| January 09, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Later this morning, JLN will publish part one of a three-part series of an Open Outcry Traders History video with veteran trader and market commentator Scott Shellady. Scott is known as the "Cow Guy" for his trading jacket with Holstein cow splotches on it. We will also be publishing a podcast with the whole conversation between Scott and myself.
The January edition of the WFE's Focus is out and provides insights into the outlook for 2024 from various CEOs and leaders in the global exchange industry. These leaders discuss a range of topics, from launching new ventures in Asia to addressing concerns about ongoing political conflicts. They emphasize the importance of collaboration and technology advancements in their respective exchanges and regions, with a focus on sustainability, ESG initiatives, and adapting to unprecedented risks in the financial landscape. The report highlights the diverse perspectives and strategies of exchange leaders worldwide, showcasing their commitment to innovation and growth in the coming year.
Kristin Johnson wrote on LinkedIn that she was proud that her "work as a Commissioner at the U.S. Commodity Futures Trading Commission is featured in the University of Michigan Law School Law Quadrangle."
The latest new member FIA welcomed via LinkedIn is the Abu Dhabi Securities Exchange. The Abu Dhabi Securities Exchange (ADX), founded in 2000 and regulated by the UAE Securities and Commodities Authority, offers securities and derivatives trading services. In 2021, ADX launched its derivatives market, allowing investors access to single stock and index futures. For 2024, ADX plans to expand its range of derivative contracts and improve post-trade services.
The International Journal of Accounting has a paper titled "How it all began: the rise of listing requirements on the London, Berlin, Paris, and New York stock exchanges" by Lance Davis, Larry Neal, and Eugene N. White. The establishment of accounting standards for foreign securities traded on stock exchanges unfolded gradually during the period from 1825 to 1914, primarily within the leading exchanges of the first global financial market: London, New York, Paris, and Berlin. Upon comparing their respective listing criteria just before World War I, it becomes evident that the London and New York exchanges boasted the most comprehensive requirements, a reflection of their common-law legal systems and their roles as self-regulatory bodies. Consequently, the evolution of listing prerequisites in London and New York played a pivotal role in shaping accounting standards in these countries. In contrast, Paris and Berlin leaned towards the validation of securities by political authorities. These distinctions in legal and political landscapes resulted in American railroads being the only entities whose securities were listed on all four exchanges.
WilmerHale's fifth installment of their webinar series, "The Revolution Will Be Synthesized: A Webinar Series on Legal Developments in the Age of AI" will be held on January 24, 2024 from 1 to 2 p.m. ET. In this webinar, WilmerHale's legal experts will look into the challenges and opportunities presented by AI, with a particular focus on the pivotal role played by in-house general and corporate counsel, as well as the potential impact on the practice of law within an organization. Key topics to be explored encompass the role of in-house counsel in the context of AI development and application, an overview of the significant legal and practical issues posed by AI for organizations, corporate governance in the AI landscape, AI management within the organization, intellectual property rights considerations in using third-party AI tools and developing and commercializing AI products, the integration of AI tools into current and future corporate practices, and due diligence considerations for acquisitions and investments. RSVP HERE.
I have a favorite story about the retired Andy Lowenthal. One year he and I both attended the IOMA/WFE conference in Frankfurt, Germany. On the flight home we were in business class and seated next to each other. At one point after a meal, I extended my seat and started to sleep, as did Andy in his. When I woke up, he was two seats away in a window seat, driven away by my snoring, he said. For the record, that is one reason airlines give out earplugs in business class.
Longtime CME technology executive Michael Duff has joined Marex as deputy chief technology officer, he shared on LinkedIn.
Emily Rash began a new chapter yesterday, joining the Tradeweb marketing team. Rash has previously served as head of client marketing and education for the LME.
Bloomberg has a story titled "What the World's Top Financial Minds Are Predicting for 2024" with the subheadline "In today's Big Take podcast, we sift through hundreds of market outlooks to tackle the biggest questions about Wall Street's year ahead - from recession chances to global election impacts." I would love a podcast on what makes someone one of the "World's Top Financial Minds."
The TRADE's Q4 Magazine is now available online.
Rafik Mrabet, managing director of Cumulus9, has a commentary in FIA's MarketVoice titled "Navigating a New Era in Derivatives Clearing; The Evolution of Margin Models towards Value-at-Risk." JLN interviewed Mrabet at FIA EXPO in this video along with Cumulus9 Founder & Managing Director Giuseppe Fiocco.
If 2024 is your year to learn about metals, then check out The London Metal Exchange 2024 LME Education course calendar to find an in-person or online course that suits you HERE.
Congratulations to the Michigan Wolverines and coach Jim Harbaugh on winning the NCAA National Football Championship last night against the University of Washington Huskies.
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 from our previous edition of JLN Options were:
- Would-be spot bitcoin ETF issuers kick off fee war ahead of approval deadline from Reuters.
- Wall Street Is Trying to Nail Down Timing of Fed's QT Taper from The Wall Street Journal.
- Cboe Options ADV Reaches All-Time High from Traders Magazine. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Futures Discovery: Careers in the Futures Industry
JohnLothianNews.com
In episode 4 of Futures Discovery, we're diving into the diverse world of careers within the futures industry. From the fast-paced world of trading to the analytical realms of risk management and technology, there's a multitude of career paths in this dynamic field.
Watch the video »
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FIA 2023 Year in Review
Walt Lukken - FIA
After another busy year across multiple issues and work areas, one fact stands out when it comes to activities in exchange-traded and cleared derivatives markets. Simply put: Resilience matters. That's true whether we're talking about the impacts of geopolitical unrest, volatility in commodity markets, cybersecurity preparedness, or the transformative powers of artificial intelligence technologies. FIA is working hard to ensure this resilience shown by our markets in 2023 will continue for many years to come. We are confident that our markets will rise to both the challenges and opportunities ahead, because this industry knows how to work together as a community. That allows us to support one another in times of stress, and to modernize the way we work to future-proof our markets.
/jlne.ws/4aR2V6C
***** It was also another terrific year of leadership from Walt Lukken at the FIA.~JJL
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Elon Musk Criticizes WSJ Reporting on His Use of Illegal Drugs; In response to a Journal article, the billionaire said he hadn't tested positive for drugs and if drugs improved his productivity, 'I would definitely take them!'
Alyssa Lukpat, Emily Glazer and Kirsten Grind - The Wall Street Journal
Elon Musk criticized a Wall Street Journal article detailing how leaders at Tesla and SpaceX are worried about his drug use, saying he didn't fail drug tests and touting the business successes at his companies. He weighed in with a series of social-media posts after the article said the leaders are concerned his drug use could harm his companies. The Journal reported over the weekend that Musk has used LSD, cocaine, ecstasy and psychedelic mushrooms, according to people who have witnessed his drug use and others with knowledge of it.
/jlne.ws/3HaPS2j
***** Breaking from tradition, Musk did not issue this criticism at 4:20 a.m. as per his normal habit.~JJL
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Love and Deceit: Work-From-Home Era Spawns 'Pillow Talk' Insider Trading; Lawyers say recent securities-fraud cases have a new twist: they are the product of the daily humdrum of two adults doing their jobs remotely
Corinne Ramey - The Wall Street Journal
Steven Teixeira's use of his girlfriend's laptop began innocently enough when she asked him to keep an eye on her work email while she went to fitness classes and ran errands. As they weathered the pandemic from their apartment in Queens, N.Y., he gave in to temptation. His sweetheart worked as an executive assistant at Morgan Stanley, and her calendar invites included meetings about planned mergers and acquisitions that involved the investment bank.
/jlne.ws/47BlCJ2
****** If my wife traded stocks, I would probably be in big trouble as she hears everything that goes on in my office.~JJL
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Monday's Top Three
Our top story Monday was Clearing: New Product Advisory Notice, from the CME Group, about weekly metals options. Second was The US shale magnate trying to sell oil and gas jobs to Generation Z, from the Financial Times. Third was How SEC Action Could Shake Up Cybersecurity, from Forbes.
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| Lead Stories | Crypto and fintech groups fined $5.8bn in global crackdown on illicit money; Penalties for lax controls in 2023 exceed those on traditional finance groups for the first time
Laura Noonan and Alan Smith - Financial Times
Crypto and fintech groups were for the first time fined more for lax controls than the entire traditional financial system last year, as global authorities cracked down on illicit money flows in finance's new frontiers. Data analysed by the Financial Times showed crypto and digital payments companies paid $5.8bn in fines last year for shortcomings in customer checks and anti-money laundering controls, as well as for failing to uphold sanctions and other financial crime issues.
/jlne.ws/41NYPbz
The Latest Dirty Word in Corporate America: ESG; Executives switch to alternatives like 'responsible business' to describe corporate initiatives
Chip Cutter and Emily Glazer - The Wall Street Journal
Many companies no longer utter these three letters: E-S-G. Following years of simmering investor backlash, political pressure and legal threats over environmental, social and governance efforts, a number of business leaders are now making a conscious effort to avoid the once widely used acronym for such initiatives. On earnings calls, many chief executives now employ new approaches. Some companies, including Coca-Cola, are rebranding corporate reports and committees, stripping ESG from titles. Advisers are coaching executives on alternative ways to describe their efforts, proposing new terms like "responsible business." On Wall Street, meanwhile, some firms are closing once-popular ESG funds as interest fades.
/jlne.ws/3SabzG2
Nasdaq Europe to lure derivatives clearing from post-Brexit London
Huw Jones - Reuters
Nasdaq Europe has said it will expand derivatives clearing to include euro interest rate swaps (IRS) in the coming months, in the latest move by European Union market operators to pull business from London following Brexit. Even before Britain left the EU in 2020, London had long irked Brussels with its dominance of clearing in IRS, contracts widely used by companies to hedge against adverse moves in borrowing costs.
/jlne.ws/3NWtBcF
OpenAI says New York Times 'manipulated' ChatGPT in copyright feud; Generative AI start-up denies news organisation's claims of infringement in latest fight over emerging technology
George Hammond - Financial Times
OpenAI has alleged The New York Times "intentionally manipulated" its chatbot to regurgitate whole lines from the newspaper's articles, as it fights a copyright lawsuit from the newspaper that poses a threat to how it develops its technology. The lawsuit, filed just after Christmas, was "without merit", according to a blog post published by the artificial intelligence company on Monday, which added that the newspaper was not "telling the full story".
/jlne.ws/48J82nG
Cryptoverse: Bitcoin derivatives traders bet billions on ETF future
Lisa Pauline Mattackal and Medha Singh - Reuters
Will they, won't they? U.S. regulators are keeping crypto players on the edge of their seats as they weigh whether to give their blessing to bitcoin exchange-traded funds (ETFs). Derivatives traders are already piling in, though, betting the Securities and Exchange Commission will give the green light to several ETF hopefuls this week and electrify the market.
/jlne.ws/3RUmPoU
America Has Plenty of Natural Gas. So Why Is New England Left Out in the Cold? Threatened closure of a Massachusetts import facility sparks worry about the Northeast's energy supplies
Ryan Dezember and David Uberti - The Wall Street Journal
America is the world's largest natural-gas producer, but New Englanders' capacity to stay warm in winter may hinge on the fate of an expensive, 53-year-old import plant that its owner has threatened to shut down. Constellation Energy plans to retire a Massachusetts power plant at the end of May. That will eliminate the biggest user of the liquefied natural gas, or LNG, that is imported through the company's neighboring Everett Marine Terminal. Constellation said it is trying to line up new gas buyers to keep the terminal running. If it cannot, it will likely close the import facility as well.
/jlne.ws/41T9e5z
Elon Musk Isn't Getting Enough Sleep; Also Carta's targeted advertising, Bitcoin ETF fees, the next generation of petroleum engineers and Warren Buffett's truck stops.
Matt Levine - Bloomberg
Is Elon Musk's drug use securities fraud? We have talked a few times over the years about the mysterious Tesla Inc. lawyer whose court-mandated job is to review Elon Musk's draft tweets that might be material to Tesla shareholders. In theory, Musk has to show his tweets to this lawyer, and if the lawyer says "this is material and misleading," Musk is supposed to not tweet it. In practice ... really? Musk is a volatile and demanding boss who tweets impulsively at all hours and, what, you're going to stop him? You're not going to stop him. Terrible job. I don't think anyone has ever actually done it, and as far as I know whoever used to pretend to do it has stopped.
/jlne.ws/3Sb6FJ7
EU examines Microsoft's ties to OpenAI; European Commission joins antitrust watchdogs in US and UK in reviewing multibillion-dollar tech alliance
Henry Foy, Madhumita Murgia and Tim Bradshaw - Financial Times
The EU's competition regulator is investigating whether Microsoft's multibillion-dollar investment in OpenAI is caught by the bloc's merger rules, a move that could lead to a formal probe into the biggest alliance of the recent AI dealmaking frenzy.
/jlne.ws/48qQRrk
The New Space Race Is Causing New Pollution Problems; Earth's stratosphere has never seen the amounts of emissions and waste from rockets and satellites that a booming space economy will leave behind.
Shannon Hall - The New York Times
The high-altitude chase started over Cape Canaveral on Feb. 17, 2023, when a SpaceX Falcon 9 rocket launched. Thomas Parent, a NASA research pilot, was flying a WB-57 jet when the rocket ascended past the right wing - leaving him mesmerized before he hit the throttle to accelerate.
/jlne.ws/3SdGWjj
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | How Ukraine Must Change If It Wants to Win; A beleaguered country needs more than volunteerism and chutzpah to protect its version of democracy.
Anne Applebaum - The Atlantic
On december 29, Russia launched the largest missile attack against Ukraine since the start of the full-scale invasion. On January 2, another attack of the same magnitude hit schools, hospitals, and apartment blocks across Ukraine. Early yesterday morning-the day after Orthodox Christmas-the Russians hurled yet another missile barrage at Ukraine. Together, these attacks sent a message: Russian President Vladimir Putin is not interested in negotiations, cease-fires, or swapping land for peace. Although he cannot overwhelm Ukraine militarily, Putin now believes that he can keep up the pressure, destroy Ukraine's civilian infrastructure, wait for Ukraine's allies to grow tired, goad the Ukrainian public into turning against the government, and then win by default.
/jlne.ws/4aPhpE3
Ukraine has deficit of anti-aircraft guided missiles - air force
Reuters
Ukraine has a deficit of anti-aircraft guided missiles nearly two years after Russia's full-scale invasion, Air Force spokesperson Yuriy Ihnat said on Tuesday. Ukraine has relied heavily on military and financial aid from its Western allies since the invasion in February 2022, but political wrangling has delayed the disbursement of major aid packages for this year.
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel Says Its Military Is Starting to Shift to a More Targeted Gaza Campaign
Patrick Kingsley, Adam Entous and Edward Wong - The New York Times
Israel said its military is starting to shift from a large-scale ground and air campaign in the Gaza Strip to a more targeted phase in its war against Hamas, and Israeli officials have privately told their American counterparts that they hoped the transition would be completed by the end of January, U.S. officials said. Israel's disclosure came as Secretary of State Antony Blinken was expected in Israel to press officials there to curtail their campaign in Gaza and to prevent the war from spreading across the region, particularly in the aftermath of an Israeli strike last week that killed senior Hamas leaders in Lebanon and as Hezbollah said one of its commanders was killed in a strike in the country.
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A Glimpse Inside a Devastated Gaza; In the ruins of two Gazan towns, New York Times journalists witnessed the sheer destruction that Israel's war has wrought and the devastation of Hamas's operations.
Patrick Kingsley - The New York Times
For a few fleeting moments, the two-story house on the edge of Bureij, a ruined town in central Gaza, still felt like a Palestinian home. Bottles of nail polish, perfume and hair gel stood untouched on a shelf. A collection of fridge magnets decorated the frame of a mirror. Through a window, one could see laundry, hanging from a neighbor's washing line, swaying in the gentle breeze. But despite the trappings of home, the house now has a new function - as a makeshift Israeli military barracks.
/jlne.ws/47yVWfL
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Nasdaq Clearing to Expand in Interest Rate Swaps
MarketsMedia
Nasdaq presented its yearly statistics for Nasdaq European markets. Despite the uncertainties in the wider global economy, the Nordic and Baltic regions maintained their position in capital markets in several key areas, including Sustainable Debt Market and SME listings. In total, the Nasdaq equity markets in Sweden, Denmark, Finland, Iceland and the Baltic countries welcomed 33 listings, including 7 initial public offerings (IPOs), raising a total of EUR 431 million risk capital (2022: EUR 0.76 bn) and EUR 11.6 bn in secondary offerings (2022: EUR 16.6 bn). With 19 listings, Nasdaq Stockholm also remained one of the most successful listings venues in Europe in 2023.
/jlne.ws/47vUlr4
BME launches White Paper with 56 measures to boost the competitiveness of Spanish capital markets
BME
The White Paper presented today analyses the situation of capital markets in Spain and suggests legal, fiscal and regulatory measures to gain momentum. The study, one of the most ambitious to take the pulse of the competitiveness of financial markets, has gathered the opinions of listed companies, institutions and investors. Javier Hernani stresses that financial markets are a key element for Spain to gain in efficiency and competitiveness. BME today presented the White Paper on boosting the competitiveness of Spanish capital markets at the Madrid Stock Exchange. David Jiménez-Blanco, Vice-Chairman of BME; Javier Hernani, CEO of BME; Jorge Yzaguirre, of BME, and María Guinot, partner at Deloitte Legal, explained the highlights of the report, in an event that was closed by Rodrigo Buenaventura, Chairman of the Spanish Securities Market Commission (CNMV), and which was attended by senior representatives of listed companies, as well as the most important firms and institutions in the Spanish and international financial sector.
/jlne.ws/3TUyTsW
CME Group to Launch Longer-Dated Event Contracts on January 29
CME Group
For the first time, traders will be able to express a view on where E-mini S&P 500 and E-mini Nasdaq-100 futures will settle at the end of every quarter and year. CME Group, the world's leading derivatives marketplace, today announced it will launch event contracts with quarter- and year-end expiries for E-mini S&P 500 and E-mini Nasdaq-100 futures on January 29, pending regulatory review. The new longer-horizon contracts will provide market users with another unique opportunity to express their views on the direction of these equity indices.
/jlne.ws/3tPkjYX
EEX to launch Nordic Zonal Futures for power derivatives markets on 25 March
European Energy Exchange
The European Energy Exchange (EEX) announces a significant extension of its flagship power derivatives platform by launching Nordic Zonal Futures on 25 March 2024. The new product offering will include financially-settled baseload futures for all 12 Danish, Finnish, Norwegian and Swedish bidding zones. Additionally, EEX will extend the number of tradable contracts in its existing Nordic Power Futures, which are settled against the Nordic System Price.
/jlne.ws/3tMJqM0
Special Changes in KRX Transportation
KRX
KRX will change the constituents of KRX Transportation since the merger between SKNetworks and SK RENT A CAR. Applied index : KRX Transportation. Deletion : SK RENT A CAR(068400). Effective date(expect) : January 12, 2024. Please check the Index Constituent data file for details.
/jlne.ws/3NVLsAj
List of Deliverable Canadian Government Bond Issues for the LGB, CGB, CGF and CGZ futures contracts
TMX
For your information, please find enclosed the list of deliverable Canadian Government Bond issues with respect to the LGB, CGB, CGF and CGZ futures contracts delivery months. This list is produced in accordance with the Rules of Bourse de Montreal Inc. and Canadian Derivatives Clearing Corporation (CDCC) relating to delivery standards. This list replaces the one that was distributed on November 22nd, 2023 (circular no. 140-23)
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | JPMorgan-Backed AppDirect Gets $100 Million to Fuel Expansion
Saritha Rai - Bloomberg
AppDirect Inc., an online marketplace for buying, selling and managing apps, obtained $100 million in debt financing to propel its growth. Canadian pension fund Caisse de Depot et Placement du Quebec is providing the funding to help AppDirect expand the financing it offers to users, the San Francisco-based startup said Tuesday. It adds to the $80 million received from CDPQ in 2021.
/jlne.ws/3tOJlHJ
Microsoft's OpenAI Investment Could Face EU Probe
Mauro Orru - The Wall Street Journal
The European Union is considering whether to launch a review of Microsoft's investment in ChatGPT maker OpenAI under the bloc's merger regulations, a month after the U.K. said it was also weighing whether the tech partnership could have an impact on competition. The European Commission, the EU's executive arm, made the disclosure on Tuesday as it sought input from interested parties on the level of competition in virtual worlds and generative artificial intelligence, and feedback on what competition law can do to keep these new markets competitive. "The European Commission is checking whether Microsoft's investment in OpenAI might be reviewable under the EU Merger Regulation," the commission said.
/jlne.ws/48pqF01
Hewlett Packard Enterprise Near Deal to Buy Juniper Networks; Deal could be unveiled this week, valuing Juniper at roughly $13 billion
Lauren Thomas, Dana Cimilluca and Laura Cooper - The Wall Street Journal
Hewlett Packard Enterprise is in advanced talks to buy Juniper Networks for about $13 billion, in a bid to better position the nearly 100-year-old technology company in the era of artificial intelligence. A deal between the two companies could be announced as soon as this week, according to people familiar with the matter, assuming the talks don't fall apart.
/jlne.ws/48CI05A
Startup Founders Fret Over Getting Fired Like Sam Altman; They are building up protections and share classes after watching OpenAI saga play out
Corrie Driebusch - The Wall Street Journal
There's a new task on the 2024 to-do list for founders: Make sure you can't get Altmaned. While startups have ousted leaders before, the entrepreneur world was stunned to see the board of hot artificial-intelligence company OpenAI fire Sam Altman just before Thanksgiving. He had been the face of one of the biggest successes of the year and suddenly he was out. In startup land, founders and advisers say they started discussing new ways to protect themselves.
/jlne.ws/48NVc7U
Liquidnet promotes from within for head of international client trading EMEA; New appointment has been with the firm for the past five years; previously held an internship at M&G Investments.
Wesley Bray - The Trade
Liquidnet has appointed Lara Jacobs as head of international client trading EMEA, The TRADE can reveal. Jacobs has spent the last five years at Liquidnet, most recently serving as an equity trader - a role she held for the last three and a half years. Prior to that, she operated as a market structure and strategy analyst for a year and a half.
/jlne.ws/3HcAkLv
FactSet FX trading platform to integrate LoopFX; LoopFX's 'peer-to-bank' matching engine technology is set to be embedded directly into FactSet's EMS, Portware.
Claudia Preece - The Trade
/jlne.ws/48LdlTx
New Data-Center Property Investment Signals AI Boom; Two investment firms are buying stakes in Vantage Data Centers for a high valuation
Peter Grant - The Wall Street Journal
/jlne.ws/3S8hPy6
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| Cybersecurity | | Top stories for cybersecurity | Cyber Security Compensation up 12% in 2023, According to Christian & Timbers; Cyber CMOs, Comp Up 12% in 2023, Will Increase 10% in 2024
Business Wire
In an era marked by rapid changes in the cybersecurity landscape, the value placed on exceptional marketing leadership is surging. A noteworthy study by Christian and Timbers reveals a significant 12% increase in compensation this year for startup and pre-IPO cybersecurity Chief Marketing Officers in 2023
/jlne.ws/3NXQsnX
New rules to boost cybersecurity of the EU institutions enter into force
The European Sting
The new Cybersecurity Regulation laying down measures for a high common level of cybersecurity at the institutions, bodies, offices and agencies of the Union entered into force yesterday, 7 January 2024.
/jlne.ws/48s8yqj
Updates and Recommendations from the CISA Cybersecurity Advisory Committee
Daniel Pereira - OodaLoop
Mr. Tom Fanning, CSAC Chair, Southern Company, reflected on the impact of CSAC's contributions and explained that the main focus of the meeting was to discuss CSAC's recommendations to CISA. He thanked the CSAC members and CISA partners for their work. Mr. Ron Green, Mastercard, thanked all the Committee members for their contributions. The Honorable Jen Easterly, CISA, thanked attendees and reviewed that the Committee would deliberate and vote on recommendations to CISA during the meeting.
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| Cryptocurrencies | | Top stories for cryptocurrencies | SEC's Gensler warns of crypto risks amid Bitcoin ETF buzz
Forkast
Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), cautioned investors about the high risks and volatility of cryptocurrency assets on Monday in a post on X (formerly Twitter), as the Web3 industry anticipates the SEC's decision on several spot Bitcoin exchange-traded fund (ETF) applications.
/jlne.ws/3RP0hpw
Bitcoin ETF expected for Wednesday-but some fret about being 'rugged' by SEC
Jeff John Roberts - Fortune
So much drama. On Friday, the crypto world was abuzz about an unfounded rumor that the Securities and Exchange Commission chose that day to approve long-awaited Bitcoin ETFs. That didn't happen, so the buzz shifted to what did: the filing of an 11-page letter by an outfit called Better Markets, which has ties to anti-crypto scourge Sen. Elizabeth Warren (D-Mass.) as well as SEC Chair Gary Gensler. The letter warned the SEC that it would be a "grave if not historic mistake" to approve Bitcoin ETFs, and that doing so would put a U.S. stamp of approval on "a market thoroughly contaminated with fraud and manipulation."
/jlne.ws/3RP9UEA
Spot-Bitcoin ETF To Trade at Eye-Popping 8% Premium, GTS's Browne Says
Emily Graffeo and Katie Greifeld - Bloomberg
A spot-Bitcoin exchange-traded fund would trade at a meaningful premium to its net asset value, according to Reggie Browne. The head of ETF trading at market-maker GTS told Bloomberg TV on Monday that a fund, if approved, could see an 8% premium to the value of underlying holdings. Compare that with BITO, an ETF which holds futures of the cryptocurrency and is formally known as the ProShares Bitcoin Strategy ETF, with an average premium over the past year of 0.02%.
/jlne.ws/48s6IWr
From Silicon Valley to sand dunes: why Indian cryptocurrency firms are eying Dubai for growth
South China Morning Post
According to RBI Remittance Survey 2021, India's 30-per cent expat population in the United Arab Emirates (UAE) account for 18 per cent of the US$110 billion global remittance inflow to India. The financial ties between the two countries stretch beyond remittances, now encompassing the realm of Web3, an evolving iteration of the internet based on blockchain technology.
/jlne.ws/48qOkNQ
South Korean Crypto Exchange Upbit Receives Payment License From Monetary Authority of Singapore (MAS)
Hope C - CoinMarketCap
South Korean cryptocurrency exchange Upbit has secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), allowing it to offer regulated digital payment token (DPT) services. Upbit had previously received in-principle approval from the MAS in October 2023, enabling it to continue operating while awaiting full licensing. The exchange is now among several other crypto platforms, including Coinbase and Crypto.com, that have obtained an MPI license in Singapore.
/jlne.ws/3H9LPDw
Bitcoin Miner CleanSpark Announces Strategic Agreement for 160K Miners
Hope C - CoinMarketCap
/jlne.ws/3TQqO8s
Potential spot Bitcoin ETF Issuers Set Proposed Fees, Grayscale Stands Out With 1.5% Fee
Hope C - CoinMarketCap
/jlne.ws/48L5B45
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| Politics | | An overview of politics as it relates to the financial markets | Trump Hopes Any US Market Crash Happens Under Biden And Not Him
Josh Wingrove - Bloomberg
Donald Trump said he hopes any US economic crash happens this year and not during his prospective second term. "We have an economy that's incredible, When there's a crash, I hope it's going to be during this next 12 months because I don't want to be Herbert Hoover," Trump, the Republican presidential front-runner, told host Lou Dobbs in an interview broadcast Monday on an online platform run by Mike Lindell, an entrepreneur and Trump supporter.
/jlne.ws/3tOIS8r
Big 2024 Presidential Election Changes Are Leaving Voters Baffled; Allies of Biden and Trump helped revamp nominating contests to aid the two front-runners
Eliza Collins and John McCormick - The Wall Street Journal
Iowa Republicans on Monday will caucus to choose a presidential candidate, but Democrats will start to vote by mail and wait weeks for results. In New Hampshire the following week, both parties will cast primary ballots, but the Democrats' votes will be purely symbolic. And then in early February, Nevada Republicans can vote in two contests: a caucus without all the GOP candidates, and a primary where results won't count toward the nomination.
/jlne.ws/41P7SZC
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| Regulation & Enforcement | | Stories about regulation and the law. | Japan prosecutors make first arrest in financial scandal engulfing ruling party; Tokyo district public prosecutors' office says it has arrested Yoshitaka Ikeda, a former vice-education minister
Justin McCurry - The Guardian
Prosecutors in Japan have made their first arrest in a financial scandal that has engulfed the country's ruling party and sparked speculation about the future of the prime minister, Fumio Kishida. The Tokyo district public prosecutors' office said on Sunday it had arrested Yoshitaka Ikeda, a former vice-education minister, who is suspected of failing to report cash he received from fundraising events organised through his faction in Kishida's Liberal Democratic party [LDP].
/jlne.ws/3Hdjg8a
Opening Statement of Commissioner Christy Goldsmith Romero, Sponsor of the CFTC Technology Advisory Committee, on Responsible Artificial Intelligence, Cyber Resilience & Decentralized Finance
CFTC
I welcome the CFTC's Technology Advisory Committee. Technology can be transformative for people and markets if designed and deployed responsibly. Debate on issues of emerging technology for markets is enhanced by the Commission's engagement with the broad and diverse group of technology experts who serve on the TAC. As the TAC sponsor, I am grateful for your service, and the leadership of TAC Chair Carole House, Vice Chair Ari Redbord, and chairs of the TAC Subcommittees. I also want to thank CFTC staff Tony Biagioli who is the designated federal officer (DFO) of TAC, assistant DFOs Drew Rodgers and Lauren Bennett, Scott Lee, Yevgeny Shrago, and Zach Coplan in my office, and others in the CFTC who keep TAC running and helped organized today's event.
/jlne.ws/48LB5qU
Statement of Commissioner Christy Goldsmith Romero on CFTC's Digital Assets and Blockchain Technology Subcommittee Release of Decentralized Finance Report
CFTC
The Commodity Futures Trading Commission's Digital Assets and Blockchain Technology Subcommittee of the Technology Advisory Committee (TAC)[1] released a report entitled Decentralized Finance. CFTC Commissioner Christy Goldsmith Romero, sponsor of the TAC, stated "From the time that I arrived at the CFTC, I have played a steady drumbeat that we need to study emerging issues related to digital assets or we could risk harmful unintended consequences. This report is the result of the hard work of the TAC Digital Assets and Blockchain subcommittee to study DeFi. It is intended to help inform ongoing policy debates in the U.S. Congress, state legislatures, and regulators including the CFTC. It provides a foundational understanding of DeFi. It finds that the benefits and risks of DeFi depend significantly on the design and features of specific DeFi systems. However, most DeFi systems are not completely centralized or decentralized, but instead operate on a spectrum. I hope that this report can serve as a first step to facilitate a dialogue between policymakers and industry particularly because DeFi remains at the center of illicit finance risks, cyber hacks and theft."
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2024 FINRA Annual Regulatory Oversight Report
FINRA
The 2024 FINRA Annual Regulatory Oversight Report (the Report) provides member firms with insight into findings from FINRA's Member Supervision, Market Regulation and Enforcement programs (collectively, "regulatory operations programs"). The Report reflects FINRA's commitment to providing greater transparency to member firms and the public about our regulatory activities.
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MAS-ESS Essay Competition 2024
Monetary Authority of Singapore (MAS)
The Monetary Authority of Singapore (MAS) and the Economic Society of Singapore (ESS) today launched the MAS-ESS Essay Competition 2024. To encourage debate on the future economy of Singapore, the theme for this year's competition is "The Impact of Global Industrial Policies on Singapore's Economy".
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Carta CEO Says Startup Is Investigating Email About Share Sale
Anne VanderMey - Bloomberg
The chief executive officer of Carta Inc. said the startup was investigating customer allegations that it misused their data while also accusing the customer of "calling for the end of" the financial software company. The tiff began on Friday when Karri Saarinen, CEO of software startup Linear Orbit Inc. and a customer, posted a complaint that Carta had used its knowledge of the company's investors to approach one of them via email about selling Linear shares on the secondary market.
/jlne.ws/3tUnUF3
What the 2024 Capital-Gains Tax Brackets Mean for Your Investments; How capital-gains tax rates work, depending on your income
Ashlea Ebeling - The Wall Street Journal
Investment income is treated differently from wages by the tax code. There is a separate set of tax brackets and rates for long-term capital gains and qualified dividends. Investors who have taxable accounts-as opposed to tax-favored retirement accounts such as individual retirement accounts (IRAs) or 401(k)s-are often eligible for lower tax rates on investment income and other benefits.
/jlne.ws/3vtU7ng
AT1-Like Market for Niche Insurance Notes Is Coming Back to Life With AXA Debut; AXA gets large order book in debut Restricted Tier 1 note sale; Regulatory deadline is nearing for old-school insurance notes
Tasos Vossos - Bloomberg
The market for Restricted Tier 1 notes - the insurance industry's equivalent of AT1s that hasn't seen a single euro sale since the summer of 2021 - is being revived by a debut offering by AXA SA. More may follow as a deadline for older types of note looms. The French insurer is offering at least EUR500 million ($547 million) of RT1 notes, for which it has already received orders of more than EUR4 billion, according to a person familiar with the matter, who asked not to be identified because they're not authorized to speak about it.
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'Market's Wrong, I'm Not': Mike Mayo Loves Playing a Provocateur; The analyst has won fans sparring with bank leaders who see him as a grandstander. He predicts their stocks will finally take off this year.
Bre Bradham and Sridhar Natarajan - Bloomberg
A thousand miles from his usual Wall Street perch, a 60-year-old powerlifter stepped into the spotlight as he prepared to dead-lift more than 410 pounds. Mike Mayo was probably the only contestant at last year's powerlifting nationals who used to have an Alan Greenspan photo pinned to his apartment wall - and undoubtedly the only one who spends his day job sparring with financial leaders, often moving shares of their banks with just a few words.
/jlne.ws/3tCBVHz
Investors warn governments about high levels of public debt; 'Out of control' fiscal deficits set to resurface as a concern for markets
Mary McDougall - Financial Times
Investors are warning governments around the world over "unmoored" levels of public debt, saying excessive pre-election borrowing promises risk sparking a bond market backlash. Government debt issuance in the US and the UK is expected to soar to the highest level on record in the coming year, with the exception of the early stages of the Covid pandemic.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Climate records tumbled 'like dominoes' during world's hottest year; Temperatures during 2023 likely higher than at any time in the last 100,000 years, say scientists
Attracta Mooney, Steven Bernard and Kenza Bryan - Financial Times
The world experienced its hottest year in 2023, with "climate records tumbling like dominoes" as the global average temperature reached almost 1.5C above pre-industrial levels, the European earth observation agency has said. Scientists from the Copernicus climate change service said that last year marked the first since records began in which every day was at least 1C warmer than pre-industrial levels, before human-induced climate change began to take effect.
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Ice cover in North America's Great Lakes hits lowest level for 50 years; Decline in ice on freshwater lakes is being closely monitored for its links to climate change
Kenza Bryan and Steven Bernard - Financial Times
Ice cover in North America's Great Lakes has hit its lowest level for 50 years after an unusually warm start to winter, continuing a decline that is being closely monitored for its links to climate change. According to data from the Great Lakes Environmental Research Laboratory, just 0.43 per cent of the interconnected lakes was covered with ice on Thursday compared with an average of 10.6 per cent for this time of year over the past half-century.
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How global trade could fragment after the EU's tax on 'dirty' imports; A levy on imports of carbon-intensive materials such as steel may help limit emissions, but producers warn it could radically alter trade flows
Alice Hancock and Sylvia Pfeifer - Financial Times
In Jiaxing, a manufacturing town on the outskirts of Shanghai, 400 steel industry executives and engineers gathered last November to tackle an enormous task: weaning the world's biggest steel producer off coal-fired blast furnaces. The subject is of burning political urgency. The Chinese government is trying to decarbonise a sector that relies heavily on coal - and quickly - or risk losing its dominance as countries with ambitious climate goals look elsewhere.
/jlne.ws/4aM3jn9
Natural Disasters Led to $250 Billion in Global Losses Last Year; Just $95 billion of losses were insured, Munich Re estimates; Industry is having to reclassify risks around thunderstorms
Stephan Kahl - Bloomberg
Extreme storms and other natural disasters cost the world about $250 billion of losses last year, with less than half that amount actually covered by insurers, according to data compiled by Munich Re. The bill exceeds the 10-year average, and includes the impact of catastrophic losses caused by earthquakes in Turkey and Syria. The US, meanwhile, had a less severe hurricane season than in 2022 with many insured losses instead stemming from regional thunderstorms, Munich Re said.
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Bottled Water Contains More Plastic Particles Than Previously Thought; Researchers found hundreds of thousands of plastic particles in one-liter bottles of water sold in the US, 90% of them small enough to enter the human bloodstream.
Coco Liu - Bloomberg
A typical one-liter (33-ounce) bottle of water contains some 240,000 plastic fragments on average, according to a new study. Many of those fragments have historically gone undetected, the researchers determined, suggesting that health concerns linked to plastic pollution may be dramatically underestimated. The peer-reviewed study, published Monday in the journal Proceedings of the National Academy of Sciences, is the first to evaluate bottled water for the presence of "nanoplastics" - plastic particles under 1 micrometer in length, or one-seventieth the width of a human hair. The findings show that bottled water could contain up to 100 times more plastic particles than previously estimated, as earlier studies only accounted for microplastics, or pieces between 1 and 5,000 micrometers.
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Hedge Funds Target 'Catastrophic' ESG Cases for Huge Returns; Investors regularly make in excess of 25% on their investment; With so much at stake, lawmakers are now sounding the alarm
Gautam Naik - Bloomberg
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Orsted Partner to Sell Wind Farms, Take $1.6 Billion Charge
Will Wade, Mark Chediak and William Mathis - Bloomberg
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With Claudine Gay out, Harvard can double down on DEI or embrace freedom and true diversity; DEI policies and principles create a hierarchy of oppressor and oppressed. Contrary to its purported mission, DEI divides us as human beings and uplifts the 'oppressed' at all costs.
Ingrid Jacques - USA Today
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Conservative anti-DEI activists claim victory in Harvard leader's fall; Claudine Gay's resignation is being held up as pivotal in the movement against DEI policies in academia, government and corporate America
Julian Mark and Taylor Telford - The Washington Post
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Biden administration to unveil contractor rule that could upend gig economy
Daniel Wiessner and David Shepardson - Reuters
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Charting The Course: Corporate Governance Trends To Navigate In 2024
Betsy Atkins - Forbes (contributor)
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3 Ways To Uphold Your Social Responsibility To Your People
Anne Iversen - Forbes (Council)
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Netflix beats shareholder lawsuit over account-sharing disclosures
Reuters
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | BGC's Fourth Quarter 2023 Financial Results Announcement to Be Issued Prior to Market Open on Wednesday, February 14, 2024; Conference call scheduled for the same day at 10:00 a.m. ET
BGC Group, Inc.
BGC Group, Inc. (Nasdaq: BGC), a leading global brokerage and financial technology company, today announced the details regarding its fourth quarter 2023 financial results conference call. This call will take place on Wednesday, February 14, 2024, at 10:00 a.m. ET.
/jlne.ws/48vam1V
European Robinhood rival Trade Republic reports first profit; Berlin-based start-up hails results as proof of business model, even as it forecasts return to losses
Olaf Storbeck - Financial Times
A Sequoia-backed broker often labelled as Europe's answer to Robinhood turned a profit for the first time in its eight-year history last year, even as the wider fintech sector struggled with higher interest rates. Trade Republic, part of a new generation of brokers, reported a "solid double-digit million euro amount" of net profit in the year to September, co-founder Christian Hecker told the Financial Times. It made a net loss of EUR145mn the previous year, public filings show.
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Barclays slashed 5,000 jobs last year in major cost-cutting drive
Reuters via NY Post
Barclays slashed its workforce by around 5,000 jobs in 2023 as part of a major cost-cutting drive announced last year, the bank said Monday. The majority of the cuts fell in Barclays Execution Services, the bank's support unit, the lender said, confirming for the first time Reuters reporting from last November that the lender was eyeing thousands of cuts in that division.
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Technology making up almost a quarter of banks' overall expenditure as compliance demands mount, finds report; Last year saw the largest increase in technology investment from corporate and investment banks, up 5.4% year on year according to Coalition Greenwich.
Claudia Preece - The Trade
The largest investment banks globally have continually increased investment in technology over the last few years, with technology now accounting for 20% of these banks' overall expenditure, a Coalition Greenwich report has found. The 'corporate and investment banking: spending priorities' report from Coalition Greenwich assessed the performance of the 12 largest corporate and investment banks (by revenue) globally since 2018, which comprised banks including: Bank of America, Deutsche Bank, JP Morgan, UBS, HSBC, and Citi.
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Citadel, SeaWorld, Apollo Rush to Cut Borrowing Costs With Supply Low
Sri Taylor and Jill R. Shah - Bloomberg
Leveraged loan issuers are taking advantage of lackluster supply and strong investor demand at the start of the year to cut their borrowing costs on existing debt. Citadel Securities is tapping the market Monday to reprice its $4.04 billion term loan due in six years, while SeaWorld Entertainment Inc. is seeking better terms on its $1.17 billion term loan. Apollo Global Management Inc. is looking to slash costs on a loan that funded its buyout of Arconic Corp. less than six months after the debt transaction priced.
/jlne.ws/41S7p97
Jupiter warns on outflows as retail investors turn negative; Struggling UK asset manager says portfolio manager Ben Whitmore will leave to set up own firm
Sally Hickey - Financial Times
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Biden administration issues rule that could curb 'gig' work, contracting
Reuters via CNBC
The U.S. Department of Labor on Tuesday issued a final rule that will force companies to treat some workers as employees rather than less expensive independent contractors, in a move that has riled business groups and will likely prompt legal challenges. The rule is widely expected to increase labor costs for industries that rely on contract labor or freelancers, such as trucking, manufacturing, healthcare and app-based "gig" services.
/jlne.ws/3vvmS2X
Finding a remote job is getting harder, especially if you want a high-earning job
Bailey Schulz - USA TODAY
Finding a remote job isn't as easy as it once was. Christopher Foose, 42, said he's been searching for a position in information technology since 2018. But he said the options in his hometown of Keaau, Hawaii, are slim, and he's been hoping to find a job elsewhere that will allow him to work from home. But with remote jobs in high demand, Foose is dealing with a lot of competition. He said there was a period early last year when he was sending out roughly 50 applications per week and rarely heard back. In one interview, he said the recruiter told him he was one of 5,000 applicants.
/jlne.ws/3H8OyNE
Charted: Office vacancies hit a new record high
Emily Peck - Axios Markets
Office vacancies hit a record high in the fourth quarter of last year, surpassing previous peaks last reached in 1991 and 1986, according to data from Moody's Analytics out Monday. Why it matters: Office buildings are emptying around the U.S., as companies continue to adapt to the new norms of remote and hybrid work by shrinking their physical footprints. The transition marks an enormous societal shift as Americans adjust to a whole new way of working and living - big changes are underfoot in cities and suburbs around the country.
/jlne.ws/48IR20S
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Spanish healthcare group Grifols plunges 40% after fraud allegation; Gotham City short seller accuses Nasdaq-listed medicine maker of manipulating debt and earnings numbers
Barney Jopson and Dan McCrum - Financial Times
Grifols, Spain's most successful global healthcare group, has been rocked by fraud allegations from a UK-based short seller that sent its share price plunging by more than 40 per cent and wiped billions off its market value. Gotham City Research released a report on Tuesday accusing the Nasdaq-listed medicine manufacturer of artificially manipulating its debt and earnings through transactions with a company related to the Grifols family that founded and controls the group.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | ICICI Is Hiring 30 Investment Bankers on Expectations for Record Fundraising in India
Baiju Kalesh - Bloomberg
India's second-largest private lender ICICI Bank Ltd. is on a hiring spree, anticipating that fundraising by companies will hit a record high this year and next.
/jlne.ws/48nzN5q
Asia's data centre landscape is red hot but increasingly complex; New rules in China and Vietnam create uncertainty for fast-growing sector
Cissy Zhou - Financial Times
The rise of artificial intelligence is fuelling massive demand for data centres in Asia, but multinational companies face a dilemma when it comes to settling on their locations. It makes economic sense to build a consolidated facility in one country that can serve multiple markets, but governments in the region are increasingly restricting cross-border data flows.
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