| October 18, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
A former director of the CFTC's Division of Swap Dealer and Intermediary Oversight, Matt B. Kulkin, who had recently been at Steptoe & Johnson LLP as a partner and co-chair in their Financial Services Practice Group, has joined WilmerHale. He joins the firm as a partner and member of its securities and financial services group. He will lead WilmerHale's futures and derivatives practice.
When you sell option premiums, you collect the cash and hold on to it if the option expires out of the money and the long holder of the option does not for some reason exercise it. I have seen this happen. Anyway, option sellers can accumulate weeks, months and years of premiums until that one day when the options they sold explode and are suddenly strongly in the money. The sellers end up losing money on those options, giving back accumulated premiums from previous weeks, months, and sometimes years.
Insurance companies sell policies where they collect premiums that are similar to options. If the event does not happen - a car is not harmed, or a house is not burned down - then the company gets to keep the premiums. However, when that big event happens, they give the money back.
Swiss Re, an insurance company, warned its investors it would lose $500 million in the 3rd quarter because of $1.3 billion worth of claims tied to Hurricane Ian. It was a classic case of having to give back premiums collected from previous weeks, months and years because policies/options they sold were in the money for the longs or policyholders.
Bloomberg is reporting that the strength in the U.S. dollar is hurting corporate profits of North American companies with operations abroad, saying currency volatility cost North America "$34.3 billion in the April to June period, the highest loss on record in data going back to 2013, according to Kyriba Corp., a treasury-management software company."
I keep learning new words. The other day I spoke with a fellow journalist who dropped the term "TradFi" on me, which means traditional finance. I had not heard it before, but it makes total sense. Today, the Financial Times has a story that uses the term "green hushing," which means hiding your climate plans from scrutiny.
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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COP27 is hosting a conversation on Twitter about greenwashing. The term was included in Merriam-Webster's dictionary this year and was defined as "the act or practice of making a product, policy, activity, etc. appear to be more environmentally friendly or less environmentally damaging than it really is." You can follow the chat here.~ SAED
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Using Options for Risk Management and Protective Puts; Michael J. Oyster Breaks This Down and More in His Full Interview With JLN's Alex Teng
JohnLothianNews.com
In this Options Discovery full interview, JLN's Alex Teng sits down with Michael J. Oyster from Options Solutions and discusses how options can be used for risk management and navigating a declining stock market. Oyster also discusses his background and how to implement a put protection strategy, which can give investors downside protection by limiting their upside gains.
Watch the video »
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MWE SHORT: Rumi Morales - Investing in the Future of Fintech
JohnLothianNews.com
Since the dawn of the Industrial Age, technology has facilitated change. This change has continued through the Digital Age, except that these days it tends to come much more quickly.
The financial markets are now at the forefront of this change. Brick-and-mortar banks are being replaced by smartphone apps. Trading floors are being repurposed as office space. Even the old Merc Club, where for many years overpriced drinks were consumed by traders and brokers with oversized egos, has been turned into CME Group's Innovation Lab, a sort of 21st Century water cooler, where employees gather to exchange ideas.
Watch the video »
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Matthew B. Kulkin, Former CFTC Official and Futures and Derivatives Law Leader, Joins WilmerHale
WilmerHale
WilmerHale is pleased to announce that Matthew B. Kulkin, a former Commodity Futures Trading Commission official, has joined the firm as a partner and member of its industry-leading Securities and Financial Services group. He will lead the firm's futures and derivatives practice. Kulkin joins WilmerHale from another international law firm where he practiced since November 2019 and co-chaired its financial services practice group. His clients included a wide range of financial services and corporate institutions, as well as blockchain and cryptocurrency companies. He advised clients on legislative, regulatory, compliance and enforcement matters.
/jlne.ws/3CGORwu
***** A loss for Steptoe, but a gain for WilmerHale.~JJL
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Volodymyr Zelenskiy publishes collection of war speeches as 'battle cry for the world'; A Message from Ukraine includes 16 speeches selected by the president as well as an introduction setting out what he has learned since the start of the war with Russia
Sarah Shaffi - The Guardian
Ukraine's president Volodymyr Zelenskiy is to publish a collection of his war speeches, which his publisher has described as "a battle cry for the world to speak out and fight for liberty". A Message from Ukraine will include 16 speeches personally selected by Zelenskiy, which will "explore Ukraine's journey since 2019", said publisher Penguin Random House. The speeches will help readers "understand Ukrainians: our aspirations, our principles, and our values", said Zelenskiy. The book will also include a new introduction in which Zelenskiy will reflect on what he has learned about himself and Ukraine since the start of the conflict with Russia.
/jlne.ws/3yQvDDz
****** Ukraine will win their conflict with Russia because they have a reason to fight and win, and Volodymyr Zelenskiy lays it all out for the world to read. And the world has a reason to support Zelenskiy and Ukraine as a result. The power of the pen should never be underestimated. ~JJL
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Climate Change Pits Goats Against Sheep in the American Rockies; There's a clear winner in this big-mammal battle for increasingly scarce resources, a new study finds.
Laura Millan Lombrana - Bloomberg
Wild mountain goats are dominating the battle for survival against bighorn sheep as the two species compete over dwindling resources in North America's Rocky Mountains. Goats dominated in over 95% of interactions observed by scientists at the Wildlife Conservation Society, Colorado State University and the National Park Service. In a report published on Frontiers in Ecology and Evolution on Monday, the researchers point to climate change as one of the potential drivers of such rivalry.
/jlne.ws/3s0RioC
***** Never underestimate a goat, or a GOAT.~JJL
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DAOs Aren't People, Crypto Lawyers Tell Court in CFTC's Ooki Case
Nikhilesh De - CoinDesk
Decentralized autonomous organizations (DAOs), collectives that typically govern activities by voting through the use of crypto tokens, are not people and should not be treated as such, a group of lawyers and developers told a California court Monday. LeXpunK Army, a group that received permission to file an amicus - or friend of the court - brief in the ongoing Commodity Futures Trading Commission (CFTC) lawsuit against Ooki DAO, argued that the federal regulatory agency should be required to identify and directly serve any people it believes has violated federal law, rather than the DAO as an entity.
/jlne.ws/3TmVM4Q
***** If the CFTC can punch the DAO in the teeth, it is a person, legally speaking.~JJL
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Monday's Top Three
Tied for our top story Monday were Business Insider's The stock market crash is exposing Wall Street's biggest charlatans and the Daily Mail's REVEALED: Exxon boss snapped at employees during virtual town hall and told them to 'work for Amazon' if they were unhappy - with workers scolded for not holding HANDRAILS in offices. Second was Coinbase CEO Reveals Sale Bombshell Following $2 Trillion Bitcoin, Ethereum And Crypto Price Crash, from Forbes. Third was our MarketsWiki page for Alli Brennan, who was just promoted to managing director, head of the Americas & EMEA at CQG, Inc.
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MarketsWiki Stats
27,037 pages; 241,245 edits
MarketsWiki Statistics
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
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| Lead Stories | Clean Energy Has a Tipping Point, and 87 Countries Have Reached It; Solar power, electric cars, grid-scale batteries, heat pumps-the world is crossing into a mass-adoption moment for green technologies.
Tom Randall - Bloomberg
On New Year's Eve, 1879, Thomas Edison flipped the switch on the first building strung up with electric light bulbs. Night turned into day, and the revelers rang in a new age of electricity. Edison was thinking way beyond bulbs: He planned an entire grid to carry power from coal generators directly into homes. It took another quarter century for electricity to reach the first 5% of US households-but that proved to be a tipping point. By 1950, the entire country was connected. A similar pattern of adoption-gradually, then suddenly-echoed around the world.
/jlne.ws/3VA1m5y
FTX, Sam Bankman-Fried Probed by Texas Securities Regulator
Matt Robinson and Yueqi Yang - Bloomberg
FTX Trading and its billionaire founder, Sam Bankman-Fried, are being probed by the Texas securities regulator over whether certain lending offerings violate state law. Texas is investigating whether the company's yield-bearing crypto accounts are illegal securities offerings being sold to U.S. residents, according to a Oct. 14 court filing in the bankruptcy of Voyager Digital Holdings. Until the state determines FTX is complying with the law, the agency said the company shouldn't move forward with its $1.4 billion purchase of Voyager assets announced last month.
/jlne.ws/3MCPICS
EU Proposes Emergency Cap on Gas Prices; Proposal is part of a broad package of measures aimed at protecting consumers and securing gas before next winter
Kim Mackrael and Joe Wallace - The Wall Street Journal
European Union officials are seeking the power to impose an emergency cap on the price of natural gas on the bloc's main trading exchange, part of a package of proposals to cushion consumers from high prices and fill storage tanks next year ahead of winter. The European Commission, the EU's executive arm, on Tuesday published proposals that include steps to encourage companies to pool their demand and buy gas together and rules for how gas could be shared across borders if some countries run short. Other measures seek to limit volatility on energy markets and boost the financial support that can flow to struggling consumers.
/jlne.ws/3VuKm0F
How Switzerland's Oldest Bank Became a Meme Stock; The longstanding troubles of Credit Suisse recently grabbed the attention of amateur investors whose social media posts sparked fears that the bank was running out of money.
Maureen Farrell, Emily Flitter and Joe Rennison - The New York Times
"Credit Suisse is probably going bankrupt." It was Saturday, Oct. 1, and Jim Lewis, who frequently posts on Twitter under the moniker Wall Street Silver, made that assertion to his more than 300,000 followers. "Markets are saying it's insolvent and probably bust. 2008 moment soon?" Mr. Lewis was among hundreds of people - many of them amateur investors - who had been speculating about the fate of Credit Suisse, the Swiss bank. It was in the middle of a restructuring and had become an easy target after decades of scandals, failed attempts at reform and management upheavals.
/jlne.ws/3Vzdzrg
FTX US, Sam Bankman-Fried Are Subject of Probe by Securities Regulator
Joe Light - Barron's
FTX US and its founder Sam Bankman-Fried are under investigation by Texas' securities regulator, marking yet another expansion of enforcement agencies' probes into the crypto industry's activities. The investigation was detailed in a late Friday filing by Texas State Securities Board enforcement director Joe Rotunda in the bankruptcy case of Voyager Digital "The Enforcement Division is now investigating FTX Trading, FTX US, and their principals, including Sam Bankman-Fried," Rotunda said in the filing.
/jlne.ws/3ThhzeA
EU financial services chief calls on US to create new crypto rules; Mairead McGuinness said any regulation imposed on the industry would need to be global in order to work
Kiran Stacey - Financial Times
The EU's financial services chief has urged US politicians to draw up sweeping new rules to govern the crypto industry, warning that digital assets could pose a threat to financial stability if left to grow unchecked. Mairead McGuinness, the European Commission's financial services commissioner, told the Financial Times that any regulation imposed on the industry would need to be global in order to work.
/jlne.ws/3Tf0FNE
Banks Wrestle With Trillion-Dollar Bond Market Dilemma; The pandemic fattened lenders' securities holdings. With interest rates rising, the question is: Now what?
Marc Rubinstein - Bloomberg
Inside every bank there's a hedge fund dying to get out. Third-quarter earnings that are now rolling out should provide an insight into how they're doing. US banks' securities portfolios ballooned during the pandemic, as deposits surged thanks to government support for households and businesses. With insufficient loan demand to soak up the flows, the excess fell to banks' internal investment arms to manage. For every $100 that poured into the system via deposits since the end of 2019, only $35 went into traditional lending and the rest went into banks' investment portfolios.
/jlne.ws/3D8BFlz
Europe at risk of 'much worse' energy crisis next year, warns Qatar; Supply problem could last until 2025 if Ukraine war continues and Russian gas does not return, says energy minister
Andrew England and Tom Wilson - Financial Times
Qatar's energy minister has warned that while Europe should have sufficient gas for power and heating this winter, the tougher challenge will come in 2023 as reserves are depleted.
/jlne.ws/3S8OsZl
France's central bank boss says UK crisis shows risk of 'vicious loop'; François Villeroy de Galhau says pensions turmoil highlights need for non-banks to build liquidity buffers
Martin Arnold - Financial Times
France's central bank head has warned that the recent turmoil in the UK's bond markets illustrates the "vicious loop" governments face if they undermine efforts by rate-setters to curb soaring inflation. François Villeroy de Galhau, who sits on the European Central Bank's rate-setting governing council, said in an interview that the sharp rise in the British government's cost of borrowing after it unveiled £45bn worth of unfunded tax cuts last month highlighted the importance of "a consistent policy mix" between central banks and lawmakers.
/jlne.ws/3eELnm5
'Green hushing' on the rise as companies keep climate plans from scrutiny; A quarter of 1,200 companies surveyed say they would not publicise their science-based net zero emissions targets
Madeleine Speed - Financial Times
A trend known as "green hushing" is growing as companies are increasingly choosing not to publicise details of their climate targets in an attempt to avoid scrutiny and allegations of greenwashing, a new study showed. A quarter of the 1,200 companies in 12 countries surveyed said they would not publicise their science-based net zero emissions targets, a road map for reducing emissions in line with the goals of the Paris agreement, said climate consultancy and carbon offsets developer South Pole.
/jlne.ws/3EOeYUQ
Leaders in Trading 2022: Meet the nominees for the.... Outstanding Dark Trading Venue; Learn more about the five firms shortlisted for our Editors' Choice Award for Outstanding Dark Trading Venue this year: including Cboe BIDS Europe, Instinet Blockmatch, Liquidnet, Goldman Sachs' SIGMA X MTF and SwissatMid.
Annabel Smith - The Trade
Next up in our series of introductions to our distinguished nominees for Leaders in Trading 2022, we bring you the shortlist for the Editors' Choice Outstanding Dark Trading Venue award. This year brings you a star-studded line up including Cboe BIDS Europe, Instinet Blockmatch, Liquidnet, Goldman Sachs' SIGMA X MTF and SwissatMid. Let's take a look at their activities over the past year...
/jlne.ws/3SbJXNM
How the Crypto Titan of Terra Became a Fugitive
Sangmi Cha and Sidhartha Shukla - Bloomberg
South Korean Do Kwon presided over one of the biggest busts ever seen in the volatile cryptocurrency sector. His Terraform Labs Pte created the TerraUSD stablecoin, which was meant to have a constant $1 value via a complex mix of algorithms and trader incentives involving a sister token, Luna. Their combined value soared past $60 billion until confidence in the ecosystem evaporated in May, prompting investors to flee and leaving the tokens almost worthless. Kwon's whereabouts became unclear four months later after South Korea issued an arrest warrant on allegations including breaches of capital-markets law. He's denied any wrongdoing and tweeted that he isn't "on the run." But he's also the subject of an Interpol red notice.
/jlne.ws/3EPgYfG
Why Are So Many Crypto Execs Leaving?
Daniel Kuhn - Bloomberg
Management shake-ups are hitting crypto in what some are calling crypto's "great resignation." On Monday it was announced Gemini co-founder Cameron Winklevoss - twin of Tyler - is stepping back as a director of Gemini Europe. The news, announced in a U.K. regulatory filing, comes as the wholly owned Gemini subsidiary maps out its expansion into known tax haven Ireland.
/jlne.ws/3TeQ2dI
Cameron Winklevoss Steps Down as Director of Gemini Europe; The move coincided with the exchange gaining approval to operate as a registered virtual asset service provider in Ireland.
Jamie Crawley - CoinDesk
Cameron Winklevoss, who founded crypto exchange Gemini with his twin brother Tyler in 2014, has stepped down as a director of Gemini's European division. Winklevoss' move was revealed on Oct 12 in a filing with Companies House, a registry of companies in the U.K. The move coincides with Gemini receiving virtual asset service provider registration in Ireland to provide crypto services there.
/jlne.ws/3D6otxp
Crypto's 'White Knight' Target of Texas Securities Probe; Texas officials are investigating FTX CEO Sam Bankman-Fried and his company.
Rob Lenihan - TheStreet
He has been called the "white knight" of the crypto space. Sam Bankman-Fried, founder and CEO of the cryptocurrency exchange FTX, has made something of name for himself bailing out companies that have withered in the face of the "crypto winter." The 30-year-old billionaire, often referred to as SBF, told NPR in an interview that "I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion." FTX seemed to rise above the crypto bloodshed, with revenue soaring 1,000% in 2021.
/jlne.ws/3VCat5S
Crypto Exchange FTX US Under Investigation by Texas Regulator Over Securities Allegations
Nikhilesh De - CoinDesk
The Texas State Securities Board is investigating FTX US over allegations it offers unregistered securities products in the U.S. through its yield-bearing service, according to a recent court filing. TSSB Director of Enforcement Joseph Rotunda made the allegation in a filing to the bankruptcy court overseeing the potential sale of Voyager Digital's assets to the FTX crypto exchange, FTX US' parent. He said FTX US may be violating state law governing the registration and sale of securities products because it is currently offering a yield-bearing product to U.S. customers.
/jlne.ws/3EOPmXX
Former RIA Comptroller Sentenced to Prison for Role in Her Father's Ponzi Scheme
Kenneth Corbin - Barron's
The former comptroller at a registered investment advisor has been sentenced to 80 months in prison for her role in helping her father, the firm's former president, run a multimillion Ponzi scheme that bilked investors out of more than $11 million. Vania May Bell received her sentence Oct. 11 in the U.S. District Court for the Southern District of New York. She had pleaded guilty to fraud charges earlier this year stemming from a long-running scheme that involved persuading clients to move their money from a broker-dealer to the registered investment advisor where she worked with her father, Hector May.
/jlne.ws/3CJ468b
Credit Suisse Disposal Plans Gain Pace as Revamp Clock Ticks; Sale of US asset management could attract private equity firms; Abu Dhabi, Saudi Arabia weigh whether to fund other units
Matthew Monks, Jan-Henrik Foerster, and Dinesh Nair - Bloomberg
Credit Suisse Group AG is exploring a sale of its US asset-management operations and moving closer to securing financing for other businesses, as it nears a strategy revamp that's likely to fundamentally reshape it. The Swiss bank has recently begun a sales process for the US operations of Credit Suisse Asset Management, or CSAM, according to people familiar with the matter. No final decision has been made and Credit Suisse could opt to hold onto the unit, the people said, asking for anonymity to discuss internal considerations.
/jlne.ws/3ge6MmA
Equality Summit Latest: Man Group CEO Calls for More Bank Action; Leaders meet to discuss how to stem rising inequality amid unrelenting global and economic crises.
Olivia Konotey-Ahulu - Bloomberg
A lingering pandemic. Geopolitical instability. Rising inflation around the world. Executives and business leaders are gathering at the Bloomberg Equality Summit on Tuesday to discuss how to stem rising inequality amid unrelenting global economic crises. What does a more inclusive post-Covid model of development look like? Can governments address ballooning inflation without harming those at the bottom of the economic ladder? The Bank of Ireland's Semin Soher Power and the chief executive officer of Cebr, Nina Skero, warned developed nations not to expect a return to 2% inflation anytime soon and Gail Whiteman, the founder and executive director of Arctic Basecamp talked about the lack of progress on climate justice.
/jlne.ws/3ggdPLJ
Hong Kong Banks Hunt Millennial Money Stashed in Meme Stocks, Crypto; WeLab Bank and ZA Bank are among those launching wealth services to attract young investors
Denise Wee and Krystal Chia - Bloomberg
From established lenders to virtual banks, financial institutions in Hong Kong are trying to entice young investors away from meme stocks and crypto and toward more disciplined wealth management. For WeLab founder Simon Loong, whose group runs a virtual bank in Hong Kong, the demographic presents a potentially lucrative opportunity. He estimates about 1.8 million people with HK$800 billion ($102 billion) of liquid assets are in need of wealth services in Hong Kong, the majority of whom are under 40. He points to millennials and Gen Zs as needing a more diligent approach to saving and investing.
/jlne.ws/3TcvORx
Credit Rout Is Best Yet for 'Secretive' Swedish Firm Ture Invest
Love Liman - Bloomb erg
The stress weighing on credit markets is proving a boon for Ture Invest AB, a Swedish private lender that is increasingly filling the void left by derisking banks and bond markets. "Our deal flow is larger than we have ever seen before," said Magnus Kihlgren, a portfolio manager and partner at Ture Invest, which provides Nordic companies with loans typically ranging from about $20 million up to $45 million.
/jlne.ws/3EQfT77
Wild Currency Swings Take $34 Billion Bite From Company Profits; FX costs for North American companies soar to record: Kyriba; Domino's Pizza, PepsiCo already warning FX impacts to worsen
Mary Biekert and Bailey Lipschultz - Bloomberg
A surging dollar and weakness abroad whacked North American corporate profits by an unprecedented amount in the second quarter, foreshadowing an even worse hammering this earnings season. Currency volatility cost North American companies $34.3 billion in the April to June period, the highest loss on record in data going back to 2013, according to Kyriba Corp., a treasury-management software company.
/jlne.ws/3COmPzk
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Putin's War Escalation Is Hastening Demographic Crash for Russia; Population is set for historic decline as fertility rate drops; Economy also at risk from migration outflows, aging workforce
Bloomberg News
President Vladimir Putin spent years racing against Russia's demographic clock, only to order an invasion of Ukraine that's consigning his country's population to a historic decline. Besides casualties in the thousands on the battlefield, the enlistment of 300,000 reservists to join the fight -- and an even bigger flight of men abroad -- is derailing Putin's goals of starting to stabilize the population already this year.
/jlne.ws/3s6lleO
Ukraine Latest: Zelenskiy Says 30% of Power Stations Destroyed
Bloomberg News
Ukrainian President Volodymyr Zelenskiy said nearly a third of the country's power stations have been destroyed in Russian strikes since Oct. 10, sparking massive blackouts. An energy facility that supplies Kyiv was hit Tuesday amid a fresh round of attacks on infrastructure. Ukraine said it shot down 38 of the 43 drones that Russia used to launch strikes on Monday, accusing Moscow of using Iranian-made devices to hit civilian targets. Zelenskiy expressed gratitude to troops who have intercepted attacking drones, saying "every destroyed drone is a life saved."
/jlne.ws/3s5pWOe
Backlog of Ukrainian Grain Ships Eases as Checks Speed Up; Vessels need to be inspected in Istanbul under terms of deal; Significant backlog of vessels still remains, according to UN
Aine Quinn - Bloomberg
A logjam of vessels shipping Ukrainian crops eased as inspections sped up over the weekend, but the backlog remains high with just over a month of the grain-export deal left. Outbound ships need to be inspected in Istanbul under the deal, and at least 12 were checked each day from Friday through Sunday. That's up from seven to nine a day earlier in the week. The number of inspection teams edged up to five on Friday, said Amir Abdulla, United Nations coordinator for the Black Sea Grain Initiative.
/jlne.ws/3S6yYoF
Ukraine Keeps Power On Despite Russia's Missile Barrage; Kremlin has targeted electricity infrastructure over past week; Grid operator reports data to the International Energy Agency
Jonathan Tirone -Bloomberg
Russian missile and drone strikes targeting Ukrainian power infrastructure over the past week have failed to knock electricity supply off the grid for any prolonged period, according to International Energy Agency data. The IEA figures show that Ukrenergo, the grid operator, has managed to keep supplying electricity to much of the country even with hundreds of Russian strikes targeting power plants and electricity substations across the nation.
/jlne.ws/3s4ILkt
Russia says seized Ukrainian lands are under its nuclear protection
Reuters
Russia said on Tuesday that four Ukrainian regions whose annexation it proclaimed last month are under the protection of its nuclear arsenal. The statement from the Kremlin came at a moment of acute tension, with both NATO and Russia expected to hold military exercises shortly to test the readiness of their nuclear weapons forces.
/jlne.ws/3D6vnTl
EU weighs paying for Musk's donated Starlink internet service in Ukraine; Member states suggest formalising SpaceX contract after billionaire threatened to end the service
Henry Foy - Financial Times
The EU is discussing whether to cover the subscription cost of the Starlink terminals Elon Musk donated to Ukraine as part of options to safeguard internet communications in the war-stricken country.
/jlne.ws/3EVtTNf
Inside the U.S. Effort to Arm Ukraine
Joshua Yaffa - The New Yorker
In early September, Oleksii Reznikov, Ukraine's defense minister, travelled from the center of Kyiv to a U.S. airbase in Ramstein-Miesenbach, Germany, where nato officials were gathering to discuss military support for Ukraine. The trip, a distance of about twelve hundred miles, roughly the equivalent of travelling from New York to Minneapolis, lasted the better part of a day. Because there are no flights out of Ukraine, Reznikov had to take a car to the border and a plane the rest of the way. As he set off from the capital, he couldn't help but hope for good news. Ukrainian forces had opened a second flank in an ambitious counter-offensive, a surprise operation in the direction of Russian-occupied territory in the Kharkiv region. "I learned not to raise my expectations too high," Reznikov said, "especially in wartime."
/jlne.ws/3Ts4df0
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | ICE Expands Equity Derivatives Complex With the Launch of FTSE® 100 Index Total Return Future
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, and home to the most liquid markets for trading FTSE® derivatives, today announced that it plans to launch a FTSE® 100 Index Total Return Future (TRF) on November 14, 2022, subject to regulatory approval. The ICE FTSE® 100 Index TRF seeks to replicate the theoretical returns on a FTSE® 100 index total return swap in a more cost-efficient and transparent way, allowing participants to manage or gain exposure to the FTSE® 100 index, including its market and dividend risk, without owning the cash underlying. The TRF contract enhances ICE's FTSE® Index franchise, which offers the largest pool of FTSE® derivative open interest globally at a notional equivalent of more than £180 billion, and a participant base of more than 170 companies across 17 countries.
/jlne.ws/3CKfzEf
CME Group to Launch U.S. Dollar-denominated TOPIX Futures on November 21
CME Group
CME Group, the world's leading derivatives marketplace, today announced it will expand its Tokyo Stock Price Index (TOPIX) futures offerings with the launch of U.S. dollar-denominated TOPIX futures on November 21, 2022, pending regulatory review. This new contract will be cash-settled, designed to complement the existing Yen-denominated TOPIX futures contract launched in February 2018.
/jlne.ws/3gkrO2M
Initial Listing of the USD Denominated TOPIX Index Futures Contract
CME Group
Effective Sunday, November 20, 2022, for trade date Monday, November 21, 2022, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. ("CME" or "Exchange") will list the USD Denominated TOPIX Index Futures contract (the "Contract") for trading on the CME Globex electronic trading platform ("CME Globex") and for submission for clearing via CME ClearPort as more specifically described below.
/jlne.ws/3CGtQ58
REGIS-TR partners with Cecabank
BME-X
REGIS-TR adds Cecabank to their partnership program of leading intermediaries within the regulatory reporting environment. Cecabank is a long-term provider of regulatory solutions in the Spanish market and has been working with REGIS-TR for years, now solidifying their relationship with an official partnership.
/jlne.ws/3TrQ29M
Answering the ESG order book liquidity question
Eurex
Eurex's ESG Derivatives launched 3.5 years ago and are the most liquid ESG futures in volumes and/or traded contracts. However, some portfolio managers remain concerned about whether liquidity is strong enough to meet their needs. For those on the fence, check out the key stats, main drivers and key indicators proving liquidity below. Taking a closer look at the liquidity profile behind a specific contract is important in order to draw more profound conclusions.
/jlne.ws/3S9YeKI
CME Group Launches U.S. Dollar-Denominated TOPIX Futures
JPX
CME Group has announced that it will expand its Tokyo Stock Price Index (TOPIX; calculated by JPX Market Innovation and Research, Inc. (JPXI)) futures offerings with the launch of U.S. dollar-denominated TOPIX Futures on November 21, 2022. TOPIX futures are also traded on Osaka Exchange, at CME Group (yen-denominated), and on Taiwan Futures Exchange (New Taiwan dollar-denominated).
/jlne.ws/3s2rPLp
Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in September 2022
SFX
Shanghai Futures Exchange (hereinafter referred to as "The Exchange") has been on continuous efforts in investigating and penalizing violations of relevant rules and regulations, so as to strengthen the risk management of the futures market, regulate the futures trading activities and protect the legitimate rights and interests of futures market participants.
/jlne.ws/3VCdG59
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | CQG Announces Additional Connectivity to China Derivatives Markets via Esunny
CQG via PR Newswire
CQG, a leading global provider of high-performance technology solutions for traders, brokers, commercial hedgers and exchanges, announced today that it is providing additional connectivity into China's commodity exchanges via Esunny International (HK) Co., Limited (Esunny), the leading Chinese trading platform provider and a wholly owned subsidiary of the Zhengzhou Commodity Exchange.
/jlne.ws/3S6BqLT
Coinbase Threatens to Sue Crypto Traders Who Profited From Pricing Glitch
Anna Baydakova - CoinDesk
Coinbase, the world's second-largest cryptocurrency trading platform by volume, is hinting it may sue about 1,000 users in the republic of Georgia for taking advantage of a pricing glitch. On Aug. 29, about 1,000 Coinbase users in the country straddling Europe and Asia exploited the "arbitrage opportunity" when the lari, the local currency, was priced at $290 rather than $2.90 for about six hours on Coinbase. The group constitutes only 0.001% of the U.S.-based company's users. The glitch was a fault of a "third party," Coinbase told CoinDesk then, without identifying the company. As such, the incident illustrates a longstanding concern of financial regulators: The risks posed to institutions by external partnerships.
/jlne.ws/3g49NFV
AT&T Is Counting on Government Stimulus Dollars to Help Fund Its Broadband Future; The wireless giant wants small towns to use federal economic recovery money to pay it to provide landline high-speed internet to rural and remote areas.
Scott Moritz - Bloomberg
AT&T Inc. Chief Executive Officer John Stankey doesn't usually fire up the company jet for a mere $39 million network expansion project. But there he was, in Evansville, Ind., sporting a blue vest with an AT&T Fiber logo as he shook hands with local politicians and posed for photos with residents and employees.
/jlne.ws/3yRdG7L
Binance to Launch Cloud Mining Business in November
Eliza Gkritsi - CoinDesk
The world's largest crypto exchange by volume, Binance continues its push into the embattled crypto mining industry with a plan to begin offering a crypto cloud mining product next month. Crypto miners have had a tough year, with the price of bitcoin having hung around $20,000 for months, a far cry from its peak above $68,000 in November 2021. Other cryptos have faced similar or even worse declines. One of the largest mining-related firms in the U.S. filed for Chapter 11 bankruptcy in late September.
/jlne.ws/3MErBUo
Mastercard, Paxos Team Up to Help Banks Offer Crypto Trading
Coindesk
Mastercard has formed a partnership with crypto trading platform Paxos to offer a program that will help financial institutions offer cryptocurrency trading. "The Hash" panel discusses the latest move bringing digital assets to the mainstream.
/jlne.ws/3ThYokQ
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| Cybersecurity | | Top stories for cybersecurity | Online fraud an 'afterthought' for crime agencies, say MPs; Only 2% of police funding spent on fraud despite it making up 40% of reported offences
Kate Beioley - Financial Times
MPs have accused ministers and law enforcement agencies of treating economic crime as an "afterthought" and urged the government to put more resources into tackling the UK's "fraud epidemic". Too much focus on "traditional" crime, "confused" lines of accountability and court delays had left the justice system "ill-equipped" to deal with a rising tide of fraud, according to a House of Commons Justice select committee report published on Tuesday. The report comes as the UK grapples with a sharp increase in digital financial crime following the coronavirus pandemic when many people spent more time on the internet.
/jlne.ws/3s4Hzh8
White House cyber director defends 'tough' national cybersecurity strategy ahead of release
Suzanne Smalley - CyberScoop
National Cyber Director Chris Inglis is expected to release the Biden administration's first comprehensive national cybersecurity strategy in the coming days, a document that many expect will meet industry pushback as it could expand the government's role in protecting the nation's digital infrastructure.
/jlne.ws/3eHWJpt
Cybersecurity Tops the CIO Agenda as Threats Continue to Escalate
Steven Rosenbush - WSJ
Chief information officers say cybersecurity once again will be their top investment priority in 2023, a sign of how companies are racing to manage the business risk posed by escalating threats.
Companies are facing an escalation in cyberattacks such as the 2021 Colonial Pipeline ransomware attack that affected Eastern U.S. fuel distribution. Hospital operator CommonSpirit Health disclosed this month an attack that downed systems and disrupted patient care. The FBI's Internet Crime Complaint Center said it received a record 847,376 complaints in 2021, with potential losses exceeding $6.9 billion.
/jlne.ws/3g4WNjl
Cybersecurity founded on 3 pillars: Technology, process, and people
Vishal Salvi - Security Magazine
As enterprises expand their IT networks and migrate workloads to the cloud, as people work and transact remotely, as billions of devices join the IoT every year, and as cybercriminals become smarter and bolder, cybersecurity professionals have to run faster just to stay in the same place. It is estimated that worldwide, cybersecurity spending will reach nearly US$ 200 billion by 2025.
/jlne.ws/3ge7X5u
The Optus cyber security wake-up call
Dentons - JDSupra
This year's Cyber Smart Week 2022, CERT NZ's annual cybersecurity awareness week, shined a light on the importance of cybersecurity to individuals and businesses. It was particularly important this year following the monumental cybersecurity incident that happened across the ditch at the end of September.
/jlne.ws/3CKzCCC
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| Cryptocurrencies | | Top stories for cryptocurrencies | Crypto Venture Capital Fund Paradigm Also Wants CFTC to Serve Ooki DAO's Members
Nikhilesh De - CoinDesk
Crypto venture capital fund Paradigm Operations has asked a federal court for permission to join two other groups in arguing that the Commodity Futures Trading Commission (CFTC) should serve the members of a decentralized autonomous organization (DAO) directly, rather than through a generic website help portal. Paradigm filed for permission to join Ooki DAO's case on Monday, arguing in a motion that the CFTC's view that any voting token holder who participated in the DAO's governance process is liable may threaten DAOs in general. The company is hoping to file an amicus, or friend of the court, brief and included its proposed amicus filing.
/jlne.ws/3MIrxmv
Cryptoverse: Flurry of funds bet on bruised bitcoin's allure
Lisa Pauline Mattackal and Medha Singh - Reuters
A growing number of funds are betting on the long-term appeal of bitcoin and ether, a gritty gambit in the depths of a crypto winter. Unfazed by a collapse in prices over the past 11 months, investment firms have unleashed a flurry of exchange-traded funds, anticipating that elite cryptocurrencies and their underlying technology will eventually prevail.
/jlne.ws/3MHlqPn
Growing Popularity of Cash-Margined Bitcoin Futures Suggests That Crypto 'Liquidation Cascades' Might Become Rare
Omkar Godbole - CoinDesk
The bitcoin (BTC) derivatives market has undergone a significant structural change in the past 18 months, making the asset class less vulnerable to volatility-inducing liquidation cascades. The cash-margined contracts, which require traders to deposit the U.S. dollar or dollar-linked assets like stablecoins as collateral to take leveraged bets, now account for a record 65% of the total open positions (or open interest) in the BTC futures market, according to data tracked by analytics firm Glassnode.
/jlne.ws/3CGQLgC
Crypto Foot Race Heats Up as Ex-Meta Staff Start Blockchain; Aptos has backing from the likes of the venture arm of Binance; The blockchain is aiming for faster, more secure transactions
Suvashree Ghosh - Bloomberg
Aptos Labs, a startup with its roots in Meta Platforms Inc.'s failed crypto ambitions, went live with a blockchain that seeks to make transactions quicker and more secure. "This is step one in a long journey to create universal and fair access to decentralized applications" via "a safe, scalable, and upgradeable blockchain," Aptos said in a statement on Tuesday.
/jlne.ws/3EQ4X9O
Bitcoin-linked funds are hurting as crypto prices tank
Frances Yue - MarketWatch
Publicly listed bitcoin-related funds have seen both their share prices and asset under management plummet, in line with the mayhem of digital assets. "Investors have significantly reduced their exposure to risk assets and remain risk averse for the moment as inflation remains high and central banks continue tightening," analysts at Kaiko wrote in a Monday report. Grayscale Bitcoin Trust, the world's largest bitcoin fund, has lost about 67% of its value year-to-date, underperforming bitcoin, which fell about 59% in the same stretch, according to FactSet data.
/jlne.ws/3ELWxQI
$114M Mango Markets Exploiter Outs Himself
CoinDesk
Avraham Eisenberg, who has publicly acknowledged his role in last week's $114 million exploit of decentralized crypto exchange Mango Markets, returned $67 million Saturday as he defended his actions. Chainalysis Inc. Director of Research Kimberly Grauer discusses the details and the wider landscape of crypto crime.
/jlne.ws/3SbwWDU
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| Politics | | An overview of politics as it relates to the financial markets | Momentum Builds for Creating a Treasury Bond Buyback Program
Alexandra Harris - Bloomberg
The long-simmering idea that the US government should stand ready to buy back Treasury securities from investors to improve market functioning is moving closer to reality. While the Treasury Department has carried out buybacks in the past -- most recently between 2000 and 2002 -- and while its industry advisers since then have urged it to consider establishing a program, steps taken in that direction last week were more than experts anticipated.
/jlne.ws/3TquQkw
Liz Truss apologises for chaos caused to Britain by mini-Budget; 'We went too far, too fast,' says PM in TV interview after new chancellor rips up her economic policy in bid to calm markets
George Parker, Jim Pickard, Sebastian Payne and Chris Giles - Financial Times
Liz Truss has apologised to the nation for the economic chaos that has engulfed Britain following last month's "mini" Budget, but her premiership was hanging by a thread as Tory pressure mounted on her to quit. Truss sat expressionless on Monday in the House of Commons as she watched her new chancellor, Jeremy Hunt, rip up her economic strategy, including the debt-funded plan to cut £45bn in taxes. Some Conservative MPs believe that Truss could be ousted from her job by the end of the week after Hunt read the last rites over her "low-tax, high-growth" fiscal plan as he tried to calm the markets.
/jlne.ws/3VzhbJK
With Liz Trussed, Tories Try Restoring Political Order; Their goal isn't taking back control or a supply-side revolution. They'd just like to win back your confidence.
Therese Raphael - Bloomberg
Monday was the first day of restored calm in the UK, but it's impossible to unsee the past few weeks of British politics. A new Conservative government, full of ambition, got the keys and drove full speed into a brick wall of economic reality. The fallout has been excruciating. Liz Truss lost her chancellor of the exchequer and closest ally as well as her entire economic program in the crash. Her own leadership is on life support.
/jlne.ws/3VMETT4
It's not the Bank of England's job to help ailing energy companies; A new financing initiative threatens the BoE's operational independence
Willem Buiter - Financial Times
The focus in recent weeks on the Bank of England's emergency gilt-buying programme has distracted attention from a significant, and dangerous, initiative that it announced last month: the Energy Markets Financing Scheme (EMFS). Under the terms of the scheme, which opened for applications on Monday, the BoE will work with the Treasury to "address the extraordinary liquidity requirements faced by energy firms operating in UK wholesale gas and/or electricity markets" and offer "short-term financial support to wholesale firms".
/jlne.ws/3eG719I
EU to Propose €40 Billion Fund to Mitigate Energy Inflation; Plan would use existing cohension money to help households; Proposal would be part of the EU Commission's energy package
Jorge Valero and John Ainger - Bloomberg
The European Union plans to propose using as much as 40 billion euros ($39.2 billion) from the bloc's budget to support people and companies struggling to cope with high prices caused by the energy crisis. The European Commission, the EU's executive arm, will offer governments the ability to tap existing cohesion funds to support small- and medium-sized companies affected by the price hike of gas and electricity and to help vulnerable households pay their energy bills through national programs, according to a draft of the proposal seen by Bloomberg.
/jlne.ws/3gi8BPz
Meloni Channels Her Inner Truss With Market Gamble; Possible tax cuts, a fractious coalition, and feuds with friends and neighbors are an open invitation for bond vigilantes to take on Rome's far-right government.
Rachel Sanderson - Bloomberg
The era of Mario Draghi as prime minister of Italy has ended, and the era of far-right leader Giorgia Meloni has begun. Investors must hope Italy's incoming first woman premier sticks to her word and continues Draghi's pro-Europe, pro-Ukraine, pro-Atlanticist positions - not to mention his market-oriented economic policies.
/jlne.ws/3sag99r
Sweden's New Leader Picks Svantesson as Finance Minister; Kristersson unveils cabinet selections before meeting the King; Sweden's minority coalition to steer country through recession
Niclas Rolander - Bloomberg
Sweden's new prime minister, Ulf Kristersson, chose lawmaker and former labor market minister Elisabeth Svantesson to oversee the biggest Nordic economy on the cusp of a recession.
/jlne.ws/3TvB7LL
ExxonMobil accuses Russia of 'expropriation' as it exits oil project; US oil supermajor may seek billions of dollars in court over loss of Sakhalin-1
Justin Jacobs - Financial Times
ExxonMobil said it has exited Russia after government "expropriation" of its largest oilfield in the country, increasing the likelihood of a multibillion-dollar legal fight with the Kremlin. The US oil supermajor said president Vladimir Putin's government had "unilaterally terminated" its interest in the Sakhalin-1 oil and gas project in Russia's far east and that the field has been transferred to a domestic operator. The announcement on Monday marked the latest cut in energy ties between Russia and the west following Moscow's invasion of Ukraine, unravelling decades of effort by American and European companies to tap Russia's vast oil and gas reserves.
/jlne.ws/3TdCxuE
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| Regulation & Enforcement | | Stories about regulation and the law. | SEC, CFTC Probing Bankrupt Crypto Hedge Fund Three Arrows Capital: Report
Nelson Wang - CoinDesk
The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) are examining whether bankrupt crypto hedge fund Three Arrows Capital violated rules by misleading investors about its balance sheet and not registering with the two agencies, Bloomberg reported, citing two people familiar with the matter. The Singapore-based Three Arrows filed for bankruptcy in July, saying its business had "collapsed in the wake of extreme fluctuations in cryptocurrency markets." In particular, the hedge fund suffered huge losses stemming from the collapse of the terraUSD algorithmic stablecoin in May. At the end of June, the Monetary Authority of Singapore (MAS) reprimanded Three Arrows Capital for misleading it with allegedly false information.
/jlne.ws/3SbcNOj
US Regulators Probing Bankrupt Crypto Hedge Fund Three Arrows Capital
Allyson Versprille, Lydia Beyoud and Olga Kharif - Bloomberg
US regulators are prying deep into the remnants of failed hedge fund Three Arrows Capital as they try to untangle the fallout of this year's crypto crash. hree Arrows, which until recently was one of the industry's most prominent firms, filed for bankruptcy in July after the broad sell-off in digital assets spurred in part by the collapse of the Terra blockchain. The Commodity Futures Trading Commission and the Securities and Exchange Commission are now looking into whether the money manager violated rules by misleading investors about the strength of its balance sheet and not registering with the agencies, according to two people familiar with the matter.
/jlne.ws/3VygccS
Maple Bankers Struggle to Dodge Long Jail Terms in Tax Trial; Defense lawyers deliver closing arguments at Frankfurt trial; Verdict in $381 million Cum-Ex case is scheduled for Nov. 7
Karin Matussek - Bloomberg
Four former bankers at Maple Bank GmbH struggled to convince judges to spare them lengthy prison terms for their alleged roles in a part of the Cum-Ex tax scandal that may have cost Germany as much as €388.6 million ($381 million). Weeks after prosecutors in the Frankfurt trial sought as long as six years for three of the men, defense lawyers made last-ditch bids for leniency for their clients. The attorney for the lowest ranking of the four sought an acquittal in a case targeting deals that took place from 2006 to 2009.
/jlne.ws/3TckYuS
CFTC, SEC investigate if bankrupt 3AC misled investors, failed to register business
Lachlan Keller - Forkast
The Commodity Futures Trading Commission and the Securities and Exchange Commission of the U.S. are investigating whether bankrupt crypto hedge fund Three Arrows Capital (3AC) misled investors about its balance sheet and failed to register with the two agencies, according to a Bloomberg report which cites two people familiar with the matter.
/jlne.ws/3VF3HvZ
FCA's Crypto AML Compliance Chief Steps Down
Sandali Handagama - CoinDesk
Mark Steward is stepping down as the U.K. Financial Conduct Authority's executive director of enforcement and market oversight, the regulator announced on Tuesday. In January 2021, the FCA became the supervisory body for anti-money laundering compliance for crypto firms in the country.
/jlne.ws/3SacvqS
Federal Court Concludes Receivership in CFTC Ponzi Scheme Action Resulting in the Recovery of Over $1 Billion
CFTC
The Commodity Futures Trading Commission today announced the successful conclusion of the receivership in CFTC v. Walsh, et al., a $1.3 billion Ponzi scheme case the CFTC filed in 2009. [See CFTC Press Release No. 5621-09]. On September 19, the U.S. District Court for the Southern District of New York approved the receiver's final account and report, discharged the receiver, and accepted the receiver's request to deposit the remaining receivership funds with the court.
/jlne.ws/3MLBccc
Statement of Commissioner Summer K. Mersinger Regarding No-Action Relief to Korea Exchange
CFTC
I support the issuance of no-action relief to Korea Exchange ("KRX"), a foreign board of trade ("FBOT"), with respect to two futures contracts on the KOSPI 200, a security index comprised of 200 Korean stocks (the "Contracts").
This no-action relief will provide assurance to market participants while the Commission[1] considers KRX's request for certification of the Contracts pursuant to CFTC Rule 30.13.[2] That Rule provides that the Commission may certify that a futures contract on a broad-based security index trading on an FBOT conforms to the applicable requirements of the Commodity Exchange Act ("CEA") to be offered or sold to persons located within the United States pursuant to the exclusive jurisdiction of the CFTC.[3]
/jlne.ws/3S6AV4t
CFTC Staff Issues No-Action Letter to Korea Exchange, Inc. Concerning the Offer or Sale of KOSPI and Mini KOSPI 200 Futures Contracts
CFTC
The Commodity Futures Trading Commission's Division of Market Oversight (DMO) announced today that it will not recommend the Commission take enforcement action against Korea Exchange, Inc. (KRX) for the offer or sale of Korea Composite Stock Price Index (KOSPI) 200 Futures Contracts and Mini KOSPI 200 Futures Contracts to persons located within the U.S. while the Commission's review of KRX's forthcoming request for certification of the contracts under CFTC Regulation 30.13 is pending. The letter will be effective October 24. DMO issued a similar letter when the KOSPI 200 became a broad-based security index in 2021.
/jlne.ws/3F78tNh
EY's US partners flouted conflict of interest rules, regulator says; Auditor's own spot checks in 2018 found one in three failed to make proper financial disclosures
Stephen Foley - Financial Times
One in three of EY's US audit partners has flouted its policies for preventing conflicts of interest, the industry regulator said on Monday, and the firm had failed to address the issue more than a year after it was discovered. Among lower-level managers the rate of non-compliance with its financial disclosure rules was even higher, at almost half, according to a Public Company Accounting Oversight Board report. The revelations come on the heels of other ethics scandals at the Big Four firm, including the discovery of widespread cheating on professional exams, which led to a $100mn settlement earlier this year.
/jlne.ws/3yPQGWF
Meeting Investor Demand for High Quality ESG Data
Commissioner Jaime Lizárraga - SEC
Thank you, Peter, for that kind introduction. It is a pleasure to be here with you today. I look forward to learning from today's discussion, and appreciate the opportunity to participate in this important exchange of ideas and perspectives.
It's an exciting time for ESG. You are working in a dynamic, fast-growing sector of our capital markets that is grabbing headlines and continuing to generate enormous interest among investors and the general public.
/jlne.ws/3EYdx6a
Final Judgment Entered Against Former Microcap CEO
SEC
On October 6, 2022, the United States District Court for the Eastern District of New York entered a final consent judgment against Mark Goldberg, a resident of Middle Village, New York, and the former CEO of In Ovations Holdings, Inc.
/jlne.ws/3EMKiDu
SEC's Gensler Says CFTC Should Get More Power to Police Stablecoins: Report
CoinDesk
U.S. Securities and Exchange Commission Chairman Gary Gensler said Friday that the Commodity Futures Trading Commission (CFTC) should be given more authority to oversee stablecoins, according to a Reuters report. CoinDesk Global Policy & Regulation Managing Editor Nikhilesh De breaks down the details.
/jlne.ws/3VxV3j1
Court finds Austal and former CEO breached continuous disclosure laws
ASIC
The Federal Court has ordered Austal Limited (ASX:ASB) (Austal) to pay a penalty of $650,000 after finding the ship building company contravened continuous disclosure laws.
The Court also found Austal's former CEO, David Singleton, was knowingly involved in the disclosure failures. Mr Singleton has been ordered to pay a penalty of $50,000.
/jlne.ws/3CFk82Y
ACER and ESMA enhance cooperation to strengthen oversight of energy and energy derivative markets
ESMA
The EU Agency for the Cooperation of Energy Regulators (ACER) and the European Securities and Markets Authority (ESMA) are strengthening their cooperation to further improve information exchange and avoid potential market abuse in Europe's spot and derivative markets.
/jlne.ws/3s3XBb3
FMA files proceedings against Vero for allegedly misleading customers about multi-policy discounts
Financial Markets Authority
The Financial Markets Authority (FMA) - Te Mana TÄtai Hokohoko has filed High Court proceedings against Vero Insurance New Zealand Limited for failing to apply multi-policy discounts, which led to affected customers being overcharged approximately $8.7 million in premiums.
/jlne.ws/3SbCqhY
FCA places restrictions on twice as many consumer investment firms this year
FCA
The restrictions include preventing firms from promoting and selling certain products or providing specific services like advice on defined benefit pension transfers.
The FCA stopped 17 firms and seven individuals attempting to obtain a new FCA authorisation in the investment market where phoenixing or lifeboating was suspected. This is where firms or individuals try to avoid the consequences of having provided unsuitable advice by moving to or setting up a new firm.
/jlne.ws/3Sa4sKA
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | I Bond Hacks For Bypassing $10,000 Limit and Scoring Better Returns; Now is the time to purchase US Series I savings bonds before rates reset, experts say.
Claire Ballentine - Bloomberg
The sleeper hit of 2022 investing is about to lose some of its luster - but it still might be one of the best places to store your cash. The rate for US Series I savings bonds is estimated to drop to 6.47% beginning Nov. 1, down from a record high of 9.62%. That's because the yield is linked to the change in inflation over the six-month period from March to September, which slowed from the prior stretch despite core inflation notching new highs.
/jlne.ws/3TpgwbU
One Trading Strategy Is Winning Big in This Nasty Year for Stocks; Dispersion trade up as single stocks swing, VIX stays muted; Subdued demand for portfolio hedges is behind volatility quirk
Justina Lee - Bloomberg
A strange thing keeps happening in this nightmare year on Wall Street: Seemingly surefire bets that outsize volatility will engulf equity indexes keep misfiring, even as those riding turmoil in single stocks pay off handsomely. That's proving a boon for a niche strategy known as dispersion trading, with nimble money managers netting double-digit gains by taking advantage of quirks in the world of equity derivatives.
/jlne.ws/3VKUa6S
The Extraordinary Rise and Fall of the Covid Billionaires
Bloomberg
Think back: There really was a time when no one wore sweatpants on Zoom calls with clients. Or even dreamed about buying a used BMW on Carvana.com. Or had to remember which shot - Pfizer, the first time? Moderna, the second? - they got. In a little less than three years, Covid-19 has changed everything: how we live, work and play, educate our kids. And, it turns out, how vast wealth can be made - and lost - faster than anyone might've thought possible.
/jlne.ws/3S4QABf
Wall Street Credit Traders on Track for Worst Year Since 2012
William Shaw and Ronan Martin - Bloomberg
The world's biggest banks are heading for their worst year of credit trading in a decade as soaring interest rates and global economic uncertainty bite into their profits. The 200 biggest investment banks are set to collectively make $8.3 billion this financial year, a 36% yearly drop and the lowest since at least 2012, according to forecasts from Coalition Greenwich. Company bond yields are at the highest levels since the financial crisis in 2009.
/jlne.ws/3D8u4n6
Shale Titan Hamm Ups Continental Offer in Bid for 'Freedom'
David Wethe - Bloomberg
Billionaire wildcatter Harold Hamm boosted his offer for the Continental Resources Inc. stock his family doesn't already own to $4.3 billion as he seeks "freedom to invest" and buck the disciplined-spending mantra adopted by rival shale drillers.
/jlne.ws/3VyG745
Swiss Re Warns of Loss Over $1.3 Billion Hurricane Claims; Reinsurer sees $500 million third-quarter loss as claims surge; Says it may not reach its profitability target for this year
Myriam Balezou - Bloomberg
Swiss Re AG will post a third-quarter loss and warned it may not reach a profitability goal for this year because of claims tied to damage from hurricane Ian. The storm, which hit Florida last month and was one of the strongest hurricanes to ever make landfall in the US, will result in $1.3 billion preliminary claims for the reinsurer, it said in a statement Tuesday. The company expects to post a net loss of about $500 million in the quarter.
/jlne.ws/3gjT69T
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | 1 big thing: Treasury scans insurance for climate risk
Ben Geman and Andrew Freedman - Axios Generate
The Treasury Department is launching an initiative to uncover climate-related risks to private insurance markets via data collection, Andrew first reported this morning. The big picture: Property insurance is becoming harder to buy in places like wildfire-plagued California and hurricane-devastated Florida. Driving the news: Prompted in part by an executive order on financial risks from climate change, Treasury's Federal Insurance Office is issuing a proposed data collection from large property insurers to help assess those risks across the U.S.
/jlne.ws/3Vyf9cS
Alaska's Snow Crab Collapse Is Likely Tied to Climate Change; Declining populations of snow crabs and red king crabs have prompted officials to suspend harvesting for the season, a blow to the state's seafood industry.
Zahra Hirji - Bloomberg
Alaskan officials recently canceled the Bering Sea snow crab season for the first time ever after scientists discovered an unprecedented decline in crab numbers. Climate change is the number one suspect in the dropoff. "We're still trying to figure it out, but certainly there's very clear signs of the role of climate change in the collapse," said Michael Litzow, shellfish assessment program manager at the National Oceanic and Atmospheric Administration (NOAA), which runs an annual survey of Bering Sea snow crab numbers. (Snow crabs are also found in the Beaufort and Chukchi seas off Alaska.)
/jlne.ws/3VxYq9z
As the Mississippi River plunges, the Army Corps is building a 1,500-foot-wide levee to keep salt water out of drinking water
Rachel Ramirez - CNN
The US Army Corps of Engineers has launched construction on a 1,500-foot-wide underwater levee in the Mississippi River to prevent saltwater from pushing up the river amid record-low river levels and flow rates. While drought in the US becomes more frequent and intense, sea level is rising along the coasts. These two impacts of the climate crisis are literally clashing against one another in Louisiana at the mouth of the Mississippi River, where low flow is allowing saltwater from the Gulf of Mexico to push up the river, threatening drinking water supply.
/jlne.ws/3D6YGVS
Greenpro Promotes Value-Based Economy During Global Islamic Finance Forum 2022
Accesswire - Yahoo
Greenpro Capital Corp. (NASDAQ:GRNQ) today reiterate its social value corporate strategy that aligns with Value-based Intermediation ("VBI") principle first launched by Central Bank of Malaysia in 2017. Together with Labuan IBFC establishment of Islamic Digital Asset Centre (IDAC), Greenpro Capital will spearhead the economic development and technology solutions offerings for a complete digital ecosystem within Islamic Finance. VBI aims to deliver the intended outcomes of Shariah through practices, conduct and offerings that generate positive and sustainable impact to the economy, community and environment, consistent with the shareholders' sustainable returns and long-term interests.
/jlne.ws/3Vyb2gW
Microsoft CEO explains the 'paradox' of the remote work debate
Daniel Howley - Yahoo! Finance
A recent Microsoft (MSFT) survey found that employers and workers still disagree over whether remote work boosts or kills productivity. In a new interview with Yahoo Finance, Microsoft CEO Satya Nadella said companies should consult the data to determine workers' performance - rather than assume they're getting more work done in the office. The company's recent Work Trends Study, which surveyed 20,000 people across 11 countries, found 87% of employees say they're more productive remotely or with a mix of in-office and remote work. Conversely, 85% of leaders say hybrid work makes it difficult to determine if their workers are being productive.
/jlne.ws/3s3bNkB
BP aims to speed up alternative fuels push with $4.1bn deal for Archaea; Proposed purchase of US-listed biogas producer would boost BP's biogas supply volumes by 50%
Tom Wilson and Justin Jacobs - Financial Times
BP has announced its biggest acquisition in lower-carbon fuels with the planned purchase of a US-listed biogas producer for $4.1bn as the UK oil major seeks to accelerate its push away from fossil fuel assets. The Houston-based Archaea Energy produces the gas by processing organic waste from landfill sites and the farming industry. BP is paying $3.3bn in cash and Archaea has approximately $800mn of net debt. The deal would immediately increase BP's biogas supply volumes by 50 per cent and provide a development pipeline of more than 80 projects that could see volumes quintuple by 2030, BP said on Monday.
/jlne.ws/3VDkVtC
Scholz Overrules Greens in Decision to Extend Nuclear Power; Third nuclear plant can also operate until April 2023; FDP's Finance Minister Christian Lindner welcomes decision
Petra Sorge and Arne Delfs - Bloomberg
German Chancellor Olaf Scholz ordered an extension in the life of the country's three remaining nuclear plants until mid-April 2023 -- a dramatic reversal of an earlier decision by Economy Minister Robert Habeck -- as the country contends with an unprecedented energy crisis. Scholz's decision, which came late Monday after a day of speculation, is designed to end a standoff between his two coalition partners, the Greens and the Liberals. While Habeck's Greens are ideologically opposed to nuclear power, the business-friendly Free Democrats under the leadership of Finance Minister Christian Lindner argue that Germany should use all the generation capacity available to tackle the crisis.
/jlne.ws/3VsUuqy
BlackRock, Vanguard Tell UK They Won't Phase Out Fossil Fuel; Firms are among over 30 to have replied to UK inquiry; UK is figuring out how to meet its own net-zero pledges
Alastair Marsh - Bloomberg
Some of the world's biggest financial firms including BlackRock Inc. and Vanguard Group Inc. have told the UK they have no plans to halt the financing of new fossil-fuel supplies, in response to a list of questions sent by British lawmakers tasked with figuring out how the country can meet its own net-zero obligations.
/jlne.ws/3TwF56M
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Credit Suisse Weighs US Asset-Management Sale, Investment Bank Chief to Exit; Investment-bank chief to leave Swiss company in coming weeks; Abu Dhabi, Saudi Arabia weighing whether to put money in
Matthew Monks, Marion Halftermeyer, and Dinesh Nair - Bloomberg
Credit Suisse Group AG is considering a sale of its US asset-management business, and the firm's investment-bank chief is set to depart, as the company nears a strategy revamp that's likely to reshape the business and its top ranks. The Swiss bank has recently begun a sales process for the US operations of Credit Suisse Asset Management, or CSAM, according to people familiar with the matter, who asked to not be identified because the matter isn't public. The unit, which includes a platform for investing in collateralized loan obligations, is expected to draw interest from private equity firms, the people said. No final decision has been made and Credit Suisse could opt to hold onto the unit, the people said.
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BNY Mellon Says Client Demand for Crypto Led to Custody Offering
Michael Bellusci - CoinDesk
Client demand for crypto was the key factor in launching a crypto custody offering, said BNY Mellon (BK) CEO Robin Vince, speaking on a conference call following the lender's third-quarter earnings release. The world's largest custodial bank by assets, not to mention the oldest lender in the U.S., announced last week it has added bitcoin (BTC) and ether (ETH) to its custodial offerings. "What we've heard from our clients is they want institutional grade solutions in the space," Vince said on the call, noting 75% of them are either investing or actively considering investing in digital assets, and a full 90% expect to be putting money into tokenized assets within the next few years.
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Credit Suisse Investment Bank Sees Abu Dhabi, Saudi Interest
Dinesh Nair, Archana Narayanan, Marion Halftermeyer and Zainab Fattah - Bloomberg
Abu Dhabi and Saudi Arabia are weighing whether to put money into Credit Suisse Group AG's investment bank and other businesses to take advantage of depressed values, people with knowledge of the matter said. The oil-rich emirate and its Gulf neighbor are separately exploring potential investments through sovereign wealth funds such as Abu Dhabi's Mubadala Investment Co. and Saudi Arabia's Public Investment Fund, the people said, asking not to be identified as talks are private. A deal could also come through other vehicles in which each country owns significant stakes, the people said.
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JPMorgan Investment Banking Chair Carlos Hernandez to Retire; A 36-year veteran of the bank, Mr. Hernandez is a close ally of CEO Jamie Dimon
David Benoit - The Wall Street Journal
JPMorgan Chase & Co. executive Carlos Hernandez, the leader of the bank's investment banking staff and a member of Jamie Dimon's inner management circle, will retire next year. The 36-year veteran of JPMorgan has been a counselor to major executives and world leaders and a close ally to Mr. Dimon. He plans to retire at the end of the first quarter next year, according to an internal memo Monday from Mr. Dimon and Daniel Pinto, the president and head of the corporate investment bank.
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Morgan Stanley evaluating job cuts, CEO says
Steve Gelsi - MarketWatch
Morgan Stanley CEO James Gorman said the marquee investment bank is studying potential job cuts as the latest big financial institution to look for ways to reduce costs headed into an expected economic slowdown. "Obviously we're looking at head count," Gorman said on the firm's conference call with analysts on Friday, according to a transcript from FactSet. "You've got to take into account the rate of growth we've had until the last few years, and we've learned some things during COVID about how we can operate more efficiently." The bank is working on these plans from now until the end of the year, Gorman said.
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Ex-Goldman 'Whistleblower' Demands £20 Million Over Firing
Katharine Gemmell - Bloomberg
An ex-Goldman Sachs Group Inc. banker sued the investment bank for around £20.3 million ($22.9 million) to make up for him losing his job after he made whistleblowing allegations about regulatory failures. Thomas Doyle, who was the bank's head of synthetic swap sales from 2018 to 2021, said Goldman claimed it fired him for "causing disruption and conflict," at the start of a London employment tribunal on Tuesday. He alleges that it was in fact because he made multiple whistleblowing claims and the reasons for his firing were a sham.
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Goldman to merge investment banking, trading as Marcus takes backseat
Saeed Azhar and Lananh Nguyen - Reuters
Goldman Sachs Group Inc is expected to announce a major reorganization of its business lines on Tuesday, combining its trading and investment-banking divisions while likely sidelining its loss-making consumer unit.
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Goldman Sachs Reports 43% Profit Drop, Confirms Reshuffling; Investment banking revenue declined 57% in the third quarter from year earlier
Charley Grant - The Wall Street Journal
Goldman Sachs Group Inc. said Tuesday that profit fell 43% in the third quarter, making it the latest Wall Street player to suffer from a deal-making drought. The bank said it earned $3.07 billion, down from $5.38 billion a year ago. Still, per-share earnings of $8.25 exceeded the $7.75 a share expected by analysts polled by FactSet. Revenue was down 12% to $11.98 billion. That beat the $11.42 billion expected by analysts.
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BNP Paribas Joins China Wealth Market Race With New Approval; ; sset-management unit, AgBank allowed to set up joint venture
French bank has 51% stake, person with knowledge says
Bloomberg News
BNP Paribas SA has won approval to set up a wealth-management joint venture in China, adding competition to global rivals including BlackRock Inc. and Amundi SA vying for a slice of the 29 trillion yuan ($4 trillion) market.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Trump's CDC Changed Covid Reports Under Political Pressure, Panel Finds
Jeannie Baumann - Bloomberg
The CDC bowed to the Trump administration's demands to change the editorial process of its weekly scientific journal after warnings from then health secretary Alex Azar to "get in line," a House investigation found. The pressure faced by the Centers for Disease Control and Prevention to change the Morbidity and Mortality Weekly Report's procedures was one of several instances of political interference by former President Donald Trump's aides that the House Select Subcommittee on the Coronavirus Crisis identified in a report released Monday. The report was provided to Bloomberg Law ahead of the official release.
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California to End Covid-19 Emergency in Shift Back to Normal
Sarah McGregor - Bloomberg
California, the first state to impose a stay-at-home order at the outset of the Covid-19 outbreak, announced it will end the state of emergency on Feb. 28, three years after the pandemic began its rapid spread across the US. "This timeline gives the health care system needed flexibility to handle any potential surge that may occur after the holidays in January and February, in addition to providing state and local partners the time needed to prepare for this phaseout," Governor Gavin Newsom said in a statement on Monday.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | A lack of financing could hinder India's shift towards a low-carbon economy
Kundan Pandey - Quartz
October, a month that is typically associated with celebration and festive fervour in India, came with some unexpected news for those who track global finance. In the first week, reports said that one of the top American national banks, JPMorgan Chase & Co, has held off on including India in its global bond index, a semi-annual review of its emerging-market debt index which is a useful indicator for investors. This was a dampener in the usually upbeat season-India's ability to attract foreign investment would have benefited from the inclusion in the internationally regarded global bond index. The inclusion would have further benefitted the resource-constrained green sector, which includes environmentally oriented business sectors such as the renewable energy sector.
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The EU's gas price cap treads a thin line between flexible and chaotic
Ananya Bhattacharya - Quartz
The EU is looking to counter gas price volatility, but has so far remained divided on how to do it. A new proposal from the 27-nation bloc's executive arm, the European Commission, is due to be discussed this week. The plan involves a temporary mechanism that would impose a dynamic price cap for transactions on the Dutch Title Transfer Facility (TTF), a virtual marketplace in the Netherlands used for trading. The TTF's main index is the benchmark for all gas traded on the continent.
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Monte dei Paschi's M&A challenge looms as share sale starts
Valentina Za and Giuseppe Fonte - Reuters
Monte dei Paschi di Siena's management and Italian Treasury officials are ready to revive talks with potential buyers once the world's oldest bank completes a 2.5 billion euro ($2.46 billion) share sale next month, sources told Reuters. Italy has years to cut the state's 64% stake in Monte dei Paschi (MPS) under a deal with the European Union, but the Treasury is not expected to sit idle for long, two people with knowledge of the matter said.
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French Strikes May Increase Risk of Winter Power Shortages; Grid sees nuclear output lower than planned early November; RTE maintains its call for consumer vigilance ahead of winter
Francois De Beaupuy - Bloomberg
France faces a higher risk of electricity shortages this winter if lingering strikes continue to slow maintenance and repairs of its nuclear reactors, according to the country's power-grid operator. While Electricite de France SA is making good progress on fixing pipes at atomic plants that are affected by so-called stress corrosion cracks, strikes have already forced the utility to postpone several reactor restarts by weeks, Reseau de Transport d'Electricite said on Tuesday in an update of its winter outlook published a month ago.
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French Protests Highlight Pressure on European Leaders From Energy Crisis
Noemie Bisserbe, Matthew Dalton and Bojan Pancevski - The Wall Street Journal
Thousands of people took to the streets across France on Tuesday to demand higher wages to cope with rising energy bills and broader inflation, a sign of the political turmoil facing President Emmanuel Macron and other European leaders as the war in Ukraine rages with no end in sight. Striking teachers, railway and health workers staged marches in dozens of cities across the country, joining protests led by refinery workers who have been on strike for several weeks, choking fuel supplies nationwide and hobbling the country's refining system.
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EU to Unveil Interim Gas Market Steps With No Fast Price Cap; Europe eyes joint gas purchases, limits on market volatility; As last resort, EU may impose gas price cap on biggest hub
Ewa Krukowska - Bloomberg
The European Union is unveiling a new emergency package to tackle the energy crunch, betting on steps to bolster solidarity among member states. But the bloc will refrain from immediate gas-price caps amid political divisions and concerns over security of supply.
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Mississippi River Drought Closes Portion of Waterway Again; Drought straining global trade across major US waterway; Waters in Memphis fell to a reading of negative-10.77 feet
Michael Hirtzer and Diego Lasarte - Bloomberg
Drought has again closed a portion of the Mississippi River -- and this time shrunk a part of the major US waterway in Memphis to its lowest level ever. Waters in Memphis fell to a reading of negative-10.77 feet, narrowly lower than the previous low of negative-10.70 set in 1988, according to National Weather Service data.
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San Francisco Mayor Looks Beyond Big Tech as Offices Sit Empty; "Life as we knew it before the pandemic is not going to go back," which means diversifying with new companies.
Karen Breslau - Bloomberg
San Francisco Mayor London Breed is preparing her city to move beyond its tech-dominated landscape, acknowledging that many remote workers will never fully return and the area needs to reinvent itself for a new economic era. "Life as we knew it before the pandemic is not going to go back," Breed said in an interview with Bloomberg News at City Hall. "This whole work-from-home thing is here to stay."
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| Miscellaneous | | Stories that don't quite fit under the other sections | Retirement can mean a loss of identity - how to bring happiness to your next act
Richard Eisenberg - MarketWatch
For many people transitioning into retirement, the famous lines from the start of "A Chorus Line" resonate: "Who am I anyway? Am I my resume? That is a picture of a person I don't know!" Struggling with carving out a new identity in retirement, or massaging the identity you had when working full time, can be a serious challenge. "That identity issue is so huge because we spend our entire life building up to who we're supposed to be," said Michael Kay, who recently retired from the Livingston, N.J., financial planning firm he founded in 2001.
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