| August 11, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
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Hits & Takes
John Lothian & JLN Staff
The SEC and CFTC have jointly proposed enhancing private fund reporting via amendments to Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds. Specifically, the SEC and CFTC are looking for information from hedge funds about their investments in digital assets. See the lead story from the Wall Street Journal for more details.
All the SEC commissioners weighed in with comments on the proposed amendments. SEC Chair Gary Gensler's comments were titled "Statement on Proposed Joint Amendments to Form PF" while Commissioner Hester Peirce went with the longer "Statement on Proposed Amendments to Form PF to Amend Reporting Requirements for All Filers and Large Hedge Fund Advisers."
All the titles were rather pedestrian, with Commissioner Mark Uyeda's titled "Statement on Amendments to Form PF to Amend Reporting Requirements for All Filers and Large Hedge Fund Advisers," and Commissioner Caroline A. Crenshaw's titled "Statement on Proposed Amendments to Form PF." At least Commissioner Jaime Lizárraga showed a little variance and descriptiveness with the headline "Enhancing Private Fund Adviser Reporting Data."
There were three comments from the CFTC commissioners, with the best headline coming from Commissioner Christy Goldsmith Romero, whose statement was titled "Statement of Commissioner Christy Goldsmith Romero Regarding the Proposal for Enhanced Monitoring and Identification of Systemic Risk and Emerging Threats to the U.S. Financial System." The headline from Commissioner Summer K. Mersinger was titled "Dissenting Statement of Commissioner Summer K. Mersinger Regarding Proposed Amendments to Form PF" and the headline from Commissioner Caroline D. Pham mirrored hers with "Dissenting Statement of Commissioner Caroline D. Pham Regarding the Proposed Amendments to Form PF."
The CME Group reported that its SOFR options open interest has surpassed 10 million contracts for the first time. On August 9, open interest in SOFR options hit 10.36 million contracts for the first time.
Citadel published a video on LinkedIn titled "A Day in the Life of a Citadel Intern."
The CME Group published a video on LinkedIn titled "Celebrating Our 2022 Interns."
During the 63rd board meeting of the Federation of Euro-Asian Stock Exchanges, Uzbek Commodity Exchange was approved as a full member of the federation.
On September 13, the FIA is coming to Chicago for the annual Washington Update. This is not just an opportunity to hear Walt Lukken talk about the FIA's key policy priorities for 2022, including the recently established Derivatives Market Institute for Standards (DMIST). It is not just an opportunity to hear Walt interview CFTC Commissioner Summer Mersinger on the U.S. Commodity Futures Trading Commission's current priorities and initiatives. It is an opportunity to network and reconnect with industry colleagues in the local cleared derivatives community after a long summer and virus-related isolation. For details, click HERE.
Jamil Nazarali, formerly of Citadel, has been appointed chief executive officer at EDX.
Ian Grieves' role is expanding and he will manage the engineering and BA teams as head of product and engineering at ErisX, a Cboe Global Markets company.
I have to wonder what the coverage of the JP Morgan spoofing trial in Chicago would have been like for JLN had Thom Thompson still been with the organization. He excelled at this type of court case and subject. The two traders were convicted yesterday by a Chicago jury of spoofing in the gold market.
If you are a music lover in Chicago you may like this: the City of Chicago announced they signed a contract for 10 more years of Lollapalooza.
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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Registration is open for FIA Expo taking place this 14-15 November at a new location - the Sheraton Grand Riverwalk Chicago. Experience compelling panels that build your knowledge, product demos that deliver innovative solutions, and networking opportunities that celebrate human connections. Whether you're a trader chasing the latest trends affecting the markets, a back office manager seeking ways to increase operational efficiency or a business strategist looking for what's next, you'll find it at Expo. This year, FIA is offering full conference, single day and exhibits plus registration options. Learn more and register by 2 September for the best rates!
Register HERE
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Is Elon Musk On to Something? New Study Finds Frequent Tweeting Helps You Rise to the Top in Business; New research shows that for executives social media self-promotion pays, literally.
Jessica Stillman - Inc
"The amount of attention on me has gone supernova, which super sucks. Unfortunately, even trivial articles about me generate a lot of clicks :( Will try my best to be heads down focused on doing useful things for civilization," Elon Musk tweeted a few weeks back. It's hard to take the Tesla and SpaceX boss seriously about this commitment to being less controversial. Musk is a champion of attention-grabbing Twitter antics. His missives have spurred SEC investigations, resulted in defamation suits, unleashed troll mobs, dragged the world along on an acquisition soap opera, and even offered TMI on his sex life (or lack thereof). I think I speak for most of the world when I say it seems like the guy would really benefit from chilling out on Twitter for a while.
/jlne.ws/3Piti9R
****** Secret sauce being spilled?~JJL
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The Boy Bosses of Silicon Valley Are on Their Way Out; They rode their unicorns to fame and fortune. In a rocky market, it got a little less fun.
Erin Griffith - NYT
The young kings of Silicon Valley are dismounting their unicorns. They're writing sentimental blog posts that outline their legacies. They're expressing hope for their companies' prospects. They're quitting their jobs leading the start-ups they founded. In recent weeks, Ben Silbermann, a co-founder of the digital pinboard service Pinterest, resigned as chief executive; Joe Gebbia, a co-founder of the home rental company Airbnb, announced his departure from the company's leadership; and Apoorva Mehta, the founder of the grocery delivery app Instacart, said he would end his run as executive chairman when the company went public, as soon as this year.
/jlne.ws/3AbsI9x
***** They can ride their unicorns right back out of town.~JJL
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Hong Kong Population Drops by Record as People Flee Covid Curbs; Financial hub's population falls by 1.6% over past 12 months; City cites strict pandemic curbs as factor in decline
Kari Soo Lindberg - Bloomberg
Hong Kong's population dropped by a record as people fled strict Covid-19 restrictions that have hobbled the city as most other regions move on from the pandemic. The city saw a decline of 121,500 residents in the year ended June 30, leaving the population at about 7.29 million, according to government data released Thursday. That means the population fell 1.6%, marking the third straight year of declines and the biggest drop in at least six decades. A wide-reaching national security law may have also been a contributing factor.
/jlne.ws/3zJHS4m
***** Some statistics to back up the anecdotal reports we have heard for months.~JJL
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Billionaire Dynasty of Only Men Turns to Women to Handle Fortune; The Grosvenor family, which traces its major source of wealth to a dowry of land in 1677, has been hiring and promoting women in senior roles.
Benjamin Stupples - Bloomberg
The Grosvenor dynasty, which traces the origins of its multibillion-dollar fortune to a dowry from the parents of a 12-year-old bride, has passed its main source of wealth down the male line for centuries. That hasn't changed in 345 years: Hugh Grosvenor, 31, became the seventh Duke of Westminster in 2016 and head of the family's estate when his father Gerald died from a heart attack at 64, even though he has two elder sisters.
/jlne.ws/3bPh5f4
***** For years I have heard women are better traders than men. It only took 345 years for this dynasty to figure this out.~JJL
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Wednesday's Top Three
Our top clicked story Wednesday was Opinion: Why does the IRS need $80 billion? Just look at its cafeteria, from The Washington Post. It's an interesting look inside IRS operations. Second was Over New York, London and Hong Kong? Time to Move On, from Bloomberg. (The author suggests Dubai as an alternative...and reveals that she is currently living in Dubai.) Third was the registration page for FIA Expo Chicago, which takes place this November 14 and 15 at the Sheraton Grand Chicago Riverwalk.
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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
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| Lead Stories | Regulators Weigh Asking Hedge Funds to Report Crypto Exposure; Proposal by SEC, CFTC would expand scope of confidential form used to monitor financial risks
Paul Kiernan - WSJ
The collapse in cryptocurrency prices this year has left U.S. regulators scrambling to understand the risks that digital-asset markets could pose to the broader economy. They may soon enlist hedge funds in the effort. The Securities and Exchange Commission issued a proposal Wednesday that would require large hedge funds to report their cryptocurrency exposure through a confidential filing known as Form PF. Created after the 2008 financial crisis, Form PF was designed to help regulators spot bubbles and other potential stability risks in the otherwise opaque ecosystem of private funds that manage money for wealthy individuals and institutions.
/jlne.ws/3QCTFYW
Ex-JPMorgan Traders Convicted in Federal Fraud Trial; Justice Department had alleged that the precious-metals traders spoofed gold futures for years
Dave Michaels - WSJ
A federal jury in Chicago convicted two former traders of JPMorgan Chase & Co.'s precious metals desk who had been charged with manipulating gold prices, finding they used misleading orders to rig prices. The convictions are the capstone of a seven-year Justice Department campaign to punish a style of deceptive trading in futures markets known as spoofing. The rapid-fire strategy was prevalent at some Wall Street banks before Congress outlawed spoofing in 2010, and persisted even after its prohibition, according to prosecutors. JPMorgan paid $920 million in 2020 to settle regulatory and criminal charges against the bank over the traders' conduct.
/jlne.ws/3vVZqsX
Coinbase Under SEC Scrutiny Over Its Crypto-Staking Programs; Staking is key source of non-trading revenue for the exchange; Company is 'committed to productive discussion with the SEC'
Yueqi Yang - WSJ
Coinbase Global Inc. said it's being probed by the US Securities and Exchange Commission over its staking programs, which allow users to earn rewards for holding certain cryptocurrencies. The company "has received investigative subpoenas and requests from the SEC for documents and information about certain customer programs, operations and existing and intended future products," according to a quarterly regulatory filing. The requests relate to Coinbase's staking programs, asset-listing process, classification of assets and stablecoin products, the company said.
/jlne.ws/3JLyRMG
Former J.P. Morgan Traders Convicted of Fraud, Attempted Price Manipulation, and Spoofing in a Multi-Year Market Manipulation Scheme
Department of Justice
A federal jury in the Northern District of Illinois convicted two former precious metals traders at JPMorgan Chase & Co. (JPMorgan) today of fraud, attempted price manipulation, and spoofing in a multi-year market manipulation scheme of precious metals futures contracts that spanned over eight years and involved thousands of unlawful trading sequences. According to court documents and evidence presented at trial, Gregg Smith, 57, of Scarsdale, New York, was an executive director and trader on JPMorgan's precious metals desk in New York. Michael Nowak, 47, of Montclair, New Jersey, was a managing director and ran JPMorgan's global precious metals desk.
/jlne.ws/3dcE1VM
Coinbase Needs Crypto Investors to Buy, Not HODL; For the exchange's expense cuts to keep its losses in line, crypto prices and retail activity have to stay clear of another big downturn.
Telis Demos - WSJ
Coinbase Global isn't hibernating during crypto winter, but even keeping moving might not be enough to avoid a deep freeze. The cryptocurrency exchange's stock jumped last week on the news of a partnership with BlackRock to connect to its Aladdin investment-management platform for institutions, starting with Bitcoin. But institutional volumes aren't a cure-all for what ails the exchange right now. Coinbase has a rising share of volume coming from institutional versus retail—79% in the second quarter, versus 69% a year prior, the company reported on Tuesday. Yet retail volume still fetched a far higher fee rate in the second quarter, around 1.3% versus 0.02%.
/jlne.ws/3STpzTc
Bipartisan crypto bills could clarify current regulatory confusion - if they tackle Howey
DavisPolk
Two bills recently introduced in the Senate with cross-aisle support aim to give the CFTC more regulatory sway over digital assets. But neither would solve the fundamental riddle of whether most digital assets are securities subject to SEC oversight.
/jlne.ws/3JKPYOT
ISDA Publishes Results of Survey on Increased Clearing in US Treasury Market
ISDA
ISDA has published the results of a survey on the US Treasury market, which provides views on the potential benefits and costs of increased clearing of cash Treasury securities and repos. The survey comes in response to discussion by policymakers and market participants about the merits of further clearing of US Treasuries and whether this would strengthen the resilience of the market during stress events. For example, a Group-of-30 (G-30) Working Group on Treasury Market Liquidity has recommended clearing of all Treasury repos, as well as all Treasury securities trades executed on electronic interdealer trading platforms. The G-30 also proposed that regulators and market participants should assess whether and how dealer-to-client cash Treasury trades should be cleared.
/jlne.ws/3JK0HJr
FTSE Russell Introduces New Sustainable Investment Fixed Income (SIFI) Indexes
FTSE Russell
FTSE Russell, a leading global index provider, today announces the launch of a new set of sustainable investment fixed income indexes. These SIFI indexes are designed for investors seeking to integrate their sustainable investment strategy into their fixed income investments.
/jlne.ws/3Ao50Hn
InvestHK partners with HKMA to launch Central Bank Digital Currency track for Global Fast Track 2022
Hong Kong Monetary Authority
Invest Hong Kong (InvestHK) and the Hong Kong Monetary Authority (HKMA) jointly announced today (10 August) the addition of the Central Bank Digital Currency (CBDC) track to the Global Fast Track 2022, giving local and global firms valuable opportunities to partner with the central banking institution to boost the growth and adoption of fintech in Asia and beyond.
/jlne.ws/3JO5wRV
Crypto Exchange CoinFLEX Files for Restructuring in Seychelles; The company paused withdrawals in June after a single customer failed to meet a margin call
Vicky Ge Huang - WSJ
Crypto exchange CoinFLEX has filed for restructuring in a Seychelles court as it seeks to recover $84 million in losses from a large individual customer. CoinFLEX informed customers of the restructuring plans Tuesday via email, a spokeswoman for the company confirmed. Bloomberg News earlier reported the plans.
/jlne.ws/3pdgiHM
Kashkari Flips From Fed's Biggest Pre-Pandemic Dove to Top Hawk; Minneapolis Fed's Kashkari now has highest rate projections; Softer July inflation data don't change path, Kashkari says
Matthew Boesler - Bloomberg
Federal Reserve Bank of Minneapolis President Neel Kashkari, for a long time the US central bank's biggest dove, is now its biggest hawk. Kashkari said that he wants to raise the central bank's benchmark interest rate to 3.9% by the end of this year, and to 4.4% by the end of 2023. That makes him the most hawkish participant on the Fed's rate-setting Federal Open Market Committee, according to the so-called "dot plot" of interest-rate projections published after the central bank's June policy meeting.
/jlne.ws/3AewGhv
Ethereum's Move From Proof-of-Work Essential for the Network, Crypto Exec Says
Fran Velasquez - CoinDesk
The Ethereum blockchain's transition away from its proof-of-work (PoW) mechanism is necessary for the network to expand, according to Brian Norton, chief operations officer of MyEtherWallet, an app where investors can store their ether, which is Ethereum's native token. Norton said on CoinDesk TV's "First Mover" show on Tuesday that Ethereum's ability to sustain its growth with the PoW consensus mechanism is "not going to be tenable" and said the method isn't energy efficient. "In order for Ethereum to move with the ecosystem and continue to be the leader and remain true to its principles of being open and permissionless, a transition out of proof-of-work is absolutely going to be essential," Norton said.
/jlne.ws/3SHriL0
Tornado Cash Crackdown Shows Limits of Regulating Cryptocurrency Services; Decentralization leaves authorities without target for enforcement; 'difficult, if not impossible, to shut down'
Caitlin Ostroff, Dustin Volz - WSJ
The U.S. sanctioning of a prominent cryptocurrency platform this week exposed technical gaps in the government's ability to prevent criminals, national adversaries and extremist groups from using the services to launder money and finance their operations, analysts said. Among the central challenges: Cryptocurrency platforms are increasingly run by computer code distributed across computers around the world, rather than by individuals facilitating transactions, analysts said.
/jlne.ws/3vX5e5j
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russian-backed authorities say air defences thwarted Ukrainian attack on Enerhodar and Zaporizhzhia nuclear plant
Reuters
Russian anti-aircraft defence systems thwarted Ukrainian attacks on the occupied Ukrainian city of Enerhodar and the nearby Zaporizhzhia nuclear power plant, state-owned news agencies TASS and RIA reported on Thursday, citing the Russian-imposed authorities in Zaporizhzhia region.
/jlne.ws/3Pc3mfP
Ukraine Seeks to Squeeze Russian Troops as It Girds for Battle for Kherson; Kyiv's threats of attack have drawn invading forces to the regional capital, where Ukrainian units are avoiding Moscow's 'assault fist'
Daniel Michaels, James Marson - WSJ
Ukrainian forces are preparing for a battle to free the southern city of Kherson from Russian occupiers, and aim to do it on their own terms. The strategy holds much risk but, if successful, would improve Kyiv's ability to defend its country, win foreign support and potentially negotiate better terms of an eventual peace deal.
/jlne.ws/3zOeZ7c
Displaced by War, Ukrainians Open a New Front as Entrepreneurs; Ukrainians forced from their hometowns by Russia's invasion find some solace, and success, setting up shop in a new city.
Liz Alderman - NYT
Oksana Dudyk scanned a small selection of ornamental plants lining the shelves of her new florist shop, recently opened in this city on Ukraine's western frontier. Her eye landed on the perfect bloom for a new customer: fuchsia-colored primroses, vivid and lush, ideal for brightening an austere corner.
/jlne.ws/3QEVtRw
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | ESG Equity Index Derivatives Update; Eurex - Pioneer in sustainable derivatives
Eurex
Eurex ESG derivatives offer 34 ESG products, of which 32 cover equity indices.
In 2022, ESG exclusionary methodologies have dominated the segment. The regions beyond Europe show the highest growth rates: circa 12% volume share and a 239% increase in traded contracts versus last year. ESG strategies combining exclusions and integration have also resulted in further growth - especially on the option underlying.
/bit.ly/3bPYCiv
SIX opens China-Switzerland Stock Connect
Nik Pratt - Funds Global Asia
SIX Swiss Exchange has launched the China-Switzerland leg of the Stock Connect scheme that will enable cross-border trading between the respective stock exchanges of Switzerland, Shanghai and Shenzhen. In the scheme's opening week, four Chinese companies listed their global depositary receipts (GDRs) in SIX. GDRs are tradeable securities issued by a bank that represent shares in foreign equity shares deposited in the home country.
/bit.ly/3bQgCJp
SOFR Options Open Interest Surpasses 10 Million Contracts as Liquidity in SOFR Deepens; Record average daily volume (ADV) of 2,456,246 SOFR futures and options contracts traded in August; Record ADV of 606,225 SOFR options contracts
CME Group
CME Group, the world's leading derivatives marketplace, today announced that open interest (OI) in SOFR options reached a record 10.36 million contracts for the first time on August 9. The single-day OI in SOFR futures and options hit a record 17.66 million contracts, as ADV for SOFR futures and options reached a record 2,456,246 in August.
/bit.ly/3PgOVax
NYSE Member Firms Report Second Quarter Results
Intercontinental Exchange
NEW YORK - New York Stock Exchange member firms that conduct business with the public reported a second-quarter 2022 after-tax profit of approximately $5.6 billion and revenues of approximately $55 billion, compared with approximately $8.5 billion after-tax profit on revenues of about $56 billion in the second-quarter of 2021.
/jlne.ws/3PhnOMg
EBS Market on CME Globex Notice
CME Group
Topics in this issue include: Critical Information
EBS Market OFF-SEF/OFF-MTF NDF Migration - September 11 EBS MMA Performance Report Enrichment - September 11
Post-Migration iCross Connectivity - October 15
Reminder: Short Code Identifiers on CME Globex
Reminder: Disorderly Market Testing for NEX MTF on CME Globex
Reminder: FirmSoft
Announcements and Additional Resources
Subscription Center for EBS Market on CME Globex Notice
/bit.ly/3zRnK08
Market for Underlying Security Used for Openings on MIAX Options, MIAX Pearl Options and MIAX Emerald Options for Newly Listed Symbols Effective Thursday, August 11, 2022
MIAX
Please refer to the Regulatory Circulars listed below for newly added symbols and the corresponding market for the underlying security used for openings on the MIAX Exchanges. The newly listed symbols will be available for trading beginning Thursday, August 11, 2022.
/bit.ly/3OTE5YF
Notice on Investigation and Penalties for Violations of Relevant Rules and Regulations in July 2022
SFE
Shanghai Futures Exchange (hereinafter referred to as "The Exchange") has been on continuous efforts in investigating and penalizing violations of relevant rules and regulations, so as to strengthen the risk management of the futures market, regulate the futures trading activities and protect the legitimate rights and interests of futures market participants. The enforcement against such violations in July 2022 are listed as follows: In the aspect of administration of abnormal trading behaviors, the Exchange has dealt with a total of 86 cases, among which 19 cases were self-trades,67 cases were frequent order cancellations.The Exchange has separately notified the relevant clients by phone through members,placed 17 clients and 1 group of accounts with actual control relationship on the Exchange's watchlist,notified 23 abnormal trading behaviors to all the members.The Exchange has suspended 5 clients from opening new positions on the relevant futures contracts and notified to the market.
/bit.ly/3drmJoh
SGX Group reports market statistics for July 2022; Iron ore lifts commodity derivatives volume to four-month high; Growth in secondary fundraising despite challenging market conditions
SGX
Singapore Exchange (SGX Group) today released its market statistics for July 2022. Growth in iron ore trading activity lifted commodity derivatives volume to a four-month high, while secondary fundraising increased despite challenging market conditions. Derivatives traded volume across multiple asset classes rose 1% year-on-year (y-o-y) in July to 20.5 million contracts, with derivatives daily average volume (DDAV) up 4% y-o-y. Commodity derivatives volume climbed 57% y-o-y to 3.6 million contracts, the highest since March. Benchmark iron ore derivatives volume gained 68% y-o-y to 3.3 million contracts on the back of heightened volatility, as market participants reacted to developments in China's property sector. Iron ore remains an efficient macro proxy and the SGX Commodities solution enables participants to express their views on the broader economy. The volume of SGX SICOM rubber futures, the world's pricing bellwether for natural rubber, increased 18% y-o-y to 148,290 contracts. https://bit.ly/3dctbz4
Newsletter: TAIFEX Launched Central Clearing for OTC Derivatives
TAIFEX
Starting from July 25, 2022, Taiwan Futures Exchange (TAIFEX) offers central clearing services of OTC derivatives for market participants such as commercial banks to lower capital requirements and improve capital efficiency. The service is in parallel with global regulatory norms and implemented in phases. The first phase incorporates voluntary central clearing services for inter-bank dealers. Proprietary transactions of TWD-denominated interest rate swaps (IRSs) submitted through approved trade affirmation platforms, including MarkitWire and TPEx OTC TR. The next phase will include USD/TWD non-deliverable currency forwards (NDF) for the end customers of banks in the coming year.
/bit.ly/3AoaCRX
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Scila joins the Association of Independent Wealth Managers Singapore
Scila
Scila is very proud to be a new member of AIWM Singapore and look forward to helping the buy-side community to grow the knowledge about trade/market surveillance. Scila Buy-Side Compliance is a result of 14+ years of delivering market/trade surveillance solutions to the most demanding customers in the world such as regulators, exchanges and market participants (including buy-side firms) for all asset classes. Scila Buy-Side Compliance is a turnkey compliance monitoring solution for asset managers, investment firms and buy-side firms that seeks to apply modern technology to obtain a seamless route from early detection of suspicious transactions and insider trading to presentable evidence. The solution covers all asset classes and market models
/jlne.ws/3JNNKOP
SET joins forces with Bloomberg to set up "SET Fin Lab"
National News Bureau of Thailand
The Stock Exchange of Thailand (SET) together with Bloomberg, the world's leading financial data provider, has established "SET Fin Lab" at SET's Maruay Library, as a world-class finance laboratory to facilitate advanced learning and research studies, enabling university partners and capital market researchers to develop human resources, enhance knowledge, and strengthen foundation for the benefit of the Thai capital market as a whole.
/jlne.ws/3ph40hu
Finix raises $30 million as fintech's spotlight picks its sides
Natasha Mascarenhas and Anita Ramaswamy - TechCrunch
Finix announced today that it has raised $30 million in new venture capital, bringing its total known raised to $133 million. The round comes nearly two years after the do-it-yourself payments company closed a $30 million extension to its $35 million Series B and about 18 months after it raised a $3 million SPV led by LatinX and Black investors.
The cash tranche is significantly smaller than its extended Series B total, but Finix did include that new investors participated in the round, meaning this one is not an extension round, "thanks to the growth" that it has shown in the last six months.
/jlne.ws/3dnyZWJ
Upstart earnings spark questions about company's 'fintech' narrative
Emily Bary - MarketWatch
Shares of Upstart Holdings Inc. were sinking more than 11% in premarket trading Tuesday as analysts digested the lending company's new reality.
While executives at Upstart defended the performance of their artificial-intelligence loan model in a Monday afternoon conference call, they pointed to funding challenges as some bank partners pull back due to the uncertain macroeconomic landscape.
/jlne.ws/3pdhQl4
McKay Brothers launches transpacific market data and private bandwidth services; The new ultra-low latency services will create connections between the largest exchanges in Illinois and Asia.
Wesley Bray - The Trade
McKay Brothers' MBI team has launched low latency market services between Illinois' largest futures exchanges and key Asian trading centres in Tokyo, Singapore and Hong Kong. In addition, MBI has launched transpacific private bandwidth services, which it claims to be faster than any known alternative.
/jlne.ws/3QGpMHr
Liquidnet's global head of equities departs after eight years with the firm; Departing head leaves the firm after serving in a variety of senior positions including chief operating officer and global head of equity strategy.
Wesley Bray - The Trade
Liquidinet's global head of equities, Rob Laible, has left the firm after serving in his most recent role for a year and a half. Laible spent that last eight years at Liquidnet in a variety of senior positions including chief operating officer, global head of equity strategy, operations and risk, global head of equity strategy and global head of execution and quantitative services.
/jlne.ws/3vVZ2uA
Instinet's chief executive officer for Asia departs for pastures new; Executive departs after serving at Instinet for the last 14 years, for five of which he was chief executive officer.
Wesley Bray - The Trade
Instinet's chief executive officer for Asia, Stuart Knowling, has left the firm after serving in the position for the last five years. As part of his role, Knowling managed Instinet's Asian offices, focusing on revenue generation and building client connectivity.
/jlne.ws/3djFXvQ
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| Cybersecurity | | Top stories for cybersecurity | Hackers are still using these old security flaws in Microsoft Office. Make sure you've patched them; 'Malware authors still achieve their aims by relying on aging vulnerabilities,' warn security researchers.
Danny Palmer - ZDnet.com
Cyber criminals are exploiting security vulnerabilities in Microsoft Office which have been known about for years to infect PCs with malware in attacks which demonstrate the importance of applying cybersecurity updates.
/jlne.ws/3SIWQjB
Cisco Hacked: Ransomware Gang Claims It Has 2.8GB Of Data
Davey Winder - Forbes
Cisco confirms hackers breached its networks in late May NURPHOTO VIA GETTY IMAGES
Networking giant Cisco confirms hacking as ransomware group publishes a partial list of files it claims to have exfiltrated. On the same day that the Yanluowang ransomware group published a partial list of files it says were stolen from Cisco, the networking giant's Talos Intelligence Group confirmed that Cisco had, indeed, been hacked.
/jlne.ws/3bL74zz
Hackers have stolen $1.4 billion this year using crypto bridges. Here's why it's happening
Ryan Browne, MacKenzie Sigalos - CNBC
Crypto investors have been hit hard this year by hacks and scams. One reason is that cybercriminals have found a particularly useful avenue to reach them: bridges. Blockchain bridges, which tenuously connect networks to enable the fast swaps of tokens, are gaining popularity as a way for crypto users to transact. But in using them, crypto enthusiasts are bypassing a centralized exchange and using a system that's largely unprotected.
/jlne.ws/3QooP6Y
Cybersecurity and Technology Industry Leaders Launch Open-Source Project to Help Organizations Detect and Stop Cyberattacks Faster and More Effectively
BusinessWire
A coalition of cybersecurity and technology leaders announced an open-source effort to break down data silos that impede security teams. The Open Cybersecurity Schema Framework (OCSF) project, revealed today at Black Hat USA 2022, will help organizations detect, investigate and stop cyberattacks faster and more effectively.
/jlne.ws/3BUTynC
The Right Way to Budget and Plan for Cybersecurity
Larry Letow - Bloomberg
Federal agencies are just like companies in their constant struggle to be safe from cyber attacks. Larry Letow offers a step-by-step guide for agencies and contractors to shore up their cyber firewalls. Many federal agencies know that they need to create a dynamic cybersecurity plan, but that's easier said than done.
/jlne.ws/3bHeTq5
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| Cryptocurrencies | | Top stories for cryptocurrencies | Crypto Exchange dYdX Blocked Accounts That Received Even Small Amounts From Tornado Cash; Many users were locked out even though they had no idea they had received funds from the crypto mixer.
Jamie Crawley - CoinDesk
Cryptocurrency exchange dYdX said it blocked user accounts with even a token link to Tornado Cash, the crypto-mixing service sanctioned Monday by the U.S. Treasury. The Treasury's action led to a significant increase in accounts flagged by dYdX's compliance provider, which is used to highlight accounts potentially associated with ransomware, malware, child sex abuse material, known criminals and sanctions lists, the company dYdX said in a blog post.
/jlne.ws/3zKVAUJ
Ethereum just pulled off its final test run ahead of one of the most important events in crypto
MacKenzie Sigalos - CNBC
Ethereum, the second-largest cryptocurrency by market value, just ran a final dress rehearsal ahead of a years-awaited upgrade that's been billed as one of the most important events in the history of crypto. Since its creation almost a decade ago, ethereum has been mined through a so-called proof-of-work model. It involves complex math equations that massive numbers of machines race to solve, and it requires an abundance of energy. Bitcoin mining follows a similar process.
/jlne.ws/3djoEem
Crypto Is Failing Where Digital Yuan May Succeed; Cryptocurrency is still no match for the dollar but China could be the game changer on the horizon.
Lionel Laurent - Bloomberg
Does an industrial-sized dog whistle go off when advocates boast about cryptocurrency's ability to evade US government sanctions? Back in March, a founder of Tornado Cash — a so-called "mixer" service that masks cryptocurrency transactions by mixing them with others — told Bloomberg it would be "technically impossible" for sanctions to be enforced against decentralized protocols. Surprise: Tornado has now been sanctioned by the US Treasury's Office of Foreign Assets Control, partly because of its use by hackers said to be linked to North Korean money laundering.
/jlne.ws/3Qd3Ofc
Crypto's Collapse Deals New Challenge for Regulators in Singapore; The Southeast Asian financial center wrestles with its crypto-hub future as it seeks to rein in the industry
Elaine Yu and Caitlin Ostroff - WSJ
Two years ago, Singapore opened its doors to cryptocurrency firms. Now, after the implosions of multiple digital currencies and players rooted in the city-state, regulators are trying to distance themselves from the blowups while they grapple with how to rein in the industry. Crypto brokers, lenders, exchanges and blockchain companies flocked to the Southeast Asian financial hub after it enacted a regulatory framework for payment services in early 2020. Close to 200 firms applied for licenses to provide digital-payment-token services, according to the Monetary Authority of Singapore, the country's central bank and top financial regulator.
/jlne.ws/3bOv7xy
What 'crypto winter?' Schwab launches ETF giving investors significant cryptocurrency exposure
Jessica Sonkin - CNBC
Investors have a new way to buy cryptocurrencies. Schwab Asset Management released its Schwab Crypto Thematic ETF (STCE) this month to answer investor demand. David Botset, who was directly involved in the launch, told CNBC's "ETF Edge" the new product is unique because investors get an indirect way to significantly play cryptocurrencies. "It is a very speculative investment," the head of equity product and strategy said on Monday. "But we are seeing certain segments of Schwab investors that are seeking access to this asset category in their portfolios."
/jlne.ws/3AfaiEO
Binance says it is winning crypto clients thanks to inflation
Marcelo Rochabrun - Reuters
Binance, the world's largest cryptocurrency exchange, is seeing a surge in clients due to rising inflation and a historically strong dollar that has depressed emerging market currencies, an executive told Reuters on Wednesday, without disclosing numbers.
/jlne.ws/3vVMgfk
Philippines to Stop Permits for New Virtual Asset Service Firms
Siegfrid Alegado - Bloomberg
The Philippine central bank will close its regular application window for new virtual asset service provider licenses for three years beginning September, it said in a memorandum. The regulator said it "aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels."
/jlne.ws/3QxW2MI
South Korea Makes First Arrests in Major Crypto-Linked Inquiry; Officials probe $3.4 billion of foreign-exchange transactions; Nation's embrace of crypto dented by blow-ups, price rout
Hooyeon Kim and Sangmi Cha - Bloomberg
South Korean prosecutors made their first arrests in a probe of $3.4 billion worth of foreign-exchange transactions for possible links to illegal cryptocurrency-related activities. Three people were held on allegations including setting up paper companies and operating a cryptocurrency trading business without registration, the Daegu District Prosecutors' Office said in a text message on Thursday.
/jlne.ws/3SKPR9S
Unlocking the Value in NFTs; At the recent Bloomberg Crypto Summit in NYC, a panel led by Managing Editor Stacy-Marie looked at innovative ways to harness NFTs.
Victoria Vergolina - Bloomberg
Nonfungible tokens, or NFTs, burst into pop-culture prominence in 2021, but they've been around since at least 2014. Despite current market conditions, new tokens and collections are still being launched daily, including by luxury brands such as Gucci and Prada. Tiffany's, the iconic retailer, even announced a jewelry partnership with CryptoPunks, selling pendants based on those NFTs for around $50,000 each. During July's Bloomberg Live Crypto Summit in New York, Managing Editor Stacy-Marie spoke with industry leaders about why they're confident that NFTs will continue to be perceived as valuable and useful. In this episode, her conversation with Avery Akkineni, president of Vayner3; Helen Hai, executive vice president and head of charity at Binance; and digital artist pplpleasr, aka Emily Yang.
/jlne.ws/3OBOgks
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| Politics | | An overview of politics as it relates to the financial markets | An unusual deal gave Virginia Gov. Glenn Youngkin $8.5 million in stock. He paid $0 in tax on it; A shareholder of the Carlyle Group, a private equity firm formerly led by Youngkin, alleges in a new lawsuit that a 2020 deal enriched executives at the expense of cops and firefighters.
Gretchen Morgenson - NBC News
In January 2020, Glenn Youngkin, now the Republican governor of Virginia, got some welcome news. A complex corporate transaction had gone through at the Carlyle Group, the powerful private equity company that Youngkin led as co-chief executive. Under the deal, approved by the Carlyle board and code-named "Project Phoenix," he began receiving $8.5 million worth of Carlyle stock, tax-free, according to court documents.
/jlne.ws/3QfTdA8
Political Risks and Climate Change: Where Are the Flashpoints? Climate Policies Raise Scope for Political Risk to Manifest on Several Fronts
A Joint Report from Sustainable Fitch and Fitch Solutions
Climate change and political risks will mutually reinforce each other as both transition risk, which results from the global shift toward a low-carbon economy, and physical risks rise. Capping temperature rises at well below 2.0° Celsius above pre-industrial levels - aiming for under 1.5°C - as resolved under the Paris Agreement, implies significant societal and economic changes. The Forecast Policy Scenario, developed by Inevitable Policy Response, sees an accelerated and forceful policy response from the mid-2020s and maps the most likely policies to be implemented. These include cuts to agricultural and land-use emissions, including ending deforestation by 2030 and the sale of combustion-engine vehicles in China, Germany, France, Italy and South Korea by 2035.
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Mark Cuban Says Buyback Levy Is Top of 'Bad Taxes' List
Tim Smith - Bloomberg
Billionaire investor Mark Cuban, owner of the Dallas Mavericks basketball team, said that while buybacks are "everything wrong with what companies do," the decision to place a levy on them is the top of the list of bad taxes.
/jlne.ws/3PpcBK0
China Has Painted Itself Into a Semiconductor Corner; Lost billions, graft probes, and broken dreams are the result of over-ambitious goals to build a leading chip sector.
Tim Culpan - Bloomberg
As Washington embarks on a multi-billion dollar, decade-long semiconductor development campaign, Beijing is reckoning with its own 20-year effort that's largely failed to deliver. Both will need to grapple with wasted funds and misguided goals as they play catch-up to Taiwan and South Korea.
/jlne.ws/3pa4gij
Chinese Student Visas to U.S. Tumble From Prepandemic Levels; Global competition, strained political ties lead to drop that hits revenue at big and small colleges and universities
Sha Hua, Karen Hao and Melissa Korn - WSJ
The number of U.S. student visas issued to Chinese nationals plunged by more than 50% in the first half of 2022 compared with pre-Covid levels, with the U.S. losing ground as the most-coveted place for Chinese students to pursue higher education abroad.
/jlne.ws/3vTMzaQ
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| Regulation & Enforcement | | Stories about regulation and the law. | Ex-JPMorgan Traders Found Guilty of Fraud in Spoofing Trial
AJ McDougall - The Daily Beast
A federal jury on Wednesday convicted the one-time head of JPMorgan Chase & Co.'s precious-metals desk and its top gold trader of fraud after they were accused of manipulating futures with a price-rigging tactic known as "spoofing." The traders, Michael Nowak and Gregg Smith, were found guilty of spoofing, wire fraud, commodities fraud, and attempted price manipulation. They were acquitted, however, of conspiracy and racketeering under the RICO Act, a charge that would have essentially cast the firm's precious-metals division as a crime syndicate, according to The Wall Street Journal. A third defendant, Jeffrey Ruffo, who worked in sales, was acquitted on both charges of conspiracy and racketeering that he faced. During the three-week trial, the Chicago jury heard how Smith, the top gold trader, would click his computer mouse placing and canceling fake spoofing orders—which "lured others into making disadvantageous trades," as the Justice Department put it—so quickly that colleagues would ask jokingly if he needed to ice his fingers.
/jlne.ws/3zOegCV
SEC Proposes to Enhance Private Fund Reporting
SEC
The Securities and Exchange Commission today voted to propose amendments to Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds. The amendments, which the Commodity Futures Trading Commission (CFTC) is concurrently considering to propose jointly with the SEC, are designed to enhance the Financial Stability Oversight Council's (FSOC) ability to assess systemic risk as well as to bolster the SEC's regulatory oversight of private fund advisers and its investor protection efforts in light of the growth of the private fund industry.
/jlne.ws/3BU2oC5
CFTC Approves a Joint Rule Proposal to Amend Form PF
CFTC
The Commodity Futures Trading Commission today voted to jointly propose amendments to Form PF with the Securities and Exchange Commission (SEC), as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Form PF is the confidential reporting form for certain investment advisers to private funds that are registered with the SEC, including those also registered with the CFTC. The SEC also approved the proposed amendments at a public meeting today. The proposed amendments to Form PF reflect the lessons learned over the past decade of private funds filing with the SEC.
/jlne.ws/3QjzU90
Statement on Proposed Joint Amendments to Form PF
Chair Gary Gensler - SEC
Today, the Commission is considering whether to propose joint amendments with the Commodity Futures Trading Commission (CFTC) to Form PF, an important reporting tool that the Commission and the Financial Stability Oversight Council (FSOC) use, respectively, to protect investors and monitor systemic risk. I am pleased to support the proposal because, if adopted, it would improve the quality of the information we receive from all Form PF filers, with a particular focus on large hedge fund advisers.
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Statement on Proposed Amendments to Form PF to Amend Reporting Requirements for All Filers and Large Hedge Fund Advisers
Commissioner Hester Peirce - SEC
Thank you, Mr. Chair. Although I have called for changes to Form PF, neither the changes we are considering today, nor the ones we proposed on January 26th, are what I had in mind. Today's amendments—which the Commodity Futures Trading Commission ("CFTC") is joining us in proposing—would expand Form PF by adding questions of the nice to know, rather than need to know variety.[1] Why we need the new information and what we plan to do with it are questions left to the reader's imagination. Accordingly, I am unable to support the proposal.
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Statement on Amendments to Form PF to Amend Reporting Requirements for All Filers and Large Hedge Fund Advisers
Commissioner Mark T. Uyeda - SEC
Thank you, Chair Gensler. Who benefits from investments in private funds and alternative investments? In many cases, they are the pensioners in a retirement plan or a university student who benefits from an endowment. In other words, Americans of all types benefit from a robust market for private funds that is diverse and provides sophisticated institutional investors and their advisers with choices to address different risk tolerances, investment strategies, and time horizons.
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Statement on Proposed Amendments to Form PF
Commission Caroline A. Crenshaw - SEC
Today's Form PF proposal would provide the SEC, CFTC, and Financial Stability Oversight Council ("FSOC") with important information to keep apace with the myriad changes in the private funds space. Our mandate in this area is clear. In enacting Dodd-Frank, Congress authorized the Commission to require advisers to private funds to file reports regarding those funds "as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk by the Financial Stability Oversight Council."[1] In so passing, Congress clearly and pointedly recognized the need for data on the parts of both FSOC, to assess and protect against risks to the stability of our financial systems, and the SEC to protect investors. It did not relegate or subjugate the SEC's mission of protecting investors.[2]
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Enhancing Private Fund Adviser Reporting Data
Commissioner Jaime Lizárraga - SEC
Today, the Commission is proposing amendments that would improve our oversight and investor protection efforts over the $20 trillion private fund adviser industry. These amendments will also help better assess trends and enhance a key resource for identifying financial stability risks. Prior to enactment of the landmark Dodd-Frank Act, empirical regulatory data on hedge funds and private funds was not systematically collected. The Act filled that glaring gap by requiring the collection of private fund data that financial regulators now use to identify trends and potential risks to our financial markets. Congress recognized the value of this data for anticipating and addressing future crises.
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CFTC Staff Extends Temporary No-Action Letter Regarding Certain Position Aggregation Requirements
CFTC
The Commodity Futures Trading Commission's Division of Market Oversight (DMO) today announced it has issued a no-action letter temporarily extending CFTC Staff Letter No. 19-19, regarding certain position aggregation requirements, which expires August 12. CFTC Staff Letter No. 22-09, issued today, provides that DMO will not make an enforcement referral to the Commission with respect to CFTC Regulation 150.4, subject to certain conditions, including compliance with: Streamlined notice filing requirements; Revised definitional conditions, for purposes of complying with the aggregation requirements, for eligible entities, independent account controllers, and commodity trading advisors; and Limited aggregation requirements for the "substantially identical trading strategies" rule.
/jlne.ws/3Qov0Ic
Statement of Commissioner Christy Goldsmith Romero Regarding the Proposal for Enhanced Monitoring and Identification of Systemic Risk and Emerging Threats to the U.S. Financial System
CFTC
As a U.S. financial markets regulator and a member of the Financial Stability Oversight Council (FSOC), the Commission has a critical responsibility to monitor, identify, and respond to systemic risks and emerging threats to U.S. financial stability. I support the proposed amendments to Form PF because they will enhance one of the Commission's tools to fulfill that critical responsibility and facilitate our regulatory oversight of private funds.[1]
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Dissenting Statement of Commissioner Summer K. Mersinger Regarding Proposed Amendments to Form PF
CFTC
I am respectfully voting to dissent on the joint SEC/CFTC proposed rulemaking to amend Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds. The class of registered investment advisers required to submit Form PF includes those that also are registered with the CFTC as commodity pool operators or commodity trading advisors.
/jlne.ws/3vYpqE9
Dissenting Statement of Commissioner Caroline D. Pham Regarding the Proposed Amendments to Form PF
CFTC
I respectfully dissent from the proposed amendments to the Reporting Form for Investment Advisers to Private Funds and Certain Commodity Pool Operators and Commodity Trading Advisors (Form PF). The proposed joint amendments, an action of the CFTC as well as the SEC, seem to impose overly broad obligations that would be unnecessarily burdensome and would present potentially significant operational challenges and costs without a persuasive cost-benefit analysis under the Commodity Exchange Act (CEA).[1]
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Statement of Commissioner Summer K. Mersinger Regarding Extension of No-Action Relief from Certain Position Aggregation Requirements under CFTC Regulation 150.4
CFTC
I support extending the no-action relief originally granted in 2017 in Commodity Futures Trading Commission (CFTC or Commission) Letter No. 17-37 (CFTC Letter 17-37)[1] and subsequently extended in 2019 in CFTC Letter No. 19-19 (CFTC Letter 19-19, and collectively with CFTC Letter 17-37, the CFTC Letters).[2] The CFTC Letters provide market participants with relief from certain position aggregation requirements in Commission Regulation 150.4.[3] I appreciate that extending that relief will provide certainty to impacted market participants for an additional three years. However, the certainty that market participants seek, and that the Commission owes them, should be provided by the Commission fixing unworkable rules rather than using no-action relief to "kick the can down the road" for another three years.
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TRACE Depository Institution Reporting Final User Acceptance Testing
FINRA
On Thursday, September 1, 2022, FINRA will begin to collect data on depository institutions' daily transactions in marketable U.S. Treasury securities and in the debentures and MBS issued by U.S. federal government agencies, including government-sponsored enterprises (agencies), via its Trade Reporting and Compliance Engine (TRACE).
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Understanding Bond Yield and Return
FINRA
Investing in bonds? You'll want to know about yield and return. Yield is a general term that relates to the return on the capital you invest in a bond. Price and yield are inversely related: As the price of a bond goes up, its yield goes down, and vice versa.
/jlne.ws/3dpHyQP
SEC Charges Angel Oak Capital Advisors with Misleading Investors in $90 Million Fix-and-Flip Securitization
SEC
The Securities and Exchange Commission today charged Atlanta-based Angel Oak Capital Advisors, LLC and its portfolio manager Ashish Negandhi for misleading investors about the firm's fix-and-flip loan securitization's delinquency rates. Angel Oak and Negandhi have agreed to settle charges and pay a penalty of $1.75 million and $75,000, respectively.
/jlne.ws/3Pp6xBe
SEC Charges Broker-Dealer and Two Employees with Engaging in Unauthorized Securities Transactions
SEC
The Securities and Exchange Commission today charged broker-dealer Alpine Securities Corporation, its former Chief Executive Officer Christopher Doubek, and its current Chief Operations Officer Joseph Walsh with engaging in a series of unauthorized securities transactions.
/jlne.ws/3QfSjU9
SEC Brings Charges Over Unregistered Offerings of Conservation Easement Investments
SEC
The Securities and Exchange Commission today charged an Oklahoma company and its owners, as well as an affiliated investment adviser, with securities law violations relating to unregistered offerings of interests in conservation easement investments. The SEC's complaint, filed in the U.S. District Court for the Western District of Oklahoma, alleges that GreneCo, LLC and its owners, Gene D. Larson and Gregory K. Womack, raised approximately $23 million from more than 250 investors in 2017 and 2018 through four unregistered securities offerings involving conservation easements. The offerings provided investors with multiple investment options, including an election to take charitable tax deductions if the real estate acquired with their investment funds was donated to a land trust for purposes of a conservation easement. Under the Internal Revenue Code, conservation easements allow real property to be donated to qualified organizations, which may generate federal and state tax deductions for the investor.
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ASIC releases research about investment behaviour
ASIC
ASIC has released Report 735 Retail investor research (REP 735) capturing retail investor motivations, attitudes and behaviours in the period following the onset of the COVID-19 pandemic. The research surveyed 1,053 Australian retail investors aged 18 and over who had directly traded in securities, derivatives or cryptocurrencies at least once since March 2020. Conducted in November 2021, the survey results provide a point-in-time snapshot of investor behaviour during a period of increased activity in retail markets, supplementing existing market data and research conducted in Australia and overseas.
/bit.ly/3K1Slgt
Wellness industry director charged for making false statements
ASIC
Tatiana De Oliveira, also known as Tatiano De Oliveira, of Byron Bay, New South Wales, has been charged with making a false or misleading statement to ASIC.
/bit.ly/3bOqlAa
Cigna admits making false and misleading representations over its communication of inflation adjustments to insurance cover
FMA
Cigna Life Insurance New Zealand Limited has admitted to making false and/or misleading representations to customers in proceedings brought by the Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko. The case was filed in the Wellington High Court and alleges that Cigna breached the Fair Dealing provisions of the Financial Markets Conduct Act 2013 (FMC Act), when communicating and charging customers for inflation increases to premiums and cover in respect of 52,363 policies.
/bit.ly/3C2n1vQ
Larry Barreto pleads guilty to carrying on regulated activities without authorisation
UK FCA
On 29 July 2022 at Southwark Crown Court, Mr Larry Barreto pleaded guilty to two counts of carrying on regulated activities without authorisation. The charges relate to advice provided and arrangements made regarding a series of regulated mortgage contracts between June 2014 and March 2018. Mr Barreto is an unauthorised and prohibited person and as such could not provide regulated financial services.
/jlne.ws/3bP4rN8
Statistics of Credit Card, Cash Card & Electronic Payment Institutions Business Operation as of June 2022
FSC
1. Credit Card:As of June 2022, thirty-three credit card issuing institutions were in operation in Taiwan. The number of effective cards totaled 53.9 million (53.66 million at the end of May 2022) among which the total active cards numbered in 34.25 million (34.23 million at the end of May 2022). The balance of revolving credit was NT$99.4 billion (NT$98.2 billion at the end of May 2022). The amount of undue balance of installment was approximately NT$140.2 billion (NT$143.1 billion at the end of May 2022). The amount of monthly retail sales was approximately NT$264.4 billion (NT$258 billion for May 2022). The amount of monthly write-off was approximately NT$0.31 billion (NT$0.3 billion for May 2022). Average ratio of delinquency credit (pass-due over three months) against account receivables (including non-accrual amounts) was 0.18% (0.19% at the end of May 2022) (Please see Attachment 1).
/bit.ly/3bQ97Cr
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Pimco's Dan Ivascyn on the State of Markets Right Now; With over $2 trillion in AUM, this is what PIMCO is up to
Tracy Alloway and Joe Weisenthal - Bloomberg
Markets have staged an impressive bounce since the middle of June. Stocks are way up. Credit spreads have come in. Mortgage rates have tightened again. And long rates have mellowed out. So is the coast all clear? On this episode of the podcast, we speak with Pimco Group Chief Investment Officer Dan Ivascyn about why this is an environment characterized by a high level of uncertainty. It's not that he's pessimistic or bearish, per se, but rather that there are risks all over the place as the Federal Reserve attempts to tame inflation.
/jlne.ws/3vYVKXw
Social Security Benefits Are Heading for the Biggest Increase in 40 Years; Today's inflation data provides a strong clue as to what recipients might expect from the official announcement in October
Anne Tergesen - WSJ
Social Security recipients are on track to receive the highest cost-of-living increase in more than four decades next year. Social Security checks get an inflation adjustment every year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. In determining the cost of living adjustment, or COLA, the Social Security Administration compares the average figures for July, August and September to the index's average level over the same period a year earlier.
/jlne.ws/3doBVlK
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Does ESG really matter—and why? Although valid questions have been raised about ESG, the need for companies to understand and address their externalities is likely to become essential to maintaining their social license.
Lucy Pérez, Vivian Hunt, Hamid Samandari, Robin Nuttall, and Krysta Biniek - McKinsey Quarterly
Since the acronym "ESG" (environmental, social, and governance) was coined in 2005, and until recently, its fortunes were steadily growing. To take one example, there has been a fivefold growth in internet searches for ESG since 2019, even as searches for "CSR" (corporate social responsibility)—an earlier area of focus more reflective of corporate engagement than changes to a core business model—have declined. Across industries, geographies, and company sizes, organizations have been allocating more resources toward improving ESG. https://mck.co/3C2iMjV
Wind Needs More Than the Inflation Reduction Act; Wind-turbine maker Vestas expects its U.S. business to ramp up if legislation passes, but permitting remains the industry's bugbear
Rochelle Toplensky - WSJ
Wind-turbine maker Vestas is well placed to captusssssssssssssssre the tailwinds of the Inflation Reduction Act, but permitting remains the big roadblock. The Danish-based company has navigated the recent trials of supply-chain bottlenecks and cost inflation in transport and raw materials such as steel and resin. U.S. and European policy is seeking to boost renewables. Vestas is well placed to capitalize on those incentives, but its big hope is a deal to speed up planning permissions.
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World's Largest Oil Exporter Has to Go Big on Carbon Storage; Saudi Arabia's plan to become a leading producer of climate friendly fuels depends on capturing and storing millions of carbon dioxide emissions every year.
Verity Ratcliffe - Bloomberg
Saudi Aramco plans to begin permanently storing carbon dioxide from 2026 in one of the largest facilities of its kind, as the state oil giant seeks to reach its goal of net-zero emissions by 2050. The company is looking to capture carbon dioxide emitted by processes that convert natural gas into hydrogen, among other industrial activities, and permanently store the pollutant deep underground in a reservoir that previously produced oil and gas.
/jlne.ws/3bQpS07
Coffee's Climate Woes: Elements by Clara Ferreira Marques; Prices are boiling over as extreme weather thrashes bean growers.
Clara Ferreira Marques - Bloomberg
If you're not already paying more for your morning cappuccino, you soon will be — and you can blame a rapidly changing climate for the trouble.
/jlne.ws/3pcyZvb
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Deutsche Bank's Push to Tighten Controls Is Quietly Boosting Costs; Lender boosts spending on controls after regulatory criticism; Bank's leadership has long struggled to fix the issue
Steven Arons and Stefania Spezzati - Bloomberg
Deutsche Bank AG's rising costs were in focus again last month, when the lender used results to warn that a key profitability target is getting harder to reach. That came a year after Christian Sewing scrapped various expense targets, blaming the move on factors including investments for growth and higher German deposit levies.
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Credit Suisse steps up legal claim against SoftBank in $440mn dispute; Lawsuit centres on funds owed to Swiss bank's customers by construction company that had borrowed from Greensill Capital
Owen Walker - FT
Credit Suisse has stepped up its legal fight against SoftBank, as the embattled Swiss lender seeks to recoup hundreds of millions of dollars on behalf of its wealthiest clients that it had lent through Greensill Capital, the defunct finance firm.
/jlne.ws/3PiWeye
Two former JPMorgan metals traders convicted at spoofing trial; Prosecutors win on some charges in market manipulation case but defendants acquitted of racketeering and conspiracy
Steff Chávez and Joshua Franklin - FT
A federal jury in Chicago convicted two former JPMorgan metals traders on charges of manipulating metals markets on Wednesday, handing prosecutors a partial victory at the conclusion of a month-long trial. Michael Nowak, the former head of JPMorgan's global metals trading desk, and Gregg Smith, who worked as a trader and executive director in New York, were each convicted of spoofing, wire fraud, commodities fraud and attempted price manipulation.
/jlne.ws/3PhWXjx
Active funds can beat passive if fees are low enough, study shows; Retail investors miss out on outperformance enjoyed by institutional investors due to higher costs
Ed Moisson - FT
Retail investors are missing out on active funds' outperformance of passives because they pay higher fees than institutional investors, new research shows. Different fee levels mean fund share classes that are accessible to institutional investors have outperformed passives, but retail investors' share classes have underperformed, a group of four Dutch researchers has found.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | The Origins of Covid-19 Are More Complicated Than Once Thought; Scientists used painstaking research, genomics, and clever statistics to definitively track two distinct strains of the virus back to a wet market in Wuhan.
Wired
IN OCTOBER 2014, virologist Edward Holmes took a tour of the Huanan Seafood Wholesale Market in Wuhan, a once relatively overlooked city of about 11 million people in the central Chinese province of Hubei. The market would have presented a bewildering environment for the uninitiated: rows of stalls selling unfamiliar creatures for food, both dead and alive; cages holding hog badgers and Siberian weasels, Malayan porcupines and masked palm civets. In the southwest corner of the market, Holmes found a stall selling raccoon dogs, stacked in a cage on top of another housing a species of bird he didn't recognize. He paused to take a photo.
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White People Get Bigger Share of Monkeypox Shots, Early Data Show; While most cases are concentrated among people of color, White people are getting most of the shots.
Taylor Johnson, Linda Poon, and Carrington York - Bloomberg
Much like with Covid-19, the monkeypox health crisis in the US is hitting Black and Hispanic Americans hard. Yet those groups are so far lagging in vaccination rates, early data obtained by Bloomberg News show.
/jlne.ws/3BY7vB3
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Australia Covid: Contact tracing app branded expensive 'failure'
BBC
A multi-million dollar Australian app used to track Covid contacts has been decommissioned and branded "a failure" after identifying only two unique infections. Health Minister Mark Butler urged people to delete the app, calling it a "colossal waste" of taxpayer's money. COVIDsafe was previously touted "as essential as putting on sunscreen" by former Prime Minister Scott Morrison. But experts had questioned the efficacy of the Bluetooth-based tracking method.
/jlne.ws/3BYuFHK
S.Africa negotiates deal with EU to clear citrus blockage at ports
Reuters
South Africa has negotiated a settlement with the European Union to clear hundreds of shipping containers of citrus fruit stuck in EU ports, the South African government said on Thursday.
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Armed man demanding frozen deposits takes hostages at Lebanese commercial bank
Reuters
An armed man demanding deposits frozen by his bank took an unspecified number of hostages on Thursday at the Federal Bank of Lebanon, a security source and a Reuters witness said. Lebanese banks have limited withdrawals of hard currency for most depositors during the country's three-year financial meltdown, which has left more than three-quarters of the population struggling.
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Sibanye Cuts US Palladium Mines Output Forecast After Floods
Felix Njini - Bloomberg
Sibanye Stillwater Ltd. cut its Montana-based palladium and platinum mines' output forecast for this year after flooding and operational challenges affected production. The Johannesburg-based precious metals producer sees output at its Stillwater mines at 445,000 ounces to 460,000 ounces this year amid rising costs and as production takes a hit from floods in the area, Sibanye said in a presentation published on its website on Thursday.
/jlne.ws/3dpH4dh
German Fertilizer Maker Sees Possible 25% Drop in Gas Supplies; K+S estimates millions of euros in additional fuel costs; Several industries are looking at alternative energy sources
Samuel Gebre - Bloomberg
German chemicals company K+S AG said natural gas availability at its sites in the country may fall by as much as a quarter, and warned of a potential impact on production. "For the first time, the outlook assumes a scenario in Q4 for a 25% reduction in natural gas availability at all German sites and increased gas costs" that could run to a "low triple-digit million euro amount," the company, whose products include fertilizers and salts, said in an earnings report.
/jlne.ws/3Qj1TG4
European Energy Crisis Deepens as Power Prices Reach Records; French electricity for next year tops 600 euros for first time; Avoiding blackouts requires 'a lot of preparatory work': CEER
Will Mathis - Bloomberg
European power prices rose to fresh records on Thursday as a blistering rally showed no signs of abating. The gains reflect a tight market for natural gas -- used to fuel power plants -- as Russia cuts supplies just as Europe works to replenish stockpiles for winter. A drop in nuclear-reactor output, as well as low wind and hydro generation, has exacerbated the squeeze, raising the specter of intervention to reduce demand.
/jlne.ws/3ParW0M
Rhine River to Drop Further as IEA Sees Prolonged Crisis; Water level at Kaub to fall to 33-centimeter marker by Aug. 15; River closure could significantly dent oil-product trade: FGE
Jack Wittels and Grant Smith - Bloomberg
The Rhine River is set to drop well below a critical depth over the weekend, signaling further turmoil for shipments of energy supplies on one of Europe's most vital waterways. Water levels at Kaub, a key waypoint west of Frankfurt are poised to plunge to 33 centimeters (13 inches) by Aug. 15, according to data from to the German Federal Waterways and Shipping Administration. Below the 40 centimeter mark, most barges hauling goods from diesel to coal are effectively unable to transit the river.
/jlne.ws/3BYToMa
Shropshire farmer 'may have to slaughter cows' if no rain
James Thompson - BBC
A dairy farmer said he might have to send some of his cows to slaughter if it doesn't rain in August.
James Thompson, who runs Sansaw Dairy, in north Shropshire, said the dry weather had reduced the amount of grass available for his herd to eat. "We can't keep feeding them with feed which is not there," he said.
/jlne.ws/3QjNcT3
The Place With the Most Lithium Is Blowing the Electric-Car Revolution; A California-sized piece of South America is stifling production of the metal at a time when battery makers desperately need it
Ryan Dube - WSJ
Hailed as the Saudi Arabia of lithium, this California-sized chunk of terrain accounts for some 55% of the world's known deposits of the metal, a key component in electric-vehicle batteries. As the Chinese EV giant BYD Co. recently learned, tapping into that resource can be a challenge. Earlier this year, after BYD won a government contract to mine lithium, indigenous residents took to the streets, demanding the tender be canceled over concerns about the impact on local water supplies. In June, the Chilean Supreme Court threw out the award, saying the government failed to consult with indigenous people first.
/jlne.ws/3dcSfpG
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