| November 16, 2022 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
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Hits & Takes
John Lothian & JLN Staff
Thank you to all who texted, emailed or stopped me at the FIA EXPO yesterday to express their condolences over the passing of my mother, Marjorie Jane Lothian. The warm embrace of so many friends and the prayers offered were uplifting to my spirits and so reassuring to my soul. There are so many good people in this industry that I am proud to know, or proud that they know of me, and it shone brightly yesterday.
My family is working on the plans for services. Most likely there will be a memorial service in Glenview, IL at the Glenview Community Church in early December. We are confirming the date today. We will also have a celebration of life for her in Williams Bay, Wisconsin in the spring for her friends and family there.
JLN wrapped up its FIA video coverage yesterday having shot 14 interviews, including a career retrospective with William Knottenbelt, who is retiring from the CME Group.
Monday was a special day for the JLN team at FIA EXPO as it was the first time that we have met together in person, ever, with some new team members. Sally Duros and Alex Teng were at the EXPO and that was the first time I and other JLN team members met them in person. Also, Laura Oatney attended FIA EXPO and had her daughter Elizabeth, a former JLN intern, along with her.
The gala dinner at EXPO in support of the Greater Chicago Food Depository was a smaller affair this year, but featured a great performance by a dynamic industry band from diverse quarters of the industry with a heavy FIA contingent, Pork Belly and the Outtrades.
Everyone is talking about FTX's epic collapse. Media outlets all over the land, including some blogs I have never heard of, are weighing in on the subject. Here in Chicago, Crain's Chicago Business reporters Steve Daniels and John Pletz discussed the FTX implosion in a podcast titled, "Sizing up the damage from FTX's implosion: Crain's Daily Gist podcast; Crain's reporters Steve Daniels and John Pletz talk about the state of cryptocurrency in Chicago and elsewhere after the collapse of crypto exchange giant FTX."
Some former FTX executives have completely erased their FTX experience from their LinkedIn profiles. This is one way of coping with anger about the situation. The Wall Street Journal has a story that sums up that anger with the title, "FTX's Collapse Leaves Employees Sick With Anger; Many say they learned of crypto exchange's deteriorating situation through media and lost access to their funds."
The great Brendan Bradley will be the guest of author Patrick Young in his IPO-VID series on November 22 at 7 PM CET. For details, go HERE.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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BeZero Carbon, a global carbon ratings and risk analytics company, won the FIA's 2022 Innovator Of The Year Award at the FIA Expo Tuesday in downtown Chicago. Clouty was named the runner-up, and Kemet Trading won the People's Choice Award. These three companies were among the nine companies participating in the annual Innovators Pavilion at the FIA Expo, an award-winning showcase for fintech startups that is designed to encourage greater innovation in the derivatives industry. You can read more about the award here and about BeZero Carbon here.~SR
It was disappointing to note that the panelists on Monday's Sustainability panel at FIA Expo did not seem to hold out any realistic hope that COP27, the climate implementation summit going on at Sharm El-Sheikh, will accomplish much. An audience member asked what could be done to help improve global sustainability. ICE's Trabue Bland said, "It will be interesting to see what comes out of COP27," but added that he is skeptical and that issues such as carbon pricing are very difficult to figure out. Suyash Paliwal of the CFTC said, "There is opportunity and need, but we can't do it without a framework," adding, "Maybe the 28th COP will work." And Daniel Scarbrough of IncubEx said that probably only the 1997 Kyoto Protocol actually achieved something. Panelists did agree that the stakes are rising and that discretionary aspects of the carbon market are becoming more mandatory for investors and becoming almost a quasi compliance obligation. At COP 27, Reuters reports that talks have been stalling among the 200 nations over issues like climate finance and limiting planetary warming at 1.5C. That's the point at which scientists fear climate change will become more severe. But, Reuters says, a global warming deal being crafted by world leaders at the G20 in Bali "has given a lift to climate negotiations at the COP27 summit."~SR & ~SAED
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| Sponsored Content |
Asia's most dynamic derivatives exchange is now open on most Japanese National Holidays!
This year's Fall Equinox, 23rd of September, was a historical day as it marked the start of holiday trading at Osaka Exchange (OSE) and Tokyo Commodity Exchange (TOCOM). Coming out of a global pandemic and facing a shift in consumer behavior, and facing uncertainty both geo-politically and macro-economically, the move underscores Japan Exchange Group's ambition to be the market of choice for capital flows. The market honored this move with a very active trading participation from day one, as 592,723 lots traded. Since then, we have had two more holiday trading days and on both days roughly 500 thousand lots traded on both OSE and TOCOM.
As the first official trading days were an overall success and 70% of regular trading days ADV contributors were trading. Market participants both domestic and internationally applauded the move to offer additional trading opportunities.
In an increasingly interlaced and interdependent world, many Japanese domestic investors took advantage to hedge and transfer risk on OSE and TOCOM. 288 hours of additional trading opportunities and the successful start has led some of the remaining participants, that took a more cautious approach, to revisit their position and to start considering making the holiday market available to their clients.
24/7 trading and the increase of retail participation during the pandemic has had a positive effect on rejuvenating the average Japanese retail investor. The average retail investors opening new accounts were traditionally in their 40s and 50s. During the pandemic, the average was about 10 years younger, and we experienced a massive influx of new participants. This boost by younger, more agile but also still less affluent retail participants, calls for more flexible and more granular products.
OSE has therefore designed new micro futures as well as mini options contracts that will become the bridge for these new additional players to participate.
Improved financial literacy among retail, is also reflected by an increase in retail options participation, in order to further support our domestic and international retail brokers, we have designed Nikkei 225 mini options to maximize the pool of eligible retail investors to enter these products. Both products will go-live in May 2023.
Inflation and macro-economic paradigm-shifts also call for more efficient and elaborate fixed income hedging tools. OSE has grasped the opportunity to list STIRS futures from May 2023. As CCP as well as being the market for JGB futures, this move will provide unprecedented margin efficiency and market access to the Japanese and global fixed income space.
Author: Matthias Rietig, Senior Officer of OSE
Contact: Osaka Exchange / Tokyo Commodity Exchange Derivatives Business Development
E-mail: ose-dmg@jpx.co.jp
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Billionaire investor Ken Griffin is worried about 'the 20-something-year-olds to 40-year-olds who are so engaged in crypto' and FTX's trust-destroying blowup
Chris Morris - Fortune
The collapse of FTX is likely to impact hundreds of thousands of investors, many of whom are Gen Zers. And Ken Griffin, founder and CEO of the Citadel hedge fund, says he's worried the ripple effects could put generations off investing for some time. "FTX is one of these absolute travesties in the history of financial markets," Griffin said at the Bloomberg New Economy Forum in Singapore on Tuesday. "People are going to lose billions of dollars and that undermines trust in all financial markets."
/jlne.ws/3gaoRlT
****** Millions of potential Citadel customers at risk of not using their market making services? OK, Ken makes a good point. I just wish there were fewer conflicts behind the message. ~JJL
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For the first time there are 8 billion people on Earth, according to the U.N.
Katia Riddle and Rachel Treisman - NPR
People around the world are living longer and having fewer children. Those are just a few of the trends the United Nations described in a report on the world's population. While the average life expectancy is projected to rise from 72.98 in 2019 to 77.2 in 2050, the rate of growth will continue to slow down across the globe, according to the report released Tuesday. The world reached 7 billion people in 2011 and the U.N. predicts it will not reach 9 billion for another 15 years.
/jlne.ws/3hLNc1V
****** Maybe Ken does not have to worry, he can make up in volume what he is losing in margins of people investing.~JJL
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The Wrong Americans Are Buying Electric Cars; The EV early adopter has given way to the superuser or, worse still, the hoarder.
Kyle Stock - Bloomberg
Keller Strother got his first Tesla, a Roadster, in 2011. He still has it, though his garage now includes two more Teslas and a vintage Porsche 911 that recently had its gas-burning guts swapped out for a battery and electric motors. In a warming world, where roughly one quarter of Americans are keen to buy an electric vehicle, Strother has four of them. "The technology is so viable and it's such a better solution," he says. "And I've always been a little obsessed with having the right tool for a job."
/jlne.ws/3OdvxfO
***** Speaking of cars, Leo Melamed told me he had to give up his 911 as it was too difficult to get in and out of anymore. Smart man.~JJL
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Moet Hennessy Is Running Out of Champagne as Demand Surges
Phoebe Sedgman - Bloomberg
Champagne fans are so enthusiastic about exiting Covid restrictions, they're drinking Moet Hennessy out of supply. "We are running out of stock," for some top champagnes, Chief Executive Philippe Schaus said in an interview with Bloomberg Television at the New Economy Forum in Singapore, adding that the current period has been dubbed the "roaring 20s" internally. There's good news on the horizon too, with the new year set to see supply replenished, he said.
/jlne.ws/3THjQyI
****** It can't be because times are so good and there is too much celebrating going on.~JJL
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Tuesday's Top Three
Our top story Tuesday was How World Economic Forum, others are hiding their past ties with FTX, from the New York Post. Second was Why Did We Put So Much Faith in the Crypto Whiz Kid?, an opinion piece about - who else? - Sam Bankman-Fried, from The New York Times. Third was the John Lothian News video, Doc Sandor - 50 Years of Financial Futures, for our "History of Financial Futures" video series.
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
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| Lead Stories | FTX Came Dangerously Close to Upending Futures Markets; Sam Bankman-Fried's firm had a radical proposal to shake up futures markets that would have consolidated power - and money - at his now-bankrupt exchange.
Annie Massa, Katherine Doherty, and Isis Almeida - Bloomberg
Everywhere you looked, there it was, the ghostly outline of three letters: FTX. The confab in Chicago this week was supposed to be another celebration for the golden boy of market structure, Sam Bankman-Fried. His FTX flexed its platinum status at an earlier Futures Industry Association conference in Boca Raton, Florida, hosting a late-night cocktail party by the beach, holding a fireside chat with A-Rod and handing out branded swag from its tricked-out mega-booth in the exhibition hall. The 30-year-old brought pizzazz to an industry that lacks fleets of Lamborghinis and is filled with job descriptions like exchange operators, risk managers and commodities regulators that make the eyes glaze over.
/jlne.ws/3tCQUxv
SEC Had a Record Year for Enforcement Actions; Whistleblower award program received more than 12,300 tips reporting potential wrongdoing in fiscal 2022
Mengqi Sun - The Wall Street Journal
The Securities and Exchange Commission ramped up its enforcement efforts in the last fiscal year, as the markets regulator focused its sights on prosecuting high-profile cases and imposing steep penalties for misconduct under the leadership of Chair Gary Gensler. The SEC filed 760 enforcement actions in the year ending Sept. 30, up 9% from the year before, according to the agency's annual enforcement report, which was made public Tuesday.
/jlne.ws/3UWXBWM
FTX Collapses Into Bankruptcy System That Still Hasn't Figured Out Crypto; Bankruptcy courts had made limited progress reorganizing crypto firms before FTX filed for chapter 11
Andrew Scurria and Soma Biswas - The Wall Street Journal
The U.S. bankruptcy system will hash out the largest-ever collapse of a cryptocurrency exchange through a legal process that has barely begun to answer how holders of digital currencies will fare in an insolvency. Bankruptcy courts haven't had the chance to decide complex legal questions around crypto ownership when an exchange or lender goes bust. As FTX's chapter 11 case gets under way, the question of who even owns digital currencies-the exchanges or the customers who made the deposit-remains unsettled.
/jlne.ws/3Oi4lwo
Special Report-FTX's Bankman-Fried begged for a rescue even as he revealed huge holes in firm's books
Angus Berwick, Anirban Sen, Elizabeth Howcroft and Lawrence Delevingne - Reuters
As customers withdrew billions of dollars from crypto exchange FTX one frantic Sunday this month, founder Sam Bankman-Fried worked the phones in a futile bid to raise $7 billion in emergency funds. Hunkered in his Bahamas apartment, Bankman-Fried toiled through the night, calling some of the world's biggest investors, including Sequoia Capital, Apollo Global Management Inc and TPG Inc, according to three people with knowledge of the matter.
/jlne.ws/3hADoYj
FTX's Collapse Leaves Employees Sick With Anger; Many say they learned of crypto exchange's deteriorating situation through media and lost access to their funds
Alexander Osipovich, Caitlin Ostroff and Gregory Zuckerman - The Wall Street Journal
One FTX executive vomited when he learned that the crypto exchange was missing billions of dollars of customer money. A company lawyer quit via a harsh text message to then-Chief Executive Sam Bankman-Fried. A top salesman who had bet big on FTX equity saw most of his wealth evaporate overnight.
/jlne.ws/3TBJuVD
Crypto Brokerage Genesis Suspends Withdrawals at Lending Arm; Firm cites 'abnormal withdrawal requests' from FTX fallout; Spot, derivatives trading and custody units remain operational
Yueqi Yang and Anna Irrera - Bloomberg
Crypto brokerage Genesis is suspending redemptions and new loan originations at its lending business after facing what it described as "abnormal withdrawal requests" in the aftermath of the collapse of FTX. The withdrawal requests exceeded current liquidity at Genesis Global Capital, the lending arm, according to interim Chief Executive Officer Derar Islim. Genesis has hired advisers to explore all possible options, including raising new funding, and will deliver a plan for its lending business next week, Islim said.
/jlne.ws/3hLXCyx
****** Here is The Wall Street Journal version of the story.~JJL
FTX Is 'Lehman Shock,' bitFlyer's Co-Founder Kano Says
Takashi Nakamichi - Bloomberg
The meltdown of Sam Bankman-Fried's digital assets empire FTX is a "Lehman Shock" to the industry, potentially causing more crypto firms to fail, said the co-founder of major Japanese crypto exchange bitFlyer Inc. "It's a huge impact," Yuzo Kano said in an interview with Shery Ahn and Haidi Stroud-Watts on Bloomberg Television at the New Economy Forum, adding that the turmoil may push other firms into bankruptcy. "It may actually continue a little bit."
/jlne.ws/3EcqR58
Dalio Warns of Consequences of 'More Intense' China-US Friction; Possibility of US supporting Taiwan independence 'worrying'; China's property and debt woes now in 'bones of the economy'
Bloomberg News
The mere perception that China and the US are "dangerously close to a military war" is having detrimental effects on the world and paralyzing activity, according to billionaire investor Ray Dalio. "The possibility of war is leading Chinese leadership to prioritize self-sufficiency over cost-efficiency, which is also happening in the United States, which is not good for real growth," the founder of Bridgewater Associates wrote in an article published on LinkedIn Wednesday, citing the two countries are already at "war" on trade, technology, geopolitical influence and the economy.
/jlne.ws/3E4wan6
ICE Swap Rate settings based on USD LIBOR to be ceased next year; ICE Benchmark Administration stated that it does not expect sufficient input data required to calculate USD LIBOR ICE swap rate settings to be available after 30 June 2023.
Wesley Bray - The Trade
The Intercontinental Exchange's Benchmark Administration (IBA) has published a feedback statement on its intention to cease the publication of ICE Swap Rate settings based on USD LIBOR. Following the UK Financial Conduct Authority's (FCA) announcement on 5 March last year, on future cessation and loss of representativeness of the LIBOR benchmarks, IBA stated that it does not expect sufficient input data required to calculate USD LIBOR ICE swap rate settings - data based on eligible interest rate swaps referencing USD LIBOR settings - to be available after 30 June 2023.
/jlne.ws/3AkWXKQ
ECB raises alarm over growing risks to financial system; Vice-president Luis de Guindos urges investment funds to hold more liquid assets to cope with turmoil
Martin Arnold - Financial Times
A toxic combination of recession, soaring inflation, rising funding costs and lower liquidity is threatening to trigger financial market turmoil in the euro area, the European Central Bank has warned. Luis de Guindos, ECB vice-president, called for banks to take more provisions for bad loans, urged global regulators to make investment funds hold more liquid assets and said the central bank should be prudent in starting to shrink its €5tn bond stockpile next year.
/jlne.ws/3ECdyfO
Nouriel Roubini attacks Binance CEO and says Kevin O'Leary should lose his role at CNBC
Steve Goldstein - MarketWatch
"What are the 7 Cs of crypto? Concealed. Corrupt. Crooks. Criminals. Conmen. Carnival barkers. And finally, CZ." That's famed economist Nouriel Roubini, long-time opponent of cryptocurrencies, at Abu Dhabi Finance Week, attacking Binance Founder and CEO Changpeng Zhou, just after the cryptocurrency executive known as CZ left the stage. Roubini said he couldn't believe that Binance has a license to operate in the United Arab Emirates. Binance on Tuesday received a custody license and fund management license in Abu Dhabi. Binance is banned in the U.K. and under investigation in the U.S. over money laundering, Roubini noted.
/jlne.ws/3E78770
Nickel prices soar as 'thin' trading conditions boost volatility; Volumes have fallen sharply since a bout of severe market turbulence in March
Harry Dempsey and Leslie Hook - Financial Times
Nickel prices have surged to the highest level in more than six months, underlining worsening trading conditions since market chaos broke out in March. The benchmark nickel contract for delivery in three months surged briefly to hit the London Metal Exchange's daily trading limit of 15 per cent, reaching almost $31,000 per tonne on Monday. That was followed by a 5 per cent rise on Tuesday after a nickel mine in New Caledonia, which supplies Tesla, cut its fourth-quarter production forecast.
/jlne.ws/3EBgIQG
How to Handle Cryptocurrencies and NFTs in Your Estate Planning; If you don't leave detailed instructions, your heirs may not be able to get access to your assets
Cheryl Winokur Munk - The Wall Street Journal
Crypto assets like cryptocurrency and NFTs are adding a whole new layer to estate planning. Many crypto-asset owners tend not to trust third-party services, and prefer to be responsible for holding the sensitive information they need to access their assets. But that could make it hard-or impossible-for heirs to access if they don't have the necessary information. Or, conversely, if the information, is too available, the assets could fall into the wrong hands.
/jlne.ws/3EadSAN
FTX founder Sam Bankman-Fried triggered downfall by badmouthing crypto rival: sources
Lydia Moynihan - NY Post
Three weeks before the implosion of FTX, its disgraced founder Sam Bankman-Fried bad-mouthed a rival crypto mogul at an investor conference in Saudi Arabia - an indiscretion that sources say may have triggered his downfall, The Post has learned. The 30-year-old Bankman-Fried - whose FTX fund filed for bankruptcy on Friday, obliterating his $16 billion personal fortune - had traveled to Riyadh for the annual "Davos in the Desert" financial summit on Oct. 25 - Oct.27, where he was angling to raise money from some of the world's deep-pocketed investors.
/jlne.ws/3hOIKiZ
'Big Short' author Michael Lewis to write next book on FTX's Sam Bankman-Fried
Devin Sean Martin - NY Post
Michael Lewis, the best-selling author of "The Big Short" and "Moneyball," plans to spill the drama behind the downfall of Sam Bankman-Fried. Lewis - whose books were turned into blockbuster films - has been "traveling with and interviewing" Bankman-Fried for six months, and was planning to write about the FTX co-founder before the collapse of his crypto empire, according to entertainment newsletter The Ankler.
/jlne.ws/3V0a6AN
After FTX's shocking collapse, crypto is pretty screwed; The dominos have already started falling
Zack Guzman - Crypto
If the unbelievable collapse of major crypto exchange FTX was the earthquake, it's time to brace for the aftershocks. That's because it has become pretty clear that a rescue of FTX is not coming. After FTX's rival stepped in with an offer to buy them out, Binance called off their rescue deal when it realized how big FTX's problem was. As reports trickled out, an apparent $8 billion hole came to be quantified on its balance sheet as CEO Sam Bankman-Fried allegedly moved customer funds over to his sister trading fund to cover its losses.
/jlne.ws/3EDbnbT
Before the Blowup, Wall Street Heavyweights Went to Bat for FTX; Trading firms, think tanks, professors, even Fidelity: They all supported FTX's plans to shake up the derivatives industry.
Michael P. Regan - Bloomberg
"No one saw this coming" has been a common refrain in the financial world since the swift disintegration of Sam Bankman-Fried's cryptocurrency empire. Nowhere is that sentiment more plain to see than in the letters sent to US regulators in support of FTX's application for a controversial plan that would have revolutionized trading of derivatives, a heavily regulated corner of Wall Street. From Fidelity Investments to Fortress Investment Group, Susquehanna International Group and Virtu Financial, from faculty members at Georgetown, the University of Chicago, William & Mary and Stanford, from the Jones Day law firm and the Heritage Foundation think tank, hundreds of letters in support of FTX's plan landed with the CFTC earlier this year.
/jlne.ws/3AlSM1j
Crypto Billionaires With $96 Billion Loss Add Distance From FTX; Their fortunes plummeting, crypto titans from Changpeng Zhao to the Winklevoss twins are eager to differentiate their businesses from the now-bankrupt exchange.
Nur Dayana Mustak and Sonali Basak - Bloomberg
As Sam Bankman-Fried's crypto empire imploded last week, costing him effectively all of his $15.6 billion fortune, other digital-asset billionaires sought to make clear that their steep losses in 2022 wouldn't be similarly fatal. Cameron Winklevoss, 41, who along with his twin brother Tyler founded cryptocurrency exchange Gemini, posted an 11-part series of tweets emphasizing that Gemini "has no exposure to FTT tokens or Alameda and no material exposure to FTX," referring to Bankman-Fried's trading house and crypto exchange.
/jlne.ws/3EBwI5m
Crypto Wants a Central Bank; Binance, FTX, greenwashing and cars.
Matt Levine - Bloomberg
This, to be clear, is the standard story of bank runs in traditional banking. It is the Diamond-Dybvig model that won a Nobel Memorial Prize this year. The standard problem is "the assets are good but long-term, and the customers want their money now." It is the problem that central banks are set up to solve. The solution is fairly straightforward: You have a central bank with lots of money (ideally, in modern central banking, the ability to print money).
/jlne.ws/3Ajc0oj
FTX's $1.4 Billion Deal for Bankrupt Lender Voyager Is Canceled; Voyager says FTX meltdown means sale won't go forward; FTX hasn't said whether it has canceled its Voyager bid
Steven Church - Bloomberg
Voyager Digital Ltd. is trying to sign a deal to sell itself to one of the bidders that lost the auction for the bankrupt crypto lender, after the winner of that auction, FTX, was itself forced into insolvency proceedings. One of the losing bidders included crypto exchange CrossTower. CrossTower did not immediately respond to a request for comment. FTX violated its contract to buy Voyager out of bankruptcy, according to Voyager's main bankruptcy attorney Joshua Sussberg. FTX has agreed that Voyager can pursue other bids, but has not yet confirmed that the company is pulling out of the contract to buy the smaller crypto company, Sussberg said in court on Tuesday.
/jlne.ws/3EzVP8t
FTX's Bahamas Arm Files for Bankruptcy Protection in US
Jack Schickler - CoinDesk
FTX Digital Markets, the Bahamas arm of the now defunct crypto exchange, has filed for Chapter 15 bankruptcy proceedings in the Southern District of New York. The document, registered late Tuesday night, follows the appointment of insolvency liquidators in the Bahamas earlier that day, and an equivalent case for the exchange's U.S. arm, FTX.US, which was filed last Friday.
/jlne.ws/3hLW9Z3
Alameda Allegedly Traded These 18 Tokens on Insider Info Through FTX
Stacy Elliott - Decrypt
Sam Bankman-Fried's crypto trading firm Alameda Research used insider information to accumulate $60 million in tokens ahead of their eventual listing on FTX, Bankman-Fried's crypto exchange, according to compliance firm Argus. And now we know which tokens Alameda cashed in on. The 18 assets that Alameda Research appears to have been frontrunning ahead of their listing on FTX include the BitDAO, Eden Network, Sandbox, LooksRare and Immutable X, crypto compliance firm Argus told Decrypt on Tuesday.
/jlne.ws/3O8SrF1
Eli Manning Sees Great Deal Flow in Private Equity; The former quarterback also says sports is becoming an "asset class of its own."
Kailey Leinz - Bloomberg
Former New York Giants quarterback and Brand Velocity Group partner Eli Manning tells Bloomberg Markets why he got into private equity, how the firm is looking for the right deals and how his former team is performing. He was joined by Steve Lebowitz, Brand Velocity Group founding and managing partner. Manning explained how there are numerous opportunities adjacent to sports that are ripe for investment.
/jlne.ws/3ggE8S2
Mastodon Makes a Strong Argument for Why Twitter Must Survive
Vlad Savov - Bloomberg
Elon Musk's high-velocity makeover of Twitter Inc. left half the company's workforce unemployed, many of its advertisers bemused and its longtime users outraged. Uncertainty about the platform's future, together with the new owner-operator's apparent and unapologetic cash grab around verified accounts, has triggered a search for alternatives. Mastodon is the closest, politically neutral analog to Twitter. (I'm excluding Donald Trump's Truth Social for its partisan nature and because it's only available in the US.) So I gave Mastodon a try and was quickly convinced to go back to Twitter and not give up on it yet.
/jlne.ws/3UY0XZB
U.S. Banks Launch a Digital Dollar Blockchain Pilot
Jason Nelson - Decrypt
While the crypto market is shaken to its core by the failure of FTX, traditional financial institutions are taking a step into the world of digital currency. A group of banking institutions-including HBSC, Mastercard, and Wells Fargo-announced on Tuesday the launch of a proof-of-concept digital money platform called the Regulated Liability Network (RLN). "Members of the U.S. banking and payments community involved in this [proof-of-concept] are pleased to be working alongside the New York Innovation Center (NYIC) that is part of the Federal Reserve Bank of New York," the group said in a statement.
/jlne.ws/3ggDi7T
Goldman Sachs paid more than $12mn to partner accusing bank of misogyny; Former executive accused chief David Solomon and other senior figures of inappropriate comments
Joshua Franklin and James Fontanella-Khan - Financial Times
A Goldman Sachs partner accused several executives, including chief executive David Solomon, of making misogynistic comments in a complaint that resulted in the Wall Street bank paying her a settlement totalling more than $12mn, according to people familiar with the matter.
/jlne.ws/3O85Ugh
FTX's In-House Performance Coach Is Just as Surprised as You Are; George K. Lerner, a psychiatrist who has worked at the collapsed crypto exchange FTX since last year, said he had no knowledge of wrongdoing at the firm.
Kevin Roose - The New York Times
In the week since the onetime billionaire Sam Bankman-Fried became the business world's biggest villain, many of his friends, associates and investors have gone quiet, either out of embarrassment or on the advice of their lawyers.
/jlne.ws/3UIYLW3
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | UPDATE 3-Most G20 members condemn Russia's war in Ukraine -draft declaration
Stanley Widianto - Reuters
A draft declaration by leaders of the Group of 20 major economies, seen by Reuters on Tuesday, said most members condemned Russia's war in Ukraine and stressed it was exacerbating weaknesses in the global economy.
/jlne.ws/3EdONF3
Russia is 'a real risk to the market' after missile hits Poland: Analyst
Yahoo Finance
Defiance ETFs CEO and CIO Sylvia Jablonski joins Yahoo Finance Live to assess the impact on markets from a Russian missile hitting Poland, seasonal market rallies amid the Fed's rate hikes, and opportunities in growth and semiconductor stocks.
/jlne.ws/3TAJQMt
NATO, Poland See No Intentional Russian Strike as Crisis Eases; Alliance leaders point to Ukrainian air-defense incident; Russia still 'definitely to blame,' Poland's president says
Natalia Drozdiak, Wojciech Moskwa, and Alberto Nardelli - Bloomberg
NATO and Poland's leaders said there is no indication that a missile that struck Polish territory late Tuesday was an intentional Russian attack as governments in the military alliance moved to defuse the incident. "Our preliminary analysis suggests that the incident was likely caused by a Ukrainian air defense missile fired to defend Ukrainian territory against Russian cruise missile attacks," Jens Stoltenberg, the secretary general of the North Atlantic Treaty Organization, told reporters after a meeting in Brussels.
/jlne.ws/3g800PA
U.S. Imposes New Sanctions Over Iran Drone Sales to Russia; The measures also targeted United Arab Emirates-based companies allegedly involved in shipping drones
Richard Vanderford - The Wall Street Journal
The U.S. has imposed sanctions on an Iranian drone maker that officials said supplied Russia with weapons used in Ukraine. The Treasury Department's Office of Foreign Assets Control on Tuesday announced the sanctions against Shahed Aviation Industries Research Center, also called SAIRC, a company linked to Iran's Islamic Revolutionary Guard Corps that designs and produces drones.
/jlne.ws/3EbxMvd
Ukraine's 15,000-Mile Lifeline; How the country's vast rail system has helped it withstand an invasion.
Sarah A. Topol - The New York Times
On the night of Feb. 23, when Kyiv was still rife with rumors and denials about the Russian troops and weaponry amassing along the border, Oleksandr Kamyshin, the 38-year-old chief executive of Ukrzaliznytsia - Ukraine's national rail system - sent a photograph to the management's Telegram group chat in an attempt to settle everyone's nerves. The photo showed him tucking his two sons, 8 and 12, into bed in their apartment in central Kyiv. The head of passenger services, Oleksandr Pertsovskyi, replied with a photo of his toddler taking a bath. The implication of both photos was clear: The leaders, and their families, were staying put.
/jlne.ws/3X7O1SF
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Nodal Exchange to Launch the First-Ever Washington Carbon Allowance and National Wind Renewable Energy Certificate Futures Contracts in Collaboration with IncubEx
Nodal Exchange - BusinessWire
Nodal Exchange and IncubEx announced today the planned launch date of December 5th, 2022 for the Washington Carbon Allowance (WCA) futures contract and the National CRS Listed Wind Renewable Energy Certificate (REC) futures contracts, pending regulatory review. The WCA contract will be the first exchange listed and cleared contract corresponding with the newest regional carbon market in North America, in Washington state. The Washington carbon "Cap-and-Invest" program, which is set to commence compliance obligations on January 1, 2023, will gradually cover about 75% of the state's largest emitters of CO2. Washington Carbon Allowances from the listed contracts will be physically delivered via the Washington Compliance Instrument Tracking System Services (CITSS) registry.
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Ameribor® In The News
AFX
John Lothian News: Doc Sandor - 50 Years Of Financial Futures
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Policymakers must shape competitive EU financial markets to power the digital and green transitions
BME-X
Proposed changes to the MiFIR Review miss their targets, to the detriment of investors, EUglobal competitiveness, and the capacity of EU markets to finance the green and digital transitions. There is widespread consensus among EU policymakers that market fragmentation and opacity are harming the efficiency of EU markets. However, amid intense discussions over PFOF compromises and the consolidated tape in the MiFIR review negotiations, the organisation of EU equity markets - what should be at the core of the planned reforms - is not getting much attention. Worse, some of the latest proposals in this area risk cementing fragmentation and opacity, to the detriment of investors and EU-global competitiveness.
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Market: NYSE, NYSE American, NYSE American Options, NYSE Arca Equities, NYSE Arca Options, NYSE Bonds, NYSE Chicago, NYSE National service trading
NYSE
In observance of Thanksgiving, the New York Stock Exchange, NYSE American Equities, NYSE Arca Equities, NYSE Chicago Equities, NYSE National Equities, NYSE Arca Options, NYSE American Options, and NYSE Bonds markets will be closed on November 24, 2022, and will operate on a shortened trading schedule on November 25, 2022. Regular trading sessions will close for all markets at 1:00 p.m. Eastern Time (ET).
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Position Limit and Large Trader Reporting Requirements in Connection with the Initial Listing of the USD Denominated TOPIX Index Futures Contract
CME Group
In connection with the listing of the Chicago Mercantile Exchange Inc.'s ("CME") USD Denominated TOPIX Index Futures contract (the "Contract") on trade date Monday, November 21, 2022 (see SER-9078 published on October 17, 2022), please note below and in Appendix B of CME Submission No. 22-413 the corresponding all-month position limit (Rule 559), aggregation allocations (Rule 559.D) and reportable level(Rule 561) for the contract.
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Call For Members - Regulatory User Group
TMX The Regulatory Division of Bourse de Montreal Inc. (the "Division") is calling for members of the Regulatory User Group for a two-year term, 2023-24. This consultative group was created by the Division to engage more formally in discussions with Approved Participants and foreign Approved Participants (collectively, the "Participants") of Bourse de Montréal inc. The purpose of the Regulatory User Group is for the Division and Participants to exchange ideas, insights and perspectives regarding regulation, certain rule amendment proposals, guidelines and FAQs.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | BlockFi Reportedly Near Bankruptcy
Bloomberg
Bloomberg's Sonali Basak joins Caroline Hyde and Ed Ludlow to discuss how BlockFi is preparing a potential bankruptcy filing after halting withdrawals of customer deposits, according to the Wall Street Journal.
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Impact of FTX Collapse on Fintech
Bloomberg
JP Morgan Payments Global Head of FinTech and Partnerships Jason Tiede and Trovata Founder and CEO Brett Turner join Caroline Hyde to discuss the impact of the FTX collapse on the fintech industry, and how banks and fintechs are working together to boost adoption.
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Alias-Using Financier Tied to Kyrgyz Bank's Collapse Joins UK Fintech's Board; Mikhail Strogonov became director at Dzing on Nov. 1; As Mikhail Nadel, he has denied Kyrgyz fraud accusations
Donal Griffin - Bloomberg
In Kyrgyzstan, Mikhail Nadel is known for his alleged role in a political and banking scandal that shook the central Asian country. In the UK, the financier has just joined the board of an authorized payments firm. Nadel, 53, using the name Mikhail Strogonov, became a director of Dzing Finance Ltd. on Nov. 1, according to a filing with Companies House. He helped incorporate the London-based firm in 2018 but hasn't served on its board since then despite helping to run the business, Bloomberg reported earlier this year.
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Elon Musk's Twitter on 'collision course' with EU regulators; Social media platform faces fresh scrutiny under new landmark laws to police Big Tech
Javier Espinoza - Financial Times
Elon Musk's Twitter is on a "collision course" with Brussels, as the social media platform faces new scrutiny under landmark EU laws to police Big Tech that come into force on Wednesday. European regulators have grown particularly concerned following Musk's chaotic rollout of the flagship premium subscription service Twitter Blue, according to three people with knowledge of their thinking, which saw its "blue tick" feature abused by impersonators on the platform.
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Vantage trading platform to launch new UK institutional liquidity service; New solution will allow institutional clients to manage volatility and make the most of market opportunities with access to Vantage's liquidity pool.
Wesley Bray - The Trade
Multi-asset trading platform Vantage Markets is set to launch a new liquidity solution for institutions and corporates in the UK at the Finance Magnates London Summit next week. Named Vantage Connect, the new service comes as part of a broader strategic push from Vantage to expand the institutional side of its business in response to increasing demand for bespoke trading solutions from hedge funds, family offices, banks, brokers, and asset managers.
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Small firms are next in firing line for Wall Street communications fines, SteelEye warns; New analytics tools are allowing regulators to take a more data driven approach to supervision of firms of all sizes, SteelEye chief Matt Smith told The TRADE.
Annabel Smith - The Trade
Small firms are next up to come under the firing line of regulators for communications monitoring fines, regulatory technology provider SteelEye has warned. According to SteelEye chief executive officer, Matt Smith, new analytics tools now being used by regulators are allowing them to take a more data-driven approach to monitoring and this has brought smaller firms under the spotlight.
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After $10 Billion Selloff, India's Paytm Faces Another Reckoning; Founder Sharma pulled off India's largest IPO last year; Shares have tumbled since then as losses have mounted
Saritha Rai - Bloomberg
Paytm, India's leading digital payments brand, faces another reckoning, a year after it recorded the grisliest initial public offering in India's history. This week, the lock-up period for the company's stock will expire, freeing investors to sell shares that haven't yet been allowed onto the market. The biggest shareholders in One97 Communications Ltd., Paytm's parent company, are Alibaba Group Holding Ltd. and its fintech affiliate Ant Group Co., as well as Japan's SoftBank Group Corp.
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| Cybersecurity | | Top stories for cybersecurity | Top cybersecurity threats for 2023
Mary Shacklett - TechRepublic
Going into 2023, cybersecurity is still topping the list of CIO concerns. This comes as no surprise. In the first half of 2022, there were 2.8 billion worldwide malware attacks and 236.1 million ransomware attacks. By year end 2022, it is expected that six billion phishing attacks will have been launched.
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The Cyber Defense Index 2022/23
MIT Technology Review
The Cyber Defense Index is a ranking of 20 of the world's major economies according to their collective cybersecurity assets, organizational capabilities, and policy stances. It measures the degree to which these economies have adopted technology practices that advance resilience to cyberattacks and how well governments and policy frameworks promote secure digital transactions.
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FACT SHEET: Biden-â Harris Administration Accomplishes Cybersecurity Apprenticeship Sprint
The White House
Cybersecurity becomes more essential to our economy and our critical infrastructure - like financial institutions, personal data, and even our elections - everyday. As the demand for cybersecurity workers grows to meet these threats, the President is committed to seeing a more inclusive, robust, and skilled workforce to protect our personal and national interests.
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| Cryptocurrencies | | Top stories for cryptocurrencies | FTX Wrangles More Than a Million Creditors Amid Chaotic Collapse; Court filing cites questions over Bankman-Fried's leadership; Former federal judge among five independent directors tapped
Jeremy Hill - Bloomberg
The team of restructuring experts that took control of Sam Bankman-Fried's failed crypto empire are engaged with "dozens" of regulatory authorities around the world as they rush to secure customer accounts and begin to engage with creditors that are likely to exceed a million people, according to bankruptcy court filings. The documents, while still sparse in detail, offer the first official glimpse into what's been happening inside FTX and its trading arm, Alameda Research, in the four days since a restructuring lawyer took charge and ushered the companies into bankruptcy court.
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FTX's founder, former CEO Sam Bankman-Fried says he failed to see warning signs: Report; "Had I been a bit more concentrated on what I was doing, I would have been able to be more thorough," Bankman-Fried said in an interview.
Reuters
FTX founder and former Chief Executive Sam Bankman-Fried said he expanded his business too fast and failed to notice signs of trouble at the exchange, whose downfall sent shock waves through the crypto industry, the New York Times reported late on Monday. "Had I been a bit more concentrated on what I was doing, I would have been able to be more thorough," Bankman-Fried said in an interview with the newspaper. FTX filed for bankruptcy on Friday, one of the highest-profile crypto blowups, after traders rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal.
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FTX investigations pile up from regulators after crypto exchange's collapse sends rivals scrambling to calm investors
Reuters
Regulators opened probes following last week's spectacular collapse of crypto exchange FTX and rival exchanges sought to reassure jittery investors of their own stability, weighing on cryptocurrencies on Monday. The implosion of FTX, once a darling of the crypto industry with a US$32 billion valuation as of January, has spurred investigations by the US Justice Department, the Securities and Exchange Commission and Commodity Futures Trading Commission, a source with knowledge of the investigations said.
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Collapse of Crypto Exchange FTX Sees Long-Term Bitcoin Holders Shift to Distribution
Omkar Godbole - CoinDesk
Long-term bitcoin (BTC) holders' resolve to keep building their coin stashes has weakened amid fears that the implosion of crypto exchange FTX will prolong the crypto winter. The exchange, founded by entrepreneur Sam Bankman-Fried and formerly the third largest in the world, filed for bankruptcy last week.
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Ethereum Co-Founder Vitalik Buterin Weighs in on Sam Bankman-Fried's FTX 'Fraud'
Kate Irwin - CoinDesk
As a co-founder of Ethereum, Vitalik Buterin is one of the most prominent voices in crypto. He took to Twitter early Tuesday morning to urge his audience not to write off everything FTX's departing CEO Sam Bankman-Fried did as a part of "the fraud." "Automatically downgrading every single thing SBF believed in is an error," Buterin said. "It's important to actually think and figure out which things contributed to the fraud and which things didn't."
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Fallen FTX Reveals Top Creditors on Friday
The Street
Insolvent cryptocurrency exchange FTX could have as many as one million investors who are seeking to recoup their losses. The Bahamian-based brokerage filed for bankruptcy after facing massive liquidity issues when its acquirer, Binance, backed out of a merger. The bankruptcy attorneys for FTX, Landis Rath & Cobb and Sullivan and Cromwell, said on Nov. 15 that the number of creditors could exceed one million, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.
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Uniswap Overtakes Coinbase as Second-Largest Exchange Trading Ethereum Today
Tim Hakki - Decrypt
Traders are flocking to decentralized exchanges (DEXs) in the wake of FTX's sudden, catastrophic implosion. One DEX, in particular, has risen overnight to become the world's second-largest venue for trading Ethereum: Uniswap. Uniswap inventor Hayden Adams shared the news on Twitter today, citing analysis by Nansen CEO Alex Svanevik.
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Coinbase: FTX's Collapse Will Likely Lead to an Extended Crypto Winter
Will Canny - CoinDesk
The collapse of crypto exchange FTX derailed an emerging positive situation in cryptocurrency markets after the significant deleveraging of May and June left few, if any large, marginal sellers in the digital assets space, Coinbase (COIN) said in a research report Tuesday.
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Korbit is first South Korean exchange to disclose full crypto reserves, post-FTX debacle
Danny Park - Forkast
Korbit, one of South Korea's five fully licensed cryptocurrency exchanges, announced Wednesday that it will reveal its full list of crypto reserves on its website, becoming the first local crypto company to do so.
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USDC stablecoin issuer Circle expects slower growth over Binance's BUSD conversion
Pradipta Mukherjee - CoinDesk
Circle, the issuer of U.S. dollar-pegged stablecoin USDC, has said that stronger competition in the stablecoin market is likely to pressure Circle stablecoins, thereby slowing its growth and weighing on the financial outlook of the company.
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BlockFi Mulls Bankruptcy Filing and Layoffs in Wake of FTX Collapse, Met With Binance
Daniel Roberts, Andrew Hayward - Decrypt
Crypto lending platform BlockFi is considering filing for Chapter 11 bankruptcy protection and preparing for job cuts in the wake of the collapse of closely-linked crypto exchange FTX, a source at the company told Decrypt on Tuesday. The Wall Street Journal first reported on the potential bankruptcy filing. In its exploration of next steps, BlockFi has also had talks with Binance about possible financial help.
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Circle Reveals FTX Exposure, Says USDC Conversions on Binance Have Hurt Projections
Stacy Elliott - Decrypt
The collapse of FTX and automatic conversions of USD Coin on Binance will cause Circle's performance to be "materially lower" than the projections it made in February, the company said in a new regulatory filing. In it, Circle disclosed that the "tiny" FTX equity that Circle CEO Jeremy Allaire alluded to on Twitter last week is a $10.6 million
investment the company made in the FTX Group, according to new regulatory filings.
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Charlie Munger Compares Bitcoin to Child Trafficking, Likes Central Banks
Andrew Throuvalas - Decrypt
Berkshire Hathaway's Vice Chairman remains staunchly skeptical of crypto in the wake of FTX's collapse. Having previously characterized Bitcoin as "rat poison" and a "venereal disease," Charlie Munger now likens the most valuable cryptocurrency to child trafficking. "There are people who think they've got to be in on every deal that's hot," he told CNBC on Tuesday, while reflecting on high-profile investors getting involved with the industry. "They don't care if it's child prostitution or Bitcoin. I think it's totally crazy."
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Anthony Scaramucci, Former Trump Ally, Lost Money in FTX Collapse; The firm of Donald Trump's one-time communications director was bailed out by Sam Bankman-Fried.
Luc Olinga - The Street
The abrupt implosion of the cryptocurrency exchange FTX, valued at $32 billion in February, resonated like an earthquake in the crypto industry and business circles. Overnight, many retail and institutional investors lost their money. It will undoubtedly take many months to assess the damage caused and draw up the list of casualties.
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Crypto Lender SALT Halts Withdrawals After FTX Collapse
Jason Nelson - Decrypt
Crypto lending platform SALT said it is halting withdrawals today, the latest firm to do so amid the FTX-sparked contagion sweeping across the cryptocurrency landscape. "The collapse of FTX has impacted our business," SALT CEO Shawn Owen said in a message sent to consumers. "Until we are able to determine the extent of this impact with specific details that we feel confident are factually accurate, we have paused deposits and withdrawals on the SALT platform effective immediately."
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FTX founder Sam Bankman-Fried to potentially face questioning in US: report
Oisin Mcilroy - Forkast
The former CEO of FTX may face questioning by authorities in the U.S. as scrutiny over the role he played in the exchange's sudden collapse and bankruptcy intensifies. American and Bahamian authorities are considering the possibility of Sam Bankman-Fried traveling to the U.S. for questioning, Bloomberg reported Wednesday, citing three people familiar with the situation.
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Celsius is Owed $12M by Alameda Research, Newest Member of Bankrupt Crypto Club
Cheyenne Ligon, Danny Nelson - CoinDesk
Bankrupt crypto lender Celsius Network told the court Tuesday it had $12 million in outstanding loans to Alameda Research, the trading wing of Sam Bankman-Fried's crypto empire. That money - part of which is represented in locked SRM tokens held as collateral - is now likely wrapped up in Alameda's own bankruptcy proceedings, adding another obstacle for Celsius' creditors. It and some 130-odd other entities tied to Bankman-Fried filed for chapter 11 bankruptcy protection last week after a bank run exposed a multi-billion-dollar hole in FTX's reserves.
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| Politics | | An overview of politics as it relates to the financial markets | GOP Mega-Donor Schwarzman Will Back 'New Generation' Over Trump; Axios reports Schwarzman looking to support another Republican; Blackstone CEO is the second megadonor to reject Trump's bid
Magan Crane - Bloomberg
Blackstone Inc. Chief Executive Officer and Republican mega-donor Stephen Schwarzman won't be backing former President Donald Trump's bid for a return to the White House, saying it is time for the party to move on.
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FBI Is 'Extremely Concerned' About TikTok Operating in US; Agency has national security concerns to allowing US operation; Biden administration mulling deal to let Chinese video app run
Chris Strohm and Daniel Flatley - Bloomberg
FBI Director Christopher Wray reiterated the bureau's longstanding national security concerns about Chinese-owned video app TikTok to lawmakers Tuesday and said the agency is sharing its views with officials who are weighing a deal that would allow it to keep operating in the US. Wray told lawmakers China's government could use the app to control millions of users' data or software, and its recommendation algorithm -- which determines which videos users will see next -- "could be used for influence operations if they so choose."
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UK Spy Chief Warns CEOs and MPs Being Targeted by Foreign States; MI5 boss says China approaching local councilors, academics; New premier Sunak has softened language on Chinese threat
Alex Wickham - Bloomberg
Russia, China and other foreign states are targeting the private communications of British politicians and business leaders, the head of the UK's domestic intelligence service warned on Wednesday, highlighting the importance of safeguarding confidential information.
/jlne.ws/3GhLzTO
Hong Kong Could Turn Covid Zero Into Money; To show its commitment to the restrictive policy, the city should consider paying people to take rapid antigen tests.
Andy Mukherjee - Bloomberg
Hong Kong is stuck. Without Beijing's permission, the city can't call off its draconian anti-pandemic campaign even though it's a drag on the economy. The world outside of China has downgraded the disease to a more infectious flu. But even if Hong Kong must stick with Covid Zero to keep its policies aligned with the mainland's, surely a tech-savvy financial center could do a better job of it, getting a head start on a new digital currency in the process? To that end, I propose turning the ubiquitous rapid antigen test, or RAT, into money.
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'Brazil is back' at COP27 as Lula meets US, Chinese climate envoys
Jake Spring and Lisandra Paraguassu - Reuters
Bringing a message that "Brazil is back" in the fight against global warming, Luiz Inacio Lula da Silva met with climate envoys from China and the United States on Tuesday in Egypt for the COP27 talks, on his first foreign trip since being elected Brazilian president. The leftist, who won his third term last month, is planning a series of meetings with national representatives in which he will outline plans to restore Brazil's credibility as a partner in global efforts to stem warming, an aide said. In the Oct. 30 vote, Lula defeated President Jair Bolsonaro, who oversaw mounting destruction of the Amazon rainforest and refused to host the 2019 climate summit originally planned for Brazil.
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| Regulation & Enforcement | | Stories about regulation and the law. | Ex-Tesla Australia director Kurt Schlosser pleads guilty to insider trading
Former operations head bought shares in lithium producer based on knowledge carmaker had supply agreement
Harry Dempsey - Financial Times
The former head of Tesla's Australian operations has pleaded guilty to insider trading after buying shares in a lithium producer based on knowledge that the electric carmaker had a supply agreement with them, according to the country's securities regulator.
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Regulator orders 'number spoofing' crackdown to combat fraud; Ofcom takes steps to stamp out rogue phone calls deceiving consumers
Claer Barrett - Financial Times
Telecoms companies have been ordered to mount a fresh crackdown on scam calls and texts as new research reveals three-quarters of UK adults have been targeted by fraudsters in the past three months. Ofcom, the telecoms regulator, has issued new rules to combat the problem of "number spoofing", where scammers appear to be calling or texting from legitimate organisations such as banks, the police or government departments and dupe people into transferring cash.
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SEC Levied Record Enforcement Penalties for Misconduct in 2022
Lydia Beyoud - Bloomberg
The US Securities and Exchange Commission's enforcement penalties surged to a record in the government's fiscal 2022, the agency said on Tuesday. The SEC's enforcement actions resulted in $6.4 billion in fines and money ordered to be reimbursed to investors, up from just $3.9 billion in 2021, according to an annual report.
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OCC Receives No Objection Notice from SEC on Cloud Infrastructure Proposal
OCC
On October 20, 2022, the U.S. Securities and Exchange Commission (SEC) issued a 'Notice of No Objection' regarding OCC's Advance Notice filing in connection with our Cloud infrastructure proposal. OCC is the first Systemically Important Financial Market Utility (SIFMU) to request regulatory approval to use the Cloud for our new clearing, risk management and data management applications launching in 2025. "The SEC's 'Notice of No Objection' represents the culmination of several years of collaborative work with our regulators and marks a critical milestone in our transformation," said John P. Davidson, Chief Executive Officer.
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SEC Announces Enforcement Results for FY22
SEC
The Securities and Exchange Commission today announced that it filed 760 total enforcement actions in fiscal year 2022, a 9 percent increase over the prior year. These included 462 new, or "stand alone," enforcement actions, a 6.5 percent increase over fiscal year 2021; 129 actions against issuers who were allegedly delinquent in making required filings with the SEC; and 169 "follow-on" administrative proceedings seeking to bar or suspend individuals from certain functions in the securities markets based on criminal convictions, civil injunctions, or other orders. The SEC's stand-alone enforcement actions in fiscal year 2022 ran the gamut of conduct, from "first-of-their-kind" actions to cases charging traditional securities law violations.
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Former Tesla Motors Australia director pleads guilty to insider trading
ASIC
Former Tesla Motors Australia Pty Ltd (Tesla Australia) director Kurt Schlosser, of Sydney, New South Wales, has pleaded guilty at the Sydney Downing Centre Local Court to two counts of insider trading.
/jlne.ws/3tEEULG
Former CEO of van Eyk Research sentenced for breach of directors' duties
ASIC
Former van Eyk Research Pty Ltd CEO Mark Peter Thomas has been sentenced to one year and three months' imprisonment, to be served by way of an Intensive Correction Order, for using his position as a director dishonestly with the intention of directly or indirectly obtaining an advantage for himself.
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Wall Street ETF Gets $211 Million Mystery Inflow, Most Since 2008; IAI sees its second-biggest inflow in off-exchange transaction; ETF focused on broker-dealers, exchanges is up 25% since June
Sam Potter - Bloomberg
Seemingly out of nowhere, an exchange-traded fund tracking the fortunes of Wall Street has been lavished with its largest inflow since February 2008. After months with barely any capital moving in or out, the iShares U.S. Broker-Dealers & Securities Exchanges ETF (ticker IAI) added $211 million on Monday, according to data compiled by Bloomberg. It was the second-best influx since the product launched in 2006, and one of only two inflows of more than $100 million in well over a decade.
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Stock Traders Seize On Inflation Signal They Needed for a Rally; CPI-PPI spread remains negative but narrows significantly: BI; Positive spreads historically point to higher equity returns
Jess Menton - Bloomberg
Stock investors are beginning to see a glimmer of hope as signs of peak inflation appear. A once wide gap between rising consumer and producer prices has significantly narrowed since March. That should calm fears about runaway inflation since it will help Corporate America improve its profit margins -- and potentially get US stock prices climbing again. US producer price growth decelerated in October, the latest sign that elevated inflationary pressures are beginning to ease. Stocks advanced on Tuesday as the data revived hopes that inflation may be nearing a peak.
/jlne.ws/3Af7maH
Who burnt down the gilt market? Perceptions matter in the LDI blame game
Toby Nangle - Financial Times
It might be too early to assess the impact of the French Revolution LDI debacle. But that's no reason why we shouldn't be asking who is to blame. The question of blame is important, partly because it keeps litigation lawyers in business. But mostly it's because narrative is important. We all knew that the Great Financial Crisis was the fault of the banks; that knowledge set the cultural and regulatory agenda for the next decade.
/jlne.ws/3V3MGe3
Gold funds face challenges over responsible sourcing claims; Scrutiny of sustainable investing is increasing in the EUR100bn gold fund sector
Ed Moisson - Financial Times
Newly launched gold funds that label themselves as responsible investments risk being accused of making exaggerated and misleading claims. Several gold funds have recently sought to shake up the EUR100bn fund sector by positioning themselves as sustainable. The funds include Basler Kantonalbank's Physical Gold Fairtrade Max Havelaar fund, AuAg Funds' ESG Gold Mining Ucits ETF (ESGO) and the Royal Mint Responsibly Sourced Physical Gold ETC (RMAU).
/jlne.ws/3UFo1wh
Diesel Hits Record Premium Over Gas, Oil; The fuel, used in farm equipment, shipping and manufacturing has gained about 50% this year
Bob Henderson - The Wall Street Journal
Dwindling stockpiles of diesel have driven prices to a record premium over gasoline and crude oil, showing how war, weather and other disruptions to globalized energy markets are still producing price shocks and potential shortages. While the price of gasoline is up about 14% this year, diesel has climbed about 50%, to $5.36 a gallon, according to AAA/Opis. The gains widened the gap between the two to an all-time high of $1.60. A year ago, it was 23 cents. Wholesale diesel, delivered into New York harbor, traded at a record premium to crude oil in October, according to the Energy Information Administration, which also reported the country had only 25 days of diesel in reserve, the lowest since 2008.
/jlne.ws/3hOEdNu
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | COP27: Climate talks get boost from G20 declaration
Dominic Evans and William James - Reuters
Support for an ambitious global warming deal by world leaders during a G20 meeting in Bali on Wednesday has given a lift to climate negotiations at the COP27 summit running in parallel in Egypt. The boost came as talks among nearly the 200 nations at the resort town of Sharm el-Sheikh risked stalling out over core issues like climate finance and limiting planetary warming at 1.5C, the point at which scientists fear far more severe climate change impacts will be unleashed. A G20 declaration on Wednesday said "we will play our part fully in implementing" last year's Glasgow Climate Pact, under which countries pledged to limit the rise in global temperatures to 1.5C above pre-industrial times.
/jlne.ws/3O9zqCe
A Clash Over Degrees: How Hot Should Nations Allow the Earth to Get? The mantra has been: Limit global warming to 1.5 degrees Celsius or risk climate catastrophe. But at COP27, there are hints of backsliding.
Brad Plumer, David Gelles and Lisa Friedman - New York Times
At last year's global climate talks in Glasgow, world leaders, scientists and chief executives rallied around a call to "keep 1.5 alive." The mantra was in reference to an aspirational goal that every government endorsed in the 2015 Paris climate agreement: try to stop global average temperatures from rising more than 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels. Beyond that threshold, scientists say, the risk of climate catastrophes increases significantly.Now, 1.5 is hanging on for dear life.
/jlne.ws/3garbcx
Weather disasters hit 90% of US counties in last 11 years, report finds; California, Mississippi, Oklahoma, Iowa and Tennessee suffered most disasters, with over 300m people living in those counties
AP via The Guardian
Ninety per cent of the counties in the US suffered a weather disaster between 2011 and 2021, according to a new report. Some endured as many as 12 federally declared disasters over those 11 years. More than 300 million people - 93% of the population - live in these counties.
/jlne.ws/3tFM1n7
North America's EV Future Hinges on a North Carolina Turtle Pond; Albemarle wants to restart a lithium mine as the building block of the first complete EV battery supply chain in the US.
Yvonne Yue Li - Bloomberg
In Kings Mountain, North Carolina, there's a tree-filled park that provides urbanites from nearby Charlotte some respite in nature. At its center is a tranquil pond, featuring turtles, fish and other wildlife. The sparkling waters, which plunge some 150 feet deep, are the result of decades of accumulated rainfall in a defunct lithium mine. Albemarle Corp., the world's largest producer of the silvery white metal, is on a quest to restart operations. The project is a crucial component of a plan by automakers to create the US's first complete supply chain for electric vehicle batteries, to reduce their dependence on China.
/jlne.ws/3hFzFIZ
The $468 trillion climate question: how the financial system is starting to shift; Nick Robins writes from COP27 on the steps being made to transform finance for a net zero and resilient world.
Nick Robbins - LSE
In the end, every climate conference always comes down to finance and COP27 in Sharm El Sheikh is no different. With $468 trillion in assets across the globe, there is no shortage of cash to prevent climate harm, decarbonise the world's energy and land use systems and ensure societies can adapt to mounting physical impacts. The problem is that the priorities, rules and incentives that govern both public and private finance have long been pointing in the wrong direction. This means there is a "persistent misallocation of capital", in the words of the Intergovernmental Panel on Climate Change.
/jlne.ws/3Of1fsP
Global heating to drive stronger La Niña and El Niño events by 2030, researchers say; New modelling suggests climate change-driven variability will be detectable decades earlier than previously expected
Donna Lu - The Guardian
Stronger La Niña and El Niño events due to global heating will be detectable in the eastern Pacific Ocean by 2030, decades earlier than previously expected, new modelling suggests. Researchers have analysed 70 years of reliable sea surface temperature records in the Pacific Ocean to model changes in the El Niño-Southern Oscillation (Enso) under current projections of global heating.
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Gender, climate and finance: How financial institutions can support a gender-just transition
UNEP FI
Today is Gender Day at COP27, with events throughout the day focusing on women's role in adapting to climate change and leading the transition to net zero. The transition has immense potential for economic growth, with the number of clean energy jobs estimated to nearly triple by 2050 to 29 million globally. The renewable energy sector, along with forestry, manufacturing, aquaculture, agriculture and many others, are expected to experience significant structural changes as a result of the climate transition. However, traditionally underrepresented groups, including women, Indigenous peoples, and informal workers, risk being denied access to the economic opportunities presented by these structural changes. That is why at UNEP FI we are committed to a just transition that leaves no one behind.
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Goldman Sachs Paid Over $12 Million to Bury Partner's Claim of Sexist Culture; The payment went to a former partner who alleged troubling behavior by bosses.
Sridhar Natarajan and Max Abelson - Bloomberg
Goldman Sachs Group Inc. paid out well over $12 million to a veteran executive who complained internally about a toxic workplace for women in the highest echelons of Wall Street's most prestigious firm. The bank settled with the departing partner two years ago, in a deal that kept secret her detailed account of senior executives making vulgar and dismissive comments about women, according to people with knowledge of the matter. The upper rungs of the firm were rattled by the remarks she described and the roster of people allegedly behind them, including Chief Executive Officer David Solomon.
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Wall Street's $38 Billion Loan Backlog Curbs New Bank Lending; Banks are preparing to fund $5.4 billion of debt for Tenneco; Pile of hung loans on bank books could soon reach $43 billion
Olivia Raimonde and Jill R Shah - Bloomberg
Wall Street is struggling to whittle down the roughly $37.5 billion in risky corporate loans stuck on their books -- and the pile of so-called hung debt may be about to swell further as another large buyout financing stumbles. A group of banks led by Bank of America Corp. and Citigroup Inc. have just days to try to sell $2.4 billion of debt that will help fund the buyout of auto-parts maker Tenneco Inc. by Apollo Global Management Inc. before the deal closes on Nov. 17.
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BGC Partners Announces Corporate Conversion Agreement, New Company Name "BGC Group" And New Ticker Symbol "BGC" In Connection With Its Conversion Into a Corporate Structure
BGC Partners
BGC Partners, Inc. (Nasdaq: BGCP) ("BGC Partners" or "BGC" or the "Company"), a leading global brokerage and financial technology company, today announced that it had entered into a Corporate Conversion Agreement to reorganize and simplify its organizational structure through a series of proposed corporate conversion transactions. Additionally, BGC announced that it expects to change its name from "BGC Partners, Inc." to "BGC Group, Inc.," and it also expects to change its Nasdaq Global Select Market ticker symbol from "BGCP" to "BGC," all in connection with the planned corporate conversion from an Umbrella Partnership/C-Corporation ("Up-C") to a "Full C-Corporation.
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Lloyds sets out plans to target wealthier customers; UK lender searches for ways to boost returns over next four years
Emma Dunkley - Financial Times
Lloyds Banking Group is considering plans to prioritise wealthier customers by offering them better service and more compensation for problems in an attempt to boost returns over the next four years. In an internal presentation, seen by the Financial Times, the bank suggested the top 5 per cent of customers it regards as most valuable could have their phone calls sent to the "most experienced colleagues" and be awarded "higherâEUR‰.âEUR‰.âEUR‰.âEUR‰complaint payments" when they had grievances.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Haizhu district in China's Guangzhou city extends COVID-19 restrictions in some areas
Reuters
Haizhu district in China's southern city of Guangzhou, where most of the city's COVID-19 cases have been reported, extended its anti-COVID measures in some areas to Nov. 19, local authorities said on Wednesday in a notice on their WeChat account.
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Covid deaths and hospitalizations are falling in the U.S.; Even as new omicron strains take over, Covid is no longer driving a majority of patients into the hospital. Still, doctors worry the virus could re-emerge as immunity wanes.
Erika Edwards - NBC News
As the flu and RSV (respiratory syncytial virus) have spread rapidly this fall - inundating and overwhelming hospitals and their staff across the country - Covid has not. In fact, Covid-related deaths and hospitalizations have fallen in recent months, despite the emergence of new omicron subvariants that evade immunity from previous infections and vaccination.
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Walmart Agrees to Pay $3.1 Billion to Settle Opioid Lawsuits; The money would help pay for addiction treatment and drug education programs in communities across the United States.
Jan Hoffman - The New York Times
Walmart, the largest retailer in the United States, has agreed to pay $3.1 billion to resolve thousands of lawsuits over its pharmacies' roles in the opioid crisis, the company and lawyers for states, local governments and tribes announced Tuesday. The agreement follows tentative deals announced this month by CVS and Walgreens, which are still being negotiated. If finalized, the total amount from the three giant pharmacy retailers would reach about $13.1 billion, including $400 million for Native American tribes.
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Senate Votes to End Covid-19 Emergency Declaration; The declaration has allowed the administration to take actions in response to the pandemic such as suspend student loan payment deadlines; Under federal law, Congress has the power to ask for periodic votes to terminate the emergency status.
Katy Stech Ferek - The Wall Street Journal
Senate lawmakers voted on Tuesday to end the federal government's emergency declaration on the Covid-19 pandemic, a status that has given the Biden administration tools to combat the coronavirus. The Senate voted 62-36 to end the emergency declaration nearly three years after it was invoked. It's unclear if the House will take up the measure. President Biden threatened to veto any congressional efforts to end the national emergency declaration's status, said the Office of Management and Budget in a statement.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | A Trader's Guide to Malaysia's Competitive General Election; Consumer firms, mega project bidders among stocks to watch; A decisive outcome is key to attract higher foreign flows
Jeanny Yu - Bloomberg
Uncertainty is running high for Malaysia's markets as the country heads to the polls, with foreign inflows at risk as a decisive vote appears increasingly elusive. More than 21 million people will cast their ballots on Saturday to elect the country's fourth premier in as many years. With more than 940 candidates vying to be part of the 222-seat parliament, the jury is out on which of the three main coalitions will be to able to form the next government. Adding to the unpredictability this time is the influx of millions of young voters who will be voting for the first time.
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Japan Checks Impact of FTX Collapse on Local Crypto Exchanges
Takashi Nakamichi and Nao Sano - Bloomberg
Japan's financial regulator has checked with local digital assets exchanges about whether the failure of Sam Bankman-Fried's crypto empire has had any impact on their businesses, according to an official. The Financial Services Agency is studying the extent of exposure the Japanese industry has to FTX, which filed for bankruptcy last week, the official said, declining to be named in line with the agency's policy. At this time, the watchdog sees minimal impact on domestic crypto exchanges, the person said.
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French Business Lobby Sounds Alarm on Lasting EU Scars From Energy Crisis; Medef says companies may relocate to US for cheaper energy; Europe needs shared system to support firms, Medef says
William Horobin - Bloomberg
The European economy is in danger of lasting damage as surging natural gas and electricity prices erode the continent's competitiveness and ultimately force industry to relocate operations elsewhere, France's Medef business lobby said.
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Mortgage Rates Could Tank Home Prices by 20%, Fed Study Finds; Dallas Fed study maps out potential impact of jump in rates; US house prices tumbled over 32% from 2006 high to 2009 low
Catarina Saraiva - Bloomberg
US house prices could tumble as much as 20% in the wake of the surge in mortgage rates, according to research from the Federal Reserve Bank of Dallas. House prices, adjusted for inflation, soared during the pandemic by the most since the 1970s, analysis by Dallas Fed economist Enrique Martinez-Garcia showed. A "pessimistic" scenario where prices now retreat by 15% to 20% could subtract 0.5% to 0.7% from inflation-adjusted consumer spending, he wrote in a blog post Tuesday.
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Canada's Cows Binge on US Corn as Homegrown Barley Feed Gets Too Steep; Feed barley prices soar, making US corn a cheap substitute; Canada may import up to 3 million tons in current crop year
Jen Skerritt and Michael Hirtzer - Bloomberg
Sky-high barley prices are turning Canada's rare buying-spree of US corn into a habit. The price of the grain used to feed cows has soared due to pent-up demand, driving cattle ranchers to turn to US corn as a cheaper substitute to domestic barley. The shift comes one year after a severe drought withered Canadian grain supplies, spurring a switch in trade flows that led the northern neighbor to become one of the biggest buyers of corn from the US Midwest.
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