| August 17, 2021 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
|
| | | | First Read | | |
| | 2021 Newsletter Subscriptions: | |
$53,406/$300,000 (17.8%)
Trading Technologies
++++
Hits & Takes
John Lothian & JLN Staff
I am pleased to announce that CME Group Executive Chairman & CEO Terry Duffy has agreed to chair the 50th anniversary of the LaSalle Street Trading Tech awards fundraiser for the Pathway to Adventure Council of the Boy Scouts of America. The event is the former LaSalle Street Dinner, held for many years on LaSalle Street in front of the Chicago Federal Reserve. Duffy follows his good friend Pat Kenny, EVP of CQG and deemed the Most Interesting Man in the World by this newsletter publisher, as the chairman. Thank you to Terry (and his staff) for their leadership of this year's event.
The FIA wants you to know that IDX — the International Derivatives Expo — is the place to be, bringing together industry leaders, vendors and policymakers to discuss what's "now" in derivatives, and what lies ahead. Join FIA for two full days of outstanding programming, networking and exhibits from 27- 28 September in London. FIA is creating a unique IDX experience that will keep you safe while allowing you to connect with clients, colleagues and friends from the local cleared derivatives community. Register now to take advantage of special rates that end 27 August.
FIA's Operations Americas Division is bringing back the Chicago Golf Outing on 27 September. This year, in addition to the regular golfing event at the Arrowhead Golf Club, the division is offering a golf clinic and a networking dinner-only option. Net proceeds from the event will go to two Chicago-area charities - the Greater Chicago Food Depository and the Greenwood Project. Event registration is open only to FIA members. Learn more and register now!
The S&P 500 has rallied from the March 2020 lows brought on by the pandemic a mere 100%. -- Bloomberg
John Fennell has joined tFOSE Group Holdings Inc. as executive vice president, chief risk officer. Fennell spent the last 10 years at the OCC.
After a year of garden leave from Citadel, Scott Johnston has joined Hudson River Trading as head of operations management. I first encountered Johnston when he was CIO at the Chicago Mercantile Exchange under then-CEO Jim McNulty.
Chuck Mackie will be interviewing Chris Giancarlo for the opening keynote at The Trading Show here in Chicago on October 5. -- The Trading Show
Thank you to Trading Technologies for matching the donation made by Douglas Engmann, the chairman of Sage Brokerage Holdings, to our GoFundMe campaign. Thank you to all who have given to our GoFundMe campaign.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
++++
Larry Abrams Part Two: Trader, "New York Jew" and Magician
JohnLothianNews.com
In part two of the JLN MarketsWiki Education Open Outcry Traders History Project interview with Larry Abrams, he talks about the emotionally draining market openings every day, his rather ugly experience in Kansas City opening a futures trading operation for Cooper Neff, options exercised out of the money, electronic trading, economic opportunity (and small worlds) and being a magician.
Watch the video »
++++
++++
Britain's fourth Afghan war is a replay of the first infamous retreat 170 years ago
William Dalrymple - The Telegraph
The First Anglo-Afghan War was arguably the greatest military humiliation ever suffered by the West in the East. On the infamous retreat from Kabul, which began on the 6 Jan 1842, of the 18,500 who left the British cantonment, only one British citizen, the surgeon Dr Brydon, made it through to Jalalabad six days later. An entire army of what was then the most powerful military nation in the world utterly destroyed by poorly-equipped tribesmen.
/yhoo.it/37NwyXt
*****One must look to history for the answers one needs today.~JJL
++++
Americans are creating their own vaccine mandates by cutting ties with the unvaccinated
Weston Blasi - MarketWatch
Americans are creating their own COVID-19 vaccine mandates. According to new data from The Harris Poll, at least 30% of Millennials or Gen Zers in the U.S. say they have cut ties with a friend, family member or acquaintance because they wouldn't get the COVID-19 vaccine.
/on.mktw.net/3xOofFm
***** Are you my friend? Can I see your vax card?~JJL
++++
John Oliver examines the rise of ransomware and what we can do about it; "This is a cybercrime so old, it used to require a bunch of floppy disks and two physical mailmen."
Shannon Connellan - Mashable
Despite being around for decades, ransomware attacks — whether targeting health systems, schools, or pipelines — are on the rise and so are the ransoms. John Oliver took one of his famous deep dives into the topic on Last Week Tonight to unpack this criminal technique used by hackers involving encrypting a victim's device and forcing the owner to pay a ransom to unlock it. "If you're thinking, 'Is it just me, or did there not used to be a massive ransomware attack every two months?' You're actually right," says Oliver. "Over the past few years, it's gone from a trickle to an absolute flood. The estimated total ransoms paid quadrupled to $350 million last year. And that is definitely an undercount, because companies often don't publicly disclose ransomware attacks, for fear of negative press or lawsuits."
/bit.ly/3smLC7U
******The John Oliver deep dives are to die for.~JJL
++++
Optiver Airs Concerns on Options Market Structure
Anna Lyudvig - Traders Magazine
The significant concern in the US equity options market is the underpinning market structure, which favors the wholesalers with an affiliated market making arm, according to Optiver. On August 11, Optiver, a proprietary trading firm and market maker for various exchange-listed financial instruments, released a series of papers highlighting concerns about the state of the U.S equity options market.
/bit.ly/3m96IFO
******SEC, are you listening?~JJL
++++
Monday's Top Three
Our top story Monday was The World May Never Reach Herd Immunity Against Covid-19, from Bloomberg. Second was the Optiver white paper, The PFOF You Didn't Know Existed: Exchange Marketing & Response Fees, which was our most-read story on Friday. Third was the Wall Street Journal's Something Is Awry in the Treasury Market This Summer.
++++
MarketsWiki Stats
26,540 pages; 235,362 edits
MarketsWiki Statistics
++++
|
| | | | |
| Lead Stories | Days May Be Numbered for the World's Oldest Bank; After performing poorly in a stress test, Monte dei Paschi di Siena, founded in 1472, could be swallowed by UniCredit.
Gaia Pianigiani and Jack Ewing - NY Times
Last month Banca Monte dei Paschi di Siena, the world's oldest bank, acquired another distinction: Europe's weakest lender. The bank performed worse than any other in a test of its financial health by European regulators, the latest gloomy chapter in a long-running saga of ill-fated deals, financial shenanigans, criminal wrongdoing and even a mysterious death.
/nyti.ms/3iTaQrt
SEC and ECB agree to share regulatory information on security-based swaps; The agreement will allow the two regulators to exchange information relating to major security-based swap participants.
Annabel Smith - The Trade
The Securities and Exchange Commission (SEC) and the European Central Bank (ECB) have signed their first memorandum of understanding (MOU) relating to security-based swap entities. Under the MOU, the two regulators will consult and cooperate on information connected to the oversight of security-based swap dealers and participants that are registered with the SEC and supervised by the ECB.
/bit.ly/3iTb7uv
Gensler Warns of Chinese Company Risks After SEC Crackdown
Ben Bain - Bloomberg
U.S. Securities and Exchange Commission Chair Gary Gensler issued his most direct warning yet on Monday about the risks of investing in Chinese companies. Gensler said in a video message that there is a lot that American investors don't know about some Chinese companies that are listed on U.S. stock exchanges. His remarks come just weeks after the regulator halted initial public offerings of Chinese companies until they boost disclosures and warned investors may not be aware that they are actually buying shares of shell companies instead of direct stakes in Chinese businesses.
/yhoo.it/2W3e5TT
U.S. Securities and Exchange Commission and the European Central Bank Sign Memorandum of Understanding Regarding Cooperation with Respect to Security-Based Swap Entities
SEC
The Securities and Exchange Commission and the European Central Bank (ECB) today announced the signing of a Memorandum of Understanding (MOU) to consult, cooperate, and exchange information in connection with the supervision, enforcement, and oversight of certain security-based swap dealers and major security-based swap participants that are registered with the SEC and supervised by the ECB. This is the first MOU between the SEC and ECB.
/bit.ly/3sndkkX
Fed Tells Judge Scrapping Libor Too Soon Would Spur Market Chaos
Erik Larson - Bloomberg
The Federal Reserve told a judge not to scrap Libor as requested by consumers in a lawsuit because it would pose a risk to financial stability and undermine years of global planning for a transition to a new benchmark for borrowing rates. A staged transition away from the London interbank offered rate is underway globally, but immediately ending the London interbank offered rate by court order would likely harm consumers and businesses, the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York said in a filing Friday in federal court in San Francisco.
/yhoo.it/3jSEhsQ
Pimco Veterans Look to Shake Up 'Old School' Muni Loan Market
Amanda Albright - Bloomberg
Alpha Ledger's blockchain-based platform offers loan auctions; Firm aims to move into business of public muni debt in 2022
After breaking new ground in exchange-traded funds for Pimco more than a decade ago, Manish Dutta and Tammie Arnold have set their sights on one of the more opaque corners of municipal finance.
/bloom.bg/3yUBkyn
Private capital groups soar on boom in unlisted assets; Market value of five listed US alternative investment companies triples to $250bn
Robin Wigglesworth and Kaye Wiggins - FT
The biggest listed US private capital companies have more than tripled in value since the depths of last year's market sell-off, as investors seek to benefit from the hefty fees they rake in from the boom in unlisted assets.
/on.ft.com/3iSqnHS
Drought Forces First-Ever Colorado River Water Cutback to Southwest States; Move likely to hit farmers hardest, reducing access to region's economic lifeblood amid protracted drought
Jim Carlton - WSJ
The federal government has declared the first-ever shortage of water on the Colorado River, triggering cutbacks in several states that will hit farmers particularly hard during a drought that has punished the Southwest with little letup since the turn of the century.
/on.wsj.com/3swTKCU
Investors Will Get Bored of GameStop; Individual investors will remain a force to be reckoned with, but the excitement is moving somewhere new
Rochelle Toplensky - WSJ
Like fidget spinners, ice-bucket challenges and "Pokémon Go," GameStop shares are a fad that will likely fade. The videogame retailer has had an astounding 2021. App-wielding investors crowdsourced a wave of stock purchases that pushed the price up to a high of around 17 times where it started the year. After a couple of loop-the-loops, the shares are still up more than 700%.
/on.wsj.com/3sswCFE
Why one Wall Street strategist is a bitcoin skeptic
Jared Blikre - Yahoo Finance
Bitcoin (BTC-USD) may be holding above $46,000 Monday, but one prominent Wall Street strategist is still somewhat skeptical of the cryptocurrency. At a recent Yahoo Finance Plus webinar, Liz Ann Sonders, chief investment strategist at Charles Schwab, explained her principle misgiving about bitcoin, being careful to emphasize she doesn't completely dismiss the cryptocurrency altogether.
/yhoo.it/3xTryv4
Bitcoiners Think Crisis in Afghanistan Could've Been Prevented With Bitcoin; "We shouldn't pretend that Bitcoin will fix the immediate suffering there, but it absolutely helps solve the problem of empire," said Erik Voorhees.
Ekin Genç - Vice
The Taliban took over the Afghan capital Kabul yesterday as America's 20-year war came to a sudden end. In sheer panic, Afghans ran to banks to scramble for cash, only to find them evacuated with their money locked up.
/bit.ly/3z77TJa
Analysis-U.S. SEC prepares to take on corporate America over workforce disclosures
Katanga Johnson - Reuters
The U.S. Securities and Exchange Commission (SEC) is headed for a scuffle with corporate America over how much information public companies must disclose about their most important asset: employees.
/yhoo.it/2Utp6xE
Tokenization May Make Real Estate Investment Easier: Report
Frances Yue - Coindesk
Tokenization in real estate is an "inevitable next chapter in blockchain's disruption of capital markets," and could make major progress in the next five years, according to a report published by Moore Intelligence on Wednesday.
/yhoo.it/3snlrhc
Argo Blockchain Becomes First Climate Positive Cryptocurrency Mining Company and Releases Climate Strategy; Argo leads the charge to a sustainable crypto economy and becomes the first Climate Positive cryptocurrency mining company
Argo Blockchain plc
Argo Blockchain plc (LSE:ARB; OTCQX:ARBKF), ("Argo" or the "Company"), a global leader in sustainable blockchain infrastructure and cryptocurrency mining, today announced it has become the first publicly traded cryptocurrency mining company to report it has become Climate Positive for Scope 1, 2, and 3 Greenhouse Gas (GHG) emissions associated with all of its respective crypto-related operations. Climate Positive means that the company is addressing its own GHG emissions to become carbon neutral, and going even further by mitigating emissions through support of projects outside of Argo. The announcement marks a key milestone in the Company's Climate Strategy, which includes its ongoing and future initiatives in energy efficiency, reducing e-waste, use of waste heat in partnership with local municipalities, carbon capture, and supporting the industry with sustainability standards.
/bwnews.pr/3iRSDKE
|
| | | |
|
| Wellness Exchange | | An Exchange of Health and Wellness Information | One Virus Case Puts New Zealand Into Nationwide Lockdown
Tracy Withers - Bloomberg
Ardern assumes community case is infectious delta variant; Kiwi dollar falls as investors pare bets on RBNZ rate hike
New Zealand Prime Minister Jacinda Ardern put the nation into a three-day lockdown after the discovery of the first community case of Covid-19 since February.
/bloom.bg/3iQ8Gsm
GSK and CureVac's second Covid vaccine yields stronger response; Results of animal study shows success in tackling several coronavirus variants
Hannah Kuchler - FT
The second-generation Covid-19 vaccine from GlaxoSmithKline and its partner CureVac induces a stronger immune response than the German biotech's first vaccine, according to a new study. In an animal study, which has yet to be peer reviewed, the companies said the mRNA vaccine could induce antibodies capable of tackling several variants of concern, including Beta, Delta and Lambda.
/on.ft.com/3xOtmp7
As Delta Surges, Covid-19 Breakthrough Cases Remain Uncommon;WSJ analysis finds higher risk of infection from strain, but research shows that vaccines still protect against most serious illness
Robbie Whelan and Jared S. Hopkins - WSJ
The Delta variant of the Covid-19 virus appears to be breaking through the protection vaccines provide at a higher rate than previous strains, a Wall Street Journal analysis found, though infections among the fully inoculated remain a tiny fraction of overall cases, and symptoms tend to be milder.
/on.wsj.com/3iT9o8v
Benefits of Covid-19 vaccines far outweigh very small risk of Bell's palsy, study finds; Bell's palsy is sudden onset of one-sided facial paralysis
Joe Middleton - Independent
The benefits and protection Covid-19 vaccines offer far outweigh a very small risk of Bell's palsy, a new study has suggested. Bell's palsy is the sudden onset of one-sided facial paralysis, and in the majority of cases (70 per cent) the condition resolves itself within six months without treatment.
/bit.ly/3xOuwAQ
Pfizer submits initial data for COVID-19 vaccine booster authorization
Reuters
Pfizer Inc (PFE.N) and its German partner BioNTech SE (22UAy.DE) have submitted to U.S. regulators the initial data from an early-stage trial toward seeking authorization of a booster dose of their COVID-19 vaccine, the drugmakers said on Monday.
/reut.rs/3smL0PE
|
| | | |
|
| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | BHP to shift main stock market listing from London to Sydney; FTSE 100 set to lose biggest listed company by market value under radical overhaul
Neil Hume - FT
The UK's blue-chip FTSE 100 index is set to lose its biggest company after miner BHP said it would unify its dual-corporate structure and shift its primary stock market listing to Australia.
/on.ft.com/3iVkQAu
Block Trades
CME Group
Effective on trade date Monday, August 30, 2021, and pending all relevant CFTC regulatory review periods, this Market Regulation Advisory Notice will supersede CME Group Market Regulation Advisory Notice RA2103-5 from March 30, 2021. It is being issued to amend Section 6 to modify the minimum quantity threshold ratios for four CBOT inter-commodity Wheat spreads from 100 to 40 contracts to 100 to 37 contracts.
/bit.ly/37P75wD
REGIS-TR partners with Reg-X
BME-X
REGIS-TR has partnered with Reg-X, a provider of reporting and compliance solutions in the regulatory space. Adding Reg-X to REGIS-TR's partnership programme will further support market participants in easing the burden of their reporting obligations across major European regulations.
/bit.ly/3iRLlGM
SET Hosts Thailand Focus 2021 To Showcase Thai Capital Market Opportunities In The Next Normal To Worldwide Institutional Investors
MondoVisione
The Stock Exchange of Thailand (SET) will organize "Thailand Focus 2021: Thriving in the Next Normal", a virtual conference, to present the strength and opportunities of the Thai capital market in the next normal. Finance Minister Arkhom Termpittayapaisith will graciously deliver a keynote speech on the Thai economy's opportunities, readiness and strategic development toward sustainability to boost confidence among institutional investors globally. In addition, representatives of business, financial and capital market sectors will present how Thai business operators could strategically optimize their resilience and adapt to cope with the pandemic situations. Senior executives of over 100 listed companies will share valuable information in the virtual conference set for August 25-27.
/bit.ly/3z8ArlX
ICE Mortgage Technology Enhances Encompass® Platform Enabling Lenders to Stay Ahead of New Industry Rule
Intercontinental Exchange
ICE Mortgage TechnologyTM, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today announced that the industry's leading solution for mortgage lenders and correspondent investors released additional enhancements to the Encompass® platform. The Encompass 21.2 release supports the recently updated General Qualified Mortgage (QM) final rule enabling lenders to seamlessly calculate eligibility for QM loans using the new price-based thresholds which government sponsored enterprises (GSE) will require in order to sell loans to the secondary market.
/bit.ly/3yQuFoG
- New Product Summary: Initial Listing of Three-Month Bloomberg Short-Term Bank Yield Index (BSBY) Futures Contract - Revised - Effective August 23, 2021 -- CME
- OTC IRS New Release Advisory - 2021 ISDA Interest Rate Definitions: New Floating Rate Options - Effective August 16, 2021 -- CME
- Increase of Spot Month Position Limits and Single Month and All Month Accountability Levels of Shanghai Gold (USD) Futures and Shanghai Gold (CNH) Futures Contracts -- CME
|
| | | |
|
| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Fintechs Found to Be Much More Likely to OK Suspicious PPP Loans
Katherine Chiglinsky - Bloomberg
More than 40% of fintechs' PPP loans were deemed questionable; Program 'seems to have been a poor allocation of capital'
Fintechs were almost five times more likely than traditional lenders to be involved with suspicious loans issued through the U.S. government's Paycheck Protection Program, according to a new study.
/bloom.bg/2W1yWHc
A progress report on fintech's record-breaking year; Plus, a $600m crypto crime caper and the Latin America's latest unicorn
Nicholas Megaw - FT
Back in January, we asked FT reporters to highlight what they thought would be some of the most important fintech stories to watch in 2021. It has already proven to be a record-breaking year, so before this newsletter goes away for a short summer break, we thought it was time to take stock of how those early forecasts have played out, what we missed, and what to keep an eye on for the rest of the year.
/on.ft.com/3xWFRPn
Fundsmith integrates INDATA artificial intelligence OMS; The INDATA Architect OMS deployed by Fundsmith uses AI technology to handle workflows and offers reporting for data interrogation and visualisation.
Annabel Smith - The Trade
Investment firm Fundsmith has integrated the Architect artificial intelligence order management system and portfolio management solution by buy-side technology provider, INDATA. The cloud-native buy-side solution will offer the fund manager with $30 billion in assets under management functionality across trading, portfolio management, pre-and post-trade compliance and performance attribution reporting.
/bit.ly/3xR6Vzr
Nomura to provide Asian eFX pricing to buy-side via DMALINK platform; DMALINK has expanded its ECN with eFX pricing from Nomura to buy-side clients in New York, London and Singapore.
Hayley McDowell - The Trade
Nomura has joined emerging markets focused electronic communication network (ECN) platform DMALINK to provide Asian FX pricing to buy-side traders in New York, London and Singapore. The Japanese investment bank teamed up with DMALINK to expand the FX ECN's ecosystem with eFX pricing pools during Asian hours. Users will be able to trade through Traiana's NetLink across CLS and non-CLS pairs, with access to Nomura specific pricing across specialised pricing pools, reporting and analytics for a view of execution performance.
/bit.ly/37JNeyP
A progress report on fintech's record-breaking year
Nicholas Megaw - Financial Times
Back in January, we asked FT reporters to highlight what they thought would be some of the most important fintech stories to watch in 2021. It has already proven to be a record-breaking year, so before this newsletter goes away for a short summer break, we thought it was time to take stock of how those early forecasts have played out, what we missed, and what to keep an eye on for the rest of the year.
/on.ft.com/3xWFRPn
|
| | | |
|
| Cybersecurity | | Top stories for cybersecurity | SEC fines Pearson $1m for misleading investors over cyber breach
Hannah Murphy - FT
Pearson has agreed to pay $1m to settle charges from US securities regulators that it knowingly misled investors and downplayed the severity of a 2018 cyber attack that exposed the personal information of millions of students. The Securities and Exchange Commission said that the UK educational publishing company reported the breach as "hypothetical risk" in its semi-annual report in 2019 when it had "already occurred" in 2018.
/on.ft.com/3mhUSJc
The Cybersecurity 202: Sensitive government data could be another casualty of Afghan pullout
Joseph Marks and Aaron Schaffer - The Washington Post
Among the many long-term costs of the rapid fall of the Afghan government and the swift withdrawal of U.S. diplomatic and military personnel, count this one: Troves of sensitive U.S. government data are surely being left behind in the nation now under Taliban control.
/wapo.st/37PCzTt
Supreme Court Agrees to Hear Pleas to Probe India's Use of Pegasus Spyware
Upmanyu Trivedi - Bloomberg
India's Supreme Court agreed to hear petitions seeking an independent probe into the Narendra Modi administration's alleged use of the Israel-based company NSO Group Ltd.'s Pegasus spyware to surveil journalists, politicians, tycoons and judges.
/bloom.bg/3soputG
New Anti Anti-Money Laundering Services for Crooks
Brian Krebs - Krebs on Security
A new dark web service is marketing to cybercriminals who are curious to see how their various cryptocurrency holdings and transactions may be linked to known criminal activity. Dubbed "Antinalysis," the service purports to offer a glimpse into how one's payment activity might be flagged by law enforcement agencies and private companies that try to link suspicious cryptocurrency transactions to real people.
/bit.ly/3ga5HcN
Solana, Terra Hit All-Time Highs as Markets Disregard Last Week's DeFi Hacks
Muyao Shen - Coindesk
The price rally for the tokens representing two projects that are built for the decentralized finance (DeFi) sector shows that investors remain confident about the industry, especially in layer 1 protocols, despite security risks that were exposed by the biggest DeFi hack ever in monetary value last week.
/bit.ly/3k4s3NI
Dark Web: A Haven for Fake Digital Certificates
Shoeb Ahmed - Security Boulevard
Being in a cybersecurity space, we at AppViewX keep a constant watch on the cyber attack events happening all around the world. The strange thing about cyber-attack is that it doesn't seem real until it happens to us. You might not have any idea how big and organized the cybercrime industry is because of lack of enough information. But know that the industry is growing at an exponential rate with more and more criminals getting access to sophisticated technologies to perform cyber-attacks.
/bit.ly/2Xohldh
|
| | | |
|
| Cryptocurrencies | | Top stories for cryptocurrencies | Operator of South Korea's Largest Exchange Rolls Out 'Travel Rule' Solution in Singapore
Sebastian Sinclair - Coindesk
The operator of South Korea's largest exchange by trading volume is reportedly rolling out an anti-money laundering solution to help appease financial regulators. Blockchain technology research arm, Lamda 256, of cryptocurrency exchange Upbit's operator Dunamu has launched its VerfiyVASP solution for its exchange trading activity in Singapore.
/yhoo.it/3iPZ1lM
Regulating crypto is essential to ensuring its global legitimacy
Henrik Gebbing and Wilhelm Nöffke - TechCrunch
The past decade has seen several structural changes in know your customer (KYC) and anti-money laundering (AML) regulations in Europe and globally. High-profile money laundering cases and the penetration of illicit funds into global markets have caught the attention of regulators and the public, and rightfully so.
/yhoo.it/3m4WF4s
The Battle Of The Bill: Why DeFi Will Clean Up The Finance Industry Regardless
Jared Polites - Benzinga
Last week saw the strength of the crypto community tested as it took center stage in the U.S. senate. Cryptocurrencies were included in a 2,700-page bill as a pay-for provision, with broad and unspecified wording muddying the definition of a crypto "broker" and raising concerns that the bill would require entities, such as miners and software developers, to report tax data to the IRS. This forced reporting could strangle blockchain innovation within the U.S. and force existing cryptocurrency businesses to shut down or relocate offshore.
/yhoo.it/2Xz6227
Crypto Community Remembers How Nixon Killed The Dollar, Reminds Bitcoin Is A Solution
Adrian Zmudzinski - Benzinga
The crypto community — but most of all, the Bitcoin (CRYPTO: BTC) community — is pointing out the disastrous consequences of the Richard Nixon administration's decision to take the dollar off of the gold standard
in 1971, exactly 50 years ago.
/yhoo.it/2UpBI8R
Thiel-Backed Crypto Unicorn Triples Valuation to $4.1 Billion
Harriet Habergham - Bloomberg
Bitpanda raises $263 million, months after last funding; Austrian firm is latest European fintech to see valuation soar
Austria's first unicorn is at it again. Bitpanda, a cryptocurrency trading platform, has tapped investors for a further $263 million, taking advantage of a rebound in cryptocurrencies and surging interest in fintech companies. Since its last funding round closed -- just five months ago -- the firm's valuation has more than tripled to $4.1 billion.
/bloom.bg/3yQedoq
Cardano's ADA Token Is Now World's Third-Largest Cryptocurrency
Joanna Ossinger - Bloomberg
Token has rallied more than 50% amid booming DeFi demand; ADA is the biggest digital coin after Bitcoin and Ether
A little-known digital token linked to the Cardano blockchain has just become the third-largest virtual currency in the world as network developers look to ride the boom in decentralized finance.
/bloom.bg/3xU4HiI
Binance in Talks With Exchange Veteran for Top Singapore Job
Joanna Ossinger, Chanyaporn Chanjaroen, and Yoolim Lee - Bloomberg
Crypto exchange is holding discussions with Richard Teng; Binance has come under scrutiny in the U.S., U.K. and Japan
Binance Holdings Ltd. is in talks with a former senior Singapore bourse executive about taking the top job at its local business in the Asian financial hub, as the crypto exchange seeks to appease regulators around the globe. Binance is in discussions about the chief executive officer role with Richard Teng, who stepped down as head of the Abu Dhabi Global Market in March after six years with the business center, according to people familiar with the matter.
/bloom.bg/3sq6bQX
London High Court orders Binance to help trace $2.6m stolen in hack
Sean Dickens - Coin Rivet
The world's largest cryptocurrency exchange has been ordered by London's High Court to help identify and freeze the accounts of hackers responsible for a $2.6 million heist.
/yhoo.it/3xVVma6
Ethereum staking comes to Ledger hardware products
Sam Cooling - Coin Rivet
Ledger Live - the Lido staking service - has been extended to Ethereum holders, allowing staking on the platform in anticipation of Ethereum 2.0.
/yhoo.it/3yVZ7hk
|
| | | |
|
| Politics | | An overview of politics as it relates to the financial markets | Afghanistan Central Banker Flees, Currency Drops Amid Tumult
Kartik Goyal and Rahul Satija - Bloomberg
Afghanistan's acting central bank governor departed the country as Taliban fighters took control of the capital, with the political turmoil pushing the nation's currency to a record low.
/yhoo.it/3yU8duJ
Afghanistan Turmoil Adds to Political Risks Facing Markets
Eric Lam and Ishika Mookerjee - Bloomberg
Taliban taking power again two decades after U.S. removed them; Markets were already fretting over delta strain, slower growth
Investors are adding the evolving situation in Afghanistan to their list of global issues to monitor. Strategists don't expect an immediate market impact after the Taliban took effective control of Afghanistan, but instead flagged longer-term scenarios, such as the possibility the nation could become a breeding ground again for international terror attacks.
/bloom.bg/3iVbzIk
|
| | | |
|
| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | How to Report Spoofing and Earn an SEC Whistleblower Award
Jason Zuckerman, Matthew Stock, Katherine Krems of Zuckerman Law via The National Law Review
Spoofing is a form of market manipulation where traders artificially inflate the supply and demand of an asset to increase profits. Traders engaged in spoofing place a large number of orders to buy or sell a certain stock or asset without the intent to follow through on the orders. This deceptive trading practice leads other market participants to wrongly believe that there is pressure to act on that asset and "spoofs" other participants to place orders at artificially altered prices.
/bit.ly/3iN9RZM
UnaVista SFTR closure casts doubt on viability of reg reporting; The decision to shutter the service is another blow to the industry and the business case of reg reporting under SFTR.
Josephine Gallagher - Waters Technology
In late July, UnaVista, the regulatory reporting arm of London Stock Exchange Group, announced plans to close its Securities Financing Transactions Regulation (SFTR) service on January 31, 2022, making it the industry's latest casualty in a battle with high running costs and wafer-thin margins. The past two years have seen multiple providers in the regulatory reporting space roll back or offload their services—most notably Deutsche Börse's sale of its Regulatory Reporting Hub to MarketAxess
/bit.ly/37O7rnq
Treliant Acquires Vox Financial Partners, Strengthening its Capital Markets Capabilities and Expanding its Footprint into Europe
Treliant
Treliant announced today that it has acquired Vox Financial Partners (Vox), a leading Capital Markets consulting firm that helps global financial institutions deliver regulatory and business change. The transaction between the two privately-owned firms closed on August 13, 2021 and terms were not disclosed.
/yhoo.it/3y4BYYV
How to avoid potential hidden consequences of SEC's new transaction reporting rules
The Trade
The SEC intends to implement its transaction reporting and public dissemination rules on 8 November to get further oversight into the security-based swaps market. And while the regulator has tried in earnest to avoid unnecessary burden on market participants by aligning these new rules with the existing CFTC reporting rules - which have been embedded for nearly a decade at this point - there are several nuances in the SEC and CFTC rules we have identified which have the potential to cause increased operational responsibility and unexpected consequences.
/bit.ly/3snc3ub
SEC Charges Penny Stock Company, CEO and Others with Multi-Million Dollar Fraud
SEC
The Securities and Exchange Commission today announced it charged an issuer, its CEO, and six other entities and individuals with participating in a penny stock fraud scheme. The SEC also charged certain of the participants with operating as unregistered dealers, and obtained emergency relief to halt their ongoing conduct.
/bit.ly/3sonv8I
SEC Charges Pearson plc for Misleading Investors About Cyber Breach
SEC
The Securities and Exchange Commission today announced that Pearson plc, a London-based public company that provides educational publishing and other services to schools and universities, agreed to pay $1 million to settle charges that it misled investors about a 2018 cyber intrusion involving the theft of millions of student records, including dates of births and email addresses, and had inadequate disclosure controls and procedures.
/bit.ly/2UpKDHn
New FINRA Report: Diversity of Cloud Computing Models Among Broker-Dealers Raises Opportunities and Challenges for the Securities Industry; FINRA Requests Comments on Report
FINRA
A diversity of cloud computing models is transforming how broker-dealers operate, with the potential to enhance agility, efficiency, resiliency and security within firms' operations, while also highlighting the importance for firms to consider relevant regulatory factors for maintaining investor protection and market integrity, according to a new research report from FINRA.
/bit.ly/3soWG4d
Cloud Computing in the Securities Industry
FINRA
Cloud computing is transforming how broker-dealers operate by providing opportunities to enhance agility, efficiency, resiliency and security within firms' technology and business operations while potentially reducing costs. As a result, cloud computing is increasingly seen by many firms as an important architectural component to their infrastructure.
/bit.ly/2W3KCcv
REGULATION SEC's CT Plan timetable is 'unrealistic'; Implementing governance structure for new US public equities datafeeds within a year is highly unlikely, say industry observers.
Joanna Wright - Waters Technology
The Securities and Exchange Commission has approved a new blueprint for the governance of the consolidated tapes produced for US equities, together with an aggressive timetable for its implementation. But industry observers say it is highly unlikely that full implementation of the plan is achievable within the regulator's 12-month deadline.
/bit.ly/3spCbEG
|
| | | |
|
| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | 'Bubble-like behavior' unlikely to destabilize the stock market, but JPMorgan says value will prove a 'cushion' as yields rise
Christine Idzelis - MarketWatch
Bond yields and cyclical bets in equities probably bottomed this month and are on their way up for the rest of 2021, with rising rates and pockets of "bubble-like behavior" unlikely to destabilize the stock market, according to a JPMorgan Chase & Co. report.
/on.mktw.net/3xUgw8D
The Case For A Stock Market Bubble: 'Speculation Pervading Society'
Wayne Duggan - Benzinga
The SPDR S&P 500 ETF Trust (NYSE: SPY) has more than doubled off its 2020 pandemic lows, and the S&P 500's valuation is looking extremely stretched based on a number of traditional stock market valuation metrics.
/yhoo.it/3yVvoFe
SPAC Boom Creates Fresh Targets for Short Sellers, Activists; Blank-check deals help businesses go public faster, and that has investors who hunt weak companies getting ready to pounce.
Scott Deveau - Bloomberg
When Genius Sports Ltd. merged with a blank-check company earlier this year, it became part of the hottest trend on Wall Street this side of meme stocks.
/bloom.bg/3yUY7Ki
Investors Sour on Chinese Insurance Giant's Shares; Ping An's Hong Kong-listed shares, which are part of the MSCI China index, have been on a downward slide lately
Chong Koh Ping - WSJ
Lackluster insurance sales and some poorly performing investments have put a damper on Ping An Insurance (Group) Co. 2318 -1.75% 's share price. The Chinese retail financial-services giant, with a market capitalization of about $157 billion, is the world's second-most valuable insurer after Warren Buffett's Berkshire Hathaway Inc. The Shenzhen-based group also operates a bank and has units that provide asset management, consumer loans, healthcare and technology services.
/on.wsj.com/37TfRtH
|
| | | |
|
| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Parts of the US are getting dangerously hot. Yet Americans are moving the wrong way
David Sirota and Julia Rock - The Guardian
America with a decent idea of which areas of our country will be most devastated by climate change, and which areas will be most insulated from the worst effects. Unfortunately, it seems that US population flows are going in the wrong direction - new census data shows a nation moving out of the safer areas and into some of the most dangerous places of all.
/yhoo.it/3iSwImN
BHP Quits Oil, Piles Into Potash in Overhaul for CEO Henry
Thomas Biesheuvel and James Thornhill - Bloomberg
World's biggest miner will eradicate dual-listing structure; BHP to pay $10.1 billion final dividend after profit surges
BHP Group unveiled the most sweeping change to its business since the world's biggest miner was created two decades ago, as it plans an escape away from fossil fuels to shift toward what it calls "future facing" commodities and clears up some longstanding questions facing investors.
/bloom.bg/3yVLhvo
Danish Climate Plan Aims to Fill Empty Oil Reservoirs With CO2
Frances Schwartzkopff - Bloomberg
A Danish project to store captured CO2 in North Sea reservoirs that were once filled with oil and gas moved a step closer to becoming operational, after winning approval from new stakeholders.
/bloom.bg/2W1xOmW
Colorado River Water Rationed for First Time Amid Drought
Tripp Baltz and David R. Baker - Bloomberg
Arizona, Nevada, Mexico will get less as reservoirs shrink; Arizona farmers to bear the brunt, while cities are spared
Federal officials ordered the first-ever water cuts on the Colorado River system that sustains 40 million people, the latest blow from a decades-long drought across the U.S. West that has shrunk reservoirs to historic lows, devastated farms and set the stage for deadly forest fires.
/bloom.bg/3yZIGAw
California Fires Have Burned a Record 1 Million Acres This Year
Mark Chediak - Bloomberg
State bracing for another round of dangerous fire conditions; PG&E may need to cut power about to almost 40,000 customers
Never before has so much landscape burned in California at this point in the year with more than 1 million acres (405,000 hectares) torched and firefighters bracing for more conflagrations this week.
/bloom.bg/3xYxcvD
UK's hydrogen energy push could be subsidised by taxpayer; Experts say alternative energy source is 'overhyped' and attack 'blue' hydrogen strategy
Nathalie Thomas - FT
UK taxpayers could subsidise the production of "low carbon" hydrogen to make it as cheap as natural gas, as ministers seek to persuade a range of sectors to switch away from fossil fuels.
/on.ft.com/3yUXJLT
ESG must learn from the tech bubble — returns matter; Investors must not forget about profits, even as they focus on wider criteria
Stephen Beer - FT
Longstanding ESG fund managers — there are a few around — should compare experiences with managers of technology funds at the beginning of the dotcom boom over 20 years ago. Everybody got the tech bug, until it ended in tears. Whether investing on environmental, social and governance (ESG) criteria amounts to a bubble or not, ESG investors should keep sight of their financial objectives.
/on.ft.com/3soVmOK
|
| | | |
|
| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Goldman Hires Macro Fund Manager Vassalou at $200 Billion Unit
Sonali Basak - Bloomberg
Goldman Sachs Group Inc.'s asset-management division hired Maria Vassalou, who most recently ran her own firm and spent years at Perella Weinberg Partners, to help manage funds at a $200 billion unit.
/bloom.bg/3iQ8p8O
Why Cathie Wood Took Her ARKK ETF's China Stock Exposure to Zero; The fund manager says crackdowns by the government are "contradictory to their desire to become one of the most innovative countries in the world."
Sonali Basak - Bloomberg
Cathie Wood, the superstar fund manager who has for months been paring holdings tied to Chinese technology giants, said a country that catapulted past the U.S. in innovation seems to now be in a state of retreat.
/bloom.bg/3yVLUVM
Global Banks May Resume Profitable FX Trade as India Relents
Suvashree Ghosh - Bloomberg
RBI exempts foreign sovereign bond investments from a 10% cap; Move will help to keep spikes in forward premia in check: ANZ
The Reserve Bank of India relaxed a rule on bank's purchases of foreign sovereign bonds, paving the way for lenders to resume a profitable currency trade, according to people with knowledge of the matter.
/bloom.bg/3sqyvSU
Client margin down 33% at Credit Suisse's swaps unit in Q2; Drop in IM could signal clients jumping ship in the aftermath of Archegos blowout
Alessandro Aimone - Risk.net
Required client margin held by Credit Suisse's swaps clearing unit dropped $4.3 billion in the second quarter of the year - the biggest decrease of the 15 reporting futures commission merchants (FCMs). Data from the Commodity Futures Trading Commission (CFTC) shows the bank held $8.7 billion of required client initial margin to cover their swap trades, the lowest level on record, and 33% lower than in Q1.
/bit.ly/3yVCCck
|
| | | |
|
| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | The Great British Corporate Dumpster Dive; Private equity and other big business bidders follow a recognizable pattern in their search for U.K. acquisitions.
Chris Hughes. - Bloomberg
Those who want to deter bidders targeting U.K. stocks should beware what they wish for. A common feature of the London-listed companies caught up in the recent takeover frenzy is the generally dire performance of their shares before the bidders pounced.
/bloom.bg/37Ult6I
Chinese tech entrepreneurs grow wary of foreign funding; Preference rises for raising money in renminbi rather than dollars
FT Reporters
For the past three years, the Nanjing-based entrepreneur has only taken Chinese money for his blockchain start-up, and he intends to continue rejecting foreign investors.
/on.ft.com/3iSYEXt
BlackRock calls for investors to lift allocations to China's markets; Asset manager's research division says second-largest market is no longer an emerging nation
Steve Johnson - FT
BlackRock's research unit has said China should no longer be considered an emerging market and recommended investors boost their exposure to the country by as much as three times.
/on.ft.com/37Te9Zj
China's regulatory crackdown sends investors scurrying
Hope King - Axios
Investors are reevaluating their appetite for China-related bets following a pickup in Beijing's regulatory actions. Catch up quick: Chinese regulators have made their way into a broad spectrum of domestic industries. That includes moves that limit business growth, like banning DiDi's app or prohibiting tutoring companies from teaching specific curriculum, as well as increasing scrutiny of online insurance companies and fintechs.
/yhoo.it/2UnoDwM
|
| | | |
|
| Miscellaneous | | Stories that don't quite fit under the other sections | Education demands free speech plus inclusion, Chicago university chief says; Robert Zimmer warns of threats to open discourse while unveiling $200m student aid pledge
Brooke Masters - FT
American universities must marry enthusiasm for diversity and inclusion with a deep commitment to free expression to preserve the quality of higher education, Robert Zimmer, the president of the University of Chicago has warned as he prepares to step down.
/on.ft.com/3yWdy51
University of Chicago gets largest-ever donation to boost financial aid
The school's Board of Trustees gave $105 million in honor of longtime leader and outgoing President Robert J. Zimmer.
Elyssa Cherney - Crain's Chicago Business
The University of Chicago's Board of Trustees is donating $105 million to grow student financial aid—the largest gift of its kind in school history—in honor of longtime and outgoing President Robert J. Zimmer.
/bit.ly/3APHqjM
Nearly a third of U.S. workers under 40 considered changing careers during the pandemic; For some Americans, the pandemic has triggered a great reassessment of work and life. A Post-Schar School poll finds many are considering shifts in their careers and communities.
Heather Long, Scott Clement - Washington Post
When Orlando Saenz was laid off at the end of January, he was devastated. For nearly a decade, he had worked as an executive assistant at an Austin law firm, and it was hard to envision his next steps. But then it dawned on him: This setback could be the kick he needed to finally finish his associate's degree and seek a better career.
/wapo.st/3AGJKcQ
From the History Books: The Rethinking of the International Monetary System; IMF Summer Reads
Atish Rex Ghosh - IFM Blog
Fifty years ago, the world changed. On August 15, 1971, US President Richard Nixon slammed shut the "gold window," suspending dollar convertibility. Although it was not Nixon's intention, this act effectively marked the end of the Bretton Woods system of fixed exchange rates. But, in truth, with the rise of private cross-border capital flows, a system based on fixed exchange rates for the major currencies was no longer viable and Nixon's decision—decried at the time as an abrogation of America's international responsibilities—paved the way for the modern international monetary system.
/bit.ly/3jTmcea
|
| | | |
|
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2021 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
