| October 10, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
|
| | | | First Read | | |
| | 2024 Newsletter Subscriptions: | |
Hits & Takes
John Lothian & JLN Staff
Yesterday would have been my late mother's 94th birthday. Yesterday could have been the day her home in Florida, the one I bought from my brothers, was destroyed by Hurricane Milton. However, in a REALLY GOOD SIGN, Florida Power & Light says that power is back on at my home as reported by my meter several times a day. As of 5:02 this morning, I had power, which means that once the roads are passable, I can head back down to Sarasota and assess any damage and return to my work at home. There still could be substantial damage, but this is a good sign.
More than twenty years ago, in September of 2004, when I was at my first Swiss Futures & Options Association conference in Burgenstock, Switzerland, Cboe (then CBOE) announced they would launch VIX options, which would not start trading until February 24, 2006. I was there at the conference with my wife Cheryl and we were celebrating our 15th wedding anniversary as part of the trip. It was there I met future Cboe Chairman & CEO Ed Tilly for the second time. Fast forward twenty years later, VIX options are the most successful new product in exchange history. And now Cboe is adding to the product suite, planning to launch VIX futures options on Monday, October 14. This is a derivatives contract (VIX futures options) of a derivatives contract (VIX Futures), on a derivative (VIX) based on an index.
There is clearly demand for VIX options. Since 2022, volume is up about 60% and average daily volume in VIX options is now 851,000 contracts in 2024. This new option-on-future structure for VIX will allow "more market participants, including those restricted from accessing securities-based options, to trade a VIX options product," Cboe says.
The Singapore Exchange (SGX Group) yesterday reported significant growth in market statistics for September 2024, driven by easing monetary policies and China's stimulus package, which boosted optimism among investors. Securities trading activity surged, with total market turnover rising 75% year-on-year (y-o-y) to S$30.4 billion, and the daily average value increasing 67% to S$1.45 billion. The Straits Times Index (STI) advanced 4.1% month-on-month, reaching a 17-year peak and year-to-date gains of 10.6%.
Derivatives trading also accelerated, with volume climbing 34% y-o-y to 28.9 million contracts. Open interest in SGX FTSE A50 Index Futures hit a record 1.24 million contracts, reinforcing SGX's role in managing China exposures. Additionally, FX futures and OTC FX volumes grew significantly, with SGX USD/CNH FX futures reaching a notional high of US$17.4 billion. Commodity derivatives volume rose 29% y-o-y to a record 6.94 million contracts, buoyed by strong demand in rubber, petrochemicals, and iron ore contracts.
The FBI's "Operation Token Mirrors" has charged eighteen individuals and companies with fraud and market manipulation in the cryptocurrency sector, the Financial Times reported. The operation involved the creation of a token, NexFundAI, which traded for one day and generated $4,600 in artificial volume. The scheme used algorithms to create billions in fake trading volume, with market maker ZM Quant allegedly inflating prices before selling tokens for profit. Arrests were made, and over $25 million in crypto assets were seized. Charges also involve employees from companies like Saitama, which had a market value of $7.5 billion. Defendants face serious charges, including market manipulation, which could lead to up to 20 years in prison, underscoring that cryptocurrency is subject to regulations against practices like wash trading.
An upcoming webinar from the FIA titled "Double Trouble (or More): Effectively Navigating Parallel Investigations," hosted by the L&C Division, is scheduled for October 31, 2024, from 10:00 a.m. to 11:00 a.m. ET. It will address the challenges faced by market participants undergoing enforcement investigations by the CFTC, which often coincide with inquiries from the Department of Justice, international regulators, and financial exchanges. The Morgan Lewis team, including a former chief of the Fraud Section, will discuss recent enforcement actions and provide strategies for managing these complex, simultaneous investigations to minimize risks and improve outcomes.
I miswrote the FMX volume from Monday. The numbers were right, I just said again it was from the previous day. It was from the previous previous day. Yesterday's FMX Futures Exchange volume was down a couple of contracts from Tuesday's. Volume for Wednesday was 64 contracts of SOFR and open interest was also down two contracts at 1175. See the Daily Trade Report page for details of Wednesday's activity.
Arcadium Lithium plc (ALTM) was the most actively traded stock yesterday, beating out NVDA for the first time in a long time. ALTM was up 30.90 percent yesterday after Rio Tinto (RIO) and the ALTM announced a definitive agreement under which Rio Tinto will acquire Arcadium in an all-cash transaction for $5.85 per share. Lithium is an indispensable mineral for the batteries that power electric vehicles.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
*****
Our most read stories from our previous edition of JLN Options were:
- Who and what is driving oil price volatility from the Financial Times.
- FIA announces 10 startups selected for 2024 Innovators Pavilion from FIA.
- One of Wall Street's biggest bears is turning upbeat on the stock market for the first time in 2 years from Markets Insider. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
++++
Mets Postseason Run Pushes Steve Cohen Toward Baseball Glory
Janet Lorin - Bloomberg
Billionaire Steve Cohen stood outside Citi Field Tuesday greeting fans, posing for photos with kids and saying "Let's Go Mets," the rallying cry of the Major League Baseball team he owns. Wearing a Mets cap, the hedge fund manager was treated like a rock star ahead of Game 3 of the National League Division Series against the rival Philadelphia Phillies, a game won by the Mets 7-2 as they continued their surprising postseason run. They lead the best-of-five series 2-1 with Game 4 set for Wednesday at 5:08 p.m. at Citi Field.
/jlne.ws/3U2ahh3
****** I hate to root for the Mets, but. No, I am going to leave it there. I hate to root for the Mets.~JJL
++++
Trump Vows to Eliminate Income Taxes on Americans Living Abroad; Expats must file taxes with IRS and country where they live; Former president's plan is his latest involving tax reduction
Stephanie Lai - Bloomberg
Donald Trump said he would end US income taxes on Americans living in other countries, the latest in a string of tax proposals in the final stretch of the 2024 campaign. His pledge could simplify the tax obligations for US citizens who live overseas. Americans, regardless of where they live in the world, have to file tax information with the Internal Revenue Service and some expatriates are required to pay US taxes, in addition to levies in the country where they reside.
**** Talk about a mass evacuation (if Trump wins). This would create a crazy incentive to head for the U.S. border and create a reverse border problem.~JJL
++++
Wall Street Pros Avoid Election Bets With Race Too Close to Call; Hedge funds show no clear positioning ahead of vote: Goldman; Traders advise looking at individual stocks over broad indexes
Esha Dey and Natalia Kniazhevich - Bloomberg
In less than a month, Americans will vote in one of the most consequential elections in US history. But on Wall Street things are eerily quiet, as the so-called smart money is reluctant to wager on what's about to happen. "Never bet on the flip of a coin," said George Ball, head of the Houston-based investment firm Sanders Morris Harris. "The election is too close to permit thoughtful investment positioning."
/jlne.ws/3U4U22L
****** We need Yes, No or Maybe Not contracts now.~JJL
++++
Hurricane Milton Threatens $30 Billion of Muni Debt in Florida; Debt sold to finance hospitals, senior living in storm's path; Muni bond impairments possible in a 'worst-case scenario'
Maxwell Adler - Bloomberg
As Hurricane Milton barrels toward Florida threatening massive storm surges in the Tampa Bay area, roughly $30 billion of municipal debt is at risk, according to an analysis from Bloomberg Intelligence. That includes bonds sold to finance hospitals, utility systems and senior living homes. Florida borrowers have raced to the state and local government debt market this year on the heels of a population surge that required updated infrastructure. The Bloomberg Intelligence analysis identified tax-backed and revenue-supported debt sold by localities within the most at-risk evacuation areas.
/jlne.ws/4gXQGbD
***** During a meeting at ICE's headquarters in Atlanta on Tuesday I had a discussion about how ICE's data tools can help in situations like this. It is amazing granularity for muni-bond and mortgage-backed securities traders.~JJL
++++
Wednesday's Top Three
Our top clicked item Wednesday was the FIA's FIA announces 10 startups selected for 2024 Innovators Pavilion. Second was TreasuryDirect to Bond Buyers: Moving Your Money Could Take a Year, from The Wall Street Journal. Third was HBO Documentary Suggests Bitcoin Creator Satoshi Nakamoto Is Developer Peter Todd, from Bloomberg.
++++
++++
|
|  | | | |
 | |
| Lead Stories | Florida-based fund managers ride out Hurricane Milton and remain committed to the state
Suzanne McGee and Svea Herbst-Bayliss - Reuters
Florida's sun and low taxes enticed many hedge funds and other financial professionals to move south. Now another massive hurricane is putting that love affair to the test, but many big-name managers are committed to remaining in "Wall Street South" for the foreseeable future. Hurricane Milton made landfall on Florida's west coast on Wednesday as a Category 3 hurricane. By early Thursday, it had dropped to a Category 1, with heavy rains and damaging storm surges, as it reached the state's Atlantic Coast.
/jlne.ws/3YgdL1Q
Catastrophe Bonds Dodge Worst-Case Scenario After Milton Hits; Investors had previously feared losses as deep as 15%; Bond losses now seen as more likely to be in single digits
Gautam Naik - Bloomberg
After fearing the worst from Hurricane Milton, investors in catastrophe bonds appear to have sustained losses well below those predicted as recently as Wednesday. Estimates that had indicated the bonds would lose as much as 15% have now been replaced by calculations showing investors are more likely to see a hit in the single digits. That's after Milton made landfall as a Category 3 hurricane, weaker than originally forecast and battering Florida south of the densely-populated city of Tampa.
/jlne.ws/3NhV1cd
Hurricane Milton to test booming 'cat bond' market; Investors warn of impact to value of natural disaster-linked debt from massive Florida storm
Ian Smith - Financial Times
The devastating hurricane hitting the Florida coast is expected to test the market for so-called catastrophe bonds, threatening losses for a form of securitised reinsurance that is on course for record issuance this year. US officials have warned of the lethal threat from Hurricane Milton, expected to be one of the worst storms to hit Florida in more than a century, as they raced to evacuate the area before the storm made landfall on Wednesday night.
/jlne.ws/3YhQooH
Almost Half of Traditional Hedge Funds Are Dabbling in Crypto; That's up from 29% last year, per new AIMA and PwC report; Many traditional hedge funds are active in crypto derivatives
Olga Kharif - Bloomberg
Nearly half of hedge funds focused on traditional asset classes now have exposure to cryptocurrencies as increased clarity around regulations and the launch of exchange-traded funds in the U.S. and Asia draw more investors into the asset class, according to a new survey. Among hedge funds trading in traditional markets, 47% had exposure to digital assets, up from 29% in 2023 and 37% in 2022, according to the Global Crypto Hedge Fund Report published Thursday by the Alternative Investment Management Association and PwC. Among those funds that are already invested, 67% plan to maintain the same level of capital in crypto while the rest plan to invest more by the end of 2024, the survey found.
/jlne.ws/4eDCyCX
Cboe to Launch Options on VIX Futures on Monday, October 14; New CFTC-regulated options on futures will physically settle into front-month Cboe Volatility Index (VIX) Futures; Designed to offer market participants the ability to more granularly manage volatility; Further expansion of Cboe's volatility complex following launch of Cboe S&P 500 Variance (VA) futures
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced its new Options on Cboe Volatility Index (VIX) Futures (Ticker: UX) are planned to begin trading on Cboe Futures Exchange, LLC (CFE) on Monday, October 14. The new Options on VIX Futures will provide investors an additional tool to help manage U.S. equity market volatility, complementing Cboe's existing securities-based VIX Index options, which are designed to provide similar risk management and yield enhancement capabilities. Utilizing an option-on-future structure, the new product may allow more market participants, including those restricted from accessing securities-based options, to trade a VIX options product. Cboe's VIX Index options have seen record trading volumes during the last two years, with average daily volumes reaching over 851,000 contracts in 2024, up approximately 60% from 2022, as more investors have sought utility the options offer.
/jlne.ws/47YlO6R
Milton Risks Weigh on Florida-Focused Insurers in Wake of Helene; Back-to-back storms' hits could impact local insurers' surplus; Citizens says it will cover claims without assessment levies
Alexandre Rajbhandari - Bloomberg
Florida-focused insurers are set to face further strain as Hurricane Milton bears down on the state's Gulf Coast just two weeks after Helene battered the region. The back-to-back impact from the two hurricanes could prove devastating for some, with property insurers concentrated in Florida potentially facing substantial losses in their surplus, or assets minus liabilities, a key measure of their financial strength, according to a report from AM Best.
/jlne.ws/4hevMFx
FBI creates its own crypto token to nab suspects in alleged fraud scheme; Sting operation has already led to three arrests for 'on-demand market manipulation' on trading platforms
Will Schmitt - Financial Times
Eighteen people and companies face charges for "widespread fraud and manipulation" after an FBI sting investigation in which authorities created their own cryptocurrency token, federal officials said on Wednesday. The US Department of Justice announced five defendants had pleaded or agreed to plead guilty and another three were arrested in Texas, the UK and Portugal this week in connection with a pump-and-dump probe, dubbed "Operation Token Mirrors", which also seized more than $25mn in crypto assets.
/jlne.ws/489OGJl
Metal Trader Hiring Frenzy Sends Bonuses Soaring; Cash-rich energy trading houses are seeking to diversify; Mercuria has hired around 40 staff for metals in recent months
Jack Farchy, Archie Hunter, Alfred Cang, and Anna Shiryaevskaya - Bloomberg
A push into metals trading by several giants of the energy markets has spurred a hiring spree and driven up salaries, with some senior executives saying they've never seen such a frenzied competition. The rush for metals traders has pushed compensation levels higher across the industry, according to several trading house CEOs, while one expressed shock at junior traders on his staff being offered guaranteed bonuses of many hundreds of thousands of dollars.
/jlne.ws/4eDoidk
US charges 18 people, companies for cryptocurrency fraud
Reuters
Four cryptocurrency companies and 14 individuals have been charged in what U.S. prosecutors on Wednesday said was the first criminal prosecution of financial services firms for market manipulation and sham trading in the crypto sector. Federal prosecutors in Boston charged the firms Gotbit, ZM Quant, CLS Global and MyTrade and their leaders and employees in a takedown that also involved arrests overseas. Five people have already agreed to plead guilty or have done so.
/jlne.ws/3U0yK6c
TD Bank Faces $3 Billion in Penalties and Growth Restrictions in U.S. Settlement; Canadian bank's U.S. unit is expected to plead guilty Thursday to charges that it failed to build proper anti-money-laundering systems
Justin Baer, Dylan Tokar and Vipal Monga - The Wall Street Journal
TD Bank is expected to pay about $3 billion in penalties and accept limits on its growth in the U.S. as part of a settlement with regulators and prosecutors over charges it failed to properly monitor money laundering by drug cartels. As part of the agreement, the bank's primary U.S. regulator, the Office of the Comptroller of the Currency, is expected to impose an asset cap barring the bank's retail business from growing above a certain level in the U.S., according to people familiar with the matter.
/jlne.ws/3YhPTea
The curious case of the revealing orders; Oxford academics have found evidence pointing to collusion on a European exchange, but market-makers aren't wholly convinced
Mauro Cesa and Luke Clancy - Risk.net
In the game of contract bridge, partners are permitted to pass signals to each other through coded card play. On financial exchanges, such behaviour could amount to market abuse, which is forbidden. Yet, an Oxford University mathematics professor believes he has found evidence of potential signalling by market-makers in exchange-traded funds (ETFs). Alvaro Cartea, who also leads the Oxford-Man Institute of Quantitative Finance, last week previewed the results of a study showing that the order sizes
/jlne.ws/3NjBoAj
CFA Level II Pass Rate Slumps to 47% From May's 26-Year High
Daniel Taub - Bloomberg
The pass rate for the second level of the chartered financial analyst test slumped to 47%, down from a quarter-century high reached earlier this year while still above average. In August, 47% of candidates sitting for the Level II test were successful, compared with the 59% pass rate for May test-takers. That success level was the highest since 1998. Still, the August results were above the 10-year average of 45% and the lows from 2021, when disruptions caused by the Covid-19 pandemic led to lower pass rates, the CFA Institute said in a statement Thursday.
/jlne.ws/4dGTEOZ
Rio Tinto Makes a Multibillion-Dollar Bet Against China; The mining giant pays a premium for a piece of the lithium market Beijing already dominates.
Javier Blas - Bloomberg
In commodity markets, betting against China is rarely a good idea. And yet, that's what mining behemoth Rio Tinto Plc is doing with a $6.7 billion all-cash deal to buy a lithium miner, its biggest transaction in nearly two decades. Lithium is attracting headlines because it's - at least for now - an indispensable mineral for the batteries that power electric vehicles1. An EV battery needs up to 85 kilograms (187 pounds) of lithium.
/jlne.ws/3BDoF9j
Hedge Funds Sold Record Chinese Stocks on Tuesday, Goldman Says; Managers sold longs and added to shorts, according to note;l Traders returned from weeklong holiday to volatile market
Jeanny Yu and Abhishek Vishnoi - Bloomberg
Hedge funds sold a record amount of Chinese shares on Tuesday after a key policy meeting disappointed traders with no major stimulus, according to a Goldman Sachs Group Inc. trader note. "Hedge funds not only unwound their long positions but added shorts to their books as well, with long sells being double the amount of short sells," according to the note dated Thursday.
/jlne.ws/4eZRg6Q
China Steps Up Checks of Wealth Management Products After $149 Billion Outflow; Investors yanked $149 billion from WMPs after stock rally; Banks told to report on ability to meet short-term redemptions
Bloomberg News
China has asked its financial institutions to beef up monitoring of the nation's wealth management products, people familiar with the matter said, after investors pulled some $149 billion to chase a rally in stocks. Regulators recently ordered lenders, fund houses and fund distributors to monitor changes in the scale of WMPs on a daily basis, according to the people, asking not to be identified discussing a private matter.
/jlne.ws/3zUt9aO
Hong Kong rationalises swaps reporting requirements; Some duplicate fields removed, but framework still more granular than other jurisdictions
Nancy Qu - Risk.net
Hong Kong regulators' decision to ease data requirements for its over-the-counter derivatives reporting regime should make firms' compliance workload more manageable between now and next September's implementation date, lawyers say. "The decision to optimise and trim the number of mandated data fields in Hong Kong reflects an effort to ease compliance burdens while maintaining effective market monitoring," says Andrew Fei, a partner at law firm King & Wood Mallesons in Hong Kong. "This objective
/jlne.ws/3YizndZ
Hurricane Milton leaves millions without power after lashing Florida
Aime Williams in Washington, Madison Darbyshire in New York and Attracta Mooney in London - Financial Times
Hurricane Milton ploughed across Florida on Thursday after slamming into the state's western coast overnight, bringing life-threatening storm surges and leaving millions without power. The hurricane was preceded by a spate of tornadoes and made landfall near Siesta Key in Sarasota County as a category three storm on the five-step Saffir-Simpson scale, with winds of 120mph, the US National Hurricane Center said.
/jlne.ws/4gYjr8a
Inside the UK's blueprint for the move to T+1 settlement; Some lessons have been learnt from the US, while in other ways the UK will blaze its own trail with regards to supervisory and adjacent practices such as FX and lending. Claudia Preece reports from an exclusive roundtable discussion with the chair of the UK Accelerated Settlement taskforce, Andrew Douglas.
Claudia Preece - The Trade
Following the US shift to T+1 settlement in May, the UK is gearing up for a 2027 shift and set to benefit from "second mover advantage" according to Andrew Douglas, chair of the T+1 technical group (TGT) of the UK Accelerated Settlement taskforce (AST). In September the AST published its proposed recommendations for a transition to T+1 in the UK, calling for market feedback on its automation-heavy approach.
/jlne.ws/4eWdI0B
|
| | | |
|
| |
| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | EU envoys approve up to 35 billion euros contribution to G7 loan for Ukraine
Julia Payne - Reuters
EU envoys agreed on Wednesday to give Ukraine up to 35 billion euros as part of the bloc's share in a larger planned loan from the Group of Seven nations (G7) backed by frozen Russian central bank assets, a statement from the Council of the EU said. The G7 and European Union announced in June they would provide a $50 billion loan to help Ukraine, serviced by profits generated by Russian assets immobilised in the West. These assets were frozen shortly after Russia launched a full-scale invasion of Ukraine in February 2022.
/jlne.ws/4eEAtXc
*****Here is the Financial Times' version of this story.
Ukraine Approves Bill to Increase Taxes to Cover Defense Needs
Kateryna Chursina - Bloomberg
The Ukrainian parliament approved a draft law to increase taxes on individuals, companies and banks starting from this year to cover increased military and defense needs. Legislators backed the tax increase bill on the second reading Thursday, lawmaker Yaroslav Zheleznyak said on Telegram. Some 247 voted in favor, he said.
/jlne.ws/3BDpQWh
Russian Tanker Sanctions Fail to Stop Ships Hauling Moscow's Oil; Nearly one-third of the blacklisted ships are back at work; The speed at which they're returning to work is increasing
Julian Lee - Financial Times
Moscow's use of the tankers sanctioned for their involvement in the Russian oil trade is accelerating, with close to one-third of the blacklisted vessels back at work. At least 21 of the 72 tankers sanctioned by the US Treasury Department's Office of Foreign Assets Control, the UK Treasury or the European Union in the past year have loaded a total of 24 cargoes of Russian oil since they were designated in response to Moscow's 2022 invasion of Ukraine.
/jlne.ws/3ZUlh3O
|
| | | |
|
| |
| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | US seeks to sideline Hizbollah in Lebanon; Biden does not push for rapid ceasefire as state department sees opportunity for fresh Lebanese presidential vote
James Politi and Steff Chavez in Washington, Raya Jalabi in Beirut and Andrew England - Financial Times
US President Joe Biden did not press Benjamin Netanyahu to halt Israel's escalating offensive in Lebanon when the pair spoke this week, as a government spokesperson said the US views the conflict with Israel as an opportunity to sideline Hizbollah politically. Two weeks after the US called for a swift temporary truce in Israel's conflict with the Lebanese militant group, Biden did not reiterate that call when he spoke to Israel's prime minister on Wednesday for the first time since the invasion of Lebanon, according to the White House.
/jlne.ws/4h2O3Fm
Biden and Netanyahu Speak for the First Time in Months as Mideast Crisis Deepens; The conversation carried the weight of the worst relationship between the United States and Israel in years.
David E. Sanger and Eric Schmitt - The New York Times
For the first time in two months, President Biden and Prime Minister Benjamin Netanyahu spoke on Wednesday in a phone conversation that focused on Israel's plans to retaliate against Iran for a missile attack. When the meeting ended, American officials said nothing about Israel's plans, or whether Mr. Netanyahu indicated he would heed Mr. Biden's warnings not to hit nuclear or energy sites, which the White House fears could lead to an escalating cycle of Iranian missile strikes and Israeli responses.
/jlne.ws/3NhYrM5
U.N. Says Israel Opened Fire on Peacekeepers in Lebanon; Israel's military said it was looking into the claim. The U.N. force in Lebanon said two peacekeepers were wounded.
Euan Ward and Liam Stack - The New York Times
Israeli forces fired on U.N. peacekeepers in southern Lebanon on Thursday and wounded two of them, according to the U.N. force. The U.N. peacekeeping mission in Lebanon - commonly known by its acronym, UNIFIL - said Israeli tank fire hit an observation tower at the force's headquarters in Naqoura and that soldiers also struck the entrance of a bunker at a separate base where peacekeepers were sheltering.
/jlne.ws/4h3fcIC
|
| | | |
|
| |
| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | 'Making equity great again' should be the Commission's priority, says Euronext CEO
Hannah Brown & Angela Barnes & Finnegan Belleau - Euronews.com
CEO of Euronext, Stephane Boujnah, discusses building financial security, liquidity in Europe and the potential impact of a Trump win. 2024 has been a year full of important elections with far-reaching implications for the European markets. Results in the UK saw Rishi Sunak ousted as prime minister, while France's chaotic snap election led to the formation of a new government. Yet to come is the finale of the US presidential race.
/jlne.ws/4eWCmOL
Euronext steps up Eurex competition with new stock options offering
Lucy Carter - Global Trading
Euronext continues to push against Eurex's market dominance, expanding its range of single stock options soon after bringing clearing in-house.
Euronext has expanded its European derivatives suite with the launch of 31 new single stock options: 21 German, four Portuguese and six Irish. This marks the exchange's first Irish stocks listing, and completes Euronext's coverage of all DAX 40 index constituents in Germany.
/jlne.ws/4gYhBE3
Cboe to Launch Options on VIX Futures on Monday, October 14
October 09, 2024
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced its new Options on Cboe Volatility Index (VIX) Futures (Ticker: UX) are planned to begin trading on Cboe Futures Exchange, LLC (CFE) on Monday, October 14. The new Options on VIX Futures will provide investors an additional tool to help manage U.S. equity market volatility, complementing Cboe's existing securities-based VIX Index options, which are designed to provide similar risk management and yield enhancement capabilities. Utilizing an option-on-future structure, the new product may allow more market participants, including those restricted from accessing securities-based options, to trade a VIX options product.
/jlne.ws/47YlO6R
EEX to introduce Irish Power Futures and extended expiries for selected power markets
EEX
The European Energy Exchange (EEX) is to launch a set of Irish Base Power Futures as first for this market, and extend expiries for a series of products for the Japanese French and Dutch power derivatives markets from 25 November 2024.
/jlne.ws/3A52XKF
Miami International Holdings Participates in the 2024 Ring the Bell for Financial Literacy Initiative during World Investor Week
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today ceremoniously rang the opening bell at its Princeton, N.J. headquarters in honor of the World Federation of Exchanges' (WFE) Ring the Bell for Financial Literacy initiative.
/jlne.ws/3YhCkeN
Nasdaq Announces End-of-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date September 30, 2024
Nasdaq
At the end of the settlement date of September 30, 2024, short interest in 3,067 Nasdaq Global MarketSM securities totaled 12,246,444,747 shares compared with 12,241,625,467 shares in 3,057 Global Market issues reported for the prior settlement date of September 13, 2024. The mid-September short interest represents 2.94 days compared with 3.06 days for the prior reporting period. Short interest in 1,663 securities on The Nasdaq Capital MarketSM totaled 2,136,615,501 shares at the end of the settlement date of September 30, 2024, compared with 2,107,947,669 shares in 1,670 securities for the previous reporting period. This represents a 1.32 day average daily volume; the previous reporting period's figure was 1.34.
/jlne.ws/3U6ZsKK
Nasdaq Rises to 5th in RiskTech100 Global Ranking Following Launch of Financial Technology Division
Nasdaq
Nasdaq (Nasdaq: NDAQ) today announced it has jumped to 5th place in Chartis' annual RiskTech100 global ranking and has won two awards for its financial crime management and regulatory reporting technology. The news comes less than a year after Nasdaq's acquisition of Adenza and the establishment of its Financial Technology division. Today, as a scaled platform partner Nasdaq draws on deep industry experience, technology leadership and cloud managed services to help 3,500+ banks, brokers, regulators, central banks, financial infrastructure operators, and buy-side firms solve their most complex operational challenges across risk, compliance, and trade management.
/jlne.ws/4dMJaNY
To Consolidate or Not to Consolidate?
SIX
Central Counterparty Clearing Houses (CCPs) in Europe are facing renewed pressure to consolidate. Speaking at the Association for Financial Markets in Europe's (AFME) OPTIC Conference in London earlier this month, Laura Bayley, Head Clearing Services, SIX, said CCPs are rising to the challenge, by embracing interoperability and diversifying into new, exciting asset classes.
/jlne.ws/4eDbC6i
Southeast Asian startups shouldn't have to go to the U.S. for capital. Here's how to help them raise money closer to home
Jenny Lee and Ng Yao Loong - SGX
In 2022, PropertyGuru, Southeast Asia's leading property technology company, made its public debut on the New York Stock Exchange through a merger with a SPAC, amid high expectations. Fast forward to early 2024. The company's shares had lost about 60% of their value at one point, prompting a buyout by private equity firm EQT at a valuation of $1.1 billion-below the $1.6 billion valuation when the startup listed just two years ago.
/jlne.ws/3Yljq73
|
| | | |
|
| |
| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | The Derivatives Service Bureau Calls for Participation in Technology Advisory Committee (TAC)
DSB TAC to commence its fourth charter term
Derivatives Service Bureau
The Derivatives Service Bureau (DSB), the global golden source of reference data for OTC derivatives, today announced that the DSB's Technology Advisory Committee (TAC) Charter is welcoming new applicants ahead of a new two (2) year term, with an application deadline of 23rd October. Established in 2018, the TAC provides advisory support to the DSB in recognition of required enhancements and adaptations to its technology base and services. Working alongside the DSB Product and Governance Advisory Committees, the TAC is responsible for the technical stewardship ensuring the DSB technology strategy is aligned with the needs of the markets it serves, including making recommendations to the DSB Board on technology-related DSB industry consultation topics.
/jlne.ws/4eHEnPm
How Safe Is Your Money in a Fintech, Really?; In the wake of Synapse's collapse, the FDIC proposed a rule in September that would require banks to closely monitor accounts maintained by their fintech partners.
Teresa Xie - Bloomberg
Imagine putting your savings into a digital bank, not thinking about it, and waking up one day to find it inaccessible. That nightmarish scenario is exactly what happened earlier this year when fintech startup Synapse Financial Technologies Inc. filed for Chapter 11 bankruptcy - and left as much as $95 million worth of funds missing. Founded in 2014, the Andreessen Horowitz-backed startup was one of thousands of companies that have emerged over the last decade aiming to upend traditional finance through the integration of new technologies. While not a household name, Synapse's collapse has caused a ripple effect within the fintech industry, due to the banks and roughly 100 fintechs with which it had partnerships.
/jlne.ws/3YiY6yS
Fenergo Appoints Renowned Financial Crime Partner Michael Shepard to Advisory Board; A seasoned expert with nearly four decades of experience, Shepard has served as a former Deloitte Financial Crime leader, bank executive and U.S. Department of Justice prosecutor. He will play a key role in fuelling Fenergo's U.S. expansion and enhancing global financial crime compliance strategies.
Fenergo
Fenergo, the leading provider of AI-powered solutions for Know Your Customer (KYC), Anti-money laundering (AML) transaction monitoring and Client Lifecycle Management (CLM), today announced the appointment of financial crime veteran Michael Shepard to its Growth Advisory Board. Shepard will leverage his extensive expertise to support Fenergo's continued U.S. expansion, enhance global AML and financial crime compliance strategies and provide strategic guidance to support growth.
/jlne.ws/3XTdWPk
The Journey from Graduation to Full-Time Careers at Vermiculus
Vermiculus
Starting a career after graduation is a pivotal moment in anyone's life. After many years of studying and hard work, it's a well-earned proof of all the time and effort invested in education. At Vermiculus, we pride ourselves on fostering an environment where fresh talent can thrive. We spoke to three of our employees, Beatrice Berg, Victor Jonsson and Niklas Sundqvist, who joined us straight out of university to learn more about their journey, challenges, and the growth they've experienced.
/jlne.ws/3Bx0yc4
Blue Owl to Buy $2 Billion of Fintech Upstart's Consumer Loans; Apollo's Atlas SP is providing debt for the purchase; Private credit lender is pushing into asset-based finance
Carmen Arroyo - Bloomberg
Blue Owl Capital Inc. has agreed to buy up to $2 billion of consumer installment loans from financial technology lender Upstart Holdings Inc. as part of an effort to push into asset-based finance, according to a statement seen by Bloomberg News. The private credit lender will snap up the debt over the next 18 months, through a so-called forward-flow agreement, where a buyer agrees to purchase loans before they have been originated. The deal also includes $290 million of personal loans that have already been handed out, according to the statement.
/jlne.ws/483Vs3f
OpenAI pursues public benefit structure to fend off hostile takeovers; ChatGPT maker considers largely untested company model to protect chief executive Sam Altman from outside interference
Cristina Criddle in San Francisco and Patrick Temple-West in New York - Financial Times
/jlne.ws/3zGIQCE
Ex-UBS CEO Ralph Hamers Joins Former Googlers' AI Wealth Firm; Hamers is adviser to digital-wealth platform Arta Finance; He owns a stake in Arta, along with Eric Schmidt and others
Benjamin Stupples - Bloomberg
/jlne.ws/4f04hxc
|
| | | |
|
| |
| Cybersecurity | | Top stories for cybersecurity | Moscow-adjacent GoldenJackal gang strikes air-gapped systems with custom malware; USB sticks help, but it's unclear how tools that suck malware from them are delivered
Jessica Lyons - The Register
A cyberespionage APT crew named GoldenJackal hacked air-gapped PCs belonging to government and diplomatic entities at least twice using two sets of custom malware, according to researchers from antivirus vendor ESET. The firm's investigators believe GoldenJackal wields a bespoke toolset it used to breach a government org in Europe between May 2022 and March 2024, and a South Asian embassy in Belarus in 2019.
/jlne.ws/3ZXG1Yi
|
| | | |
|
| |
| Cryptocurrencies | | Top stories for cryptocurrencies | 'I'm Not Satoshi,' Says Man Who HBO Suggests Created Bitcoin; Peter Todd says evidence presented in film is 'threadbare'; Developer says documentary's claim puts his life at risk
Olga Kharif - Bloomberg
Software developer Peter Todd wants to send a message to HBO and viewers of one of its new films: He didn't invent Bitcoin. "I am not Satoshi," Todd said in an email to Bloomberg, denying that he is the true identity of the pseudonymous cryptocurrency pioneer Satoshi Nakamoto. In Money Electric: The Bitcoin Mystery, filmmaker Cullen Hoback used circumstantial evidence to suggest that Todd was Nakamoto. For example, in one instance the film says that Nakamoto may have accidentally used Todd's Internet message-board account to continue a post started earlier under Nakamoto's username.
/jlne.ws/3XZDv1g
Deribit Introduces Hashnote's USYC As New Yield-Bearing Cross-Margin Collateral Option
Deribit
Deribit, the leading digital assets derivatives exchange, today announced the introduction of the US Yield Coin (USYC) from Hashnote, the world's premier on-chain asset manager, as a new yield-bearing cross-margin collateral option. Available to all Deribit users starting October 8, 2024, this collateral option offers flexibility and delivers another risk management tool for traders.
/jlne.ws/480BK8t
Nonco Joins TP ICAP's Fusion Digital Assets To Enhance Liquidity For Spot Bitcoin And Ethereum Markets
Mondovisione
Nonco, a leader in institutional digital asset trading, is pleased to announce its partnership with TP ICAP's Fusion Digital Assets exchange. As part of this collaboration, Nonco will provide liquidity for the Bitcoin and Ethereum order books, strengthening the exchange through tighter spreads and offering deeper liquidity for its participants. Fusion Digital Assets, a cutting-edge marketplace, is operated by TP ICAP E&C Limited, a FCA registered cryptoasset firm. The non-custodial institutional exchange provides clients with a fast and secure environment for order matching and trade execution. Nonco's involvement in Fusion Digital Assets reinforces its commitment to fostering the development of secure and efficient digital asset markets.
/jlne.ws/4dJGYXz
Crypto Firms Charged With Market Manipulation in US Sting; Authorities set up fake company to nab wash-trade suspects Probe led to charges against 15 people, some market makers
Zeke Faux - Bloomberg
Three market making firms allegedly promised to gin up an avalanche of fake trades to boost the value of NexFundAI's cryptocurrency token. What they didn't know was that NexFundAI wasn't a real company. It was part of an elaborate sting operation by federal prosecutors. Representatives of ZM Quant, CLS Global and MyTrade were among 15 crypto promoters and traders charged with market manipulation and fraud in a wide-ranging probe prompted by a tip from the US Securities and Exchange Commission, authorities in Boston said in a statement Wednesday.
/jlne.ws/3NjPhyw
$16 million worth of ether from PlusToken ponzi moves to exchanges, analyst expects full $1.3 billion sale to follow
Danny Park - The Block
Around 7,000 ether (worth $16.7 million) from the multibillion-dollar PlusToken crypto Ponzi scheme was moved to exchanges, potentially signaling the sale of the entire $1.3 billion in ether seized from the scheme, analyst at OXT Research ErgoBTC reported on X Wednesday. This comes around two months after wallets linked to the crypto scheme were seen moving large amounts of ether after being dormant since 2021. "Current ETH distribution follows the same attempted obfuscation pattern as that of the BTC in 2019, with a likelihood of full sale of the $1.3b of ETH in the future," said the OXT analyst ErgoBTC.
/jlne.ws/3BxHn1N
|
| | | |
|
| |
| Politics | | An overview of politics as it relates to the financial markets | Trump Ally Says Venezuela Has $25M Bounty on His Head, Flees US for Dubai
Andrew Stanton - Newsweek
Patrick Byrne, ex-CEO of Overstock and an ally to former President Donald Trump, has reportedly moved to Dubai after alleging that he learned the government of Venezuela has a $25 million bounty on him, according to court documents. Byrne has been a vocal supporter of the Republican presidential nominee, including backing his unproven claims of widespread voter fraud in the 2020 presidential election. His support for Trump has cost him legal troubles, including a $1.7 billion lawsuit leveled by the Dominion voting machine company and a defamation suit filed by Hunter Biden, son of President Joe Biden.
/jlne.ws/4gZ2KJG
A Trump Trade Arbitrage; Election cops, HSR filings, structured credit integration, TXSE listing standards, AI and CPAs.
Matt Levine - Bloomberg
This is not investment advice, but these days there are a number of platforms where you can bet on the US presidential election. Offering election contracts used to be a violation of US law, but a recent court case seems to have changed that, though this is also not legal advice. On the other hand, these platforms do seem to violate the law of one price. As of about noon today, you could buy a Donald Trump contract - one that pays off $1 if he wins the election - for about $0.49 on Kalshi, and you could sell it for about $0.53 on Polymarket, collecting a free four cents.
/jlne.ws/3ZZd8eC
Harris campaign, groups raise $1 billion since she became the presidential candidate, source says
Reuters
Vice President Kamala Harris' presidential campaign and related political committees have raised $1 billion since she became the Democratic candidate in July, a source briefed on the matter told Reuters. Since Harris replaced President Joe Biden on July 21, dollars have flowed into her campaign coffers and affiliated political action committees and Democratic Party at an unprecedented pace. Harris raised $25 million on the day she was named the candidate, and had amassed $500 million in about a month.
/jlne.ws/4gWTy8J
North Carolina eases voting rules as Trump allies fret over storm fallout
Gram Slattery, Steve Holland and James Oliphant - Reuters
North Carolina lawmakers passed legislation on Wednesday that will make it easier for residents affected by Hurricane Helene to vote, as Donald Trump's allies increasingly fret that fallout from the devastating storm will depress turnout in the battleground state's conservative mountain regions. More than 100 people died in western North Carolina after Helene smashed the region last month, sparking massive flooding and mudslides that destroyed much of the area's infrastructure and left some towns completely cut off.
/jlne.ws/3A50rUJ
US Republicans condemn hurricane misinformation spread by their own party
Moira Warburton - Reuters
As U.S. officials struggle to push back against misinformation about natural disasters hitting the country, at least three congressional Republicans condemned conspiracy theories repeated by fellow members of their party. Representative Chuck Edwards, who represents a North Carolina district hit hard by flooding caused by Hurricane Helene in late September, called out the "outrageous rumors" spread by "untrustworthy sources trying to spark chaos."
/jlne.ws/3XZuEN4
Why the Election Has Wall Street Frozen; Among deal makers with fortunes at stake, the consequences of a Harris or a Trump win are increasingly murky.
Rob Copeland - The New York Times
When the bankers and lawyers for Capital One and Discover were locked in tense negotiations in February over the timing for the merger of their companies, political factors loomed. Move too quickly, three people involved in those discussions recalled, and the Biden administration could try to scuttle a tie-up that would make executives on both sides rich. Wait longer, and former President Donald J. Trump might return to office and be more amenable. The companies agreed to aim for a Dec. 31 deal completion - a date between the election and the inauguration.
/jlne.ws/4eW0mkZ
Bond Bears Seek an Inflation Hedge If Trump or Harris Win Sweep; Treasury market outlook may hinge on House, Senate races; Some seek hedges against fiscal boost in a unified government
Liz Capo McCormick and Saleha Mohsin - Bloomberg
/jlne.ws/4ezJGjy
Private Equity Billionaires Seek to Torpedo Swiss-EU Talks; Partners Group founders create anti EU-deal pressure group; Negotiations on revamp of relations due to conclude this year
Bastian Benrath-Wright - Bloomberg
/jlne.ws/4eT6I5n
|
| | | |
|
| |
| Regulation & Enforcement | | Stories about regulation and the law. | Former China deputy central bank head gets suspended death sentence for taking bribes
Reuters
China's former deputy central bank governor, Fan Yifei, has been sentenced to death for taking bribes with a two-year reprieve, state media said on Thursday, amid a sweeping anti-graft drive in the financial sector. Fan was found guilty of illegally accepting property worth more than 386 million yuan ($54.55 million), taking advantage of his senior positions at the central bank and other financial institutions, including China Construction Bank, according to the report, citing a Chinese court.
/jlne.ws/3YmciHC
TSB fined £11mn for mistreating customers - including a dead one; UK FCA says lender's 'woeful systems and controls' exposed struggling clients to risk of harm
Akila Quinio and Martin Arnold - Financial Times
TSB charged a dead person fees for missing a mortgage payment and told another borrower not to buy clothes or school meals for their children, UK regulators said as they fined the bank £10.9mn for failing to treat struggling customers fairly. The Financial Conduct Authority said on Thursday that TSB's "inadequate processes" between 2014 and 2020 had "created a real risk that repayment plans were not realistic" for customers.
/jlne.ws/3BAVZ0m
SEC Monitoring Impact of Hurricane Milton on Capital Markets; Agency continues to monitor impact of Hurricane Helene
SEC
The Securities and Exchange Commission is closely monitoring the impact of Hurricane Milton on investors and capital markets. The SEC also continues to monitor the prior impact of Hurricane Helene. The SEC divisions and offices that oversee companies, accountants, investment advisers, mutual funds, brokerage firms, transfer agents, and other regulated entities and investment professionals will continue to closely track developments. They will evaluate the possibility of granting relief from filing deadlines and other regulatory requirements for those affected by the storms. Entities and investment professionals affected by Hurricane Milton or Hurricane Helene are encouraged to contact SEC staff with questions and concerns:
/jlne.ws/481zGgA
SEC Charges Three So-Called Market Makers and Nine Individuals in Crackdown on Manipulation of Crypto Assets Offered and Sold as Securities
SEC
The Securities and Exchange Commission today announced fraud charges against three companies purporting to be market makers and nine individuals for engaging in schemes to manipulate the markets for various crypto assets being offered and sold as securities to retail investors. As alleged, the schemes were intended to induce investor victims to purchase the crypto assets by creating the false appearance of an active trading market for them. According to the SEC's complaints, crypto asset promoters Russell Armand, Maxwell Hernandez, Manpreet Singh Kohli, Nam Tran, and Vy Pham (Promoters) hired so-called market makers ZM Quant and Gotbit to provide market-manipulation-as-a-service, which included generating artificial trading volume or manipulating the price of crypto assets that the Promoters offered and sold as securities to retail investors in unregistered transactions. The SEC also alleged that ZM Quant and a third so-called market maker, CLS Global, undertook similar schemes to manipulate the market of a crypto asset offered and sold as a security that was created at the direction of the Federal Bureau of Investigation as part of its parallel investigation into potential market manipulation in the crypto asset industry.
/jlne.ws/4habIUG
SEC Charges "Magic Mushroom" Company and Two Individuals with Multimillion Dollar Pump-and-Dump Scheme
SEC
The Securities and Exchange Commission today charged Minerco Inc. (former over-the-counter ticker: MINE), Bobby Shumake Japhia, and Julius Makiri Jenge, for their roles in an alleged pump-and-dump scheme that defrauded investors out of approximately $8 million while generating millions of dollars in ill-gotten proceeds from sales of Minerco stock. According to the SEC's complaint, in the fall of 2019, Shumake, who was formerly known as Robert Samuel Shumake, Jr., secretly gained control of a large stock position in Minerco, an inactive penny stock company, and then arranged for Jenge to assume control of Minerco. The defendants then began pumping Minerco's stock price by promoting Minerco as the "first publicly traded company focused on the research, production, and distribution of psilocybin mushrooms." Psilocybin is the principal psychoactive component in "magic mushrooms," a plant-based hallucinogen.
/jlne.ws/3ZT6fLG
Mastermind of Multimillion-Dollar Penny-Stock Scam Indicted for Fraud and Obstruction
Department of Justice
A federal grand jury in the District of Columbia returned an indictment today charging a Michigan man with defrauding investors in Minerco Inc. (stock ticker MINE) - leading to millions of dollars in investor losses - as well as obstructing a Securities and Exchange Commission (SEC) proceeding by destroying evidence. According to the indictment, Bobby Shumake Japhia (Shumake), 56, also known as Robert Samuel Shumake Jr., Robert Japhia, and Shaman Bobby Shu, of Michigan, allegedly ran Minerco's day-to-day operations and organized a scheme to defraud investors in the publicly traded securities of Minerco by, among other things, making or causing to be made materially false and misleading statements to the public, including in press releases, in an effort to artificially inflate the share price of, and demand for, Minerco stock. Beginning in or around January 2020, Minerco purported publicly to be in the business of developing, marketing, and distributing psilocybin mushrooms, also known as magic mushrooms or psychedelic mushrooms.
/jlne.ws/4f0F5XD
Justice Department, Federal Trade Commission and Consumer Financial Protection Bureau Warn Consumers About Potential Scams and Price Gouging in the Wake of Hurricanes and other Natural Disasters
Department of Justice
As the nation braces for another major hurricane, the Justice Department, along with the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB), is warning consumers about those looking to take advantage of natural disasters by engaging in potential fraud, price gouging and collusive schemes. Scammers quickly exploit weather emergencies and take advantage of people trying to recover or donate to disaster victims. Weather emergencies provide disruptions to the supply chain, which can also provide opportunities for wrongdoers to engage in collusive schemes that inflate prices charged to customers who are under extreme stress and therefore unable to fight back against collusive or anticompetitive prices.
/jlne.ws/3BDTA5g
FCA fines TSB £10.9m over treatment of customers in financial difficulty
FCA
The FCA has fined TSB Bank plc (TSB) £10,910,500 for failing to ensure customers who were in arrears were treated fairly. It also lacked suitable systems and controls to secure fair outcomes. TSB has paid £99.9m in redress to the 232,849 mortgage, overdraft, credit card and loan customers affected.
/jlne.ws/3YtqiPT
Joint Advisory on Rise in Government Official Impersonation Scam Variant Featuring Impersonation of Banks
MAS
The Singapore Police Force (SPF) and Monetary Authority of Singapore (MAS) would like to alert members of the public to a recent rise in Government Official Impersonation Scams featuring the impersonation of banks and government officials. In September 2024, there have been at least 100 cases reported, with total losses amounting to at least $6.7 million.
/jlne.ws/3Y89b4K
Court Convicts Oon Yun Cong for Fraudulently Inducing Others to Trade Under the Securities And Futures Act
MAS
Mr Oon Yun Cong was yesterday sentenced to 16 months' imprisonment and fined $12,105.70 for fraudulently inducing others to deal in shares under the Securities and Futures Act (SFA).
/jlne.ws/3XT0CdC
Ontario Securities Commission Publishes Gamification Research And Launches New Trading Simulation Tool For Investor Education Month
Mondovisione
The Ontario Securities Commission (OSC) today released a new report that studied the impact of gamification on investors. Along with this research, the OSC launched a new trading simulation tool for investors to test how online gamification tactics can influence their investing behaviour.
/jlne.ws/3YhzyGp
|
| | | |
|
| |
| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | US Retirees to Get 2.5% Boost to Social Security Checks in 2025
Vince Golle and Alexandre Tanzi - Bloomberg
Monthly checks for some 72.5 million Americans receiving retirement or disability benefits will increase by 2.5% in 2025, a smaller adjustment than what they received this year after a further slowdown in inflation. On average, Social Security retirement benefits will increase by almost $50 to $1,976 per month starting in January, the Social Security Administration said Thursday.
/jlne.ws/4eBBmjv
Japan's Insurers With $2.6 Trillion to Tip-Toe Back Into JGBs; Firms awaiting higher super-long yields as BOJ outlook eyed; Insurers may buy slightly more unhedged foreign bonds
Mia Glass and Daisuke Sakai - Bloomberg
Japan's life insurers are likely to gradually buy more domestic bonds in the fiscal second half, while awaiting clarity on the central bank's interest-rate-hike timeline, strategists say. With combined invested assets of about ¥388 trillion ($2.6 trillion) according to Life Insurance Association of Japan data, the firms will lay out their investment plans starting this week for the six months ending March 2025. The insurers' huge size makes them one of the most powerful investment entities in Japan, and their plans are closely tracked because of their potential impact on the global debt markets.
/jlne.ws/4dCH6YJ
Wall Street's SPAC Machine Picks Up Despite 'Odd' Lack of IPOs; Harry Sloan, Betsy Cohen and Oaktree line up new blank checks; Jamie Dimon blames costs and red tape for lack of regular IPOs
Bailey Lipschultz - Bloomberg
Even with markets rallying for months, the pace of traditional initial public offerings is behind what bankers expected. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon called the lack of deals "odd" before blaming costs and red tape. With the likes of former Hollywood executive Harry Sloan, veteran dealmaker Betsy Cohen and now Oaktree Capital Management, the nearly $200 billion investment firm run by Howard Marks, getting back in the SPAC game, could the answer to Dimon's dilemma be the humble blank-check company?
/jlne.ws/3YjQYT4
India Stock Funds Get Record $3 Billion as Retail Flows Persist; Inflows into recurring stock plans surge to record $3 billion; Indian funds' stock assets exceed $37 billion in September
Ashutosh Joshi - Bloomberg
The torrent of retail funds flowing into India's equity mutual funds shows no signs of abating. Individual investors channeled 245 billion rupees ($2.9 billion) into recurring stock investment plans in September, marking yet another monthly record, according to data from the Association of Mutual Funds in India on Thursday. The robust flows underscore the growing persistence of household savings shifting into equities despite expensive equity valuations. This gush of cash into mutual funds has consistently helped buffer the nation's equities against outflows, including recent withdrawals by global investors as they shift focus to China.
/jlne.ws/3U75ye6
The Ultra-Rich Are Building a Separate World Here on Earth
Tracy Alloway and Joe Weisenthal - Bloomberg
In recent years, we've seen the emergence of cities whose main industry is that they're a great place to live if you're rich. Dubai would be the ultimate example of this dynamic. But it's not just Dubai. Lots of cities, all around the world, exist to cater to the wealthy, with a set of laws and taxation schemes that act like a magnet for global wealth. So how do these cities work? How big are they? And what exactly do they offer the global rich? On this episode of the podcast, we speak with Atossa Araxia Abrahamian, author of The Hidden Globe: How Wealth Hacks The World. She talks about these booming types of cities, how they emerged, and where they are going.
/jlne.ws/4dFGvWm
|
| | | |
|
| |
| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Exxon Granted Largest US Offshore Carbon Storage Site in Texas; Oil giant wins right to store CO2 in 271,000 acres off coast; Exxon has agreed to remove 6.7 million tons CO2 from emitters
Kevin Crowley - Bloomberg
Exxon Mobil Corp. won the right to pump carbon dioxide beneath Texas state waters in the Gulf of Mexico, in what will be the largest concession of its kind in the US. The lease granted by the Texas General Land Office will cover 271,000 acres and allow Exxon to bury emissions in geologic rock formations under the seabed, the Spring, Texas-based company said in a statement. Exxon has agreed to remove 6.7 million tons of CO2 a year from industrial emitters along the Gulf Coast, including a new deal with a gas-gathering project in Louisiana announced this week.
/jlne.ws/3BNUdsO
More than 100 CEOs call for climate action even as divide emerges; Business leaders rally for support ahead of UN COP29 summit despite many global companies backtracking
Attracta Mooney - Financial Times
The bosses of Ikea, AstraZeneca and Volvo Cars are among the chief executives and chairs of more than 100 companies pushing governments to boost the business case for green investment, even as a growing list of corporate leaders have opted not to attend the UN climate summit this year. The show of support from the 112 leaders from global companies across a wide range of sectors rallying for climate action in an open letter ahead of COP29 in Baku next month was organised by a World Economic Forum alliance of CEOs.
/jlne.ws/3zSu0ZH
COP29 Is All About Money. Get Ready for Fights; "The people who benefit and the people who pay are different," says Avinash Persaud, special adviser on climate change, Inter-American
Mythili Rao and Akshat Rathi - Bloomberg
Next month, when delegates from around the world meet in Baku, Azerbaijan at COP29, the biggest questions on the table will have to do with money. Can rich nations find a way to meet developing countries' demand for up to $1 trillion each year in climate finance? Avinash Persaud, special adviser on climate change for the Inter-American Development Bank, has spent his career looking for ways to make global markets work to move this money where it's needed. He says the biggest challenges arise from a simple reality: "The people who benefit and the people who pay are different."
/jlne.ws/3BO5rNX
Global Warming Made Helene More Menacing, Researchers Say; In cooler times, a similarly rare storm over the Southeast would have delivered less rain and weaker winds, a team of scientists concluded in an analysis.
Raymond Zhong - The New York Times
As humans warm the planet, the soaking rains and lashing winds that Hurricane Helene brought last month are becoming increasingly likely occurrences in the Southeastern United States, scientists said Wednesday. Their assessment is a warning to Americans that Helene, the deadliest hurricane to hit the U.S. mainland in nearly two decades, was rare but no fluke. Instead, it represents the kind of storm that the nation can expect to experience more often as societies continue burning coal, oil and gas for energy.
/jlne.ws/3ZVvmO1
Here's What a Shocking New Number on Wildlife Declines Really Means; The results from an important ongoing assessment look grim. But the survey is often misunderstood.
Catrin Einhorn - The New York Times
Wildlife populations around the world continue dropping precipitously, according to an important but limited and often misinterpreted assessment that's issued every two years. The declines reported by the Living Planet Index, a collaboration between two large conservation organizations, have been so steep as to feel disorienting. This year is no exception: A reduction of 73 percent in the average size of monitored wildlife populations in a mere 50 years, from 1970 to 2020. The previous figure was similar, a 69 percent decline through 2018.
/jlne.ws/3YlUYBl
Collapsing wildlife populations near 'points of no return', report warns; As average population falls reach 95% in some regions, experts call for urgent action but insist 'nature can recover'
Patrick Greenfield - The Guardian
Global wildlife populations have plunged by an average of 73% in 50 years, a new scientific assessment has found, as humans continue to push ecosystems to the brink of collapse. Latin America and the Caribbean recorded the steepest average declines in recorded wildlife populations, with a 95% fall, according to the WWF and the Zoological Society of London's (ZSL) biennial Living Planet report. They were followed by Africa with 76%, and Asia and the Pacific at 60%. Europe and North America recorded comparatively lower falls of 35% and 39% respectively since 1970.
/jlne.ws/4dMQFUZ
Foreign aid for fossil fuel projects quadrupled in a single year; With clean air projects receiving just 1% of aid, activists say nations 'cannot continue polluting practices at expense of climate stability'
Ajit Niranjan - The Guardian
/jlne.ws/4eFCOkM
Greenwashing: Many companies are repeat offenders, study finds
edie
Nearly one-third of companies flagged for greenwashing last year were found engaging in the same practice in 2024, according to a new report from environmental, social and governance (ESG) data firm RepRisk.
/jlne.ws/3U5v6s1
How Climate Change Contributes to Hurricanes' Dangerous Paths; Hurricane Milton's eastern trajectory through the Gulf of Mexico is rare, but as oceans warm, more storms may have unpredictable impacts.
Todd Woody - Bloomberg
/jlne.ws/3U5AoDT
Indigenous groups in Brazil: We were not consulted on carbon credits
Anthony Boadle - Reuters
/jlne.ws/489g1LS
China Pledges $24B For Coal-to-Oil Infrastructure To Reduce Oil Imports
Stjepan Kalinic - Benzinga
/jlne.ws/4dCyZLL
A World in Need of More Gas Isn't Getting New Supply Fast Enough
Anna Shiryaevskaya, Ruth Liao and Stephen Stapczynski- Bloomberg
/jlne.ws/4eYzv7Q
|
| | | |
|
| |
| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | TD reaches $70M class-action settlement on broker commissions, law firm says; Siskinds LLP has also filed class actions against the other five big Canadian banks
Financial Post
Siskinds LLP says a $70.25 million class-action settlement has been reached with TD Asset Management over commissions paid to discount brokers. The law firm says the class action members alleged that since discount brokers aren't allowed to provide investment advice, investors receive no value for the trailing commissions they pay to such brokers.
/jlne.ws/4eCnCoB
Morgan Stanley, Goldman FCMs set new margin records; Investment banks see futures, options and swaps margin hit new highs in September
Joshua Walker - Risk.net
The US clearing units of Morgan Stanley and Goldman Sachs set records for margin on futures and options for the former and swaps for the latter in the first half of September. On September 16, Morgan Stanley reported $30 billion total client margin for futures and options, the highest point in data going back to 2021. This represents a 4.4% rise over the two weeks ending September 16, or 5.7% over four weeks.
/jlne.ws/3Nik7HV
Regional banks brace for tougher capital rules, get relief from Fed cuts
Saeed Azhar - Reuters
U.S. regional banks preparing for higher capital requirements will get some relief from the Federal Reserve's jumbo rate cut. As lenders gear up to report third-quarter earnings this month, monetary easing will help regional banks to shrink paper losses on bond portfolios that were seen as a drag on future profits. The changes were proposed as U.S. regulators aim to tackle weaknesses that caused three regional banks to fail last year and fueled turmoil in the financial industry. The Fed estimated the changes would equate to a 3% to 4% increase in the amount of capital that mid-sized banks were required to hold.
/jlne.ws/3ZW3Xv9
BlackRock Is Among Suitors Exploring Purchase of Credit Firm HPS
Gillian Tan, Dinesh Nair, Davide Scigliuzzo and Ryan Gould - Bloomberg
BlackRock Inc. is among firms exploring a purchase of HPS Investment Partners, according to people with knowledge of the matter, in a deal that would push the world's biggest asset manager into the top ranks of the private-credit market. The two firms have held talks as HPS also pursues a potential initial public offering, said the people, who requested anonymity to discuss confidential information. Such an IPO may value HPS at $10 billion or more, Bloomberg News has reported. An acquisition would likely require a premium to that valuation, some of the people said.
/jlne.ws/47YsHF2
Citadel Securities CEO Zhao Says Regulation Is Deterring IPOs; Cites regulation as reason market maker isn't considering IPO; Clients also find it easier to raise capital privately: Zhao
Katherine Doherty - Bloomberg
Citadel Securities LLC Chief Executive Officer Peng Zhao said the prospect of too much regulation in corporate America is deterring firms from going public - which he also cited as a reason why the market-maker isn't considering the move right now. "We've seen way fewer IPOs than we used to," Zhao said at Citadel Securities Global Macro Conference in New York on Wednesday. He cited the "negative side effects" of regulation that comes from being a public company as well as the ease with which firms can raise capital privately instead.
/jlne.ws/40gSeI3
US fund association picks new board as risks loom of higher tax, new regulations
Carolina Mandl - Reuters
/jlne.ws/3U51zOW
Fired Goldman Manager Seeks £3.8 Million in Paternity Leave Spat; Male compliance manager says he was punished for taking leave; Bank rejects allegations, says decision was performance-linked
Katharine Gemmell - Bloomberg
/jlne.ws/3BGORQk
|
| | | |
|
| |
| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Five days a week in the office? Forget it!
Steven Vaughan-Nichols - ComputerWorld
A few weeks ago, Amazon CEO Andy Jassy announced that all corporate employees, including AWS staffers, will be expected to work in the office five days a week beginning in January. I don't work for Amazon, but if I did, I'd quit. Period. End of statement. I stopped working from offices decades ago, long before it was cool. I did it for two reasons. One, as I told my employer at the time, "If they really needed me in our New York City office, I could fly in the same day, but I doubted if they'd ever need me." I was right. While I've been back to Manhattan many times for business, they've never needed me there. And, two, I'd be a lot more efficient working from my home office.
/jlne.ws/3U4x0J8
|
| | | |
|
| |
| Wellness Exchange | | An Exchange of Health and Wellness Information | GSK agrees to settle about 80,000 Zantac lawsuits for up to $2.2 bln
Brendan Pierson - Reuters
GSK has agreed to pay up to $2.2 billion to settle most lawsuits in U.S. state courts claiming that a discontinued version of the heartburn drug Zantac caused cancer, the company announced on Wednesday. The agreement with 10 plaintiffs' law firms resolves about 80,000 cases, or 93% of cases pending against the British drugmaker in state courts nationwide, the company said. GSK also said it would pay $70 million to settle a related whistleblower lawsuit filed by a Connecticut laboratory.
/jlne.ws/3NiGQUj
|
| | | |
|
| |
| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Tea prices soar on double trouble in India, Sri Lanka; Extreme weather, disease and economic crisis have shrunk harvests
Machika Suzuki - Nikkei Asia
Prices for black tea have risen sharply as extreme heat, floods and disease have ravaged plantations in India, one of the world's largest tea growers. Benchmark auction prices of tea from northern India averaged around 260 rupees ($3.10) per kilogram in late September, up about 30% year-on-year. Prices began to rise in April.
/jlne.ws/4dMS2D7
Renaissance names founder's wife as chair of investment bank, as Bao Fan remains missing
South China Morning Post
China Renaissance Holdings, which arranged some of China's largest technology mergers, has appointed the wife of founder Bao Fan as its new chairperson to head the privately owned firm, more than a year after the investment banker disappeared from public view. Hui Yin-ching, also known as Xu Yanqing on the mainland, was designated as the chairperson and executive director effective October 9, according to a statement issued last night by the Beijing-based financial services group.
/jlne.ws/4fhiPcf
Spain looks to immigrants to drive economy
Guy Hedgecoe - BBC
A group of Sub-Saharan African men are playing bingo in a conference room of a hotel near the northern Spanish city of León. They laugh and celebrate when their numbers are called out, but many of these asylum seekers have harrowing stories. Among them is Michael, who fled Ghana to escape a violent feud that saw his sister and father killed. After travelling by land to Morocco, he paid a trafficker who put him on an inflatable boat crammed with people which took him to the Canary Islands.
/jlne.ws/3ZYNCWP
Exclusive: Algeria bars France from wheat import tender as relations sour, sources say
Gus Trompiz and Michael Hogan - Reuters
Algeria excluded French companies from a wheat import tender this week and required that participating firms did not offer French-origin wheat, in apparent fallout from renewed diplomatic tensions between Algiers and Paris, trading sources said. The move, echoing a dispute three years ago that led to France being sidelined from its former colony's wheat tenders for months, may reinforce the recent dominance of Black Sea supplies, led by Russian wheat, in Algeria's massive import market.
/jlne.ws/3ZXGd9Y
Top African Lithium Producer, Zimbabwe Plans Incentives to Encourage Mineral Processing; Country has world's third-largest known platinum reserves; Other African nations also seeking to add value to minerals
Ray Ndlovu - Bloomberg
Zimbabwe will introduce incentives to encourage mining companies to process their output locally, President Emmerson Mnangagwa said. "Bold decisions must be taken" to speed up the expansion of mineral beneficiation and value addition, he said at a mining conference in Bulawayo, the second largest city, on Thursday. He didn't elaborate.
/jlne.ws/4eXdDdk
|
| | | |
|
| |
| Miscellaneous | | Stories that don't quite fit under the other sections | Financial Times profits hit £30m after surge in subscribers
James Warrington - The Telegraph
The Financial Times's global profits have risen to almost £30m after the newspaper's subscriber numbers surged to a record 1.4m. The City broadsheet's global profits rose to £29.9m in 2023, up 5pc on the previous year, according to unaudited internal figures seen by The Telegraph. Revenues also rose to £510m - up from £458m and the first time the media group has topped half a billion pounds.
/jlne.ws/4h1xUjK
|
| | | |
|
| |
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.
© 2024 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
