| October 28, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
The Futures Industry Association yesterday made a $3,000 contribution to the JLN MarketsWiki Education GoFundMe campaign and Trading Technologies matched it, nearly completing TT's pledge to match $20,000 worth of contributions to the campaign.
The FIA contributed to the campaign in compensation to John Lothian Productions for repurposing content from our Game Changers: The History of Financial Futures video series and producing a five-minute video for the upcoming FIA EXPO. The video celebrates the 50th anniversary of the successful launch of financial futures with the launch of the International Monetary Market
The video will also celebrate many other anniversaries, including the 40th anniversary of the S&P 500 and other stock index futures, the creation of cash settlement and Eurodollar futures, and the launch of European derivatives exchanges in London and Frankfurt, among other locations.
There will be a short 15-minute ceremony at the start of EXPO when the video will be shown and Leo Melamed and Richard Sandor will be asked to make some short comments, assuming they are available to attend. We are pleased to play a small role in the celebration of the industry's 50th anniversary celebration of the start of the modern era of finance and derivatives markets. We thank the FIA and TT for their contributions to the GoFundMe campaign, which was set up to give us the resources to be able to capture the history of our industry on video, something we have been doing for the past 11 years.
JLN started our The History of Financial Futures project back in 2011 after Chicago Corp. founder Jack Wing passed away. We realized that if we were losing important stalwarts of our industry like Wing, we needed to get other major participants who helped build our markets into what they are today on video before the opportunity was no longer there. We subsequently launched The Open Outcry Traders History Project to capture individual traders' histories and The Path to Electronic Trading series to capture the story of the development of electronic trading in our markets. This year we launched a new series on The History of Environmental Markets. The GoFundMe campaign's goal is $300,000 and we are just short of $70,000 raised online so far. Thank you to all who have contributed (and all who have yet to give).
I have some bad news. If the Philadelphia Phillies win the World Series against the Houston Astros, the economy and your portfolio might be in trouble. MarketWatch has the story titled "The Phillies made the World Series - is a stock-market crash next? Why some see this baseball team's success as a bad omen."
Our friends at Get Real XR flagged the first metaverse auction to be conducted on an interest in a racehorse. The story is titled "Keeneland To Auction Off Fractional Interest in Flightline."
The minimum price increment of SPIKES futures at MIAX is moving to $0.01 from $0.05 on October 31st.
The London Metal Exchange is making 15-minute delayed LMEselect quotes for the steel contracts freely available on LME.com. The LME is also launching new incentive programs and daily liquidity windows for the LME Steel Scrap CFR Turkey and Steel Rebar FOB Turkey contracts. Details are in this S&P Global story.
JLN will have a booth at the FIA EXPO hall where we will be conducting video interviews. We are interested in talking to you if you have something new to share or wish to share your views on the current state of the industry. But more importantly, we want to know how ESG is impacting your firm and those of your clients. If you are interested in an interview, email me at mailto:johnlothian@johnlothian.com
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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The Securities Industry and Financial Markets Association (SIFMA) will host a Listed Options Symposium on November 9 and an Equity Market Structure Conference on November 10 in New York City. The keynote speaker at the Listed Options Symposium will be Henry Schwartz, vice president, global head of client engagement, data & access solutions at Cboe Global Markets. The program will cover such topics as: what's next for options market structure; regulation, transparency and the interplay between SEC releases; the future of the options market; and the movement to index options and other investor trends. The Equity Market Structure conference keynote speaker is Jessica Wachter, chief economist and director of the Division of Economic & Risk Analysis, U.S. Securities and Exchange Commission. Other speakers will cover the following topics: equity market structure reform; regulation, the interplay between SEC releases and cross-border developments; debrief on the 2022 midterms; roadmap to 2050 and emerging trends; market data; and what's trending in ETFs.
For more information you can visit these links: Listed Options Symposium; Equity Market Structure Conference ~SR
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This half day event will gather exchange CEOs from the Association of Southeast Asian Nations (ASEAN), notable emerging Asia investment professionals, and US institutional investors to discuss the investment dynamics of this fast-growing region. Places are limited and will be allocated on a first come first serve basis.
For more information, and to register please visit: http://ow.ly/iH2N50Lgp4I
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MWE SHORT: Bill Harts - Modern Markets Initiative: How a Small Group of Traders Improved Markets for All
JohnLothianNews.com
The 2014 release of Michael Lewis' book "Flash Boys" unleashed widespread criticism of the automated trading community amid Lewis' assertion that markets are "rigged" against small investors. According to Bill Harts, CEO of the Modern Markets Initiative, nothing could be further from the truth.
Watch the video »
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Discontent Rises in Europe as Economic War With Russia Pushes Up Cost of Living; Governments fear protests against high energy prices could weaken public support for Ukraine
Bojan Pancevski and Noemie Bisserbe - The Wall Street Journal
A wave of protests triggered by rocketing living costs and a looming recession is sweeping across Europe, testing the resolve of governments that have so far maintained unity in their costly economic war with Russia. The public backlash against high prices for electricity and heating as temperatures begin to fall is also fueling tensions between European capitals over richer nations' larger relief packages, which poorer neighbors say are distorting the market and compounding the crisis.
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****** People forget how easy they have it. Having to collect firewood or burn your furniture for a fire is far worse, and it was not so long ago that authoritarian aggression caused that to happen.
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Stuck in a Wine Rut? You're Certainly Not Alone.; From a couple who can't quit their favorite box rosé to a sommelier's Spätlese rabbit hole, people often develop intense attachments to particular wines. Should we be working harder to get outside our comfort zone?
Lettie Teague - The Wall Street Journal
Professionally, I taste different wines most days of the week. On my own time, I drink the same wine repeatedly. It's not the exact same wine every time, but it is the same type of wine: Chablis. I love Chablis so much that whenever I'm in a wine store, I find it hard not to buy a bottle or three. I love its racy, minerally character and find it's not only reliably good but reliably cheap, too. It pairs well with a wide range of foods and it's great all by itself, too. Still, recently, I began to wonder: Has my relationship with Chablis become less like a love affair and more like a rut?
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****** PTS, HELP! I am stuck in a wine rut and I can't get out.~JJL
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Chicago Bets on Quantum Tech as 'Next Big Thing' for Its Future; State of Illinois is home to 4 of 10 national quantum centers; Mayor Lightfoot:'This is the next big thing in our economy'
Isis Almeida - Bloomberg
Chicago is betting on quantum -- a technology that could ensure everything from emails to online shopping is 100% secure --to fuel future economic growth. But there's still much work to do before the city realizes its dream of becoming the nation's capital for the promising technology. Best known for traditional industries including food, agriculture and manufacturing, the Windy City has been trying to lure investments from companies such as Google Inc. and Amazon.com as it shifts its focus to quantum, which promises to make Internet communication unhackable.
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****** This Chicago mayor might know what she is doing after all.~JJL
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Thursday's Top Three
Our top story Thursday was CME Defends FCM Application, from MarketsMedia. Second was ABN AMRO Clearing Bank's announcement that it has appointed Robert Pooler as chief financial officer, based in Chicago. Third was a tie between the CQG announcement, CQG, NUTS Finance Launch Optio Research to Develop Institutional Cryptocurrency Infrastructure and Trading Solutions and Bloomberg's Once-in-a-Generation Wealth Boom Ends for America's Middle Class.
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MarketsWiki Stats
27,047 pages; 241,374 edits
MarketsWiki Statistics
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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 | SEC Favors Midpoint Prices on Investor Stock Trades in Rules Overhaul; Proposal reflects plan for broad changes in how small investors' orders are handled
Alexander Osipovich and Paul Kiernan - The Wall Street Journal
The Securities and Exchange Commission's planned overhaul of stock-trading rules seeks to ensure that small investors get better prices when buying or selling stocks. One of the SEC's aims is to increase the likelihood that investors get the midpoint price on trades-halfway between the publicly displayed buying and selling price-or better. A proposal under consideration by the agency would generally require brokers to route small investors' market orders into auctions, where trading firms would compete to execute them, people familiar with the matter said. SEC Chairman Gary Gensler first floated the idea of such auctions in June. The auction requirement would apply to orders less than $200,000 by customers who average fewer than 40 trades a day, the people said.
/jlne.ws/3TLwC0a
NFT Prosecution Sparks Debate Over Insider-Trading Label for Digital-Token Cases; Judge rejects defense attorneys' request to ban the phrase 'insider trading' from what federal prosecutors call a first-ever case
James Fanelli and Corinne Ramey - The Wall Street Journal
Insider trading typically evokes the idea of a well-connected investor using secret information to profit from stock trades. Now, a federal judge has allowed the Justice Department to use the same kind of narrative in a first-ever case about the trading of digital tokens-even though prosecutors didn't bring traditional insider-trading charges. The use of insider-trading language emerged as a flashpoint in the New York case, which the Justice Department says is its maiden prosecution for insider trading of NFTs, or nonfungible tokens, which are digital proofs of purchase for goods such as art. Prosecutors allege a former employee of NFT marketplace OpenSea profited from nonpublic information by purchasing tokens that he knew would soon be featured on OpenSea's home page. The defendant, Nathaniel Chastain, knew the tokens would rise in value after being showcased, prosecutors say.
/jlne.ws/3W8ImeJ
HKEX Starts Carbon-Trading Platform Matching Rival Singapore
Kiuyan Wong - Bloomberg
Hong Kong's stock exchange started its first voluntary carbon credit trading platform in a bid to bolster climate-related products on the back of growing demand. Carbon credits on the Core Climate platform will come from internationally certified projects, including carbon avoidance, reduction and removal projects, HKEX said Friday. All projects listed will be verified against international standards, such as the Verified Carbon Standard by Verra.
/jlne.ws/3U1aNdj
No 'adults in the room': Xi Jinping catches global investors off guard; Exclusion of moderates from China's leadership spurs record stock outflows
Hudson Lockett and Mercedes Ruehl - Financial Times
When China's president Xi Jinping moved to tighten his grip on power last weekend, he sent a ripple of fear through global financial markets. Analysts and fund managers had expected Xi to balance his seven-man leadership team by including at least a couple of moderates. Instead, it became clear that he had taken sole charge of the world's second-largest economy.
/jlne.ws/3FriVPF
Brutal week for Big Tech with nearly $800bn wiped off valuations; Investors spooked by weak earnings season and runaway costs at largest digital companies
Richard Waters and Hannah Murphy - Financial Times
Nearly $1tn was wiped off the value of the biggest US tech companies this week before a partial rebound, with headlong growth stalling because of the slowing global economy and mounting cost pressures. The stock market losses accelerated late on Thursday after Amazon shocked Wall Street with a weak revenue forecast for its all-important fourth quarter of the year, when holiday shopping normally buoys its revenues. The US ecommerce company indicated revenue in the period was likely to be as much as $15bn below the $155bn analysts had been predicting.
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Justice Department Probes How Poultry Companies Pay Farmers; Pilgrim's Pride investigation marks latest move by government to clamp down on industry payment system that has been criticized by some farmers
Patrick Thomas - The Wall Street Journal
The Justice Department is investigating how poultry companies pay their chicken farmers, the latest move by the government to clamp down on an industry payment system that has been criticized by some farmers. Pilgrim's Pride Corp. increase; green up pointing triangle the second-largest U.S. poultry processor by sales volume, said in a regulatory filing on Thursday that it learned earlier this month that the Justice Department had opened a civil probe into chicken-grower contracts and payment practices. The Colorado-based company said it would cooperate with the Justice Department.
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Russia Export Windfall Finds Sanctions Haven in Yuan, Quasi-Bank; With central bank reserves frozen, NCC holds foreign exchange; Huge inflow from exports has helped sustain economy in war
Bloomberg News
A little-known unit of Russia's main stock exchange has become a vital link to the global financial system as tens of billions of dollars and euros flood in from sales of oil and other commodities. The National Clearing Centre has seen its foreign-exchange holdings surge this year, according to people familiar with its operations. A key link in the gas trade, it has so far avoided the US and European sanctions that have hit the central bank and Russia's major lenders.
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What the New 'Saudi First' Policy Means for Oil and Power; The reigning message at Davos in the Desert has big implications for energy, foreign policy and the global economy.
Javier Blas - Bloomberg
Prince Abdulaziz bin Salman has had enough. The Saudi Energy Minister, object of vitriolic criticism in Washington since he led the OPEC+ cartel into an oil output cut this month, said he keeps hearing: "Are you with us, or against us?" But the kingdom isn't choosing sides, he told Wall Street's good and great this week in Riyadh. "Is there any room for 'We are for Saudi Arabia and for the people of Saudi Arabia?'" If putting his country first was impolite, Prince Abdulaziz - son of King Salman, half-brother of Crown Prince Mohammed bin Salman - warned he would have no choice but to be rude. "I'm pro-Saudi," he said.
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French market regulator resigns in protest at new chair; AMF head has pledged to be 'extremely careful' over potential conflicts of interest
Akila Quinio - Financial Times
The appointment of a former banking lobbyist and government official to chair France's financial watchdog has prompted one of its board members to resign as he claimed that the move underminded the regulator's independence. President Emmanuel Macron formally appointed Marie-Anne Barbat-Layani to chair the Autorité des Marchés Financiers on Wednesday, after French legislators approved her for the role. She was previously general secretary at the ministry of the economy and finance and was the chief executive of the French Banking Federation, a lobbying group, from 2014 to 2019.
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London's hold on global currency market weakens, BIS survey shows; UK capital remains the most important hub for global interest rate derivatives trading
Nikou Asgari - Financial Times
London's position as the global hub for foreign currency and derivatives trading has eroded as the UK capital faces fierce competition from other major financial centres. The triennial survey by the Bank for International Settlements published on Thursday found that while the UK remains the most important hub for currencies and interest rate derivatives trading, its share of both markets has fallen since the last survey in 2019.
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For Rishi Sunak, Family Wealth From Outsourcing Adds to a Secretive Fortune; Britain's new prime minister married into an $800 million stake in Infosys, a company that does not fit neatly into his party's views on immigration.
Jane Bradley - The New York Times
As Rishi Sunak made his rapid ascent in British politics, campaigning for Brexit and greater immigration controls to preserve jobs for Britons, the company that made his family exceedingly wealthy was becoming a political lightning rod as one of the world's biggest outsourcing firms. Infosys, the Indian outsourcing giant founded by Mr. Sunak's father-in-law, became notorious among both American political parties for helping companies replace their workers with thousands of Indian immigrants or move their positions to the sprawling Infosys complex in Bangalore.
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Elon Musk Twitter Deal Completed, CEO and CFO Immediately Fired; Parag Agrawal and Ned Segal are out as takeover begins; billionaire visited headquarters this week
Lauren Thomas and Alexa Corse - The Wall Street Journal
Elon Musk fired several Twitter Inc. executives after completing his takeover of the company, according to people familiar with the matter, capping an unusual corporate battle and setting up one of the world's most influential social-media platforms for potentially broad change. Mr. Musk fired Chief Executive Parag Agrawal and Chief Financial Officer Ned Segal after the deal closed, the people said. Mr. Musk also fired Vijaya Gadde, Twitter's top legal and policy executive, and Sean Edgett, general counsel. Spokespeople for Twitter didn't comment.
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The end of Europe's energy crisis is in sight; What a negative gas price tells us about economics, capitalism and the future
Chris Giles - Financial Times
On Monday, the wholesale spot price of European natural gas went negative. For an hour, suppliers were willing to pay almost €16 to someone able to suck up a megawatt hour of gas, about the equivalent of an average UK household's monthly consumption. It was a remarkable turnround for a market that saw record prices of over EUR300/MWh towards the end of August.
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Where the Trillions Needed to Go Green Will Come From; The IEA's new outlook suggests a surprising source of funding for the $4 trillion in annual clean-energy investments needed by 2030 to hit net zero.
Liam Denning - Bloomberg
A word you'll find sprinkled liberally through the 500-odd pages of the International Energy Agency's latest World Energy Outlook is "trillion." Even today, it is a daunting word, especially when applied to dollars. And it represents one of the chief obstacles to the energy transition mapped out by the IEA's models.
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Century-Old South African Sugar Maker Collapses Under Mountain of Debt; Funders refused to support further financial restructuring; Management 'very surprised' with lenders' decision, CEO says
Janice Kew - Bloomberg
Tongaat Hulett Ltd., the 130-year-old South African sugar maker, is being placed in administration after failing to recover from an accounting scandal that exposed a mountain of debt. The decision was taken after creditors rejected a restructuring plan that would have given the company leeway on some of its outstanding loans and access to 1.5 billion rand ($84 million) needed to keep operations going. Tongaat had repaid about half of the 12 billion rand of debt that emanated from the scandal that erupted in 2019.
/jlne.ws/3DE5tXd
SBF: FTX stablecoin, 'Second Great Stablecoin War' are coming
Oisin Mcilroy - Forkast
Sam Bankman-Fried, founder of the crypto exchange FTX, says he hopes FTX will soon join most other major exchanges in having launched a stablecoin. When asked in an interview with The Big Whale if FTX could launch its own stablecoin, Bankman-Fried said: "We certainly could. We know how to do it," but has so far not done so in the hopes of finding a suitable partner, as "collaboration on that can be really powerful."
/jlne.ws/3Wdu900
Singapore Retreat From Retail Crypto Sector Opens Way for Rivals
Suvashree Ghosh and Haslinda Amin - Bloomberg
Asia may be heading for a reordering of sorts in cryptocurrency markets, with Hong Kong moving to legalize retail trading of digital tokens just as Singapore looks to impose fresh restrictions on consumers. Speaking in an interview with Bloomberg Television, Singapore's central bank chief Ravi Menon had a clear message for other financial centers looking to draw retail crypto trading away with more relaxed rules: We won't stand in your way.
/jlne.ws/3gRxZf0
Xi Leaves China Stocks in Tatters With Record Post-Congress Drop
Bloomberg News
China stocks' frenzied week has ended how it began: with jaw-dropping losses. Distraught over President Xi Jinping's power grab and his recommitment to the Covid Zero strategy at the Communist Party Congress, investors rushed to exit Chinese shares, triggering an epic rout on Monday. The selloff resumed with a vengeance on Friday, sending an index of Chinese shares traded in Hong Kong to the lowest level since 2008 and turning it into the world's worst-performing stock gauge for the year.
/jlne.ws/3TJ27YE
Crowdfunding Platform StartEngine to Acquire Rival SeedInvest From Circle
Sam Reynolds - CoinDesk
Crowdfunding platform StartEngine said it is acquiring rival platform SeedInvest from Circle, best known for the USDC stablecoin, pending approval from the Financial Industry Regulatory Authority (FINRA). "SeedInvest was acquired by Circle a few years ago, and it's one of the largest players in equity crowdfunding. We are one of the top firms in the field. By acquiring SeedInvest, it puts us in a leadership position in the marketplace by having more investors than anyone and a lot more customers, companies that need to raise capital," StartEngine CEO Howard Marks told CoinDesk.
/jlne.ws/3gR5gao
Musk Is Said to Take Twitter CEO Role, Reverse Lifetime Bans; Musk plans on replacing ousted CEO Parag Agrawal for now; The billionaire also intends to scrap lifelong bans on users
Katie Roof, Ed Hammond, and Kurt Wagner - Bloomberg
Elon Musk wasted no time taking complete control of Twitter Inc. The billionaire appointed himself chief executive officer, dismissed senior management and immediately began reshaping strategy at one of the world's most influential social media platforms as his $44 billion take-private deal closed.
/jlne.ws/3U4nq6L
Quiet Quitting Surges in Finance as It Gains Steam Across Sectors; New research shows the share of workers who say they're very likely to go above and beyond has fallen in nearly every sector.
Jo Constantz - Bloomberg
The viral quiet quitting trend is taking hold in finance - once the industry with the most engaged workers, according to a new study. The share of workers who said they're "very likely" or "extremely likely" to try their hardest to do a good job for their company has waned overall since last year, according to a recent survey of more than 9,000 US full-time or part-time employees by Qualtrics International Inc.
/jlne.ws/3fggEw4
Euronext taps FCA for new head of market structure; Incoming executive previously served at the FCA, Bank of America Merill Lynch, Royal Bank of Scotland, CME Group, NYSE - Liffe and virt-x.
Annabel Smith - The Trade
Euronext has selected a former Financial Conduct Authority individual to head up its market structure. Samantha Page joins Euronext after seven and a half years at the UK Watchdog in its wholesale banking division. Prior to joining the FCA in 2015, Page spent three years as a director in sales and marketing for futures and over the counter clearing at Bank of America Merrill Lynch and just under two years at Royal Bank of Scotland as a director in central counterparty clearing.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russia's Putin rules out using nuclear weapons in Ukraine; He described the conflict there as part of alleged efforts by the West to secure its global domination.
Associated Press - Politico
Russian President Vladimir Putin on Thursday denied having any intentions of using nuclear weapons in Ukraine but described the conflict there as part of alleged efforts by the West to secure its global domination, which he insisted are doomed to fail. Speaking at a conference of international foreign policy experts, Putin said it's pointless for Russia to strike Ukraine with nuclear weapons. "We see no need for that," Putin said. "There is no point in that, neither political, nor military."
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Pentagon: Ukraine to get advanced air defense systems early next month; Defense Secretary Lloyd Austin confirmed the imminent delivery of two anti-aircraft batteries but quashed hopes on longer-range missiles Kyiv says it needs
Karoun Demirjian and Alex Horton - The Washington Post
Defense Secretary Lloyd Austin told reporters Thursday that Ukraine is expected to receive advanced U.S. air defense systems "early next month," meeting one of Kyiv's key demands for military assistance as Russia continues to pummel city centers, energy hubs and other civilian targets with a barrage of missiles and drones.
/jlne.ws/3W8NwY8
Putin says U.S. needs to force Kyiv to negotiating table
Reuters
Russian President Vladimir Putin said on Thursday that Moscow was ready for talks to end the conflict in Ukraine, but said Kyiv was not prepared to sit down at the negotiating table. "It's not a question about us, we are ready for negotiations. But the leaders in Kyiv decided not to continue negotiations with Russia," Putin told the Valdai Discussion Club in Moscow.
/jlne.ws/3Dhp9yJ
Ukraine Latest: Biden Questions Putin's Nuclear Denials
Bloomberg
President Joe Biden, asked whether Russian leader Vladimir Putin was sincere in saying he has no intention of using nuclear or chemical weapons in Ukraine, said: "If he has no intention, why's he keep talking about it?" Putin said Thursday that there was no need for Russia to launch a nuclear strike on Ukraine, and denied his country had ever discussed the use of atomic weapons in the war, now in its ninth month.
/jlne.ws/3sClyXb
Russia Is Set to Lose the Energy War It Started; In its annual World Energy Outlook, the International Energy Agency couldn't be clearer: Russia's war in Ukraine has changed the landscape for good
Clara Ferreira Marques - Bloomberg
With the world facing its first truly global energy crisis, the International Energy Agency's annual World Energy Outlook could hardly be clearer: There's no going back to markets and trade flows as they were. We're still underspending on the green transition, but policies today mean fossil fuel use could peak within a decade. The upside for coal is temporary, the golden era for gas is over.
/jlne.ws/3Dn46Lw
Ukraine Latest: Zelenskiy Says Most Drone 'Monsters' Downed
Bloomberg News
Ukraine has downed 23 out of more than 30 Iranian Shahed drones launched by Russia in the past two days, according to President Volodymyr Zelenskiy who called them "metal monsters." Ukrainian forces also shot down a Kh-59 cruise missile, two Ka-52 attack helicopters and another Su-25 fighter jet during the same period. Russia has launched 4,500 missile strikes and carried out more than 8,000 air-raids on Ukraine since the beginning of its invasion in late February, Zelenskiy said in his regular nightly address to the nation. Russia and Iran deny transfer of the Shahed weapons.
/jlne.ws/3FH2zCP
Russia Set an Energy Trap and Walked Right Into It; Using its chief export as a weapon against some of its best customers will backfire.
Mark Gongloff - Bloomberg
Stop Hitting Yourself, Russia
There are social media accounts that specialize in videos of street fights. It's not something I recommend watching, unless for some reason you need to dial back your optimism about humanity. But they are instructional: Again and again, you vicariously learn harsh lessons about not starting things you can't finish.
/jlne.ws/3feXKWh
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | DBS to Be First Bank to Tap New Crypto Platform From SGX Unit
Joanna Ossinger - Bloomberg
Singapore's DBS Group Holdings Ltd. will be the first bank to utilize a digital-asset platform being launched by a unit of SGX Group. The platform, MaxxDigital, is from SGX's MaxxTrader, which provides foreign-exchange and risk solutions for institutions. Lee Beng Hong, head of FICC at SGX Group, said in an interview that their offering is "trusted, stable, robust institutional grade infrastructure" in a market that's "relatively inefficient, still relatively fragmented."
/jlne.ws/3FpCVC9
Agrarius lists first Shariah-compliant sustainability-linked Sukuk on the JSE
JSE
Agrarius Sustainability Engineered (Agrarius) today listed Africa's first Shari'ah-compliant sustainability-linked Sukuk (Sukuk) on the Johannesburg Stock Exchange (JSE). The listing of the Sukuk constitutes the inaugural issuance by the Company under its ZAR10 billion Shari'ah compliant sustainability-related asset backed note programme focusing on the agriculture sector, which was registered and approved by the JSE during September 2022.
/jlne.ws/3FulU9Y
ICE Publishes 2023 Auction Calendar for UK's Emissions Trading Scheme
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, and home to the world's most liquid environmental markets, today announced that the 2023 auction calendar for the UK's Emissions Trading Scheme ("ETS") will be published by ICE shortly after 5pm London time (BST) today.
/jlne.ws/3Fq1zmd
Nasdaq Launches Nasdaq Custom Basket Calculation Service in collaboration with S&P Global Market Intelligence
Nasdaq
Nasdaq (Nasdaq: NDAQ) today announced the launch of Nasdaq Custom Basket Calculation Service (CBCS). The introduction of CBCS to the market is driven by the increasing demand for a simpler and more efficient way of managing proprietary indexes, thematic baskets, and ESG investments.CBCS allows clients to design and set up equity baskets with customized features such as currency, return type, composition, and weights from a pre-approved universe of stocks. The calculated basket level and reference data is validated and distributed along with daily basket weight reports.
/jlne.ws/3zntQ92
SGX Cares flags off hybrid Bull Charge Charity Run; SGX Cares Bull Charge flags off the virtual component of its Charity Run today, with the finale run to be held at The Float@Marina Bay on 11 November 2022; Emperador Inc. joins SGX Cares Bull Charge as Elite Bull Sponsor, adding S$400,000 to funds raised
SGX Group
SGX Cares flagged off its hybrid Bull Charge Charity Run today, with close to 4,000 participants in multiple cities across the world. The highlight of this year's fundraising will be the finale run to be held on 11 November 2022 at The Float@Marina Bay - marking the return of its in-person mass run after a two-year hiatus. Senior Minister and Coordinating Minister for National Security Teo Chee Hean will join the finale run as Guest-of-Honour.
/jlne.ws/3Dgld1d
HKEX Launches Core Climate, Hong Kong's International Carbon Marketplace, Supporting Global Transition To Net Zero
HKEX
Core Climate will provide effective and transparent trading of voluntary carbon credits and instruments, across Asia and beyond; New carbon marketplace reflects HKEX's commitment to building an integrated ecosystem and international carbon market in Hong Kong, one that provides a one-stop solution for trading, custody and settlement. Hong Kong Exchanges and Clearing Limited (HKEX) is today (Friday) pleased to announce the launch of Core Climate, a new international carbon marketplace that seeks to connect capital with climate-related products and opportunities in Hong Kong, Mainland China, Asia and beyond.
/jlne.ws/3TK5e2p
Publication of JPX Working Paper, Vol.40 "How Changes in Tick Sizes Affect Investors' Execution Costs"
JPX Group
Japan Exchange Group, Inc. (JPX) today published JPX Working Paper, Vol.40 "How Changes in Tick Sizes Affect Investors' Execution Costs".This Japanese version was released on August 30, 2022. JPX Working Papers highlight research and studies on changes in the market and regulatory environment with the aim of raising competitiveness. Conducted by officers and employees of JPX, its subsidiaries, and affiliates, as well as outside researchers, JPX Working Papers are intended to draw comments widely from academia, research institutions, and other market participants and observers.
/jlne.ws/3FuhkbN
CONNEQTOR Wins Outstanding Project Award at PM Award 2022
JPX Group
The CONNEQTOR1 project provided by Tokyo Stock Exchange, Inc. ("TSE") together with Fujitsu Limited ("Fujitsu") received three awards at the PM Award 20222: "Excellent Project Award", "Special Award NISSAY IT Academy Award" and "Special Award JISA Digital Transformation (DX) Award". The PM Award is a program to award outstanding projects in Japan and by Japanese companies and/or organizations that lead to future creation. The program is sponsored by the PMI Japan Chapter that is a Japanese project management awareness and promotion organization, in cooperation with PMI Global that is an international project management awareness organization.
/jlne.ws/3zoI8X9
Eurex Exchange Readiness Newsflash | Next Generation ETD Contracts updates: Additional supporting events in simulation
Eurex
Dear Eurex Participant, We would like to announce the following activities in the simulation environment in order to facilitate Next Generation ETD Contracts testing. As announced in Eurex Circular 036/22, the project goes live on 6 February 2023.
/jlne.ws/3gSXUTN
Special Change in KOSDAQ 150, etc.
KRX
KRX will change the constituents of KOSDAQ 150 index and its subordinate indices since LX Semicon(108320) will move from KOSDAQ market to KOSPI market.
/jlne.ws/3fiEdV1
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Fireside Friday with... XB Market Ventures' Tony Mackay; The TRADE sits down with Tony Mackay, founder of XB Market Ventures, to explore the evolution of carbon trading and the role of trading venues within it.
Laurie McAughtry - The Trade
What role will capital markets and exchanges play in carbon abatement and tackling climate change? Without coming over all Greta-like, we need to reduce carbon output significantly, with a net zero emission goal. That can best be achieved through efficient capital allocation, which will be imperative for implementing large-scale carbon abatement programs and measures. McKinsey estimates that $150 trillion will need to be spent on Capex to back projects to decarbonise (that's mainly stopping using fossil fuels for energy and replacing them with renewable and green energy) and climate abatement (large-scale activity to take carbon out of the atmosphere - trees and forests, coastal and waterways, as-yet-uncommercialised carbon capture technology).
/jlne.ws/3W9qAIh
Leaders in Trading 2022: Meet the nominees for.... Outstanding Post-Trade Services Provider; Learn more about the five firms shortlisted for our Editors' Choice Award for Outstanding Post-Trade Services Provider this year: including DTCC, Deutsche Börse, Euronext, LCH and OSTTRA.
Wesley Bray - The Trade
The TRADE is happy to introduce the shortlist for our Editors' Choice, Outstanding Post-Trade Services Provider. The shortlisted post-trade services providers have all experienced great years and achieved outstanding performance. Learn more about our shortlisted candidates below, including DTCC, Deutsche Börse, Euronext, LCH and OSTTRA.
/jlne.ws/3SLRT8J
Tezos Co-Founder on Protocol Upgrade
Bloomberg
Tezos Co-Founder Kathleen Breitman joins Emily Chang to discuss how the Tezos protocol, a proof-of-stake network widely considered a direct competitor of Ethereum, will undergo its 11th upgrade.
/jlne.ws/3DgdT5Z
Google Introduces Cloud-Based Blockchain Node Service for Ethereum
Margaux Nijkerk - CoinDesk
Tech giant Google said Thursday it will be launching a cloud-based node engine for Ethereum projects. The company said its Google Cloud Blockchain Node Engine will be a "fully managed node-hosting service that can minimize the need for node operations," meaning that Google will be responsible for monitoring node activity and restarting them during outages. A node is a type of computer that runs a blockchain's software to validate and store the history of transactions on a blockchain's network. At the time of launch, Google will be supporting only Ethereum nodes.
/jlne.ws/3sDwSm8
Tech Investors Overreact Like They're Yelling at a Cloud; Disappointment abounds that cloud service revenue is not doing enough to offset weakness in consumer-facing divisions.
Tim Culpan - Bloomberg
Microsoft Corp. reported 35% growth in cloud services. Alphabet Inc.'s own cloud unit beat estimates and narrowed its losses. Yet both stocks slumped. Two tech titans post solid numbers in strategically important businesses in the middle of a stock market rout, rising US dollar and looming recession. Yet investors reacted like Grampa Simpson: angry at everything, and very cranky. Their frustration is understandable, but not particularly useful.
/jlne.ws/3DjfA2m
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| Cybersecurity | | Top stories for cybersecurity | US Rolls Out Voluntary Cybersecurity Goals
Jeff Seldin - VOA News
The United States is trying to make it easier for companies and organizations to bolster their cybersecurity in the face of growing attacks aimed at crippling their operations, stealing their data or demanding ransom payments. Officials with the Department of Homeland Security and the Cybersecurity and Infrastructure Security Agency (CISA) rolled out their new Cybersecurity Performance Goals on Thursday, describing them as a critical but voluntary resource that will help companies and organizations make better decisions.
/jlne.ws/3zosYBf
Manufacturing Cybersecurity: Trends & Survey Response
Mayumi Nishimura - Trend Micro
Trend Micro conducted a study on the state of industrial cybersecurity in the oil and gas, manufacturing, and electricity/energy industries in 2022. Based on the results of a survey of over 900 ICS business and security leaders in the United States, Germany, and Japan, we will discuss the characteristics of each industry, the motivations and environmental factors that will drive future cybersecurity improvements. We will also introduce Trend Micro's proposals based on the industry's current state, focusing on manufacturing & production.
/jlne.ws/3Ndb22c
Cybersecurity Startup Protexxa Raises $4 Million in Seed Funding to Protect Businesses and Individuals Online as Cybercrime Accelerates
Press Release
Cybersecurity startup Protexxa today announced it has raised CAD$4 million in seed funding. The company, which launched at an intimate event earlier this month, aims to address the risk to businesses resulting from gaps in personal cybersecurity for both companies and individuals. Its seed funding round was led by BKR Capital, which makes transformational investments in disruptive companies and promising Black technology founders. The Firehood Angels and several angel investors, including Jeff Fettes, Annette Verschuren, and Leen Li also participated in the round. The funds will be used to build out the cybersecurity platform with assisted remediation technology, facilitate pilots with global customers, and prepare to scale its operations. The company is currently in the process of filing several patents.
/jlne.ws/3fiDzqE
Europe's Top Copper Producer Aurubis Is Hit by Cyberattack; Scope of overnight attack is currently being investigated; Industrial firms face rising threat from cyberattacks
Mark Burton - Bloomberg
Aurubis AG, Europe's biggest copper producer, was hit by a cyberattack overnight that prompted a preventative shutdown of its IT systems. The scope of the attack is being investigated and the company's internal systems are being examined, Aurubis said on Friday, without giving more details. The company's shares fell as much as 4.2%.
/jlne.ws/3sCAqov
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| Cryptocurrencies | | Top stories for cryptocurrencies | Traders Are 'Valuable Resource' for Crypto Market: Analyst
CoinDesk
Noelle Acheson, former head of research at CoinDesk and sister company Genesis Trading and current analyst for the Crypto Is Macro Now newsletter, explains why trading is essential for the crypto industry.
/jlne.ws/3f7UkEZ
Binance's CZ Confirms Participating as Equity Investor in Musk's Twitter Takeover
Shaurya Malwa - CoinDesk
Binance confirmed on Friday that it was as an equity investor in billionaire technology entrepreneur Elon Musk's takeover of microblogging service Twitter (TWTR). "We're excited to be able to help Elon realize a new vision for Twitter," Binance founder Changpeng "CZ" Zhao, said in an e-mailed statement. "We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology."
/jlne.ws/3fcRFd3
What Bloomberg's Crypto Opus Means for the Next Bull Market
David Z. Morris - CoinDesk
This week's Oct. 31 print edition of Bloomberg Businessweek will contain just one story, a 40,000-word piece by columnist Matt Levine titled, with justified hubris, "The Crypto Story." Its apparent aim is to be a one-stop introduction to everything from the basic principles and technology of cryptocurrency to its most fascinating social manifestations. The significance of this may be unclear to those not actually in the journalism business. But it's a major landmark, perhaps even the final inflection point between a decade of mainstream skepticism and a future in which cryptocurrency's importance is taken for granted.
/jlne.ws/3Nfb5KM
Binance Launches Native Oracle Network, Starting With BNB Chain
Shaurya Malwa - CoinDesk
Binance, the world's largest crypto exchange by volume, launched its native oracle service on Wednesday to enable smart contracts to run on real-world inputs and outputs, starting with the BNB Chain ecosystem. Oracles are third-party services that fetch external data to a blockchain. They are necessary as blockchains are typically an immutable store of data but cannot independently verify the authenticity of the inputted data. Oracles are therefore used to ensure that accurate data is being used on decentralized finance (DeFi) applications and similar products based on any blockchain. This data might range from pricing information to weather forecasts. Oracles can also be bi-directional, allowing them to "send" data to the outside world.
/jlne.ws/3TOwdtS
Crypto industry disappointed as Australia looks to enshrine tax rules
Praveen Menon and Byron Kaye - Reuters
The cryptocurrency industry said on Wednesday it was disappointed with Australia's decision to continue treating digital currencies as assets for tax purposes, and not as foreign currency. The government said in its budget announcement on Tuesday it would introduce legislation to enshrine the treatment of digital currencies such as Bitcoin as an asset. This means investors would pay capital gains tax on profit from selling crypto assets through exchanges and when they trade digital assets.
/jlne.ws/3gMUT7q
Making NFT trading cheaper with aggregation, collateralization & tokenization
Coin Rivet
If you want to buy or sell an NFT, you have close to a dozen mainstream options today. To an outsider, they all look the same, with their homepage walls of square cartoon characters. However, there is an evolution underway from standard buy-and-sell marketplace-OpenSea, X2Y2, LooksRare-to models that try to make NFT trading less expensive through innovative solutions. In this article, we will explain the three main emerging ones: aggregation, collateralization, and tokenization.
/jlne.ws/3U4Lx5n
What Is the Metaverse, and Will It Be Worth the Wait?
Nate Lanxon - Bloomberg
Imagine a three-dimensional online world where you teleport from your London office to a meeting room in Singapore, shop at a digital replica of your favorite clothing store then join a friend for a round of virtual golf. To some, this aspirational version of the internet known as the metaverse is the future of human interaction. Facebook founder Mark Zuckerberg changed the company's name to Meta Platforms Inc. and is pouring billions of dollars a year into efforts to dominate this "next frontier." But it's unclear what a unified virtual universe would look like, or whether people really want it.
/jlne.ws/3NmSPiQ
One Year On, Metaverse Frenzy Yet to Yield Dividends; Metaverse funds have plunged since Facebook triggered frenzy; Meta Platforms shares tumbled anew Thursday on spending plans
Subrat Patnaik - Bloomberg
In the year since Mark Zuckerberg unveiled Facebook Inc.'s multibillion-dollar shift to developing an immersive virtual world, the investment industry has rolled out a flood of products to capitalize on the metaverse frenzy. For investors, the timing couldn't have been worse. The four dozen exchange-traded funds and mutual funds in the Bloomberg database that have the word "metaverse" in their description -- many of them introduced in the past 12 months -- have plunged in the bear market. The Roundhill Ball Metaverse ETF, the biggest of them, has fallen 51% in the past year.
/jlne.ws/3WbnJP7
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| Politics | | An overview of politics as it relates to the financial markets | Biden Crows About Chips Bill, Says Xi 'Concerned' About US Plans
Justin Sink and Jennifer Jacobs - Bloomberg
President Joe Biden said China's leader had expressed worries about the US strengthening its domestic production of semiconductor chips as his administration moves to reduce reliance on Asian suppliers and restrict Chinese access to chipmaking technology. "I've heard from Xi Jinping that he's a little concerned about that," Biden said Thursday in Syracuse, New York, as he delivered a speech touting job growth and his economic agenda ahead of the Nov. 8 midterm elections.
/jlne.ws/3DohbEm
'I am Running for the Money,' Colony's Barrack Said of Trump 2016 Role
Patricia Hurtado and David Voreacos - Bloomberg
Tom Barrack was grilled by a federal prosecutor over a 2016 text message he sent to a friend who teased him about his work for Donald Trump's presidential campaign. "I am running for the money," Barrack wrote. The Colony Capital LLC founder faced an aggressive cross-examination Thursday in his trial on charges that he sought to influence US policy as an unregistered agent for the United Arab Emirates. Prosecutor Samuel Nitze used the text to challenge Barrack's earlier testimony that advice he gave the Trump campaign and administration wasn't motivated by potential UAE sovereign wealth investments.
/jlne.ws/3SL3ipj
Trump Envoy Job Came With $200 Million Benefit, Barrack Says
David Voreacos, Patricia Hurtado and Zijia Song - Bloomberg
Tom Barrack testified that he likely would've "made or saved" more than $200 million if he'd had to divest his financial holdings to join his longtime friend Donald Trump's administration as an ambassador or special envoy. The Colony Capital LLC founder, who's on trial for allegedly trying to influence US policy as an unregistered agent for the United Arab Emirates, made the estimate Wednesday when asked by his lawyer about capital gains taxes he could defer if he joined the government. Officials can defer such taxes when selling assets to avoid conflicts of interest.
/jlne.ws/3SLLOsW
U.S. lawmakers slam Wall Street bankers' plan to attend Hong Kong summit
Michael Martina - Reuters
Two U.S. lawmakers on Thursday urged top American bankers to cancel their planned attendance at a Hong Kong financial summit next week, saying their participation would contribute to Chinese government rights abuses. The heads of some of the world's top banks and asset managers, including Goldman Sachs Group Inc CEO David Solomon, Morgan Stanley boss James Gorman and BlackRock Inc President Rob Kapito, are scheduled to attend the Chinese city's Nov. 2 Global Financial Leaders' Investment Summit.
/jlne.ws/3FkVs2F
Hijacked New York Post Site Highlights the 'Insider Threat' -- Again; The incident is the "tip of the iceberg," as one expert put it
Margi Murphy - Bloomberg
When a New York Post employee on Thursday hijacked the company's website and Twitter Inc. account to post death threats, as well as racist and misogynistic headlines, it was just the latest example of a company insider abusing their access for their own gain. The Post fired the unnamed employee after headlines on the news site included offensive headlines, including calling for the assassination of some US leaders.
/jlne.ws/3gPJGDa
Yellen Warns Republicans Not to Hold US 'Hostage' on Debt Limit; McCarthy has warned of showdown if GOP wins House in midterms; Some Republicans seek cuts to Social Security, Medicare
Christopher Condon - Bloomberg
Treasury Secretary Janet Yellen said congressional Republicans must not risk forcing the US to default on its debt in order to further their agenda because the results could be "calamitous." "America should not be held hostage by members of Congress who think it's all right to compromise the credit rating of the United States and to threaten default on US Treasuries," Yellen said Thursday in an interview with CNN.
/jlne.ws/3TYDkzq
Big Oil Is About to Announce Stunning Earnings. There Could Be a Political Backlash.
Avi Salzman - Barron's
A warning from President Biden could dampen the party atmosphere for Big Oil's expected third-quarter earnings bonanza. Biden, who is worried about high gasoline prices, said last week that oil companies should be more focused on increasing oil supplies to bring down prices than on rewarding shareholders. "My message to the American energy companies is this: You should not be using your profits to buy back stock or for dividends," he said in a speech at the White House. "Not now. Not while a war is raging."
/jlne.ws/3DhkInF
U.K. Prime Minister Rishi Sunak's Wealth Is Targeted by Critics; New leader's fortune emerges as a potential problem as he pushes spending cuts
Alistair MacDonald - The Wall Street Journal
Rishi Sunak is one of Britain's richest-ever prime ministers, with opposition politicians saying his wealth leaves him out of touch with a population strained by high inflation and bracing for spending cuts and a likely recession. His family wealth-estimated at 730 million pounds, equivalent to $846 million, by the Sunday Times Rich list-and tax position was highlighted in Parliament on Wednesday. One Labour Party lawmaker said the average nurse in the state-run National Health Service would have to work 20,000 years to accumulate the same riches.
/jlne.ws/3Nc8fGz
Derivatives Exodus From London Shows Brexit's Impact, Former Citi Executive Says
Greg Ritchie - Bloomberg
A shift in derivatives trading from the UK to the European Union reflects the impact of Brexit, according to Jerome Kemp, a former global head of futures and clearing at Citigroup Inc.
/jlne.ws/3Fw0fhw
Rishi Sunak accused of 'massive failure of leadership' as he rules out attending Cop27
Nick Gutteridge - The Telegraph
Rishi Sunak will not attend next month's Cop27 summit, No 10 has said. Downing Street announced that the Prime Minister will not be heading to the global gathering in Egypt, which Liz Truss had intended to be present at. A spokesman said he remains "absolutely committed" to tackling climate change, but will stay at home because he needs to tackle "pressing domestic commitments".
/jlne.ws/3WbBey5
UK's Rishi Sunak eases off on taking Brexit axe to EU laws; Plan for 'delivery unit' shelved in wake of warning EU legislation review would tie up hundreds of officials
George Parker - Financial Times
Rishi Sunak, the new British prime minister, has toned down his zeal for the speedy axing of EU legislation, amid warnings that such an exercise could tie up hundreds of civil servants at a time of national crisis. Sunak promised in August, during his first bid for the Conservative leadership, that he would create a new "Brexit delivery unit", a pledge illustrated by a video of an official shredding EU laws to the strains of "Ode to Joy", the European anthem.
/jlne.ws/3U3Rm2P
Regulators warn Sunak off jeopardising independence; Financial chiefs say move would 'damage international credibility'
Laura Noonan - Financial Times
The UK's most powerful financial regulators have warned Rishi Sunak's fledgling government against introducing a political veto that would jeopardise their independence or any other legislative changes that would undermine regulatory standards post-Brexit. Sam Woods, chief executive of the Prudential Regulation Authority and Nikhil Rathi, head of the Financial Conduct Authority, delivered the warnings at the annual Mansion House gathering of City leaders on Thursday.
/jlne.ws/3DFSGUb
France and Germany Are Hatching a Plan to Protect Europe's E-Vehicle Makers
Ania Nussbaum and Birgit Jennen - Bloomberg
French President Emmanuel Macron is looking to enlist German Chancellor Olaf Scholz's support for a new plan to help European auto makers compete with the US and China, after President Joseph Biden outlined heavy subsidies benefiting electric cars made in North America. Though they've squabbled over defense and energy policies, Paris and Berlin agree that the European Union needs to do more to promote national industries, officials in both capitals said.
/jlne.ws/3zociKc
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| Regulation & Enforcement | | Stories about regulation and the law. | Danske Bank Expects $2.1 Billion Settlement of Money-Laundering Probe; Hundreds of billions of dollars from former Soviet states flowed through Danish bank's tiny branch in Estonia
Patricia Kowsmann - The Wall Street Journal
Danske Bank, Denmark's largest bank, said it expects to pay the equivalent of $2.1 billion to settle a money-laundering probe by U.S. and Danish authorities, closing a chapter that has dragged on for years. Danske said Thursday that it took additional provisions in the third quarter to cover that amount, which it is estimating based on discussions with the U.S. Department of Justice, the U.S. Securities and Exchange Commission and the Danish special crime unit. The bank said talks are ongoing and there is still uncertainty that a resolution will be reached. "Danske Bank is working toward a coordinated resolution before year-end," it added.
/jlne.ws/3NgIt3U
Removing Sanctions on Crypto Mixer Tornado Cash Won't Be Easy; Efforts to be taken off the Treasury's sanctions list can be costly and time-consuming, and they often fail, lawyers say
Mengqi Sun - The Wall Street Journal
Cryptocurrency firms including Coinbase Global Inc. and advocacy groups likely face a long journey-and long odds-to win their lawsuits aiming to remove crypto mixer Tornado Cash from the U.S. Treasury Department's sanctions list, where it landed due to money-laundering allegations. Efforts to be removed from the Treasury's sanctions list can be costly and time-consuming, and they often fail, sanctions lawyers said. While crypto advocates and companies contend that Tornado Cash's sanctions infringe on personal rights to privacy-an important issue for the nascent industry-crypto experts said Tornado Cash might not be the best test case for that argument.
/jlne.ws/3U8qUoG
Remarks of CFTC Commissioner Christy Goldsmith Romero before the International Swaps and Derivatives Association's Crypto Forum 2022, New York
CFTC
Thank you ISDA for the opportunity to speak to your members about cryptocurrency. I taught law students about cryptocurrency in my advanced securities regulation course at Georgetown Law School, and then a cryptocurrency regulation course at the University of Virginia Law School. Cryptocurrency was of natural interest given my decade as the Special Inspector General over TARP.
/jlne.ws/3ffQ1r2
CFTC Exempts Additional Singapore Recognized Market Operators from SEF Registration Requirements
CFTC
The Commodity Futures Trading Commission today announced it has unanimously approved an amended order that exempts three Recognized Market Operators (RMOs) authorized within Singapore from CFTC swap execution facility (SEF) registration requirements. The exempted RMOs are Bloomberg Tradebook Singapore Pte Ltd, SGX FX Markets Pte. Ltd., and Synoption Pte. Ltd.
/jlne.ws/3zkK3f9
CFTC Exempts Additional European Union Multilateral Trading Facilities and Organised Trading Facilities from SEF Registration Requirements
CFTC
The Commodity Futures Trading Commission today announced that it has unanimously approved an amended order that exempts two multilateral trading facilities (MTFs) and two organised trading facilities authorized within the European Union (EU) from CFTC swap execution facility (SEF) registration requirements. The exempted MTFs are Financial & Risk Transaction Services Ireland Limited (Ireland) and TRAD-X MTF (France). The exempted OTFs are Market Securities OTF (France) and Tradition España OTF (Spain).
/jlne.ws/3zl3STK
Former account executive of Fulbright Securities Limited jailed for securities fraud
Securities & Futures Commission of Hong Kong
The Eastern Magistrates' Court today sentenced Mr Danny Fung Kwong Shing to two-and-a-half months' imprisonment following his conviction of the offences of engaging in fraud or deception in transactions involving securities under section 300 of the Securities and Futures Ordinance (SFO) in a prosecution brought by the Securities and Futures Commission (Notes 1 & 2).
/jlne.ws/3Fqccp5
ASIC disqualifies former Victorian director for five years
ASIC
ASIC has disqualified Mr Alfred John Holmes, of Hawthorn, Victoria, from managing corporations for the maximum period of five years due to his involvement in the failure of three companies.
/jlne.ws/3gQutBV
SEC Obtains Final Judgment Against Perpetrator of Boiler Room Scheme
SEC
On October 7, 2022, the United States District Court for the Eastern District of New York entered a final consent judgment against Mark Alan Lisser. The final judgement permanently enjoins Lisser from violating the antifraud provisions of the federal securities.
/jlne.ws/3TNAMon
SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
SEC
The Securities and Exchange Commission today announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 35 soliciting entities, four impersonators of genuine firms, and four bogus regulators.
/jlne.ws/3gLLDQZ
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | London Is Still World's Biggest FX-Trading Hub But Grip Slipping; BIS survey shows UK's global market share dropped to 38%; US, Singapore, Germany, France gain in FX-trade rankings
Eva Szalay - Bloomberg
The UK's stronghold on global currency trading is weakening, allowing the US, Singapore and other European hubs to snare market share, the Bank for International Settlements said. The latest figures from BIS's foreign-exchange market survey, the industry's benchmark, showed on Thursday that London's share of the global market dropped to 38% from 43% in 2019. The US is second at 19%, up from 17% previously.
/jlne.ws/3gEra0i
South Korea's Legoland default points to wider bond market stress
Cynthia Kim - Reuters
A missed bond payment by the developer of a South Korean theme park has rattled the country's money markets and raised worries about the prospect of a credit crunch similar to the kind that threw China's property market and economy into crisis. South Korea's central bank and financial regulators scrambled this week to contain the risks of wider financial fallout as local short-term yields spiked, crippling some major institutions' ability to meet near-term funding needs.
/jlne.ws/3FpnLgd
Jeff Bezos on Brink of $23 Billion Wealth Drop, Among Worst On Record; Amazon shares plunged 21% in extended trading after the company forecast a lackluster holiday quarter.
Nur Dayana Mustak - Bloomberg
Jeff Bezos is set to see as much as $23 billion erased from his fortune after Amazon.com Inc. projected sluggish sales for the holiday shopping season, sending shares plunging in after-hours trading. The stock fell as much as 21% after the market closed Thursday. If that drop carries into Friday's session, the Amazon founder's wipeout would be the fifth-largest one-day decline in wealth on record, according to the Bloomberg Billionaires Index.
/jlne.ws/3U35byD
Twitter Caps Nine Years of Largely Unfulfilled Promise on NYSE; Musk completed his $44 billion purchase of Twitter on Thursday; The stock has posted an 8.4% growth annually on average
Subrat Patnaik and Ryan Vlastelica - Bloomberg
Elon Musk's buyout marks the end of nine years of public trading in Twitter Inc., which debuted with a bang but failed to match the rocket ride achieved by some other tech heavyweights. While the stock made a splash with its trading debut on the New York Stock Exchange in November 2013, surging 73% on its first day, the company has since failed to impress investors as it struggled to consistently grow its user base and ramp engagement.
/jlne.ws/3DgRHIW
AutoNation's CEO Warns of Used-Car Price Drop as Rising Rates Curb Demand; Wholesale price drop in used cars hasn't hit retail market yet; New-car supply to remain below pre-pandemic levels next year
Gabrielle Coppola - Bloomberg
AutoNation Inc., the biggest US chain of car dealerships, warned that used-vehicle prices are softening as rising interest rates curb demand from more price-sensitive buyers. The company said Thursday that third-quarter earnings rose to $6 a share excluding some items. That was below the $6.29 a share average of analysts' estimates. Revenue increased 4% to $6.67 billion, roughly in line with the average of Wall Street projections.
/jlne.ws/3U7hJVC
ExxonMobil profit triples to record $20bn on higher energy prices; Chevron also reports bumper earnings as White House steps up criticism of oil companies
Justin Jacobs - Financial Times
ExxonMobil reported record quarterly profits of nearly $20bn on Friday as it benefited from elevated oil and natural gas prices, setting the stage for a fresh confrontation with the Biden administration over the cost of fuel at the pump. The largest US supermajor's results were echoed at rival Chevron, whose bumper third-quarter profit of $11.2bn was just shy of record earnings reported in its previous quarter.
/jlne.ws/3Nfot1r
Hybrid bonds pose dilemma for borrowers and debt investors; Rising interest rates make businesses wary of dipping back into €175mn European hybrid market
Ian Johnston - Financial Times
European companies face a dilemma over their hybrid bonds, as sky-high interest rates make businesses wary of dipping back into the €175mn market. Borrowers are expected to repay about €11bn in these instruments - which are considered part equity and part debt by rating agencies - in the coming six months. Typically they would do just that - handing money back to investors in a process known as calling, and then borrowing fresh funds to replace it.
/jlne.ws/3TJzBpO
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Some US Farms Are So Dry the Dirt Is Repelling Fertilizer
Kim Chipman and Dominic Carey - Bloomberg
Drought is rapidly expanding across America's crop belt, making it so dry that in some fields fertilizer is evaporating from the soil and plants are struggling to emerge from the ground. Almost three-quarters of the US's winter wheat growing area is in moderate to intense drought, according to the latest government data. That's a record high based on records going back to 2000. Dryness this time of year not only stunts the growth of winter wheat, but can hamper fertilizer applications on fields for crops to be planted in the spring -- both of which could reduce crop yields and push prices higher.
/jlne.ws/3gQkHzJ
Floods Destroy Crops in Australia, Risking More Food Inflation; Victoria and New South Wales are major fruit-producing regions; Rabobank analyst expects food prices to rise further into 2023
Sybilla Gross - Bloomberg
The dramatic floods across eastern Australia are destroying crops, threatening to curb supplies of fruit and vegetables and drive up grocery bills for inflation-weary consumers. Torrential downpours have swamped parts of New South Wales and Victoria, some of the country's biggest food-producing regions. Growers are racing to salvage apples, pears and peaches due to be harvested this summer, adding to fears that consumers will feel the pinch of higher prices to come.
/jlne.ws/3NcI6aB
Southern Africa's Biggest Man-Made Dam Drains Toward Record Low; Limited water levels threaten hydropower in Zambia, Zimbabwe; Dam had 10.9% usable storage this week vs 34.1% a year ago
Godfrey Marawanyika and Matthew Hill - Bloomberg
Water levels at the Kariba reservoir, southern Africa's biggest man-made lake, are plunging toward record lows, threatening hydroelectricity production for Zambia and Zimbabwe. The dam had 10.9% of usable storage this week, compared with 34.1% a year ago, according to data from the Zambezi River Authority, the agency jointly controlled by the two nation's governments. Levels are close to those reached in the 1995/96 season, the lowest recorded since the 128-meter (420 feet) high dam was completed in 1959.
/jlne.ws/3TLBQcl
The World's Biggest Source of Clean Energy Is Evaporating Fast; From California to Germany and China, climate change-fueled heatwaves and droughts have shrunk rivers that feed giant hydropower plants.
Bloomberg News
China's Three Gorges Dam is an awe-inspiring sight, a vast barrier across the Yangtze River that contains enough concrete to fill seven Wembley Stadiums and more steel than eight Empire State Buildings. Its turbines could singlehandedly power the Philippines. But this summer, the world's largest power plant was eerily quiet.
/jlne.ws/3FhpnIV
HSBC sharpens focus on ESG with latest European ETF offering; New article eight funds comprise two value-focused products and two dedicated to small-cap companies
Alf Wilkinson - Financial Times
HSBC Asset Management is bolstering its range of exchange traded funds with an environmental, social and governance focus with four product launches.The HSBC MSCI World Value ESG Ucits ETF and the HSBC MSCI World Small Cap ESG Ucits ETF have already listed on the London Stock Exchange.
/jlne.ws/3TJEA9W
Exxon, Chevron Reap $31 Billion Profit From Energy Crunch; Exxon posts strongest quarterly result in its 152-year history; Chevron reports its second-largest profit on natural gas rally
Kevin Crowley - Bloomberg
Exxon Mobil Corp. and Chevron Corp. amassed more than $30 billion in combined net income as politicians blast Big Oil for raking in massive profits at a time when consumers are struggling with soaring inflation and energy shortages worldwide. Exxon posted the highest profit in its 152-year history, while Chevron announced its second-best quarterly result as natural gas demand and prices surged. Those earnings follow strong results posted by European peers Shell Plc and TotalEnergies SE earlier this week.
/jlne.ws/3FoavbK
ESG Monthly Newsletter
Sullivan & Cromwell LLP
This memorandum highlights key recent developments in environmental, social and governance matters of relevance to public and private companies globally. For more information on this evolving business and legal landscape, we encourage you to reach out to your regular Sullivan & Cromwell contact or the lawyers listed on our ESG practice website.
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Who's fit for the low-carbon transition? Emerging skills and wage gaps in job ad data
Aurélien Saussay, Misato Sato, Francesco Vona and Layla O'Kane - London School of Economics
As governments worldwide increase their commitments to tackling climate change, the number of low-carbon jobs is expected to grow rapidly. Yet understanding the characteristics of and skills required in low-carbon jobs in comparison with high-carbon or 'generic' jobs remains a challenge, due to fundamental difficulties in accurately identifying low-carbon jobs with precision. As a result, existing analyses tend to focus on aggregate green employment dynamics or on narrowly defined segments of the green economy that are easier to identify, such as renewable energy or traditional environmental sectors like waste and water. Consequently, public debate tends to exaggerate the argument that the low-carbon transition kills jobs, while downplaying both the job creation effect and the reskilling costs.
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Scale of South Africa Green-Power Goal: 166 Million Solar Panels
Paul Burkhardt - Bloomberg
South Africa will need to build solar and wind plants at a blistering pace -- almost nine times faster than it previously has -- over the next decade to replace unreliable coal-fired power stations set for retirement. While new generation units will include a range of renewables, the amount of capacity needed is equivalent to the output from 166 million photovoltaic panels, using an estimate for solar technology from the US Department of Energy.
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The flood of green finance must be diverted from the west; The World Bank and others need to extend more loans to encourage private sector investment in developing nations
Gillian Tett - Financial Times
When the COP27 climate talks begin next month in Egypt, there will be dozens of depressing data points for delegates to consider. Here is one that has largely gone unnoticed: between 2019 and 2021, there were only $14bn of so-called climate "blended finance" deals - structures that use public money to de-risk green investments - for poor countries.
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Carbon-Capture Projects Are Taking Off. Here's How They Stash the Greenhouse Gas; Companies are developing technologies to store carbon underground and undersea for decades or longer
Eric Niiler - The Wall Street Journal
Sixty-five miles off the coastal Norwegian city of Bergen, a drilling rig is punching through layers of mud and rock below the North Sea. The energy firms behind the rig aren't prospecting for oil or gas. They are searching for a place to stash vast amounts of the greenhouse gases emitted by industrial facilities across Europe. The Northern Lights project-a $2.6 billion joint venture of Shell PLC, TotalEnergies SE, Equinor ASA and the Norwegian government-is one of almost 200 carbon-sequestration projects now in operation or in development around the world, according to the Global CCS Institute, a think tank that promotes carbon capture. When completed in 2024, Northern Lights will be the world's biggest effort to sequester, or store, carbon dioxide underground.
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | CS First Boston revival comes with talent and capital dilemmas
Pamela Barbaglia, Anshuman Daga and Andres Gonzalez - Reuters
Seeking to restore vigour to a business that has been languishing, Credit Suisse says it will reshape its investment bank by resurrecting the First Boston brand. Yet securing talent and funds amid fierce competition from Wall Street titans and smaller advisory boutiques may complicate the plan. To lead Credit Suisse First Boston (CSFB), which will be carved out of the Swiss lender, the bank is tapping board member Michael Klein, a shrewd dealmaker who is no stranger to entrepreneurial projects having set up his own advisory boutique in 2010.
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JPMorgan Chase uses Advancing Black Wealth Tour to boost financial literacy, address racial wealth gap
Frank Holland - CNBC
A new endeavor from JPMorgan Chase is trying to help close the racial wealth gap. The bank's Advancing Black Wealth Tour, launched this spring, aims to give attendees the tools they need to manage their finances and build sustainable wealth - even with the threat of a possible recession on the horizon. The most recent tour stop was in Philadelphia earlier this month. Previous stops also included Los Angeles and New Orleans. More events are planned for 2023.
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UOB Shares Gain as Record Profit Tops Analyst Estimates; Beat driven by loans, margins; stock jumps most since March; UOB to complete takeover of some Citi consumer units Nov. 1
Chanyaporn Chanjaroen - Bloomberg
United Overseas Bank Ltd.'s shares rose the most in more than seven months after profit topped estimates in the third quarter, driven by rising interest rates and loan growth. Net income rose 34% to a record S$1.4 billion ($955 million) from a year earlier in the three months ended Sept. 30, Southeast Asia's third-largest lender said Friday. That compares with the S$1.19 billion average estimate of five analysts surveyed by Bloomberg.
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Novel Asset-Backed Bonds Lure Shale Sector Away From Bank Loans; Firms pledge the proceeds from oil wells to get cheap funds; Sales for these bonds in 2022 are due to exceed $4 billion
Scott Carpenter - Bloomberg
As big banks pull back on lending to oil and gas drillers, some US energy companies are relying on a novel kind of bond to get the financing they need. The bonds are backed by the companies' oil and gas reserves, meaning producers are essentially pledging income from their wells in exchange for up-front cash. The debt known as "proved developing producing" securitizations can allow shale drillers to pay less to borrow, in exchange for giving up some of their possible gains if energy prices rise.
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Credit Suisse Names New Compliance Chief Amid Strategic Overhaul; Nita Patel will succeed Rafael Lopez Lorenzo, who is stepping down after about a year at the post for family reasons
Mengqi Sun - The Wall Street Journal
Credit Suisse Group AG appointed a former Goldman Sachs Group Inc. compliance executive as its new chief compliance officer, as the Swiss lender looks to move on from a period of scandals, hefty losses and executive turnover. Nita Patel, who is currently the chief compliance officer for Credit Suisse's asset-management division and its U.K. investment bank, will become the lender's new compliance chief and join the executive board on Nov. 1, the bank said Thursday. She will succeed Rafael Lopez Lorenzo, who is stepping down after about a year at the post for family reasons, according to the bank.
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'Radical surgery': Will Credit Suisse's gamble pay off? Swiss lender unveiled critical restructuring and investment by the Saudi National Bank
Owen Walker, Arash Massoudi and Andrew England - Financial Times
When Credit Suisse executives struck a plan to spin off its capital markets and advisory business in the summer, they chose a name that harked back to its 1980s glory days: First Boston. But as the strategy developed, they soon realised the intellectual property for the brand was already owned by a series of small financial services businesses who refused to sell.
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Credit Suisse decides it can't afford First Boston; Plus, the executive tasked with boosting Goldman's share price and Monte dei Paschi's capital raise meets resistance
Financial Times
When you have what analysts estimate to be an over sFr4bn capital hole, every penny counts. So it makes sense why Credit Suisse has settled on the name CS First Boston for its soon-to-be spun-off capital markets and advisory business. Credit Suisse this summer had planned to name the unit First Boston, a brand that harks back to the go-go 1980s and the Swiss bank's emergence on Wall Street when it acquired the investment bank in 1990.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Don't Write Off the Retooled Covid Boosters; Two new studies claim the bivalent omicron shot is no better than the original vaccine. But there are important caveats.
Lisa Jarvis - Bloomberg
Two new, small studies are stirring up more controversy over the new Covid boosters, updated to match the omicron BA.4 and BA.5 strains. The research suggests the shots are no better than old boosters. But that doesn't mean we should write them off - and certainly doesn't mean that getting one won't save lives. The studies are small, and data might have been collected too soon to truly demonstrate their value.
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This Is How Long Experts See China Clinging on to Covid Zero
Bloomberg News
Three years into the pandemic, China is sticking to its Covid Zero policy despite heavy economic costs, growing unrest and isolation from the rest of the world. Many expected President Xi Jinping to signal a pivot away from what has become a signature policy when he took the podium at the Communist Party's congress this month. Instead, he defended the zero-tolerance strategy as one that saves lives, but offered no steer on when it's likely to end.
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Covid Treatments Given Less Often to Black, Hispanic People Than White People; Black people given the drug 36% less often than White patients; Greater disparities seen among older, immunocompromised people
Madison Muller - Bloomberg
Pfizer Inc.'s Paxlovid antiviral was prescribed to Black and Hispanic Covid-19 patients at much lower rates than those who were White, according to a study that calls into question efforts to bolster access to drugs that fight the coronavirus. From April to July, as Paxlovid's use peaked, Black US patients received it about a third less often than White patients, according to the report published Thursday by the Centers for Disease Control and Prevention. Stark disparities were also seen among Hispanic patients, who were nearly 30% less likely to get Paxlovid than White patients. Asian people were prescribed the drug about 19% less frequently than White counterparts.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China's digital yuan stands out in cross-border pilot in a show of global ambition
Georgina Lee and Samuel Shen - Reuters
China's digital yuan took the centre stage in the world's largest cross-border central bank digital currency (CBDC) trial to date, a report showed, pointing to how Beijing is speeding up yuan globalization efforts amid rising geopolitical tensions. China's digital currency, or e-CNY, was the most issued, and actively transacted token in the $22 million pilot that used CBDCs to settle cross-border trades, a Bank of International Settlement (BIS) report showed.
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Bankers Replaced by Tech PhDs as Xi Sparks New Fund Talent War
Coco Liu - Bloomberg
One in five Chinese youths can't find a job. Oliver Jiang has to fight off employers with a stick. When the first-time job-seeker posted his resume on a recruitment website earlier this year, his inbox exploded and his phone buzzed non-stop. The 28-year-old doctoral grad spent the following month turning away suitors -- including one that promised him 15 months of pay a year -- before landing his dream job at a $600 million investment firm.
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Second line of Nord Stream 2 gas pipeline probably destroyed by explosions, Germany says
Reuters
"It's very likely that the act of sabotage with huge explosions has affected both lines of the pipeline, and therefore basic technical availability is no longer provided," the German federal government said. It is also noted that the gas pipeline has not received the necessary certification and cannot be put into operation from a legal standpoint.
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Swedish Security Service Launches New Nord Stream Investigation
Anton Wilen - Bloomberg
Sweden's security service will launch a supplementary crime-scene investigation of the Nord Stream pipelines in the country's exclusive economic zone after a previous probe stated the gas leaks were caused by detonations. The investigation will be carried out with the assistance of the Swedish defence forces, according to a statement.
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Cost of Turkey's Flagship Lira Savings Tool Swells to $8 Billion
Burhan Yuksekkas - Bloomberg
Turkey's flagship lira savings program has cost the state almost 150 billion liras ($8.1 billion) since its introduction last year to boost local-currency deposits, Vice President Fuat Oktay said. The program has cost the Treasury 84.9 billion liras and the central bank "around 75%" of that amount as of the end September, Oktay told a parliamentary commission on Wednesday, according to minutes released afterward.
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| Miscellaneous | | Stories that don't quite fit under the other sections | Musk Says Twitter Can't Become a 'Free-for-All Hellscape'
Jennifer Ryan - Bloomberg
Elon Musk, who's on track to buy Twitter Inc. for $44 billion on Friday after earlier trying to back out of the deal, said he's making the purchase "to try to help humanity, whom I love." Musk said Thursday in a post on the social media platform that he's buying it because it's "important to the future of civilization to have a common digital town square," but it "obviously cannot become a free-for-all hellscape, where anything can be said with no consequences!"
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