Nancy Pelosi Announces Formal Impeachment Inquiry of Trump – New York Times

Speaker Nancy Pelosi said the House would begin formal impeachment proceedings against President Trump, ending months of caution by Democrats.

UK PM Johnson to Update Parliament on Supreme Court Ruling – Reuters

British Prime Minister Boris Johnson will address parliament later on Wednesday on the Supreme Court ruling that his suspension of parliament was unlawful – a decision he disagrees with, his spokeswoman said.

Did ECB Accidentally Tighten Policy? Analysts Won’t Let it Drop – Bloomberg

Almost two weeks after the European Central Bank announced new stimulus measures, economists are still debating whether the plan will work the way it’s meant to.

Saudi Aramco Restores Oil Output Earlier than Expected – Reuters

Saudi Arabia has restored its oil production capacity to 11.3 million barrels per day, three sources briefed on Saudi Aramco’s operations told Reuters, maintaining a faster than expected recovery after the Sept. 14 attacks on its oil facilities.

Trade Deal in Focus as Trump, Japan’s Abe Head for Summit – Reuters

US President Donald Trump and Japanese Prime Minister Shinzo Abe meet in New York later on Wednesday to try to clinch a deal on farm tariffs and digital trade.

RBA Chief Sees Australia Economy Picking Up, Fails to Signal Imminent Cut – Yahoo Finance

Reserve Bank chief Philip Lowe said Australia’s economy is at a “gentle turning point” and reiterated he’s prepared to cut interest rates if needed to support the recovery, while stopping short of flagging the imminent move markets and some economists were factoring in for next week.

Insight Investment Wary of Banks’ Last-Look Claims – Risk.net

Insight Investment has urged buy side firms not to take on trust the disclosures made by foreign exchange dealers – and to “team up” in an attempt to extract more useful information. 

FX Industry Urged to Better Understand Flash Crashes – The Trade

Senior FX market participants have urged the industry to gain a greater understanding of flash crashes, amid warnings that increasing market electronification could see flash crash-type events happen more frequently and with greater impact.

Regulatory News

ECB’s Coeure Sounds All Clear for Launch of New Short-Term Rate – Bloomberg

The European Central Bank signaled to banks that the ball is now in their court to make sure the transition to a new lending benchmark interest rate goes smoothly.

CFTC’s Equivalence Plan Divides Clearing Houses and Clients – Risk

US end-users prefer alternative compliance, but foreign CCPs want exempt status.

Oil Trader Fired by Mitsubishi Denies Allegation of Hidden Bets – Bloomberg

The Chinese trader fired by Mitsubishi Corp. for allegedly losing $320 million in oil trading said he was acting on his managers’ orders and there were no unauthorized transactions, according to his lawyer.

Banks Fight Bid to Apply 2nd Circ. Ruling To Bond Case – Law360

The Second Circuit’s recent revival of an aluminium price-fixing case has no bearing on a separate suit accusing banks of rigging the market for bonds issued by foreign governments.

‘Like a TV Courtroom Drama Come to Life’: City Reacts to Government Defeat – Financial News

“The UK’s Brexit process continued to deliver twists and turns. But the bigger picture for Brexit remains unchanged, and we still believe that a no-deal Brexit on 31 October is unlikely,” said Dean Turner, economist at UBS Wealth Management.

US, UK Agencies Work to Clean Up Credit Derivatives Market – Regulation Asia

In a joint statement, the SEC, CFTC and FCA have pledged to work together to address “opportunistic strategies” that harm the credit derivatives market.

Crypto News

Bitcoin Near Three-Month Lows After Tepid Response to NYSE Owner’s Futures – Reuters

Bitcoin struggled on Wednesday to recover from the three-month lows it reached a day earlier, moves that traders blamed on a lukewarm reception for a futures product from the owner of the New York Stock Exchange.

Bitcoin Drifts Lower as Cryptos Stabilize After Tuesday Plunge – Bloomberg

Bitcoin struggled as the US trading day began, extending its decline in the wake of Tuesday’s broad plunge across cryptocurrencies even as several alternative coins staged a modest recovery.

Fighting SEC Over Cryptocurrency, Kik Shuts Chat App – Wall Street Journal

Canadian social-media company lays off most of its staff as it fights U.S. claims that it illegally raised capital.

Crypto Exchanges Step Up Customer Bounties as Volume Falls – Bloomberg

Someone who goes by Gary Cruz says he’s already earned about $10,000 by referring people to Binance, the world’s largest cryptocurrency exchange.

IMF Officials Call for ‘Far-Sighted’ Digital Currency Regulation – FX Week

Stablecoins could put weaker currencies at risk and increase illicit activities, a blog published by the International Monetary Fund says.

The Coming Currency War: Digital Money vs. the Dollar – The Wall Street Journal

Central banks are getting closer to issuing their own digital currency. If they do, the dollar might finally face real competition as the world’s dominant currency

US Securities Chief ‘Not Prepared’ to Say if Facebook’s Libra a Security – Reuters

The head of the US Securities and Exchange Commission repeatedly refused to tell a congressional panel on Tuesday whether or not Facebook’s Libra would be regulated as a security under his watch.

Germany’s No. 2 Exchange Launches Bitcoin Spot Trading – CoinDesk

Exchange Boerse Stuttgart, Germany’s second-largest stock exchange, has opened a regulated trading venue for digital assets, the company said.

Bakkt’s Slow Start Doesn’t Mean Bitcoin Futures Have Flopped – CoinDesk

One thing appears certain: no new financial instrument is likely to “unlock” institutional demand, as most institutions are only beginning to answer the question of why they would invest in bitcoin in the first place.

Company News

MUFG to Cut Brokerage Staff in Hong Kong, Singapore – Bloomberg

Mitsubishi UFJ Financial Group Inc. is planning to cut about half of its 150-strong workforce at its securities business in Hong Kong, Singapore and Sydney, people with knowledge of the matter said.

Capitolis Hires Zall – Profit & Loss

Capitolis has announced a strategic hire to its executive leadership team with Jessica Zall joining as vice president and head of marketing. 

Europe’s Funds Are Hunkering Down in Bonds for Coming Recession – Bloomberg

Woeful. BAD. Shocking. That’s how investors and strategists described Europe’s latest economic data, leaving them fearing the worst and betting this year’s record bond rally has further to run.

Swift Conducts 13-Second Cross-Border Payment – FX Week

Swift says it has managed to complete an international payment in just 13 seconds in what it claims is a “major advance” for cross-border transactions. 

CEOs of London and Hong Kong Exchanges Set Out Clashing Visions – Financial News

The chief executives of the London and Hong Kong stock exchanges have set out clashing visions for the future of the two marketplaces at a showpiece industry event.

CDSClear to Launch CDX Options in Q1 2020 – FOW

LCH’s credit default swap clearing arm will offer CDX Investment Grade and High Yield options from Q1 2020.

Apply Financial Selected by Cambridge Global Payments – Profit & Loss

Specialist payments validation company Apply Financial has announced a partnership with Cambridge Global Payments to deploy its Validate API to provide Cambridge customers with cross-border payments solutions.

Market Savvy

Why Robots see no Logic in Betting Against Central Bankers – Financial Times

Asset managers are opting to follow trends rather than risk getting left behind.

A Record $85 Billion Japan Bond Frenzy Is About to Reverse – Bloomberg

Japan’s corporate bond bankers have been racking up underwriting fees from a record frenzy of note sales. They now face leaner months ahead.

Fed’s 2-Week Loans Draw Strong Demand After Repo Stress – Financial Times

Banks requested more than double the $30bn of two-week loans on offer from the Federal Reserve Bank of New York on Tuesday, as they sought to shore up short-term financing ahead of the end of the third quarter. 

Gold Gets Another Boost as US Risks Strengthen Case for Havens – Bloomberg

Gold steadied after posting its longest rally in three months as investors weighed growing political tensions in the US, which reinforced demand for havens. Palladium notched a fresh record.

Dollar on Defensive as Trump’s Impeachment Inquiry, Weak Data Weigh – Reuters

The dollar steadied in Asian trade on Wednesday but remained on the defensive after the launch of a formal impeachment inquiry against President Donald Trump, while the political uncertainty added to worries about economies strained by the Sino-US trade row.

Treasuries, Yen Rally After Pelosi Launches Impeachment Inquiry – Bloomberg

Haven assets rallied after House Speaker Nancy Pelosi said the chamber is opening a formal impeachment inquiry of President Donald Trump.