| October 04, 2023 | "Irreverent, but never irrelevant" | | | | John Lothian
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Presidential Historian Jon Meacham's Keynote Address at Expo Aimed to Give Hope in Divided Times
Sarah Rudolph - John Lothian News
In the keynote address to a large audience on Tuesday at FIA Expo, the historian and presidential biographer Jon Meacham talked about how we are living in "the most divided time since the 1850s" and compared what's going on now politically with past tumultuous periods in U.S. history, in particular the 1930s and 1960s. His address was titled, "Hope Through History: How To Endure and Prevail When Everything Appears Hopeless."
Meacham said he hoped we would come through our current crisis and emerge whole, as we did after those periods in the '30s and '60s.
He said he is not a partisan, but argued against blindly following authoritarian governments, and mentioned that "at no other point [in history] has a mob stormed the Capitol to prevent an election." He said, "The American Revolution is based on our right and privilege to think for ourselves," and asked, "Why would anyone give that away?"
He mentioned moments in U.S. history that bent towards authoritarianism, such as the period after the Great War and the Bolshevik Revolution, when Americans worried about socialist immigrants ("radicals and foreigners"), women couldn't vote, and there were 10 senators and 30 House members in the Ku Klux Klan. Ann Morrow Lindbergh's book, The Wave of the Future, advocated a more authoritarian approach to government (some called it fascist.) He said a crowd applauded a line in President Franklin Delano Roosevelt's speech in which he talked about potentially requiring wartime executive powers, as if "the crowd seemed ready for a dictator." However, Roosevelt also advocated neighborliness - helping your neighbor because they might then help you - a sort of pragmatic covenant, Meacham said. That way of thinking is the way out of these crises, he implied.
Meacham said the forces of oppression and authoritarianism are perennial and our cause is to see them ebb, but "there are no slam dunks in [American history]. He listed three characteristics we should nurture in order to change the incentive to go to warring extremes in politics: 1. Curiosity (understanding the forces shaping history and our lives); 2. Candor (about the scope of what we face, as in FDR's fireside chat in which he said the news would get worse before it got better); and 3. Empathy, in which we lend a hand so that we can have a hand extended to us.
He told several stories about George Herbert Walker Bush, with whom he spent much time as his biographer. He called GHW Bush the "most empathetic person" he had ever met, and talked about Bush's reaction to the loss of his daughter to Leukemia. He mentioned a dialogue with Bush in which Meacham began a sentence, "If you want to know someone's heart..." and Bush finished it by saying, "...you have to know what breaks it."
He also talked about the rise of "partisan news" and the nationalization of every level of politics as contributions to our current state and said that "evidence-based debate is the first step to sanity." He defended the U.S. Constitution, saying, "Given the evidence, I would rather have a Constitutionalist with whom I disagree [in charge] than someone who wants to eliminate the Constitution."
Meacham mentioned a couple of times that he could sense some members of the audience disagreed with him and probably dismissed him as a liberal, but he insisted that he believed in the Constitution rather than in one party or the other, and he hoped people would keep an open mind.
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Hits & Takes
John Lothian & JLN Staff
Is it Friday? The problem with holding a conference on Monday and Tuesday and staying up and networking (over cocktails and canapes) is that at the end of the conference it is Wednesday, not Friday. Also, as a result of the Monday-Tuesday conference, there was no gala dinner or Great Steak Out in honor of The Greater Chicago Food Depository. Instead, attendees and sponsors were just asked to make a donation to GCFD. I donated and I encourage you to as well. The EXPO and its participants have been supporting the GCFD and helping feed people in Chicago since 2008, helping to raise millions of dollars. There is great need, please be generous.
Yesterday, the FIA unveiled its selection for the FIA Innovator of the Year 2023, with ClearDox securing the top spot. In a close competition, CodeComplete AI emerged as the runner-up, while Cumulus9 claimed the People's Choice Award. These exceptional companies were part of a select group of ten participants in this year's Innovators Pavilion at FIA's Futures and Options Expo in Chicago. Since its inception in 2015, the Expo has consistently served as a platform to spotlight fintech startups, fostering a culture of innovation within the derivatives industry.
It was a good EXPO for the FIA, the industry and for JLN. There was good attendance, and because the cost of the EXPO hall passes was so high, and the numbers that each exhibitor received was limited, the quality of the participants was higher than in years past, exhibitors told me.
John Lothian News conducted 19 interviews at the EXPO, with Robby Lothian (USA) working the camera and getting increasing recognition from people in the industry following his participation in Boca and IDX this year on behalf of JLN. Sarah Rudolph sat in the interviewers chair for the first interview with CME's Suzanne Sprague and one of the last interviews with human resources professional and one-time JLN groupie Pat Lunkes (inside joke).
I want to thank the FIA for giving us space to be able to shoot our video interviews on the floor of the EXPO Hall again and for the gracious hospitality. I also want to thank all those participants who took the time to sit for interviews with us. A special thanks to Ellen Resnick of Crystal Clear Communications for her work wrangling her clients for interviews. I also want to thank Marcus Kwan for his hospitality and kindness at the Opening Reception hosted by CME Group.
Eight Republicans and all the Democrats present voted out House Speaker Kevin McCarthy yesterday and The Wall Street Journal editorial board summed it up well in a commentary titled "Republicans Cut Off Their Own Heads" with the subheading "A gang of eight ousts a Speaker with no plan or replacement in mind." There is an alternative perspective on the same theme provided by The New York Times. Michelle Cottle's commentary, prominently featured in the opinion section on the front page of the online edition, bears the attention-grabbing headline "House Republicans Are in a Driverless Clown Car."
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories yesterday on JLN Options were:
- Cboe and S&P launch 'credit Vix' indices as higher rates squeeze corporates from the Financial Times.
- Hedge funds using computers to sell up to $30 billion of stocks soon - UBS from Yahoo Finance.
- Europe's Volatile Gas Market Lures Traders From Far Afield from Bloomberg. ~JB
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| Sponsored Content |
Navigating Uncertainty: JPX Launches New Derivatives Amid Global Challenges
In a year shadowed by the Ukraine conflict, soaring inflation, environmental and geo-political crises, Japan Exchange Group (JPX) is fortifying its offerings with new derivatives products. This strategic move coincides with the 35th anniversary of Equity Index Futures trading in Japan, spotlighting the Nikkei 225 and TOPIX indices as enduring financial tools.
This milestone anniversary underscores the resilience of JPX's flagship products, which continue to offer investors risk-hedging opportunities amid geopolitical and economic volatility.
Nikkei 225 Micro Futures: Inflation Hedge
While the Nikkei 225 soars to new decade highs, JPX's newly launched Nikkei 225 Micro Futures cater to individual investors, offering a cost-effective way to navigate inflation and market volatility. The micronized contracts provide an accessible and affordable hedge against global economic unpredictability.
Nikkei 225 Mini Options: Geopolitical Risk Management
With geopolitical tensions in mind, JPX has introduced Nikkei 225 Mini Options. These instruments open risk management strategies to a broader audience, offering adaptability in a swiftly changing global landscape.
3-month TONA Futures: Addressing Rate Uncertainty
JPX's 3-month TONA Futures assist institutions in managing liquidity during an unstable interest rate environment. As TONA emerges as a key rate benchmark, these futures serve as a strategic tool for financial adaptability. The offering completes the already robust JGB futures and vibrant JSCC IRS markets, cross margin efficiencies across the whole fixed income playbook are available through the JSCC clearing house.
Futureproofing and ESG
JPX is also preparing to implement Value-at-Risk (VAR) clearing in November 2023, offering a best-in-class margining methodology to further unleash portfolio efficiencies for market participants.
To deliver our part to global ESG concerns, JPX has launched a carbon credit market under the TSE brand, this offering will complement the already actively trading TOCOM Power market in the future. These anticipatory measures ensure JPX stays aligned with global sustainability initiatives.
These product launches, along with the upcoming VAR clearing system, cement JPX's role as a resilient, forward-thinking player in the global financial landscape and to further stride to remain your exchange of choice!
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Author: Matthias Rietig, Senior Officer of OSE Contact: Osaka Exchange / Tokyo Commodity Exchange Derivatives Business Development E-mail: ose-dmg@jpx.co.jp |
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House vote to oust McCarthy could mean 'weeks' of chaos and higher odds of shutdown
Ben Werschkul - Yahoo Finance
A small group of far-right Republicans responded to last weekend's shutdown deal by ousting House Speaker Kevin McCarthy on Tuesday, the first time a lawmaker revolt has successfully ousted a House speaker in American history. "The office of speaker of the House ... is hereby declared vacant," announced Rep. Steve Womack (R-Ark.). The effort was led by Rep. Matt Gaetz (R-Fla.), who voted yes on the resolution and was joined in the effort by seven additional Republicans and 210 House Democrats to cap a raucous day on Capitol Hill. The historic maneuver - formally known as vacating the chair - hadn't been tried in over 100 years.
/jlne.ws/3rBEzfw
****** I am sure the markets and the Ukranians will be understanding while the Republicans work this out.~JJL
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No One Wants to Remember 1987. Then There's 1916; Comparison for bond yields bear a scarily unwelcome resemblance to 36 years ago. Meanwhile, Japan tries a Verdun strategy.
John Authers - Bloomberg
1987 And All That. In financial circles, comparisons to 1987 are never welcome. The Black Monday crash in October of that year is still the single most terrifying day in market history; any suggestion that current circumstances are at all like the early months of 1987 is a little scary. So it's disconcerting to find three references to that inauspicious year in my email inbox.
/jlne.ws/46hwBXV
****** I still can't forget 1987, it is still in my nightmares.~JJL
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Generative AI gaining traction in derivatives markets; Panellists at FIA Expo discuss how they are using AI
Kirsten Hyde - FIA
The use of artificial intelligence in derivatives markets was a key theme at FIA's Expo conference on 2 October with speakers sharing how they are exploring potential uses for generative AI as well as demonstrating current applications in trading and clearing. In the first AI panel of the day, speakers discussed the practical issues that firms should consider as they begin experimenting with generative AI tools and models. Setting the scene, Erin Stanton, global head of analytics client coverage at Virtu Financial, explained the difference between generative AI - or Gen AI - and traditional machine learning. "Traditional machine learning is what I call 'discriminative AI'. It looks for patterns and trends within data it is trained on and makes predictions from those patterns," Stanton said. "Generative AI refers to models or algorithms that create something new. For example, you can use it to help you draft an email. You can use it to ideate on a marketing slogan, or you can use it to help you generate Python code. Discriminative AI is looking for patterns in data, generative AI is more creative."
/jlne.ws/3PK9huS
****** Great to have FIA coverage of their panels. People who understand the issues writing summaries are a valuable thing, even if it is not independent journalism.~JJL
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Tuesday's Top Three
Our top story Tuesday was our JLN video interview with Sam Bankman-Fried from the 2021 FIA Expo, Sam Bankman-Fried Says FTX Won't Follow the Crypto Crowd, back when things were completely different. Second was The Streetwise Professor's (Craig Pirrong's) Come On Down! And Will the Last Business in Chicago Turn Off the Lights? Thanks, which was our top story Monday. Third was The Wall Street Journal's You Can Now Invest in 'Shrek' Music Rights the Same Place You Buy Stocks.
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| Lead Stories | Cboe and S&P launch 'credit Vix' indices as higher rates squeeze corporates; Launch of four indices is attempt to replicate success of 'fear gauge' for stocks in credit markets
Nicholas Megaw and Harriet Clarfelt - Financial Times
Volatility indices linked to US and European corporate bonds will debut next week as highly indebted companies and their lenders attempt to navigate an environment of drastically higher interest rates. The four "credit Vix" indices, which have been developed by exchange operator Cboe Global Markets and benchmark provider S&P Dow Jones indices, will track volatility expectations over the following month in US and European investment-grade and high-yield markets.
/jlne.ws/3tnmFxs
Ether futures ETFs fizzle on US debut; The nine ETFs saw combined trading volume of $6.6mn on Monday - attracting only a fraction of BITO's $1bn initial haul
Steve Johnson - Financial Times
The hotly anticipated rollout of exchange traded funds linked to ether, the world's second-largest cryptocurrency, in the US has turned into a damp squib, with modest investor interest. Nine ETFs holding futures contracts based on ether - the token of the Ethereum blockchain on which most "smart contracts" are written - debuted on the same day after regulators expedited the approval process to sidestep a potential US government shutdown, now averted.
/jlne.ws/3tiBDFb
The World's Dollar Addiction Is Hard to Kick; Though the share of global foreign-exchange reserves in U.S. dollars remains near a 25-year low, there is little sign of rapid de-dollarization
Jon Sindreu - The Wall Street Journal
Many central banks and governments around the world want to kick their dollar addiction. They aren't getting very far-except when forced. The percentage of official foreign-exchange reserves allocated to U.S. dollars globally was 58.9% in the second quarter of the year, figures published a few days ago by the International Monetary Fund show, broadly unchanged from the 25-year-low first reached in the fourth quarter of 2020.
/jlne.ws/3tbaZxO
Hong Kong exchange set to launch settlement acceleration platform; The Stock Connect development is aimed at standardising and streamlining post-trade workflows, enhancing operational efficiencies and transparency whilst reducing settlement risks.
Jonathan Watkins - The Trade
Hong Kong Exchanges and Clearing Limited (HKEX) will launch its highly anticipated settlement acceleration platform for Stock Connect on Monday 9 October. First announced back in 2020 the platform uses DAML smart contracts to standardise and streamline post-trade workflows, enhancing operational efficiencies and transparency whilst reducing settlement risks.
/jlne.ws/3Q0wquy
When Caroline Ellison Met Sam Bankman-Fried; In an exclusive excerpt from his new book 'Going Infinite,' Michael Lewis offers an intimate look at the tumultuous early days of the relationship between the two figures at the center of the fraud trial over the collapse of FTX.
Michael Lewis - The Wall Street Journal
It took only a couple of weeks of working for Sam Bankman-Fried before Caroline Ellison called her mother and sobbed into the phone that she'd made the biggest mistake of her life. She'd first met Sam at Jane Street Capital, the high-frequency Wall Street trading firm where he worked after graduating from MIT, in the summer of 2015, before her senior year at Stanford. He'd been assigned to teach her class of interns how to trade. "I was kind of, like, terrified of him," she said.
/jlne.ws/3PPnUxk
Crypto Could Be a Mystery to Jurors in Bankman-Fried Case; Jurors might know little about digital currency, raising strategic questions for prosecution and defense
James Fanelli and Corinne Ramey - The Wall Street Journal
When jurors size up FTX founder Sam Bankman-Fried for the first time, they might not know much about the world of cryptocurrencies. The prosecution and defense each could try to use that to their advantage. Jury selection began Tuesday in the criminal case against Bankman-Fried, 31, who is on trial for a series of actions that allegedly led to the abrupt meltdown of the FTX crypto exchange last year.
/jlne.ws/3PKWtEL
Bankman-Fried trial could help 'set up the new rulebook' for crypto: Expert
Angel Smith and Julie Hyman - Yahoo Finance
FTX (FTT-USD) founder Sam Bankman-Fried's criminal trial began Tuesday morning in New York City with jury selection. Bankman-Fried faces up to life in prison on seven counts of fraud and conspiracy for which he has pleaded not guilty. According to Partner at Delta Blockchain Fund Kavita Gupta, Bankman-Fried's trial will help "set up the new rulebook" for an industry she claims suffers from a lack of "trust."
/jlne.ws/45gOuF9
Sam Bankman-Fried Lost Half a Million Dollars Everyday After Alameda Launched, Michael Lewis Claims
Shaurya Malwa - CoinDesk
Millions of dollars from the first-ever tranche of funds raised by Sam Bankman-Fried were almost lost after trading firm Alameda Research initially started in 2017, author Michael Lewis claimed in his biography of Bankman-Fried "Going Infinite." Bankman-Fried raised nearly $170 million from a set of investors ascribing to the 'Effective Altruism' community - a network of people who try to find the best ways to serve the community, usually by donating or funding causes.
/jlne.ws/3Q1VOz1
Sam Bankman-Fried sports new haircut as trial continues after slow start
Victoria Bekiempis - The Guardian
Sam Bankman-Fried's cryptocurrency fraud trial entered its second day on Wednesday morning, with additional jury selection set to begin at the Manhattan federal court. Bankman-Fried, founder of the now-fallen cryptocurrency exchange FTX and its sister hedge fund, Alameda Research, is charged with a host of financial crimes surrounding the shocking implosion of his companies late last year.
/jlne.ws/3tgvZTY
The Collapse of FTX, in Sam's Own Words
Danny Nelson, Nikhilesh De - CoinDesk
We may not know for weeks whether Sam Bankman-Fried will take the stand at his own trial. He may want the chance to explain himself to the jury, but his lawyers are surely wary of the withering cross-examination such a tactic would invite. No matter: the unconventional former crypto executive has already said - publicly - plenty about what went down in FTX's final days.
/jlne.ws/3PDypnf
Blackstone funds legal action over soured Bain Capital deal; US buyout firm foots bill for lawyers to assess potential claim against rival over EUR200mn loan loss
Will Louch and Robert Smith - Financial Times
Blackstone is paying for a law firm known for high-stakes litigation to investigate whether it can recoup losses of more than EUR200mn on a loan to rival buyout shop Bain Capital. The $1tn US firm is footing the bill for Pallas Partners to assess whether Blackstone can bring claims against Bain Capital and other parties over the 2020 collapse of Italian tyremaker Fintyre, according to people familiar with the matter.
/jlne.ws/3Q5a9ff
Hedge funds Millennium and Schonfeld in advanced partnership talks; War for talent heralds the largest tie-up of its kind between multi-managers
Ortenca Aliaj and Harriet Agnew - Financial Times
Millennium Management is in advanced talks to put billions of dollars to work with smaller rival Schonfeld Strategic Advisors, according to people familiar with the situation, in a partnership deal that would mark the largest of its kind in the $4tn global hedge fund industry.
/jlne.ws/3PKbW7S
COP28 chief urges energy groups to prepare for fossil fuel 'phase down'; Head of Abu Dhabi National Oil Company pushes for investment in decarbonisation
Attracta Mooney and Simeon Kerr - Financial Times
Sultan al-Jaber, president-designate of this year's UN climate summit, said the oil and gas industry must prepare for an inevitable "phase down" of fossil fuels as he warned the sector should not be seen to work against decarbonisation efforts.
/jlne.ws/45i5jPO
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | The return of American isolationism
Edward Luce - Financial Times
Volodymyr Zelenskyy says there is no "expiration date" on Ukraine's willingness to fight Russia. But it is becoming increasingly hard to ignore the potential shelf life of America's support for his cause. Matt Gaetz, the ultra-Maga lawmaker who led the move on Tuesday to eject Kevin McCarthy as Republican Speaker, cited an alleged secret side deal McCarthy made with Joe Biden to keep funding Ukraine. This was in spite of the fact that McCarthy had struck $6bn in Ukrainian aid from last weekend's deal to keep the US government open. It capped a bleak few days for Zelenskyy. Even assuming the next Speaker is sympathetic to Ukraine, they would be in an even weaker position than McCarthy.
/jlne.ws/3RKnxX6
Poland's Grain Dispute With Ukraine Is Helping Putin; A flood of imported agricultural products threatens Eastern Europe's farmers. The EU should do more to cushion the blow.
The Editorial Board - Bloomberg
Poland's military and economic support is indispensable to Ukraine's defense against Russian aggression. That partnership has been imperiled by the Polish government's insistence on banning Ukraine's grain exports, which are essential both for the global food supply and for the Ukrainian economy. By widening divisions among allies, the dispute is playing directly into Vladimir Putin's hands. Europe's leaders need to act quickly to resolve it.
/jlne.ws/3ZJ25E2
Russia's Diesel Exports Fell Sharply in Days After Ban; Total oil product shipments still rose by 7% last month; Moscow eased restrictions after original announcement
Prejula Prem - Bloomberg
Russia's overseas shipments of diesel slumped sharply in the initial days after Moscow banned exports, data from a shipping analytics firm show. There had been some trader skepticism about how aggressively Russia would enforce a measure that could deprive the world of one of the key sources of the automotive and industrial fuel.
/jlne.ws/46xkUw7
Oligarchs are losing out as Putin courts a new class of loyal asset owners; Russia's war in Ukraine has redrawn the old deal, driving state-led seizures of lucrative enterprises
Alexandra Prokopenko - Financial Times
Russian president Vladimir Putin's recent assurances that "there will be no de-privatisation" are as mendacious as his repeated promises not to invade Ukraine. The authorities have moved to seize control of 17 large enterprises this year alone, according to Ilya Shumanov, the former head of Transparency International Russia.
/jlne.ws/3Q3Z6mz
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | HKEX climate disclosure policy to enhance ESG data quality
Shusi He - Asian Investor
The Hong Kong Stock Exchange's adoption of the ISSB's climate reporting standards is expected to improve ESG disclosures and provide clear and consistent insights into climate risks and opportunities.
/jlne.ws/3F9wt0F
JSE Virtual Trading Game attracts Over 8000 participants in 2023
Johannesburg Stock Exchange
The Johannesburg Stock Exchange (JSE) is pleased to announce the winners of the third annual Virtual Trading Game (VTG). The winner of the Speculator Portfolio is Avuzwa Mphithi from the Western Cape, with Ivone Stanley from Gauteng taking top honours in the ETF/ETN Portfolio. The winners will take home R60 000 each. The winners were announced at the 4th "Ring the Bell for Financial Literacy", a campaign initiated by the World Federation of Exchanges (WFE) in partnership with the International Organisation of Securities Commissions (IOSCO) in support of World Investor Week (WIW). WIW is a global campaign aimed at raising awareness about the importance of financial literacy and to promote investor protection.
/jlne.ws/46vhMS1
BME celebrates Financial Literacy Day with webinars on inclusive finance and a new academic study
BME
Instituto BME, the BME training center where 135.000 students have studied since its creation, hosts three webinars on financial education for people with disabilities. The study by two researchers from the University of Oviedo promoted by BME, highlights the key role of financial knowledge for domestic economies
For yet another year, BME joins the celebration of Financial Literacy Day, an initiative in which it has participated since it was created in 2015 and which dedicates the first Monday of October to raising awareness of the importance of financial knowledge in our daily lives.
/jlne.ws/3RLsorc
HKEX Launches Synapse, A Settlement Acceleration Platform For Stock Connect
Hong Kong Exchanges and Clearing
Market efficiency and transparency for Northbound Stock Connect participants enhanced by automating and streamlining post-trade operations; Latest Stock Connect development enabling international investors to better manage their post-trade operations across different time zones. Hong Kong Exchanges and Clearing Limited (HKEX) is today (Wednesday) pleased to announce the launch of HKEX Synapse, a new integrated settlement acceleration platform that utilises the latest technology to deliver greater market efficiency and transparency. Synapse is the latest enhancement to Stock Connect, the unique mutual market access programme that connects Mainland Chinese markets with those in Hong Kong. Synapse will launch on 9 October 2023, and will deploy DAML smart contracts to standardise and streamline post-trade workflows, enhancing operational efficiencies and transparency whilst reducing settlement risks.
/jlne.ws/3F52p6o
Intercontinental Exchange Reports September and Third Quarter 2023 Statistics
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, today reported September 2023 trading volume and related revenue statistics, which can be viewed on the company's investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet. "The growth in volumes and open interest, particularly across oil and natural gas where TTF had a record third quarter, reflects the strength of our energy franchise, the leadership of ICE's global energy benchmarks, and the success of Midland WTI becoming part of the Brent basket," said Ben Jackson, President of ICE.
/jlne.ws/3toKKE8
EPEX SPOT Press Release - Monthly Power Trading Results of September 2023
EEX
A total volume of 61.5 TWh was traded on EPEX SPOT markets in September 2023 (September 2022: 48.8 TWh). This represents an overall increase of 25.9% on year.
/jlne.ws/46iUtdS
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Atos Names Accenture's Bernaert as CEO Ahead of Planned Split; Bernaert will lead Atos's split up and transformation plan; Eviden CEO Oliva will depart at the end of a transition period
Benoit Berthelot - Bloomberg
Atos SE named Yves Bernaert as its new chief executive officer to lead the embattled French IT group through its planned split, effective immediately. Bernaert, 55, who previously led Accenture Technology's European business for nine years, will be in charge of the group's turnaround plan, Atos said. That includes splitting off and selling the legacy IT outsourcing business, and managing talks with billionaire bidder Daniel Kretinsky.
/jlne.ws/46iMnSw
FILS Europe 2023: 'Unevenness' of T+1 across markets will have challenges for institutions; With the US set to transition to T+1 settlement in May next year, panelists discussed the impacts it would have on UK and EU markets as well as the challenges associated with following suit with the US.
Wesley Bray - The Trade
In Tuesday's keynote regulatory panel at the Fixed Income Leaders Summit 2023, speakers discussed the best ways to adapt desks to efficiently meet new industry standards and diverging regulatory requirements, with the US' transition to T+1 coming to the forefront of the discussion. The looming shift to T+1 settlement globally in recent years has represented an almost inevitable evolution of market structure in the never-ending search for efficiencies and risk reduction.
/jlne.ws/3ZITzET
LiquidityBook acquires Messer to boost multi-asset capabilities; Alongside the transaction, LiquidityBook's LBX suite has become a full-featured portfolio, order and execution management system (POEMS).
Claudia Preece - The Trade
LiquidityBook is set to acquire boutique capital markets fintech provider, Messer Financial Software, in a bid to accelerate its multi-asset capabilities. As part of the acquisition, Bryan Messer has been appointed general manager of Asia Pacific, managing director of portfolio management solutions and artificial intelligence at LiquidityBook, with his staff also joining. In addition, the accounting and reconciliation engines of Messer Financial Software will be integrated.
/jlne.ws/45jBkr5
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| Cybersecurity | | Top stories for cybersecurity | Cybersecurity news: FBI warns of dual ransomware threat
Akshay Joshi - World Economic Forum
The Federal Bureau of Investigation (FBI) is warning companies in the United States to be alert to the risk of dual ransomware attacks, in which the same organization is targeted more than once in quick succession. The warning came in an FBI private industry notification dated 27 September 2023: "The FBI noted a trend of dual ransomware attacks conducted in close proximity to one another. During these attacks, cyber threat actors deployed two different ransomware variants."
/jlne.ws/46DBJpl
Okta Launches Cybersecurity Workforce Development Initiative to Help Close the Tech and Cybersecurity Skills Gap
Press Release
Okta, Inc. (NASDAQ:OKTA), the leading independent identity partner, today announced the launch of a new initiative focused on finding and developing the best cybersecurity talent and providing equitable access to thriving careers in technology. Okta is committed to investing in two key areas, the first being $1.6 million in philanthropic grants out of the Okta for Good Fund, a donor-advised fund held at Tides Foundation, for organizations around the globe providing tech career opportunities for women, people of color, veterans and other jobseekers from underrepresented communities. The second is made up of 5,000 educational grants to unemployed professionals looking to make a career transition to cybersecurity by growing their Okta skills. The program focuses on veterans, military spouses, and tech workers impacted by recent lay-offs.
/jlne.ws/3Q390Vk
#CybersecurityAwarenessMonth: Six Steps to Build a Positive Security C
Fred Kwong - Infosecurity Magazine
It has been proven repeatedly that people are the weakest link when it comes to an organization's efforts to prevent cyber-attacks that lead to costly data breaches. In fact, 74% of all breaches involve the human element - people unwittingly falling prey to threat actors either by way of error, privilege misuse, stolen credentials or social engineering, according to Verizon's 2023 Data Breach Investigations Report.
/jlne.ws/45e58Fj
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| Cryptocurrencies | | Top stories for cryptocurrencies | Sam Bankman-Fried Sues His Insurer as Legal Bills Mount
Jack Schickler - CoinDesk
Crypto tycoon Sam Bankman-Fried has sued his insurance provider, CNA, for allegedly failing to pay legal costs linked to his defense against fraud allegations.
/jlne.ws/3ZOzayn
TV's Kevin O'Leary: 'All the Crypto Cowboys Are Going to Be Gone Soon'
Sam Reynolds - CoinDesk
Kevin O'Leary, the Canadian entrepreneur and television personality who reportedly served as a paid spokesperson for the now-collapsed FTX exchange, thinks the era of what he calls "crypto cowboys" is waning as the industry shifts to being regulated.
/jlne.ws/46hQPkm
SEC's Motion to Appeal Loss in Ripple Case Is Denied
Nikhilesh De - CoinDesk
A federal judge has rejected the U.S. Securities and Exchange Commission's bid to appeal its ground-shaking loss against Ripple, the crypto company associated with the XRP token. XRP's price rallied about 5% on the news. District Judge Analisa Torres said in a brief ruling Tuesday that the SEC had failed to meet its burden under the law to show that there were controlling questions of law or that there are substantial grounds for differences of opinion.
/jlne.ws/3tixykl
Sam Bankman-Fried's brother tried to buy an island for one strange reason
The Street
The trial of Sam Bankman-Fried, the disgraced former CEO of the since-collapsed cryptocurrency trading platform FTX, began Oct. 3 with the selection of a Manhatten jury. FTX filed for Chapter 11 bankruptcy in November of last year. Several FTX executives, including two co-founders Nishad Singh and Gary Wang, have pleaded guilty to fraud charges and agreed to cooperate against Bankman-Fried.
/jlne.ws/3RIBqVS
Expect crypto bankruptcy revelations as Sam Bankman-Fried trial begins; New details about billion-dollar crypto industry implosions, from FTX to Three Arrows Capital and more, will surface during the trial.
The Street
As disgraced crypto billionaire Sam Bankman-Fried faces conviction for his alleged role in mismanaging $8 billion in FTX customer funds, the six-week proceedings are likely to touch on a broad range of significant crypto industry meltdowns from last year, all connected to the notorious founder.
/jlne.ws/46eklY9
Jump Trading Lost Almost $300M in FTX's Collapse, Michael Lewis Says in 'Going Infinite'
Krisztian Sandor - CoinDesk
/jlne.ws/3tk3FjC
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| Politics | | An overview of politics as it relates to the financial markets | Crypto-Friendly Congressman McHenry Temporarily Takes Over U.S. House
Jesse Hamilton - CoinDesk
Crypto-friendly Rep. Patrick McHenry (R-N.C.) has landed in the driver's seat of the U.S. House of Representatives just as legislation to establish digital-asset regulations nears a finish line there. While House Republicans seek a permanent replacement for their just-ousted Speaker of the House Kevin McCarthy (R-Calif.), McHenry will serve as McCarthy's temporary replacement. The chairman of the House Financial Services Committee has been hard at work since last year on a number of crypto bills, and having McHenry in a leadership role over the entire House can't hurt their progress.
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EU estimates Ukraine entitled to EUR186bn after accession; Internal calculations suggest farm subsidies would fall 20% following enlargement to nine new member states
Henry Foy - Financial Times
Ukraine's accession to the EU would entitle Kyiv to about EUR186bn over seven years, according to internal estimates of the union's common budget, turning "many" existing member states into net payers for the first time.
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EU lawmakers back new climate chiefs despite delays to green agenda; MEPs confirm Maros Sefcovic as Green Deal commissioner and Wopke Hoekstra as climate commissioner
Andy Bounds and Alice Hancock - Financial Times
EU lawmakers have approved the new heads of the bloc's climate policy despite one of the candidates confirming delays in the adoption of important environmental laws. European Commission vice-president Maros Sefcovic is set to take over the co-ordination of laws under the bloc's Green Deal plan, which aims to achieve net zero emissions in Europe by 2050. Wopke Hoekstra, the former Dutch foreign minister, will be the new climate commissioner, said Pascal Canfin, chair of the parliament's environment committee, which held hearings with the two candidates earlier this week.
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India's Media Arrests Put Washington in an Awkward Spot; Asian country detains staff of publication critical of Modi; Minister says India doesn't need to justify the arrests
Swati Gupta - Bloomberg
India's latest media crackdown puts the US in an awkward position as it seeks to balance promotion of human rights with courting New Delhi to counter the influence of China. Police in the South Asian country's capital arrested the editor-in-chief and another employee of online newspaper NewsClick Tuesday under sweeping anti-terrorism laws. Authorities also raided the offices of the publication, without giving a reason.
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| Regulation & Enforcement | | Stories about regulation and the law. | One in Three Indian Investment Advisers Are Not Registered, Market Regulator Says
About 35% of investment advisers still not registered: Buch
Sebi chief seeks lobby groups' help in tackling malpractices
Ashutosh Joshi - Bloomberg
More than one out of every three investment advisers in India are giving guidance to small investors on equity and debt transactions without registering themselves with the country's capital market regulator as required by law. "There are large numbers, 35% of investment advisers still not registered," Madhabi Puri Buch, chairman at the Securities and Exchange Board of India, said at an industry event in Mumbai Wednesday. She added that the regulator is powerless as many people who provide research and advice to investors have chosen to ignore basic compliance of having themselves registered.
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US to incentivise companies to report misdeeds at businesses they buy; New Department of Justice enforcement policy will encourage more disclosure of potential misconduct
Stefania Palma - Financial Times
Companies that disclose misconduct committed by businesses they are buying will not face charges under a new enforcement policy from the US Department of Justice that seeks to tackle "a new era" of national security threats arising from corporate malfeasance.
/jlne.ws/3ZWPai5
SEC Shuts Down Zera Financial LLC Offering Fraud
SEC
The Securities and Exchange Commission obtained an emergency order to halt an alleged ongoing offering fraud and Ponzi-like scheme by Zera Financial LLC (Zera) and its owner, Luis A. Romero, who have raised more than $2.2 million from about 170 investors.
/jlne.ws/3tgdKhn
FINRA's Maintaining Qualifications Program Second Enrollment Period Open Through December 2023
FINRA.org
FINRA's Maintaining Qualifications Program (MQP) is currently open for eligible individuals during a second enrollment period, until December 31, 2023. The second enrollment period is available to those who terminated their registration between March 15, 2020, and March 14, 2022.
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Emerging Market Bond Yields Are Sending a Worrying Signal; Sovereign yields surge amid Treasury selloff on Fed jitters; Yield anomaly earlier seen during 2008 crisis, 2020 Covid rout
Srinivasan Sivabalan - Bloomberg
A rare anomaly seen during times of extreme stress has returned to emerging markets. The slump in US Treasuries this week has exacerbated a selloff in developing-nation debt, sending the yield on bonds in the Bloomberg EM Aggregate Sovereign Index to a one-year high of 8.93% on Tuesday. That exceeded the earnings yield of 8.63% on stocks in the equities benchmark, the MSCI Emerging Markets Index.
/jlne.ws/3RFtQvf
The bond vigilantes are back; Markets are challenging Janet Yellen's policies by raising bond yields to levels that threaten to create a debt crunch
Edward Yardeni - Financial Times
I graduated from Yale University's PhD programme in economics six years after Janet Yellen did so in 1971. We both studied under Nobel laureate Professor James Tobin. Nevertheless, she is a liberal and I am a conservative when it comes to economic policymaking. I coined the phrase "bond vigilantes" four decades ago. Now, as the US Treasury secretary, Yellen should be very worried that the vigilantes will upend the best-laid plans of her boss, president Joe Biden, which she wholeheartedly endorsed and promoted.
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Why investors should hold companies burning cash; Those seeking only groups with strong cash flows have missed out, as Rolls-Royce's share register shows
James Henderson - Financial TImes
At a wedding recently I heard a best man's speech that was the result of him searching the internet for good best man jokes. Or maybe he had used ChatGPT. Either way, it was dreadful. Listening to it in some pain - "even the cake was in tiers" - I was reminded how I sometimes feel at investor conferences as fund managers explain their investment process.
/jlne.ws/3tgBBO2
FILS Europe 2023: Human traders still hold the cards amid continued automation; Panellists argued artificial intelligence is "just a tool" to be wielded by humans; said future success in fixed income is centralised around traders armed with explainable data strategies.
Annabel Smith - The Trade
Data and automation were unsurprisingly central to Tuesday's Fixed Income Leaders Summit Europe 2023 panel exploring the direction of travel for market structure in fixed income for the coming years. The fixed income markets have undergone a total transformation as of late, with more volumes than ever being executed electronically, particularly for smaller sized flow. Behind many of the electronification and automation initiatives brought to market is the growing supply of data available to both the sell-side and now increasingly the buy-side.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | The ultra-rich are not just the worst polluters-their donations to climate action are also another way of hoarding money and gaming the system
Alan Davis - Fortune
Everyone should know that we're heading to a climate disaster that can best be modified by immediate actions addressing the causes. But it doesn't appear that the excessively rich are feeling the heat and stepping up to the plate. Their philanthropic foundations announce commitments to fight climate change but in reality, they are building up endowments to save for the future. Over $200 billion are sitting in donor-advised funds and over $1.3 trillion in private foundation endowments. Charitable giving to fight climate change, estimated by the ClimateWorks Foundation at $7.5 billion last year, is only 0.5% of the money sitting in private foundations and donor-advised funds-and amounts to about 0.04% of the assets of the ultra-rich.
/jlne.ws/3LJ549N
Pope urges rich world to make profound changes to tackle climate crisis; Francis also defends climate protesters and calls on governments to make Cop28 in Dubai a turning point
Fiona Harvey - The Guardian
Pope Francis has said the rich world must make profound changes to tackle the climate crisis, while defending climate protesters and urging governments to make the forthcoming Cop28 climate summit a turning point. He called for "a decisive acceleration of energy transition" from fossil fuels to renewables, but cautioned against relying on new technology such as carbon capture and storage, which he said was "like pushing a snowball down a hill".
/jlne.ws/3F7Xamo
Climate change leads homebuyers to seek a place not in the sun; As temperatures in southern Europe become too uncomfortable, many are looking north
Zoe Dare Hall - Financial Times
Digital entrepreneur Denys Chalumeau and his wife have just made a permanent move from Aix-en-Provence in southern France to northern Brittany because they could no longer stand the intense heat. In Aix - where summer temperatures regularly reach 35C - life started to become "uncomfortable, unless you lived locked in with air conditioning", says Chalumeau. He sold his house there for EUR2mn and has spent EUR500,000 on the new Breton property, "which we are making as self-sufficient as possible, with wood heating, a vegetable garden, chicken coop and a lifestyle that, as far as possible, is local and carbon-free."
/jlne.ws/3ta2dA7
Countries pledge to raise $12 billion to fund coral reef protection
David Stanway - Reuters
An alliance of nations said on Tuesday members would raise $12 billion to protect coral reefs from threats such as pollution and overfishing, but experts warned the funding would only be a drop in the ocean unless broader climate risks are addressed. The International Coral Reef Initiative (ICRI) said it would secure public and private investment to help conserve and restore coral ecosystems, which sustain a quarter of the world's marine species and more than a billion people.
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In-depth Q&A: What food waste means for climate change
Orla Dwyer - Carbon Brief
Wasted food - if it were a country - would be the third largest source of greenhouse gas emissions in the world, according to the UN's Food and Agriculture Organization. Reducing food waste can help to cut down on these emissions, feed those who are hungry and improve food security. Food waste experts tell Carbon Brief that "food loss and waste" remains a "major issue".
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Apple Goes a Step Too Far in Claiming a Carbon Neutral Product, a New Report Concludes; The maker of the iPhone is a leader in efforts to reduce the climate impact of its products, but a recent claim about its new line of Apple Watches may be "climate-wash," a Chinese environmental research organization says.
Phil McKenna - Inside Climate News
Apple's recent announcement of its first-ever "carbon neutral" product was questioned in a new report by a Chinese environmental research organization that gathers and tracks data on greenhouse gas emissions from China's manufacturing sector, which makes the majority of Apple products. As part of a high profile environmental campaign including a 5-minute video featuring an approving "Mother Nature" played by actress Octavia Spencer, Apple announced on Sept. 12 that its new Apple Watch was carbon neutral, meaning its production does not contribute to climate change.
/jlne.ws/48CNIFm
COP28 chief urges energy groups to prepare for fossil fuel 'phase down'
Attracta Mooney and Simeon Kerr - Financial Times
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New $375 Million Venture Fund Will Back Biodiversity-Focused Startups; At One Ventures has plans to invest in companies working on the biodiversity and pollution crises.
Michelle Ma - Bloomberg
/jlne.ws/3tkm1RH
Dominion Energy Sets Ambitions on Second Massive US Offshore Wind Farm; Construction of first project off Virginia to start next year; Company has already set sights on second such project in area
Will Wade - Bloomberg
/jlne.ws/3tctzFM
Germany Brings Back Mothballed Coal Plants to Help Keep Lights On; Three plants from RWE and LEAG in stand-by to be switched on; Measure should help nation save gas, economy ministry says
Petra Sorge - Bloomberg
/jlne.ws/3RICt8g
Commission proposes list of principles to boost cycling across Europe
European Commission
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Barclays, StanChart Plan Bankers' Return to COP28 Climate Summit; Big-name finance chiefs are expected to turn out in force at COP28.
Alastair Marsh - Bloomberg
Big-name finance chiefs are expected to turn out in force at COP28. The world's top bankers and investors mostly stayed away from last year's United Nations climate conference in the Egyptian resort town of Sharm El-Sheikh. But holding December's COP28 meeting in Dubai, one of the world's major financial centers, pretty much guarantees they'll make a much bigger showing.
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | It Is Time to End the War on Remote Work; Leaders are in a losing battle with their employees over office attendance.
Gabe Burke - US News & World Report (commentary)
Corporate leaders and their employees are in a fight for the soul of the workplace. For many of us, the outcome will define our work life for decades. Related: Focusing on Skills and Flexibility Can Help Job Seekers Stand Out Since the pandemic began, many employees have relied on remote work to perform their jobs. But employers have applied steady and increasing pressure to do more work in the office, fueled by a belief that employees work more effectively when they're physically present. There is little objective data to support their position, but it remains strongly held by many. As a result, companies continue to bludgeon their workers with return-to-office (RTO) mandates. And those affected by them continue to fight back.
/jlne.ws/3Q3dyuS
A four-day work week would destroy everything that made America great
Liberty Vittert, Opinion Contributor - The Hill Opinion
For some people, the four-day work week is the new dream. This measure, supposedly a panacea for employee satisfaction, even found its way into the United Auto Workers' demands in their contract talks. Liberal bastions such as Massachusetts and California have pushed bills upon businesses to adopt a four-day work week. We may not see it yet, but this measure threatens to undo everything that made our nation's current prosperity possible.
/jlne.ws/3ZEOvS8
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Moderna reports trial success for dual Covid and flu vaccine; Combined jab as effective as separate shots in early-stage tests
Hannah Kuchler - Financial Times
Moderna's combined Covid and influenza vaccine was as effective as separate shots in an early stage trial, giving the US biotech company hope that the more convenient way of protecting against the diseases could be approved by 2025.
/jlne.ws/3PzN5DC
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | The Taste of Home in a Grain of Rice
Lisa M. Hamilton - The New York Times
Throughout September, Ia's phone rings off the hook. "What is it?" she answers. But she already knows. The rest of the year, her customers are satisfied with rice from the store. In autumn, though, people call day and night for the chance to buy the rice that she grows.
/jlne.ws/46Brlyd
Sri Lanka aims to streamline tax structure, boost collections
Uditha Jayasinghe - Reuters
Crisis-hit Sri Lanka will focus on improving tax collection to reduce budget deficits as it streamlines the structure of the tax system, the treasury secretary said on Wednesday, with new legislation planned to improve public finances. The steps follow comments by the International Monetary Fund, which blamed an expected shortfall in government revenue generation for its failure to reach a staff-level pact with Sri Lanka after a $2.9-billion bailout package in late September.
/jlne.ws/3top8aW
Bank of Japan buys $12.7bn of bonds as yields hit highest in a decade
Leo Lewis, Hudson Lockett and William Langley - Financial Times
Japan's central bank made unscheduled purchases of government debt on Wednesday as yields on benchmark bonds hit their highest mark in a decade, while a global market sell-off also continued to drive US Treasury yields to 16-year highs. The Bank of Japan offered to buy ¥675bn worth of Japanese government bonds at maturities between five and 10 years. The BoJ's offer was part of a total ¥1.9tn ($12.7bn) of JGB purchases across various maturities on Wednesday. The unscheduled part of the offer greatly exceeded market expectations, traders said.
/jlne.ws/45nmG1H
Saudis to Stick With 1 Million-Barrel Oil Supply Cut For Now; Output curbs total more than 1 million barrels per day; Monitoring committee doesn't recommend any policy changes
Grant Smith and Salma El Wardany - Bloomberg
Saudi Arabia and Russia reaffirmed that they will stick with oil supply curbs of more than 1 million barrels a day until the end of the year as a rally in prices falters. The leaders of the OPEC+ coalition announced the plans in separate official statements on Wednesday. Riyadh has slashed crude production by 1 million barrels a day, and Moscow is curbing exports by 300,000 a day, on top of earlier cuts made with fellow OPEC+ nations.
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| Miscellaneous | | Stories that don't quite fit under the other sections | How to look rich; Perform ease - but get the details right
Robert Armstrong and Lauren Indvik - Financial Times
The rich, as everyone knows, don't try to look rich. Real money has nothing to prove and no one left to impress. It is comfortable. It wears what it likes. There may have been a time when the tippy-top of the wealth pyramid had a distinctive look. Now it's trainers in the boardroom and shorts for the $750 prix fixe dinner at Masa. So we are told, anyway. It's half true, at best. Tech zillionaires, Hollywood moguls, blue bloods of the Martha's Vineyard waterfront, double-barrelled British gentry, oligarchs, King Salman's assorted cousins. They have their own moments of insecurity, and images they take care to project. The status game never ends in total victory.
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