer Williams-Alvarez – FT
With nearly $6tn sitting in 401(k) plans, the US financial services industry is coming under increasing pressure to ensure that retirement savings are safeguarded from rapidly evolving cyber threats.
/on.ft.com/330e2Hk

South Korean hedge funds fear public distrust after Lime crisis; Thousands of ordinary investors stung by move to avoid low interest rates
Song Jung-a – FT
YB Choi, a 72-year-old retiree from Seoul, is finding it hard to sleep. The cause of his anxiety: an investment in South Korea’s biggest hedge fund, Lime Asset Management, which suspended withdrawals earlier this month.
/on.ft.com/32WStra

CEO of Norway’s $1 Trillion Wealth Fund to Resign After 12 Years at Helm
Mikael Holter and Sveinung Sleire – Bloomberg
The chief executive officer of Norway’s $1.1 trillion sovereign wealth fund, Yngve Slyngstad, said he will step down after leading the giant investor for almost 12 years.
/bloom.bg/2Nsgv6P

Despair for Many and Silver Linings for Some in California Wildfires; Natural disasters are another prism through which California’s vast income inequalities can be viewed.
Thomas Fuller, Julie Turkewitz and Jose A. Del Real – WSJ
After a wildfire razed his spacious suburban home in the Sonoma hills two years ago, Pete Parkinson set out to rebuild. This time it would be an even better one. He reoriented the house toward vistas of a nearby mountain and designed a large kitchen with hickory floors and 16-foot windows under vaulted ceilings.
/nyti.ms/2MZwIkY

Exchanges, OTC and Clearing

MaterialsXchange Launches with First Raw Materials Transaction; MaterialsXchange’s digital marketplace streamlines the buying and selling of raw materials
MaterialsXchange
MaterialsXchange (“MX”), an electronic marketplace for buying and selling raw materials, went live on Monday with the first transaction executed shortly after the launch. The first listings on MX are wood products, specifically Oriented Strand Board (OSB), European Spruce (Euro Spruce) lumber, and Southern Yellow Pine (SYP) lumber. **This inaugural transaction on MX matched Binderholz Timber Inc. (seller) with Hart Lumber (buyer) for a first-ever deal between the two and consisted of a full truckload of 2×4 Euro Spruce from the Port of Houston.
/bwnews.pr/2qUx2Zv

Startup Aims to List Bitcoin Product on Frankfurt, Luxembourg Exchanges
Aaron Wood – Cointelegraph
A German startup is attempting to list a Bitcoin (BTC) derivative product on the Frankfurt and Luxembourg stock exchanges. According to German business news daily Handelsblatt on Oct. 29, the startup Iconic has filed a prospectus for regulated trading of a Bitcoin exchange-traded note (ETN), which could become available as soon as the beginning of December 2019.
bit.ly/2C6UCEZ

New Partner Offers Start-Up Financing Through Digital Business Shares; Deutsche Börse Venture Network Cooperates with Cashlink / Regulated Issue of Digital Securities Opens New Possibility of Start-Up Financing
Deutsche Börse
The Deutsche Börse Venture Network is offering its members a new financing option via its partner Cashlink using Distributed Ledger Technology (DLT): From now on, all members of the network will receive discounted access to the issue of digital securities.
bit.ly/2WsFSJz

CME Group Inc. Reports Third-Quarter 2019 Financial Results
CME Group
CME Group Inc. (NASDAQ: CME) today reported financial results for the third quarter of 2019. The company reported revenue of $1.3 billion and operating income of $685 million for the third quarter of 2019. Net income was $636 million and diluted earnings per share were $1.78. On an adjusted basis, net income was $679 million and diluted earnings per share were $1.90. Financial results presented on an adjusted basis for the third quarter of 2019 and 2018 exclude certain items, which are detailed in the reconciliation of non-GAAP results.
bit.ly/2N03brc

Nasdaq Reports Third Quarter 2019 Results; Delivers Broad-Based Revenue Growth and Strong Capital Returns
Nasdaq, Inc.
Third quarter 2019 net revenues were $632 million. Revenues in the non-trading segments increased 10% versus the prior year period, primarily driven by organic growth, while Market Services revenues increased 2%.
bit.ly/2BXxNDi

Appointment of Directors, etc.
JPX
Japan Exchange Group, Inc. (JPX) hereby announces that, considering JPX’s subsidiary Tokyo Commodity
Exchange, Inc. (TOCOM) will transition from a company with nominating committees, etc., to a company
with a board of auditors effective on December 1, 2019, JPX has chosen directors, etc. of TOCOM, to be
appointed on December 1, 2019, as follows.
bit.ly/31VhgKJ

Japan Exchange Group, Inc. And Consolidated Subsidiaries Consolidated Financial Results For The Six Months Ended September 30, 2019 (Based On IFRS), Unaudited
Press Release
During the consolidated cumulative second quarter (from April 1, 2019 to September 30, 2019), JPX Group recorded operating revenue of ¥57,936 million (2.2% decrease from the same period of the previous fiscal year (i.e., year on year)), and operating expenses were ¥27,482 million (increased 4.9% year on year). As a result, JPX Group recorded operating income of ¥31,870 million (decreased 7.2% year on year) and income before income tax of ¥32,011 million (decreased 8.8% year on year).
bit.ly/36m380K

Fintech

Confluence Acquires StatPro, Global Portfolio Analytics Solution and Data Provider
Confluence Technologies
Confluence Technologies, a global leader in investment data management automation for regulatory, financial and investor reporting, announced today that it has acquired StatPro Group plc (StatPro), a highly respected global provider of cloud-based portfolio analytics, asset data services and data management tools for the global asset management industry and asset management service providers.
bit.ly/2osi8sC

The TRADE’s (Unofficial) M&A Awards 2019; The TRADE reviews the mergers and takeovers that have caused a stir in the industry. The Unofficial M&A Awards returns for a second year, as consolidation in the exchange space raises more than a few eyebrows and investment in FinTech has never been hotter.
John Brazier – The Trade
Last year, The TRADE introduced the first ever (unofficial) mergers and acquisitions awards, featuring some of the biggest deals inked between major players that significantly impacted the market and saw some of the industry’s established names, such as NEX Group and ITG, become absorbed into new ownership.
bit.ly/2WqzPoS

TP ICAP signs multi-year data deal with Refinitiv
Refinitiv will help TP ICAP expand its datasets to support its brokers and technology platforms.
Hayley McDowell – The Trade
Interdealer broker TP ICAP has signed a multi-year deal with Refinitiv to expand its integrated global data across equities, fixed income, FX, derivatives and commodities.
bit.ly/2N03DWq

Trading Technologies to Launch Connectivity to the Mexican Derivatives Exchange Via the TT® Platform
Trading Technologies (press release)
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, and the Mexican Derivatives Exchange (MexDer), a subsidiary of the Mexican Stock Exchange (Bolsa Mexicana de Valores), one of the largest stock exchanges in Latin America, today announced that all derivative products listed on MexDer will be available globally to all users of the TT platform in Q4 2019.
bit.ly/2MXfaFS

Trade Surveillance Systems Market with Future Prospects, Key Player SWOT Analysis and Forecast To 2024
Mechanicvillemile.com
Trade Surveillance Systems Market Outlook provides thoughtful analysis of current issues facing the industry, along with current facts and statistics about the production and application in Trade Surveillance Systems Market.. Global Trade Surveillance Systems Market Report is a professional and comprehensive research report on the world’s major regional market conditions, focusing on the main regions (North America, Europe and Asia-Pacific) and the main countries (United States, Germany, United Kingdom, Japan, South Korea and China).
bit.ly/331NUfg

TNS launches TNSXpress portfolio at FIA Expo
Hedgeweek
Transaction Network Services (TNS) launched its TNSXpress product suits at the FIA Expo in Chicago. TNSXpress includes TNS Layer 1, TNS Managed Hosting and TNS Market Data. This combined offering provides ultra-low latency connectivity and covers a significantly expanded global footprint.
bit.ly/2BYMWnO

Facebook Sues Companies for Shielding Phishing, Hacking Services
Robert Burnson – Bloomberg
Facebook Inc. filed sued two companies it accuses of fostering cyber crime by shielding the identities of websites involving in phishing, malware, spam and botnets.
/bloom.bg/2BX3ooG

We’re Not Ready for Our Quantum, High-Speed, Clean Future; A lot can go wrong on the road to progress.
Mark Gongloff – Bloomberg
This newsletter loves to joke around about an impending apocalypse, but there’s also a good chance we’re on the doorstep of a golden age of superfast computing, high-speed rail travel and clean energy that will make us almost forget how we never got those jetpacks and flying cars.
/bloom.bg/2MWoFoR

Cryptocurrencies

Another Credit Bubble Grows: the $5 Billion Crypto-Loan Market
By Alastair Marsh – Bloomberg
Too much credit too fast has traders warning of a blow-up; Interest rate on Bitcoin loan down to 5% from 11% at Genesis
The laws of finance still apply in cryptocurrency’s parallel universe. Crypto credit has expanded too quickly and is headed for a blow-up, says a group of former Wall Street traders who are now seeking riches in digital assets. A near $5 billion industry has emerged from nothing just two years ago and the number of loan platforms is rapidly proliferating, according to blockchain data company Graychain Ltd.
/bloom.bg/339NdAF

Unwanted Cryptocurrency Could Trigger Tax Under IRS Policy
Allyson Versprille – Bloomberg Tax
Cryptocurrency holders could have to pay tax on coins they received unwittingly, or against their wishes, under recent IRS guidance. If left unchanged, the policy may make it harder for people to meet their tax obligations—at a time when the IRS is ramping up enforcement to increase compliance in the crypto space, according to tax professionals.
bit.ly/2NmZn2l

Investment app provider Robinhood is seeking a chief compliance officer for its crypto unit
Yogita Khatri – The Block Crypto
Robinhood, a stocks, exchange-traded funds and cryptocurrency investment app provider, is hiring a chief compliance officer for its cryptocurrency unit, Robinhood Crypto, LLC. According to a job posting on the company’s website, Robinhood is looking for a person to manage day-to-day cryptocurrency compliance operations. The key responsibilities of the new hire would be to manage regulatory reporting, execute a strong anti-money laundering (AML) and know-your-customer (KYC) program, and to lead the annual Robinhood Crypto AML audit, among other operations.
bit.ly/2q5Q9PM

Bitmain’s exiled founder returns in coup; Turmoil at world’s largest cryptocurrency hardware maker
Ryan McMorrow and Nian Liu – FT
A coup at Bitmain, the Chinese company that claims to have three-quarters of the world market for machines that mint bitcoin, has seen one of its founders return from exile to oust the other.
/on.ft.com/2MZZz8C

Bitfinex adds native SegWit support for bitcoin withdrawals
Steven Zheng – The Block Crypto
Cryptocurrency exchange Bitfinex has announced it is adding withdrawal support for native SegWit (bech32) addresses, which will start with the characters “b1.” Native SegWit is a more weight-efficient address format than Wrapped SegWit (P2SH) addresses which start with “3.” Bitfinex’s new address format will enable cheaper transactions for its users looking to withdraw bitcoin from the exchange. Additionally, according to the exchange, “as bech32 addresses only exist on the Bitcoin network, our new support for Bitcoin withdrawals to bech32 addresses removes the possibility of our clients experiencing any cross-chain mix-ups.”
bit.ly/2PwY8jU

Bitcoin Advocate Jack Dorsey Backs Crypto Startup CoinList
Steven Russolillo – The Wall Street Journal
Twitter Inc. Chief Executive Jack Dorsey, a longtime bitcoin advocate, is making a fresh bet on cryptocurrency. Mr. Dorsey is one of several investors backing CoinList Inc., a two-year-old venture that helps startups raise money through token sales. CoinList has raised $10 million in a new round of funding, with Mr. Dorsey investing in the company for the first time, CoinList said.
/on.wsj.com/2q2GGcg

Bitmain secretly files for US IPO with SEC; Deutsche Bank is the sponsor – Report
Yogita Khatri – The Block Crypto
Cryptocurrency miner manufacturing giant Bitmain Technologies is said to have secretly filed an initial public offering (IPO) application in the U.S. with the Securities and Exchange Commission (SEC).
bit.ly/2WweB9h

China bans anti-blockchain sentiment as it prepares for launch of state cryptocurrency; President Xi Jinping hailed the technology in an apparent U-turn on the subject
Anthony Cuthbertson – Independent
China is preparing for the launch of its own state-backed cryptocurrency by removing online posts claiming that blockchain technology is a scam.
bit.ly/2pgqvIn

Binance CEO: ‘Russia Is Our Key Market’
Anna Baydakova – Coindesk
The line for selfies with Binance CEO Changpeng Zhao seemed endless, even though it was the second photo op of the night. The cryptocurrency exchange mogul, known as CZ, had already taken photos with Russian fans before the meetup started, and he kept smiling at cameras and shaking hands for half an hour after it ended. It was CZ’s first visit to Russia, and the turnout showed his popularity with the local crypto scene. The concert hall of the Radisson hotel in central Moscow could hardly fit the roughly 700 people registered for the Oct. 21 event. The warm feelings were mutual.
bit.ly/36lYwYu

FTX Launches Futures on Index of 8 China Cryptos Amid Xi Blockchain Pump
Daniel Palmer – Coindesk
Derivatives exchange FTX has launched an index of eight popular China-related cryptocurrencies. Announced in a tweet by the firm’s CEO Sam Bankman-Fried Tuesday, the Dragon Perpetual Futures Index (DRGN-PERP) tracks a basket of coins including BTM, IOST, NEO, NULS, ONT, QTUM, TRX, and VET, based on a weighted average of their respective prices. FTX is also offering traders exposure to the coins in the form of perpetual futures contracts based on the index. Traders will be able to leverage these contracts up to 101 times, Bankman-Fried told CoinDesk.
bit.ly/2q5SQkm

China Announces New Regulatory Authority to Certify Digital Payments, Blockchain Products
David Pan – Coindesk
China’s central bank, the People’s Bank of China, will certify 11 types of financial technology hardware and software that are widely used for digital payment and blockchain services with its new verification system called the Certification of Fintech Products. The central bank released the first list of fintech products that could be used in both front-end and bank-end development for digital payment services, according to filings dated Oct. 26 from the bank.
bit.ly/31XAM9z

Deutsche Börse Aims to Ease Digital Securities Transfer With New Deal
William Suberg – Cointelegraph
The venture capital arm of German marketplace Deutsche Börse has sealed a new partnership for allowing institutional investors to obtain digital securities. In a press release on Oct. 30, Deutsche Börse Venture Network (DBVN) confirmed the deal with local fintech company Cashlink, the benefits of which will be available immediately. From now on, investors with DBVN will be able to complete the funding process entirely digitally using tools based on so-called distributed ledger technology, or DLT.
bit.ly/2BYJpWA

China state media asks investors to stay ‘rational’ as blockchain-related stocks soar after Xi’s endorsement
Yogita Khatri – The Block Crypto
The People’s Daily newspaper, published by China’s ruling Communist Party, has urged investors to keep calm as blockchain-related stocks jumped after Chinese President Xi Jinping publicly supported the technology last week. “Blockchain’s future is here but we must remain rational,” said the newspaper in a commentary late on Monday, as reported by Reuters. The People’s Daily added that Xi’s support for blockchain technology does not equate support for cryptocurrencies.
bit.ly/36jv5WI

Cryptocrazies Jolted Into The Real World
Theodore F. Claypoole, Womble Bond Dickinson (US) LLP via The National Law Review
For years we have been treated to the impassioned entreaties of cryptohippies, hardcore libertarians, and straight-up conmen for the rest of us to understand that both blockchain and Bitcoin have “changed everything” and are driving us toward a destiny of money freed from government interference and life choices free from consequence, where crypto manna falls from the sky and magical fruits of the blockchain are ripe for easy picking.
bit.ly/32ZKR7f

Public Blockchain Technology Market is Booming Worldwide | Deloitte, IBM, KPMG, EY, Accenture
Sylvia Sanchez – Market Journal
HTF MI recently launched the Global Public Blockchain Technology study with 100+ market data Tables, Pie Chat, Graphs & Figures spread through Pages and easy to understand detailed analysis. At present, the market is developing its presence. The Research report presents a complete assessment of the Market and contains a future trend, current growth factors, attentive opinions, facts, and industry validated market data. The research study provides estimates for Global Public Blockchain Technology Forecast till 2025*.
bit.ly/324RQdW

Politics

Former Exxon chief Rex Tillerson to testify in climate change fraud trial
Brendan Pierson – Reuters
Former Exxon Mobil Corp Chief Executive Rex Tillerson is expected to take the stand on Wednesday in a closely watched civil lawsuit accusing the company of hiding the true cost of climate change from investors.
/reut.rs/2BYM5n6

Liberal Christian group files ethics complaint against Attorney General Barr
Jack Jenkins – Religion News
Faithful America, a Christian advocacy group that often champions liberal causes, has filed an ethics complaint against U.S. Attorney General William Barr, claiming he violated his oath to defend religious liberty for all Americans in a recent speech at Notre Dame University’s law school.
bit.ly/2WqyHBK

Greta Thunberg declined a climate award because the world needs more action, fewer awards
Maddie Capron and Christina Zdanowicz, CNN
(CNN)Teen climate change activist Greta Thunberg was awarded the 2019 Nordic Council Environment Prize, but she won’t be accepting it.
/cnn.it/2BTRBYf

Mnuchin Open to Looser Bank Liquidity Rules Backed by Dimon
Saleha Mohsin – Bloomberg
Regulators should address daily liquidity issues, Mnuchin says; Senator Warren has warned not to loosen crisis-era regulations
U.S. Treasury Secretary Steven Mnuchin is open to loosening financial crisis-era regulations that have stiffened liquidity rules for big banks to relieve possible cash crunches in short-term funding markets.
/bloom.bg/32Zbklr

Cantor Warns of Investor Backlash in Wake of Fisher Remarks
Vivian Nereim – Bloomberg
Moelis & Co. Vice Chairman Eric Cantor said financial firms failing to respect women in the workplace will be increasingly punished by customers.
/bloom.bg/2q0LrmH

Labor Secretary Scalia to Participate in Financial-Advice Rulemaking; Department attorneys say ethics rules don’t require recusal; Scalia had led challenge to Obama-era fiduciary rule
Eric Morath – WSJ
Labor Secretary Eugene Scalia can participate in the department’s rewrite of a closely watched investment-advice rule, career government ethics attorneys said on Tuesday.
/on.wsj.com/2q4vKe2

Regulation

ASIC warns trustees on new rules for Putting Members’ Interests First
ASIC
ASIC has called on superannuation trustees to improve the standard of communication to fund members about important reforms impacting member insurance arrangements.
bit.ly/2MXef8o

Steven Maijoor delivers speech on Benchmarks in Madrid ESMA
ESMA
Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA), has delivered a speech on the Benchmarks Regulation, and related issues, at a conference organised by the Comisión Nacional del Mercado de Valores (CNMV) in Madrid this lunchtime.
bit.ly/2WxSLlW

2019 Ketchum Prize: The Evolving World of Retirement Security
FINRA
The way Americans think about and plan for retirement is changing. Gone are the days when Americans drop out of the workforce at 65 and hit the golf course, according to the University of Pennsylvania Wharton School’s Dr. Olivia S. Mitchell, the 2019 recipient of the Ketchum Prize. Sitting at home for 30 years – or longer – isn’t financially viable anymore.
bit.ly/2q3XdN7

UK’s exit from the EU delayed
UK FCA
The EU and the UK have agreed to extend the date for the UK’s departure from the EU. As a result, firms do not need to take action to implement Brexit contingency plans for 31 October.
bit.ly/2q0Qaoq

NFA bars Wichita, Kansas commodity pool operator Plutus Capital Management LLC from membership
NFA
NFA has permanently barred Plutus Capital Management LLC (Plutus), an NFA Member commodity pool operator located in Wichita, Kansas, from membership and from acting as a principal of an NFA Member. NFA also ordered Mark E. Philips, Plutus’ sole associated person and principal, to withdraw from NFA membership and as a principal of Plutus and not reapply for membership or act as a principal of an NFA Member for one year. Philips must pay a $25,000 fine if he seeks NFA membership or principal status after his one-year membership bar.
bit.ly/2q4obnE

Investing and Trading

US coal miner Murray Energy files for bankruptcy; Company’s founder a staunch Trump supporter who lobbied for more favourable policies
Harry Dempsey and Gregory Meyer – FT
Murray Energy, the largest privately owned coal miner in the US and a strong backer of the Trump administration’s embrace of fossil fuels, has filed for bankruptcy protection as utilities choose sources other than coal to generate electricity.
/on.ft.com/2BTHCCf

Cannabis remains an investment market worth watching; Promises of huge growth are yet to materialise — but there’s huge potential
David Stevenson – FT
It is the curse of an adventurous investor to repeat one’s mistakes, especially when it comes to hyped-up growth stories. I’ve spent the past few months hosting or being involved with a few events centred on the global cannabis market and time after time I’ve noticed the striking parallels with the cryptocurrencies sector.
/on.ft.com/2BRpSHT

Cash-Market Volatility Adds to Worries Facing Libor Replacement; Issuance of floating-rate debt linked to the secured overnight financing rate falls sharply in October
Daniel Kruger and Vipal Monga – WSJ
Turmoil in short-term money markets has rattled a protracted effort to phase in a new borrowing benchmark meant to eventually underpin trillions of dollars in lending contracts.
/on.wsj.com/31XyoQ0

The U.S. Treasury Department Is Exploring a 50-Year Bond for the First Time
Emily Barrett – Bloomberg
Department also considering a one-year SOFR-linked FRN; Treasury keeps nominal coupon debt at record $84 billion
The U.S. Treasury Department expressed continued interest in issuing a 50-year bond, for the first time, as part of efforts to expand its investor base as the budget deficit widens to $1 trillion.
/bloom.bg/31YYu5p

Even the Quants Are Wary of the Stock Market; Lack of conviction leads financial commentary. Plus, Canada is going to decide on rates, too.
Robert Burgess – Bloomberg
The S&P 500 Index was little changed one day after setting a new record. That makes perfect sense. The market just capped one of its strongest periods of the year, having risen a little more than 5% over the previous three weeks. It’s as good a time as any to reassess the broad landscape. And when they do, traders will find that the primary drivers behind the rally remain firmly in place.
/bloom.bg/31VnytP

Institutions

Alan Howard to step down as Brevan Howard CEO; Billionaire trader hands day-to-day management of hedge fund firm to risk chief Aron Landy
Laurence Fletcher – FT
Billionaire trader Alan Howard is to step down as chief executive of Brevan Howard, handing day to day leadership of the hedge fund firm to a lieutenant as he concentrates on investing and overseeing a widening group of businesses.
/on.ft.com/2Wn6RGG

UBS becomes first foreign IPO sponsor on China’s Star Market; Tech board rules require underwriters to invest in listings they work on
Don Weinland and Hudson Lockett – FT
UBS has become the first foreign bank to sponsor an initial public offering on China’s new tech-focused Star Market, where underwriters are required to invest in the listings they bring to the market.
/on.ft.com/2q7C1py

Deutsche Bank suffers setback with trading revenue drop; Germany’s biggest lender falls behind US rivals in blow to efforts to turn round its investment bank
Olaf Storbeck – FT
Deutsche Bank’s fixed income trading unit trailed well behind rivals during the third quarter in the latest sign of the steep hurdles Germany’s biggest lender faces in its efforts to turn round the fortunes of its investment bank.
/on.ft.com/332xaEo

Credit Suisse CEO Cautions on Outlook After Trading Beat
Patrick Winters and Marion Halftermeyer – Bloomberg
Citi analysts say results mixed as one-off sale boosts profits; Bank’s reputation was dented by spying operation on Iqbal Khan
Credit Suisse Group AG gave a more downbeat outlook after trading income surged, saying the U.S.-China trade dispute will lead to more cautious spending and investment decisions.
/bloom.bg/324HuL6

Deutsche Bank Slumps as Sewing’s Revamp Fails to Lift Revenue
Steven Arons – Bloomberg
Earnings from trading fixed-income securities drops 13%; All core units except one report lower income in the quarter
Deutsche Bank AG suffered its steepest drop since Christian Sewing’s sweeping revamp in early July as its third-quarter results cast doubt on the chief executive officer’s ability to arrest a long slump in revenue.
/bloom.bg/3200f2a

Credit Suisse Posts Strong Profit, Boosted by Fund Platform Sale; Swiss banking giant warns that Brexit and U.S.-China trade tensions may make investors more cautious
Julie Steinberg and Pietro Lombardi – WSJ
Credit Suisse Group AG’s third-quarter net profit more than doubled on the back of strong results in global markets and the sale of a fund platform, though results in its core wealth management units were weaker.
/on.wsj.com/32ZWRWk

Macquarie and Kepler Cheuvreux form equities trading and research alliance; Macquarie has scaled back its cash equities business in EMEA and the Americas in response to ‘structural changes in the market’.
Hayley McDowell – The Trade
Macquarie and Kepler Cheuvreux have confirmed plans to combine their trading and research services in Europe and Asia, as the sell-side continues to battle difficult market conditions in cash equities.
bit.ly/2Ww8LET

Regions

Investing in the UK: glass half full? Stock picking has never been so important in a time of new uncertainty
Maike Currie – FT
Back in 2017 — almost two years to the day — I wrote a column on how to Brexit-proof your investment portfolio, making the point that UK investors need to be smarter about how they invest against a challenging domestic backdrop.
/on.ft.com/32XtRyk

Norway’s oil fund head Yngve Slyngstad quits; Chief executive to stay in the role until successor chosen
Richard Milne – FT
Yngve Slyngstad has resigned as chief executive of Norway’s $1tn oil fund, the world’s largest sovereign wealth fund. Mr Slyngstad told a press conference in Oslo on Wednesday that he had submitted his resignation on Friday, the day that the fund’s value exceeded NKr10tn ($1.1tn) for the first time.
/on.ft.com/32VoVKm

Kuwait’s sovereign wealth fund puts weight on green investing; Investors are paying greater heed to climate risks and future infrastructure needs
Henny Sender – FT
The Arab Bankers Association of North America last week honoured Farouk Bastaki, the head of the Kuwait Investment Authority, at a glittering dinner in New York. The crowd included recipients — and no doubt some would-be recipients — of riches from his sovereign wealth fund, one of the largest in the world.
/on.ft.com/2N0XyZT

China Bond Traders Face Reality of Central Bank That Won’t Budge
Hong Shen -Bloomberg
PBOC has allowed last week’s massive cash injections to mature; Sovereign bonds are dropping at the fastest pace since April
China’s central bank has helped trigger a massive sell-off in government debt by doing nothing at all. The People’s Bank of China disappointed bond traders by skipping open-market operations every day this week — effectively withdrawing 500 billion yuan ($71 billion) from the financial system. It has also wrong-footed bond bulls by not deploying a one-year targeted lending tool, despite the move being widely expected since last week.
/bloom.bg/2BVCCNv

China’s Biggest Banks Prepare for Hard Times
Bloomberg News
Top banks report quarterly profit growth between 3% and 6%; Chinese economy expanded at slowest pace since early 1990s
China’s largest banks eked out higher profits but signaled tougher times ahead, shedding bad loans and boosting provisions as the economy shows signs of deterioration.
/bloom.bg/331eGUT

Singapore Sees World’s First Digital Aviation Carbon Exchange
Dan Murtaugh – Bloomberg
Singapore-based AirCarbon Pte launched the world’s first blockchain-based carbon trading exchange, which will allow airlines and other corporate buyers to buy and sell tokens backed by carbon offset credits approved by the International Civil Aviation Organization.
/bloom.bg/32Y4bS9

Life on the Zambezi Is Hard. The Climate Crisis Is Making It Deadly; A journey down the African river shows the devastating impact of both floods and drought.
Matthew Hill – Bloomberg
For millions of people across southern Africa, the Zambezi River serves as highway, fishing ground, water fountain, laundromat, and swimming hole. From its source—a trickling spring in the highlands of northwestern Zambia—the river winds almost 1,700 miles through the forests of eastern Angola and along the borders with Namibia, Botswana, and Zimbabwe before fanning out into a delta with dozens of channels in Mozambique.
/bloom.bg/31XsRZT

JPMorgan, Citi Among Banks Selected for Egypt’s Dollar Bond Sale
Mirette Magdy – Bloomberg
Egypt said it picked five lenders, including JPMorgan Chase & Co. and Citigroup Inc., to manage new dollar bond issuance in the current fiscal year as borrowers in emerging markets reap benefits of more dovish policies by major central banks.
/bloom.bg/2BRlsAN

Less Savings, More Debt: How Chinese Manage Money American-Style, in 17 Charts; Household thrift in China is eroding, weakened by borrowing to buy real estate and enhance lifestyles, generational shift that will ripple through world economy
James T. Areddy – WSJ
China has long been a nation of savers. For decades, its citizens socked away much more of their incomes than Americans do. The pool of capital that was created powered China’s economic rise.
/on.wsj.com/2BTKkI1

Brexit

U.K.’s Divorce From Europe May Have to Wait
Flavia Krause-Jackson – Bloomberg
Boris Johnson has finally got his election — the U.K.’s third in four years — but it’s a roll of the dice for both the prime minister and the country.
/bloom.bg/2otYEUt

Britain Braces For New Vote In December That Could Ease The Path To Brexit
Richard Gonzales – NPR
Still in turmoil over if, when or how to leave the European Union, Britain will go back to the polls on Dec. 12 to elect a new Parliament that may, or may not, be able to settle on a Brexit plan. Prime Minister Boris Johnson won support for a snap election Tuesday when the House of Commons voted 438-20 to dissolve Parliament and launch a six-week election campaign that will compete with Christmas for the attention of a divided and Brexit-exhausted electorate.
/n.pr/2PtMPbV

Beyond Brexit: U.K. Political Risks Get Even More Complex; A general election carries its own set of dangers for markets
By Jon Sindreu – WSJ
For international investors, understanding Brexit was hard enough. The coming U.K. general election on Dec. 12 makes their lives even more complicated.
/on.wsj.com/2q23pVM

Miscellaneous

Where to Eat Steak in New York That’s Not Called Peter Luger; Six alternative places to find excellent beef.
Kate Krader – Bloomberg
Peter Luger Steak House has been around since 1887, but it took only minutes for the Brooklyn restaurant’s reputation to take a devastating hit.
/bloom.bg/3319MqP

John Lothian Newsletter

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First Read Back in Court with Bcause - Year End Report Thom Thompson - John Lothian News Wednesday was the last hearing scheduled for this year for the Bcause bankruptcy. The next court date is January 7 when the bankruptcy trustee's...

Futures Exchange Reins In Runaway Trading Algorithms

Oct 30, 2019

First Read

Hits & TakesBy JLN StaffOver 1200 signatures are on the petition for Justice for Jitesh that I started on Change.org. Join the movement and help us let key politicians know there is support to see justice done in this CFTC case against Jitesh Thakkar.~JJLThere will be a game seven in the World Series of baseball between the Washington Nationals and the Houston Astros tonight in Houston.~JJLJohn Lothian News will be shooting video interviews in the Eurex exhibit booth at FIA EXPO in Chicago today and tomorrow. Thank you to Eurex for sponsoring the video series we will produce and for giving us this space and opportunity. Thank you to our friends at FIA for being so helpful as well. If you are looking for me, or my team, that is where you can most likely find me.~JJLSpencer Doar and other folks at 3Points Communications put together an homage to their favorite moments from FIA Expo, which will be taking place in Chicago this week until Thursday evening. Brian Mehta, CMO at Trading Technologies, and Carl Gilmore, President at Integritas Financial Consulting, also contributed. Here’s a preview, from Gilmore’s contribution – “Who says compliance officers, lawyers, and regulators don’t know how to party?! And, believe it or not, the lawyer jokes have gotten better over time.”~MRBrian Mehta also offers a brief glimpse of Trading Technologies’ past and future plans re Expo in the TT blog, modestly titled, “The World in the Palm of the TT Platform.” ~SRTrading Technologies will launch connectivity to Mexder, they said. Somewhere Gary Flagler is dancing.~JJLAdena Friedman, Nasdaq’s CEO, has an article on Investopedia about “The Future of Stock Exchanges where she imagines the future of the first electronic exchange.~JJLThe CME Group is holding a webinar about SOFR Discounting and Price Alignment. The webinar will discuss CME’s proposal for transitioning price alignment and discounting of cleared interest rate swaps from the daily effective federal funds rate (EFFR) to SOFR. The webinar is at 10 am Eastern Time (ET) on Friday, November 1.~JJL++++Nasdaq Global Compliance Survey; How do you benchmark against your peers?NASDAQEver wonder what’s going inside the minds of your compliance peers?How are they structuring their teams and spending their budgets? Where are they leveraging specialized technology? And perhaps, more importantly, what are their biggest regulatory concerns and top compliance drivers?bit.ly/2BXbGNv***** Sounds like another effort I know.~JJL++++Japanese media group Nikkei loses $29m in alleged money transfer fraud; FBI investigates ‘fraudulent instructions’ sent by party posing as management executiveLeo Lewis, Kana Inagaki and Robin Harding – FTJapan’s largest financial media organisation, Nikkei, has lost $29m in an alleged fraud involving international transfers of money from its US subsidiary./on.ft.com/32ZSoD2*****I know some people who feel better right now.~JJL++++AQR’s Israel Joins With Holocaust Museum to Fight Global HateAmanda L Gordon – BloombergHe’s among financiers who helped raise $3.2 million for museum; Gala honors Glenwood’s Jacob and volunteer Stacey SaiontzRonen Israel, a principal at AQR Capital Management, stood with his son and mom at the U.S. Holocaust Memorial Museum’s New York gala, recalling their annual visits to see his grandmother in Haifa./bloom.bg/2BSFhr9*****Never forget.~JJL++++Obama Will Kill the Stock Market. No, Trump Will. No, Warren WillSarah Ponczek and Vildana Hajric – BloombergPaul Tudor Jones warns Warren will cause 25% plunge in S&P 500; Before 2016 election, strategists said Trump would tank market. Wall Street’s best minds are falling over themselves to describe the cataclysms that would befall equities should Elizabeth Warren get elected. It’s a brand of analysis whose recent track record is abysmal./bloom.bg/32ZuIhZ*****What do you think Paul Tudor Jones will be doing if the stock market goes down 25% after a Warren win? He will be buying it. That is what he will be doing.~JJL++++This foundation will pay you $10,000 to move to Tulsa, OklahomaLauren M. Johnson – CNNIf you work remotely and want to make an extra $10,000, relocating to Tulsa might be your next move. Tulsa Remote, a program funded by the George Kaiser Family Foundation, is offering 250 people the opportunity to make $10,000 by simply moving to Oklahoma, the organizers announced Tuesday. The money comes in the form of a grant and is distributed to the recipient over the course of a year./cnn.it/2Pv7koP****Oklahoma is OK.~JJL++++Tuesday’s Top ThreeOur top read item of the day was TT’s announcement about Russ Cotton and Craig J. Mohan in Trading Technologies to Add Chief Operating Officer and a Chief Growth Officer to Management Team. Second was Bloomberg’s How Jim Simons Built the Best Hedge Fund Ever. Third was CQG’s FIA 2019++++++++MarketsWiki Stats166,983,627 pages viewed; 23,965 pages; 222,158 editsMarketsWiki Statistics++++

CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.Recently Updated Pages Recently updated pages includeCanaan CreativeBakktStablecoinCrypto CapitalCryptoMarketsWiki Stats1,288 pages; 11,419 editsCryptoMarketsWiki Statistics

Lead Stories

Futures Exchange Reins In Runaway Trading Algorithms; CME takes emergency measures to combat surging data volumes in Eurodollar futuresAlexander Osipovich – WSJThe Chicago Mercantile Exchange is cracking down on runaway algorithms in one of the world’s biggest futures markets. Over the past two months, the volume of data generated by activity in CME’s Eurodollar futures soared 10-fold, according to exchange statistics. The torrent of data strained trading systems and prompted complaints to the exchange, traders said. It subsided Monday after CME took emergency measures to halt it./on.wsj.com/2N17VgqRise of machine trading forces data providers to pivot; FactSet chief says information sellers are focusing on companies rather than tradersPhilip Stafford – FTFinancial information suppliers are on the hunt for new markets such as wealth management and corporate audiences, according to the chief executive of Factset, as the decline of the traditional dealing floor makes it harder to sell data to traders./on.ft.com/2Wqiw7p‘Hubble Telescope for markets’ attracts new criticism; Wall Street and supporters raise threat of hackers in bid to derail consolidated audit trailPatrick Temple-West and Robert Armstrong – FTRepublican politicians and regulators, along with securities industry advocates, are making another push to derail the US Securities and Exchange Commission’s plan to create a single, real-time record of trade prices, arguing it will become a tool for government over-reach or a target for hackers./on.ft.com/34fOupYIndia’s shadow banking crisis raises spectre of contagion; Financial groups such as Indiabulls see shares fall as crisis growsBenjamin Parkin – FTAt the turn of the millennium, a group of entrepreneurs in their twenties banded together in a cramped office near a New Delhi bus terminal to start what they hoped would be India’s answer to Charles Schwab./on.ft.com/2MZP1XhDerivatives Market Watchdog Promises Movement on Long-Stalled Measures; Approach could be friendlier to industry than that of Democratic predecessorsDave Michaels – WSJThe Trump administration’s pick to oversee the nation’s derivatives markets plans to take a more industry-friendly approach than some of his Democratic predecessors and wrap up unfinished business./on.wsj.com/2q9XQEDDeutsche Boerse in Buying Mood With $2.2 Billion in War ChestViren Vaghela – BloombergDeutsche Boerse Group AG has about 2 billion euros ($2.2 billion) in its war chest as it looks to join rivals in buying up trading platforms./bloom.bg/320S45sCiti plans to withdraw from two-thirds of foreign exchange platforms; Market’s third biggest dealer is whittling down its list of third-party price aggregatorsEva Szalay- FTOne of the biggest banks in the currencies market is learning to say no to customers. Citi, the third biggest dealer in the $6.6tn-a-day foreign-exchange market, plans to whittle down the number of websites and systems on which it competes with other banks on prices to win business from clients./on.ft.com/32ZR03gHK stock exchange CEO says ‘one country, two systems’ flawed; Charles Li’s comments on relationship with mainland China come as protests roil cityHarry Dempsey and Hudson Lockett – FTCharles Li, chief executive of the Hong Kong stock exchange, has publicly questioned the framework underpinning the city’s relationship with mainland China, just weeks after concerns about his company’s autonomy from Beijing helped scupper its unsolicited £32bn bid for the London Stock Exchange./on.ft.com/31XqhmwHow the euro helped Germany avoid becoming Japan; Berlin should be thankful for what the single currency, and Mario Draghi, have given itMartin Wolf – FTTo think that two and two are four/And neither five nor three/The heart of man has long been sore/And long ’tis like to be.” Anybody thinking about the economy needs to recall these lines by the English poet AE Housman. Things must add up. The question is how. People responsible for large economies cannot ignore this. A tragedy of the eurozone, especially of Germany’s role within it, is that the transition to thinking about how income and expenditure add up at eurozone and global levels has so far failed to occur./on.ft.com/2MVOYeOUS retirement accounts offer tempting target for cyber attacks; Industry under pressure to bolster defences for nearly $6tn of 401(k) plansJennifer Williams-Alvarez – FTWith nearly $6tn sitting in 401(k) plans, the US financial services industry is coming under increasing pressure to ensure that retirement savings are safeguarded from rapidly evolving cyber threats./on.ft.com/330e2HkSouth Korean hedge funds fear public distrust after Lime crisis; Thousands of ordinary investors stung by move to avoid low interest ratesSong Jung-a – FTYB Choi, a 72-year-old retiree from Seoul, is finding it hard to sleep. The cause of his anxiety: an investment in South Korea’s biggest hedge fund, Lime Asset Management, which suspended withdrawals earlier this month./on.ft.com/32WStraCEO of Norway’s $1 Trillion Wealth Fund to Resign After 12 Years at HelmMikael Holter and Sveinung Sleire – BloombergThe chief executive officer of Norway’s $1.1 trillion sovereign wealth fund, Yngve Slyngstad, said he will step down after leading the giant investor for almost 12 years./bloom.bg/2Nsgv6PDespair for Many and Silver Linings for Some in California Wildfires; Natural disasters are another prism through which California’s vast income inequalities can be viewed.Thomas Fuller, Julie Turkewitz and Jose A. Del Real – WSJAfter a wildfire razed his spacious suburban home in the Sonoma hills two years ago, Pete Parkinson set out to rebuild. This time it would be an even better one. He reoriented the house toward vistas of a nearby mountain and designed a large kitchen with hickory floors and 16-foot windows under vaulted ceilings./nyti.ms/2MZwIkY

Exchanges, OTC and Clearing

MaterialsXchange Launches with First Raw Materials Transaction; MaterialsXchange’s digital marketplace streamlines the buying and selling of raw materialsMaterialsXchangeMaterialsXchange (“MX”), an electronic marketplace for buying and selling raw materials, went live on Monday with the first transaction executed shortly after the launch. The first listings on MX are wood products, specifically Oriented Strand Board (OSB), European Spruce (Euro Spruce) lumber, and Southern Yellow Pine (SYP) lumber. **This inaugural transaction on MX matched Binderholz Timber Inc. (seller) with Hart Lumber (buyer) for a first-ever deal between the two and consisted of a full truckload of 2×4 Euro Spruce from the Port of Houston./bwnews.pr/2qUx2ZvStartup Aims to List Bitcoin Product on Frankfurt, Luxembourg ExchangesAaron Wood – CointelegraphA German startup is attempting to list a Bitcoin (BTC) derivative product on the Frankfurt and Luxembourg stock exchanges. According to German business news daily Handelsblatt on Oct. 29, the startup Iconic has filed a prospectus for regulated trading of a Bitcoin exchange-traded note (ETN), which could become available as soon as the beginning of December 2019.bit.ly/2C6UCEZNew Partner Offers Start-Up Financing Through Digital Business Shares; Deutsche Börse Venture Network Cooperates with Cashlink / Regulated Issue of Digital Securities Opens New Possibility of Start-Up FinancingDeutsche BörseThe Deutsche Börse Venture Network is offering its members a new financing option via its partner Cashlink using Distributed Ledger Technology (DLT): From now on, all members of the network will receive discounted access to the issue of digital securities.bit.ly/2WsFSJzCME Group Inc. Reports Third-Quarter 2019 Financial ResultsCME GroupCME Group Inc. (NASDAQ: CME) today reported financial results for the third quarter of 2019. The company reported revenue of $1.3 billion and operating income of $685 million for the third quarter of 2019. Net income was $636 million and diluted earnings per share were $1.78. On an adjusted basis, net income was $679 million and diluted earnings per share were $1.90. Financial results presented on an adjusted basis for the third quarter of 2019 and 2018 exclude certain items, which are detailed in the reconciliation of non-GAAP results.bit.ly/2N03brcNasdaq Reports Third Quarter 2019 Results; Delivers Broad-Based Revenue Growth and Strong Capital ReturnsNasdaq, Inc.Third quarter 2019 net revenues were $632 million. Revenues in the non-trading segments increased 10% versus the prior year period, primarily driven by organic growth, while Market Services revenues increased 2%.bit.ly/2BXxNDiAppointment of Directors, etc.JPXJapan Exchange Group, Inc. (JPX) hereby announces that, considering JPX’s subsidiary Tokyo CommodityExchange, Inc. (TOCOM) will transition from a company with nominating committees, etc., to a companywith a board of auditors effective on December 1, 2019, JPX has chosen directors, etc. of TOCOM, to beappointed on December 1, 2019, as follows.bit.ly/31VhgKJJapan Exchange Group, Inc. And Consolidated Subsidiaries Consolidated Financial Results For The Six Months Ended September 30, 2019 (Based On IFRS), UnauditedPress ReleaseDuring the consolidated cumulative second quarter (from April 1, 2019 to September 30, 2019), JPX Group recorded operating revenue of ¥57,936 million (2.2% decrease from the same period of the previous fiscal year (i.e., year on year)), and operating expenses were ¥27,482 million (increased 4.9% year on year). As a result, JPX Group recorded operating income of ¥31,870 million (decreased 7.2% year on year) and income before income tax of ¥32,011 million (decreased 8.8% year on year).bit.ly/36m380K

Fintech

Confluence Acquires StatPro, Global Portfolio Analytics Solution and Data ProviderConfluence TechnologiesConfluence Technologies, a global leader in investment data management automation for regulatory, financial and investor reporting, announced today that it has acquired StatPro Group plc (StatPro), a highly respected global provider of cloud-based portfolio analytics, asset data services and data management tools for the global asset management industry and asset management service providers.bit.ly/2osi8sCThe TRADE’s (Unofficial) M&A Awards 2019; The TRADE reviews the mergers and takeovers that have caused a stir in the industry. The Unofficial M&A Awards returns for a second year, as consolidation in the exchange space raises more than a few eyebrows and investment in FinTech has never been hotter.John Brazier – The TradeLast year, The TRADE introduced the first ever (unofficial) mergers and acquisitions awards, featuring some of the biggest deals inked between major players that significantly impacted the market and saw some of the industry’s established names, such as NEX Group and ITG, become absorbed into new ownership.bit.ly/2WqzPoSTP ICAP signs multi-year data deal with RefinitivRefinitiv will help TP ICAP expand its datasets to support its brokers and technology platforms.Hayley McDowell – The TradeInterdealer broker TP ICAP has signed a multi-year deal with Refinitiv to expand its integrated global data across equities, fixed income, FX, derivatives and commodities.bit.ly/2N03DWqTrading Technologies to Launch Connectivity to the Mexican Derivatives Exchange Via the TT® PlatformTrading Technologies (press release)Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, and the Mexican Derivatives Exchange (MexDer), a subsidiary of the Mexican Stock Exchange (Bolsa Mexicana de Valores), one of the largest stock exchanges in Latin America, today announced that all derivative products listed on MexDer will be available globally to all users of the TT platform in Q4 2019.bit.ly/2MXfaFSTrade Surveillance Systems Market with Future Prospects, Key Player SWOT Analysis and Forecast To 2024Mechanicvillemile.comTrade Surveillance Systems Market Outlook provides thoughtful analysis of current issues facing the industry, along with current facts and statistics about the production and application in Trade Surveillance Systems Market.. Global Trade Surveillance Systems Market Report is a professional and comprehensive research report on the world’s major regional market conditions, focusing on the main regions (North America, Europe and Asia-Pacific) and the main countries (United States, Germany, United Kingdom, Japan, South Korea and China).bit.ly/331NUfgTNS launches TNSXpress portfolio at FIA ExpoHedgeweekTransaction Network Services (TNS) launched its TNSXpress product suits at the FIA Expo in Chicago. TNSXpress includes TNS Layer 1, TNS Managed Hosting and TNS Market Data. This combined offering provides ultra-low latency connectivity and covers a significantly expanded global footprint.bit.ly/2BYMWnOFacebook Sues Companies for Shielding Phishing, Hacking ServicesRobert Burnson – BloombergFacebook Inc. filed sued two companies it accuses of fostering cyber crime by shielding the identities of websites involving in phishing, malware, spam and botnets./bloom.bg/2BX3ooGWe’re Not Ready for Our Quantum, High-Speed, Clean Future; A lot can go wrong on the road to progress.Mark Gongloff – BloombergThis newsletter loves to joke around about an impending apocalypse, but there’s also a good chance we’re on the doorstep of a golden age of superfast computing, high-speed rail travel and clean energy that will make us almost forget how we never got those jetpacks and flying cars./bloom.bg/2MWoFoR

Cryptocurrencies

Another Credit Bubble Grows: the $5 Billion Crypto-Loan MarketBy Alastair Marsh – BloombergToo much credit too fast has traders warning of a blow-up; Interest rate on Bitcoin loan down to 5% from 11% at GenesisThe laws of finance still apply in cryptocurrency’s parallel universe. Crypto credit has expanded too quickly and is headed for a blow-up, says a group of former Wall Street traders who are now seeking riches in digital assets. A near $5 billion industry has emerged from nothing just two years ago and the number of loan platforms is rapidly proliferating, according to blockchain data company Graychain Ltd./bloom.bg/339NdAFUnwanted Cryptocurrency Could Trigger Tax Under IRS PolicyAllyson Versprille – Bloomberg TaxCryptocurrency holders could have to pay tax on coins they received unwittingly, or against their wishes, under recent IRS guidance. If left unchanged, the policy may make it harder for people to meet their tax obligations—at a time when the IRS is ramping up enforcement to increase compliance in the crypto space, according to tax professionals.bit.ly/2NmZn2lInvestment app provider Robinhood is seeking a chief compliance officer for its crypto unitYogita Khatri – The Block CryptoRobinhood, a stocks, exchange-traded funds and cryptocurrency investment app provider, is hiring a chief compliance officer for its cryptocurrency unit, Robinhood Crypto, LLC. According to a job posting on the company’s website, Robinhood is looking for a person to manage day-to-day cryptocurrency compliance operations. The key responsibilities of the new hire would be to manage regulatory reporting, execute a strong anti-money laundering (AML) and know-your-customer (KYC) program, and to lead the annual Robinhood Crypto AML audit, among other operations.bit.ly/2q5Q9PMBitmain’s exiled founder returns in coup; Turmoil at world’s largest cryptocurrency hardware makerRyan McMorrow and Nian Liu – FTA coup at Bitmain, the Chinese company that claims to have three-quarters of the world market for machines that mint bitcoin, has seen one of its founders return from exile to oust the other./on.ft.com/2MZZz8CBitfinex adds native SegWit support for bitcoin withdrawalsSteven Zheng – The Block CryptoCryptocurrency exchange Bitfinex has announced it is adding withdrawal support for native SegWit (bech32) addresses, which will start with the characters “b1.” Native SegWit is a more weight-efficient address format than Wrapped SegWit (P2SH) addresses which start with “3.” Bitfinex’s new address format will enable cheaper transactions for its users looking to withdraw bitcoin from the exchange. Additionally, according to the exchange, “as bech32 addresses only exist on the Bitcoin network, our new support for Bitcoin withdrawals to bech32 addresses removes the possibility of our clients experiencing any cross-chain mix-ups.”bit.ly/2PwY8jUBitcoin Advocate Jack Dorsey Backs Crypto Startup CoinListSteven Russolillo – The Wall Street JournalTwitter Inc. Chief Executive Jack Dorsey, a longtime bitcoin advocate, is making a fresh bet on cryptocurrency. Mr. Dorsey is one of several investors backing CoinList Inc., a two-year-old venture that helps startups raise money through token sales. CoinList has raised $10 million in a new round of funding, with Mr. Dorsey investing in the company for the first time, CoinList said./on.wsj.com/2q2GGcgBitmain secretly files for US IPO with SEC; Deutsche Bank is the sponsor – ReportYogita Khatri – The Block CryptoCryptocurrency miner manufacturing giant Bitmain Technologies is said to have secretly filed an initial public offering (IPO) application in the U.S. with the Securities and Exchange Commission (SEC).bit.ly/2WweB9hChina bans anti-blockchain sentiment as it prepares for launch of state cryptocurrency; President Xi Jinping hailed the technology in an apparent U-turn on the subjectAnthony Cuthbertson – IndependentChina is preparing for the launch of its own state-backed cryptocurrency by removing online posts claiming that blockchain technology is a scam.bit.ly/2pgqvInBinance CEO: ‘Russia Is Our Key Market’Anna Baydakova – CoindeskThe line for selfies with Binance CEO Changpeng Zhao seemed endless, even though it was the second photo op of the night. The cryptocurrency exchange mogul, known as CZ, had already taken photos with Russian fans before the meetup started, and he kept smiling at cameras and shaking hands for half an hour after it ended. It was CZ’s first visit to Russia, and the turnout showed his popularity with the local crypto scene. The concert hall of the Radisson hotel in central Moscow could hardly fit the roughly 700 people registered for the Oct. 21 event. The warm feelings were mutual.bit.ly/36lYwYuFTX Launches Futures on Index of 8 China Cryptos Amid Xi Blockchain PumpDaniel Palmer – CoindeskDerivatives exchange FTX has launched an index of eight popular China-related cryptocurrencies. Announced in a tweet by the firm’s CEO Sam Bankman-Fried Tuesday, the Dragon Perpetual Futures Index (DRGN-PERP) tracks a basket of coins including BTM, IOST, NEO, NULS, ONT, QTUM, TRX, and VET, based on a weighted average of their respective prices. FTX is also offering traders exposure to the coins in the form of perpetual futures contracts based on the index. Traders will be able to leverage these contracts up to 101 times, Bankman-Fried told CoinDesk.bit.ly/2q5SQkmChina Announces New Regulatory Authority to Certify Digital Payments, Blockchain ProductsDavid Pan – CoindeskChina’s central bank, the People’s Bank of China, will certify 11 types of financial technology hardware and software that are widely used for digital payment and blockchain services with its new verification system called the Certification of Fintech Products. The central bank released the first list of fintech products that could be used in both front-end and bank-end development for digital payment services, according to filings dated Oct. 26 from the bank.bit.ly/31XAM9zDeutsche Börse Aims to Ease Digital Securities Transfer With New DealWilliam Suberg – CointelegraphThe venture capital arm of German marketplace Deutsche Börse has sealed a new partnership for allowing institutional investors to obtain digital securities. In a press release on Oct. 30, Deutsche Börse Venture Network (DBVN) confirmed the deal with local fintech company Cashlink, the benefits of which will be available immediately. From now on, investors with DBVN will be able to complete the funding process entirely digitally using tools based on so-called distributed ledger technology, or DLT.bit.ly/2BYJpWAChina state media asks investors to stay ‘rational’ as blockchain-related stocks soar after Xi’s endorsementYogita Khatri – The Block CryptoThe People’s Daily newspaper, published by China’s ruling Communist Party, has urged investors to keep calm as blockchain-related stocks jumped after Chinese President Xi Jinping publicly supported the technology last week. “Blockchain’s future is here but we must remain rational,” said the newspaper in a commentary late on Monday, as reported by Reuters. The People’s Daily added that Xi’s support for blockchain technology does not equate support for cryptocurrencies.bit.ly/36jv5WICryptocrazies Jolted Into The Real WorldTheodore F. Claypoole, Womble Bond Dickinson (US) LLP via The National Law ReviewFor years we have been treated to the impassioned entreaties of cryptohippies, hardcore libertarians, and straight-up conmen for the rest of us to understand that both blockchain and Bitcoin have “changed everything” and are driving us toward a destiny of money freed from government interference and life choices free from consequence, where crypto manna falls from the sky and magical fruits of the blockchain are ripe for easy picking.bit.ly/32ZKR7fPublic Blockchain Technology Market is Booming Worldwide | Deloitte, IBM, KPMG, EY, AccentureSylvia Sanchez – Market JournalHTF MI recently launched the Global Public Blockchain Technology study with 100+ market data Tables, Pie Chat, Graphs & Figures spread through Pages and easy to understand detailed analysis. At present, the market is developing its presence. The Research report presents a complete assessment of the Market and contains a future trend, current growth factors, attentive opinions, facts, and industry validated market data. The research study provides estimates for Global Public Blockchain Technology Forecast till 2025*.bit.ly/324RQdW

Politics

Former Exxon chief Rex Tillerson to testify in climate change fraud trialBrendan Pierson – ReutersFormer Exxon Mobil Corp Chief Executive Rex Tillerson is expected to take the stand on Wednesday in a closely watched civil lawsuit accusing the company of hiding the true cost of climate change from investors./reut.rs/2BYM5n6Liberal Christian group files ethics complaint against Attorney General BarrJack Jenkins – Religion NewsFaithful America, a Christian advocacy group that often champions liberal causes, has filed an ethics complaint against U.S. Attorney General William Barr, claiming he violated his oath to defend religious liberty for all Americans in a recent speech at Notre Dame University’s law school.bit.ly/2WqyHBKGreta Thunberg declined a climate award because the world needs more action, fewer awardsMaddie Capron and Christina Zdanowicz, CNN(CNN)Teen climate change activist Greta Thunberg was awarded the 2019 Nordic Council Environment Prize, but she won’t be accepting it./cnn.it/2BTRBYfMnuchin Open to Looser Bank Liquidity Rules Backed by DimonSaleha Mohsin – BloombergRegulators should address daily liquidity issues, Mnuchin says; Senator Warren has warned not to loosen crisis-era regulationsU.S. Treasury Secretary Steven Mnuchin is open to loosening financial crisis-era regulations that have stiffened liquidity rules for big banks to relieve possible cash crunches in short-term funding markets./bloom.bg/32ZbklrCantor Warns of Investor Backlash in Wake of Fisher RemarksVivian Nereim – BloombergMoelis & Co. Vice Chairman Eric Cantor said financial firms failing to respect women in the workplace will be increasingly punished by customers./bloom.bg/2q0LrmHLabor Secretary Scalia to Participate in Financial-Advice Rulemaking; Department attorneys say ethics rules don’t require recusal; Scalia had led challenge to Obama-era fiduciary ruleEric Morath – WSJLabor Secretary Eugene Scalia can participate in the department’s rewrite of a closely watched investment-advice rule, career government ethics attorneys said on Tuesday./on.wsj.com/2q4vKe2

Regulation

ASIC warns trustees on new rules for Putting Members’ Interests FirstASICASIC has called on superannuation trustees to improve the standard of communication to fund members about important reforms impacting member insurance arrangements.bit.ly/2MXef8oSteven Maijoor delivers speech on Benchmarks in Madrid ESMAESMASteven Maijoor, Chair of the European Securities and Markets Authority (ESMA), has delivered a speech on the Benchmarks Regulation, and related issues, at a conference organised by the Comisión Nacional del Mercado de Valores (CNMV) in Madrid this lunchtime.bit.ly/2WxSLlW2019 Ketchum Prize: The Evolving World of Retirement SecurityFINRAThe way Americans think about and plan for retirement is changing. Gone are the days when Americans drop out of the workforce at 65 and hit the golf course, according to the University of Pennsylvania Wharton School’s Dr. Olivia S. Mitchell, the 2019 recipient of the Ketchum Prize. Sitting at home for 30 years – or longer – isn’t financially viable anymore.bit.ly/2q3XdN7UK’s exit from the EU delayedUK FCAThe EU and the UK have agreed to extend the date for the UK’s departure from the EU. As a result, firms do not need to take action to implement Brexit contingency plans for 31 October.bit.ly/2q0QaoqNFA bars Wichita, Kansas commodity pool operator Plutus Capital Management LLC from membershipNFANFA has permanently barred Plutus Capital Management LLC (Plutus), an NFA Member commodity pool operator located in Wichita, Kansas, from membership and from acting as a principal of an NFA Member. NFA also ordered Mark E. Philips, Plutus’ sole associated person and principal, to withdraw from NFA membership and as a principal of Plutus and not reapply for membership or act as a principal of an NFA Member for one year. Philips must pay a $25,000 fine if he seeks NFA membership or principal status after his one-year membership bar.bit.ly/2q4obnE

Investing and Trading

US coal miner Murray Energy files for bankruptcy; Company’s founder a staunch Trump supporter who lobbied for more favourable policiesHarry Dempsey and Gregory Meyer – FTMurray Energy, the largest privately owned coal miner in the US and a strong backer of the Trump administration’s embrace of fossil fuels, has filed for bankruptcy protection as utilities choose sources other than coal to generate electricity./on.ft.com/2BTHCCfCannabis remains an investment market worth watching; Promises of huge growth are yet to materialise — but there’s huge potentialDavid Stevenson – FTIt is the curse of an adventurous investor to repeat one’s mistakes, especially when it comes to hyped-up growth stories. I’ve spent the past few months hosting or being involved with a few events centred on the global cannabis market and time after time I’ve noticed the striking parallels with the cryptocurrencies sector./on.ft.com/2BRpSHTCash-Market Volatility Adds to Worries Facing Libor Replacement; Issuance of floating-rate debt linked to the secured overnight financing rate falls sharply in OctoberDaniel Kruger and Vipal Monga – WSJTurmoil in short-term money markets has rattled a protracted effort to phase in a new borrowing benchmark meant to eventually underpin trillions of dollars in lending contracts./on.wsj.com/31XyoQ0The U.S. Treasury Department Is Exploring a 50-Year Bond for the First TimeEmily Barrett – BloombergDepartment also considering a one-year SOFR-linked FRN; Treasury keeps nominal coupon debt at record $84 billionThe U.S. Treasury Department expressed continued interest in issuing a 50-year bond, for the first time, as part of efforts to expand its investor base as the budget deficit widens to $1 trillion./bloom.bg/31YYu5pEven the Quants Are Wary of the Stock Market; Lack of conviction leads financial commentary. Plus, Canada is going to decide on rates, too.Robert Burgess – BloombergThe S&P 500 Index was little changed one day after setting a new record. That makes perfect sense. The market just capped one of its strongest periods of the year, having risen a little more than 5% over the previous three weeks. It’s as good a time as any to reassess the broad landscape. And when they do, traders will find that the primary drivers behind the rally remain firmly in place./bloom.bg/31VnytP

Institutions

Alan Howard to step down as Brevan Howard CEO; Billionaire trader hands day-to-day management of hedge fund firm to risk chief Aron LandyLaurence Fletcher – FTBillionaire trader Alan Howard is to step down as chief executive of Brevan Howard, handing day to day leadership of the hedge fund firm to a lieutenant as he concentrates on investing and overseeing a widening group of businesses./on.ft.com/2Wn6RGGUBS becomes first foreign IPO sponsor on China’s Star Market; Tech board rules require underwriters to invest in listings they work onDon Weinland and Hudson Lockett – FTUBS has become the first foreign bank to sponsor an initial public offering on China’s new tech-focused Star Market, where underwriters are required to invest in the listings they bring to the market./on.ft.com/2q7C1pyDeutsche Bank suffers setback with trading revenue drop; Germany’s biggest lender falls behind US rivals in blow to efforts to turn round its investment bankOlaf Storbeck – FTDeutsche Bank’s fixed income trading unit trailed well behind rivals during the third quarter in the latest sign of the steep hurdles Germany’s biggest lender faces in its efforts to turn round the fortunes of its investment bank./on.ft.com/332xaEoCredit Suisse CEO Cautions on Outlook After Trading BeatPatrick Winters and Marion Halftermeyer – BloombergCiti analysts say results mixed as one-off sale boosts profits; Bank’s reputation was dented by spying operation on Iqbal KhanCredit Suisse Group AG gave a more downbeat outlook after trading income surged, saying the U.S.-China trade dispute will lead to more cautious spending and investment decisions./bloom.bg/324HuL6Deutsche Bank Slumps as Sewing’s Revamp Fails to Lift RevenueSteven Arons – BloombergEarnings from trading fixed-income securities drops 13%; All core units except one report lower income in the quarterDeutsche Bank AG suffered its steepest drop since Christian Sewing’s sweeping revamp in early July as its third-quarter results cast doubt on the chief executive officer’s ability to arrest a long slump in revenue./bloom.bg/3200f2aCredit Suisse Posts Strong Profit, Boosted by Fund Platform Sale; Swiss banking giant warns that Brexit and U.S.-China trade tensions may make investors more cautiousJulie Steinberg and Pietro Lombardi – WSJCredit Suisse Group AG’s third-quarter net profit more than doubled on the back of strong results in global markets and the sale of a fund platform, though results in its core wealth management units were weaker./on.wsj.com/32ZWRWkMacquarie and Kepler Cheuvreux form equities trading and research alliance; Macquarie has scaled back its cash equities business in EMEA and the Americas in response to ‘structural changes in the market’.Hayley McDowell – The TradeMacquarie and Kepler Cheuvreux have confirmed plans to combine their trading and research services in Europe and Asia, as the sell-side continues to battle difficult market conditions in cash equities.bit.ly/2Ww8LET

Regions

Investing in the UK: glass half full? Stock picking has never been so important in a time of new uncertaintyMaike Currie – FTBack in 2017 — almost two years to the day — I wrote a column on how to Brexit-proof your investment portfolio, making the point that UK investors need to be smarter about how they invest against a challenging domestic backdrop./on.ft.com/32XtRykNorway’s oil fund head Yngve Slyngstad quits; Chief executive to stay in the role until successor chosenRichard Milne – FTYngve Slyngstad has resigned as chief executive of Norway’s $1tn oil fund, the world’s largest sovereign wealth fund. Mr Slyngstad told a press conference in Oslo on Wednesday that he had submitted his resignation on Friday, the day that the fund’s value exceeded NKr10tn ($1.1tn) for the first time./on.ft.com/32VoVKmKuwait’s sovereign wealth fund puts weight on green investing; Investors are paying greater heed to climate risks and future infrastructure needsHenny Sender – FTThe Arab Bankers Association of North America last week honoured Farouk Bastaki, the head of the Kuwait Investment Authority, at a glittering dinner in New York. The crowd included recipients — and no doubt some would-be recipients — of riches from his sovereign wealth fund, one of the largest in the world./on.ft.com/2N0XyZTChina Bond Traders Face Reality of Central Bank That Won’t BudgeHong Shen -BloombergPBOC has allowed last week’s massive cash injections to mature; Sovereign bonds are dropping at the fastest pace since AprilChina’s central bank has helped trigger a massive sell-off in government debt by doing nothing at all. The People’s Bank of China disappointed bond traders by skipping open-market operations every day this week — effectively withdrawing 500 billion yuan ($71 billion) from the financial system. It has also wrong-footed bond bulls by not deploying a one-year targeted lending tool, despite the move being widely expected since last week./bloom.bg/2BVCCNvChina’s Biggest Banks Prepare for Hard TimesBloomberg NewsTop banks report quarterly profit growth between 3% and 6%; Chinese economy expanded at slowest pace since early 1990sChina’s largest banks eked out higher profits but signaled tougher times ahead, shedding bad loans and boosting provisions as the economy shows signs of deterioration./bloom.bg/331eGUTSingapore Sees World’s First Digital Aviation Carbon ExchangeDan Murtaugh – BloombergSingapore-based AirCarbon Pte launched the world’s first blockchain-based carbon trading exchange, which will allow airlines and other corporate buyers to buy and sell tokens backed by carbon offset credits approved by the International Civil Aviation Organization./bloom.bg/32Y4bS9Life on the Zambezi Is Hard. The Climate Crisis Is Making It Deadly; A journey down the African river shows the devastating impact of both floods and drought.Matthew Hill – BloombergFor millions of people across southern Africa, the Zambezi River serves as highway, fishing ground, water fountain, laundromat, and swimming hole. From its source—a trickling spring in the highlands of northwestern Zambia—the river winds almost 1,700 miles through the forests of eastern Angola and along the borders with Namibia, Botswana, and Zimbabwe before fanning out into a delta with dozens of channels in Mozambique./bloom.bg/31XsRZTJPMorgan, Citi Among Banks Selected for Egypt’s Dollar Bond SaleMirette Magdy – BloombergEgypt said it picked five lenders, including JPMorgan Chase & Co. and Citigroup Inc., to manage new dollar bond issuance in the current fiscal year as borrowers in emerging markets reap benefits of more dovish policies by major central banks./bloom.bg/2BRlsANLess Savings, More Debt: How Chinese Manage Money American-Style, in 17 Charts; Household thrift in China is eroding, weakened by borrowing to buy real estate and enhance lifestyles, generational shift that will ripple through world economyJames T. Areddy – WSJChina has long been a nation of savers. For decades, its citizens socked away much more of their incomes than Americans do. The pool of capital that was created powered China’s economic rise./on.wsj.com/2BTKkI1

Brexit

U.K.’s Divorce From Europe May Have to WaitFlavia Krause-Jackson – BloombergBoris Johnson has finally got his election — the U.K.’s third in four years — but it’s a roll of the dice for both the prime minister and the country./bloom.bg/2otYEUtBritain Braces For New Vote In December That Could Ease The Path To BrexitRichard Gonzales – NPRStill in turmoil over if, when or how to leave the European Union, Britain will go back to the polls on Dec. 12 to elect a new Parliament that may, or may not, be able to settle on a Brexit plan. Prime Minister Boris Johnson won support for a snap election Tuesday when the House of Commons voted 438-20 to dissolve Parliament and launch a six-week election campaign that will compete with Christmas for the attention of a divided and Brexit-exhausted electorate./n.pr/2PtMPbVBeyond Brexit: U.K. Political Risks Get Even More Complex; A general election carries its own set of dangers for marketsBy Jon Sindreu – WSJFor international investors, understanding Brexit was hard enough. The coming U.K. general election on Dec. 12 makes their lives even more complicated./on.wsj.com/2q23pVM

Miscellaneous

Where to Eat Steak in New York That’s Not Called Peter Luger; Six alternative places to find excellent beef.Kate Krader – BloombergPeter Luger Steak House has been around since 1887, but it took only minutes for the Brooklyn restaurant’s reputation to take a devastating hit./bloom.bg/3319MqP

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First Read Back in Court with Bcause - Year End Report Thom Thompson - John Lothian News Wednesday was the last hearing scheduled for this year for the Bcause bankruptcy. The next court date is January 7 when the bankruptcy trustee's...

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