Morning Bell

• U.S. regulators postpone Basel III implementation
  The Federal Reserve and other U.S. regulators decided to postpone the implementation of Basel III capital rules for the nation's banks. The rules were supposed to go in effect Jan. 1. Regulatory agencies seek to align U.S. rules with standards determined by the Basel Committee on Banking Supervision. Read SIFMA's statement on the extension. Bloomberg (11/9), MarketWatch (11/9), CNBC/The Associated Press (11/9)     

Industry News

• Analysis: Economy continues to head toward "fiscal cliff"
  As lawmakers and other leaders continue to debate the "fiscal cliff," which has much more to do with tax increases than spending cuts, time is quickly passing. If Congress fails to act, the economy is expected to contract, although exactly how much is up for debate. Barron's (special access for readers of SIFMA SmartBrief) (11/10)     

• Commentary: Corporate-bond rules will spur change
  Vega-Chi CEO Constantinos Antoniades writes that corporate-bond trading is poised for structural changes because of regulations. He also predicts the rise of more independent "exchange-like" platforms. Financial Times (tiered subscription model) (11/9)     

Washington Roundup

• Commentary: Obama faces "fiscal cliff"
  Columnist Jim McTague writes that President Barack Obama, having secured his re-election, faces the challenge of heading off the "fiscal cliff," which will require working with Republican leaders and the divided Congress. "Can he pull it off? While a short-term fix looks entirely doable, a real solution will require the president to change some of his ways," McTague writes. Barron's (special access for readers of SIFMA SmartBrief) (11/10)     

• Fed gives banks second chance on stress tests
  The Federal Reserve announced it will give banks a second chance when it comes to capital stress tests. The 19 largest institutions will get a preliminary result. They can then take measures, such as altering stock-buyback or dividend policies, to put themselves in a position to pass. The Fed will still publish the initial capital proposal results. Bloomberg (11/9)     

• SEC might focus on enforcement, former chairman says
  Harvey Pitt, former chairman of the Securities and Exchange Commission, said he would not be surprised if the agency shifted to emphasizing enforcement instead of rule-writing during President Barack Obama's second administration. Pitt argues that as Congress remains divided, it will struggle to keep the SEC in check if it transforms enforcement actions into policies. Reuters/Financial Regulatory Forum blog/Thomson Reuters Accelus (11/9)     

• Commentary: Financial turmoil remains a concern
  Last week's election results mean the U.S. is likely to continue with changes to the financial industry, but officials should be mindful of stoking more turmoil, Michael Mackenzie writes. Financial Times (tiered subscription model) (11/9)     

Operations Update

• SEC opens formal investigation of Knight's trading glitch
  The Securities and Exchange Commission has started its formal investigation of the $457.6 million trading glitch that affected Knight Capital Group in August. Knight says faulty software was to blame. The U.S. inquiry will focus on whether the company adhered to rules governing risk-control procedures. Bloomberg (11/9)     

Asset/Wealth Management Report

• Advisers tell the rich there's no need to panic
  Financial advisers are telling wealthy clients who are displeased with President Barack Obama's re-election that they should avoid making rash decisions with their money. Advisers say there could be market volatility as politicians debate taxes and spending, but they aren't predicting doom and gloom. Reuters (11/10), InvestmentNews (free registration) (11/11)     

Hot Topics

Top five news stories selected by SIFMA SmartBrief readers in the past week.

• Wall Street gears up for Obama's second term (The New York Times (tiered subscription model))

• Obama and Romney in a tight race as election begins (Reuters)

• Financial services industry will continue to work with Obama (Reuters)

• Lawmakers say they'll work to avert fiscal crisis (The New York Times (tiered subscription model))

• Obama and Romney remain close in polls as election looms (NBC News)

• Results based on number of times each story was clicked by readers.

SIFMA News

• Canadian-U.S. Securities Summit hosted by IIAC and SIFMA -- TOMORROW -- NYC
  Be a part of SIFMA's and IIAC's Canadian-U.S. Securities Summit and hear from senior buy- and sell-side executives as they discuss the opportunities this two-way trade provides, and the regulatory considerations and concerns that investors and financial institutions face. Confirmed speakers include: Keynote Eric Sprott, Chief Executive Officer, Chief Investment Officer, Senior Portfolio, Sprott Asset Management; Evan W. Siddall, Special Adviser to the Governor, Senior Representative, Toronto Regional Office (Financial Markets), Bank of Canada; Susan Wolburgh, President and CEO, Investment Industry Regulatory Organization of Canada; John Taft, Head of U.S. Wealth Management, RBC; Peter Kane, Principal, Greenwich Consultants, and many more.     

• SIFMA Compliance & Legal Society New York Regional Conference -- Wednesday
  The SIFMA Compliance & Legal Society will be holding its annual New York Regional Conference on Wednesday at the New York Marriott Marquis. This full-day event will feature a keynote address by Robert Colby, Chief Legal Officer of FINRA, as well as panels and breakouts covering current regulatory issues, retail compliance, enforcement and exams, and other relevant topics. Register today and don't miss this opportunity to meet and network with fellow professionals, and stay up to date on the latest compliance and legal issues affecting the industry.     

• Latest SIFMA Research: U.S. Municipal Bond Credit Report, 3Q 2012 and Factbook 2012

• SIFMA AMG/AMF Derivatives Regulation Roundtables -- Nov. 27 -- New York City

SmartQuote

I observe the physician with the same diligence as the disease." --John Donne, British poet, satirist, lawyer and cleric