| June 04, 2025 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
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Hits & Takes
John Lothian & JLN Staff
Rachel Millard of the Financial Times has a story today titled "We have 'surrendered more to the machines', says quant fund titan Cliff Asness" with the subheadline "After years of scepticism, co-founder of AQR has embraced AI when determining investment strategies."
Asness, co-founder of the $136 billion hedge fund AQR Capital Management, has shifted from skepticism to embracing artificial intelligence and machine learning in investment strategy after years of experimentation. While AQR previously relied on human-developed, rules-based models that targeted explainable market patterns, the firm now uses machine learning to identify patterns and adjust portfolio weightings across asset classes, even when the reasoning behind certain trades may not be immediately clear. This approach has improved returns and reduced volatility, with AQR's top funds-Apex and Delphi-delivering annualized net returns of 19% and 14.6% respectively as of May, rebounding from the "quant winter" of 2018-2020 when assets under management plummeted. Asness acknowledges the challenge of explaining machine-driven strategies during downturns but believes the benefits outweigh the risks.
Asness also criticizes the private equity industry for misleading investors by overstating the stability of returns, pointing to illiquidity and irregular valuations that obscure true performance. He warns that as private equity groups expand access to retail investors through evergreen funds, frequent valuations could expose the risks previously hidden from institutions. Asness argues that democratizing private assets may ultimately disadvantage retail investors, offering them a worse deal than institutions already face.
In May 2025, the OCC reported robust growth in options trading activity, with total contract volume reaching 1,170,735,651 contracts-a 20.4% increase compared to May 2024. Equity options saw a 19.9% year-over-year rise to 639,901,447 contracts, while ETF options surged 23.6% to 438,481,707 contracts, and index options increased by 9.7% to 92,352,497 contracts. The year-to-date average daily volume (ADV) for total options also increased significantly, up 24.0% compared to the same period in 2024. Futures volume, however, declined by 26.0% year-over-year, though year-to-date ADV for futures edged up 1.9%.
In the securities lending segment, the average daily loan value in May 2025 increased 7.5% year-over-year to $170.85 billion, while the total number of transactions rose 31.17% to 315,169. This reflects heightened activity and demand in both the options and securities lending markets compared to the same period in the previous year.
In a recent Chicago Booth Review podcast, Hal Weitzman, executive director and adjunct associate professor at the University of Chicago Booth School of Business, interviewed economist Sam Peltzman about the connections between marriage, sex, and happiness. Peltzman, renowned for his extensive analysis of decades of General Social Survey data, discussed how both marriage and sexual activity are linked to higher happiness, but marriage consistently stands out as the most significant factor-with married individuals reporting about 30 points higher happiness than unmarried ones, a gap that remains stable across demographics and time periods. The podcast explored nuanced questions, such as whether a sexually active unmarried person might be happier than a married individual with less sex, and highlighted Peltzman's findings that while both factors matter, marriage's happiness premium is unmatched, even as cohabitation and other relationship statuses offer smaller boosts. The conversation also acknowledged the complexity of causality, noting that while marriage and happiness are strongly associated, the data does not prove one directly causes the other.
Trading Technologies will be at IDX in London later this month and just to show how competitive they are, TT is in booth #1.
The Women in Digital Assets Forum 2025 will be held in New York on June 11. Dorothy DeWitt is among the speakers at the conference.
Molly Nason has been promoted to marketing manager at ICE, she shared on LinkedIn. She was previously a senior associate for exchanges and clearing marketing at ICE.
Trader TV has a video interview with Morgan Stanley/E*Trade's Christopher Larkin from the Options Industry Conference. It is good to see Larkin in front of the camera, even if Trader TV is a competitor.
Here are the headlines from in front of FOW's paywall from some recent stories: ISDA calls for clarity on UK crypto rule update, ANALYSIS: DTCC 'battle tested, performed seamlessly' during April volatility, EEX plans incentives to grow Nordic power futures market, ANALYSIS: Eurex adds 'last piece of the puzzle' to fixed income partnership program and CME volumes up 11% in May as rates trading hits new record.
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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Our most-read stories from our previous edition of JLN Options were:
- Proprietary trading firms thrive during tariff-led market volatility, report finds from TheTrade.
- Wall Street Games Out How to Profit From Tariff Chaos from Bloomberg.
- SPX 0DTE Options Jump to 61% Share on Retail Resurgence from Cboe. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Recent Shifts in FCM Ownership and Market Dynamics 
John Lothian - John Lothian News
The futures commission merchant (FCM) landscape has undergone notable consolidation and transformation in recent years, driven by both traditional finance (TradFi) players and crypto-native firms seeking to establish regulatory footholds and expand their client base.
Two recent deals exemplify this, with each one having some similar drivers and some different ones: Kraken-NinjaTrader and StoneX-RJO. Another firm that was reportedly for sale doesn't match these drivers and doesn't make sense to me: ADM Investor Services, reportedly for sale, according to a lone unconfirmed Bloomberg story.
The Kraken deal to acquire NinjaTrader was a wake-up call, as one of the largest cryptocurrency exchanges made the largest deal yet between the crypto and traditional finance worlds. The agreement gives Kraken direct access to regulated U.S. futures and derivatives markets, including the growing crypto futures markets at the CME Group.
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 When the Market's a Mood Ring: Steve Sosnick on Trump, Crypto, and Why Volatility Never Sleeps JohnLothianNews.com PALM BEACH GARDENS, Fla.-(JLN)-June 2, 2025-Steve Sosnick, the unflappable chief strategist at Interactive Brokers, has spent decades navigating the wilds of Wall Street. But at this year's Options Industry Conference, he sounded less like a market veteran and more like a storm chaser, tracking the unpredictable fronts rolling in from Washington, D.C. Watch the Steve Sosnick Video »
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White House proposes shutting down chemical safety agency; Since 1998, the Chemical Safety Board has played a key role in probing the causes of major chemical accidents.
Maxine Joselow - The Washington Post
An independent agency that investigates chemical disasters - including fatal fires and explosions at chemical plants and oil refineries nationwide - would shutter by October 2026 under little-noticed language in White House budget documents released Friday. The proposal to eliminate the Chemical Safety and Hazard Investigation Board is almost certain to face pushback from lawmakers in both parties. President Donald Trump repeatedly called for zeroing out the agency's funding during his first term, only for Congress to maintain or increase its budget.
/jlne.ws/3ZekYzP
****** Let's hope nobody spills their Koch.~JJL
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Tulsa announces reparations for the 1921 'Black Wall Street' massacre; The attack on Greenwood annihilated an entire community.
Petula Dvorak and DeNeen L. Brown - The Washington Post
The city of Tulsa, home to one of the most horrifying racial-terror massacres in U.S. history and the people who tried to cover it up, has announced a $105 million reparations package that will put dollars and actions toward redress. "For 104 years, the Tulsa Race Massacre has been a stain on our city's history," Tulsa Mayor Monroe Nichols said in a speech Sunday announcing the reparations package, which will pump millions into the restoration of families and communities that had their trajectories derailed by the 1921 attack.
/jlne.ws/43sKofx
****** I would hate to see a fair analysis of the current value of the property destroyed and the lives taken.~JJL
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Tuesday's Top Three
Our top clicked story Tuesday was The New York Post's America's hottest suburb is luring in families with affordable housing and perks galore - and it's nowhere near NYC, about Elmhurst, Illinois, where John lives. Second was Investors Say They're Moving Away From ESG as 'an Umbrella Concept', from Bloomberg. And third was Could Trump's 'big beautiful bill' kill the OFR and accidentally sabotage SOFR?, from the Financial Times.
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| Lead Stories | The battle to create a carbon trading market for 'negative emissions'; UK government wants to help fund removal technologies but critics say plans could undermine current scheme
Rachel Millard - Financial Times
In Parc Adfer, North Wales, incinerator owner Enfinium is testing a new technology to capture some of the 218,967 tonnes of carbon dioxide that it spews out of its chimneys every year. The company - which generates power from waste - is aiming to clean up its output. But it also hopes eventually to be paid by other factories and power plants for reducing the amount of CO₂ they put into the atmosphere. That could become a reality under a proposed shake-up of the UK's CO₂ emissions trading scheme, which would see allowances for carbon removals trade alongside regular allowances for emissions.
/jlne.ws/3ZQG1se
How Wall Street's Dream of Looser Capital Rules Is Edging Closer
Alex Harris and Katanga Johnson - Bloomberg
US President Donald Trump kicked off his second term promising to slash regulation. There are growing signs that this push to streamline the federal rulebook could fulfill one of Wall Street's longstanding wishes: an easing of capital requirements for banks, specifically the supplementary leverage ratio. The SLR was introduced in the wake of the 2008 global financial crisis to ensure banks hold a certain amount of capital relative to their assets. But many in the financial sector argue that this rule has limited banks' purchases of safer instruments like US Treasuries, as well as their ability to act as brokers to help other investors trade these bonds.
/jlne.ws/3FBP6ys
Europe's T+1 Shift Projected to Be Costlier Than US Transition
Greg Ritchie - Bloomberg
Europe's transition to a faster settlement regime will likely be more expensive than in the US, as the region's complex market infrastructure requires larger teams to steer the process. The shift to what's known as T+1 is estimated to cost $36 million for large European custodians, according to a report by Firebrand Research. That compares to a $13 million average cost similar firms incurred around the North American transition, it said.
/jlne.ws/442d13a
Wells Fargo CEO Scharf Enters Growth Era With Eye on Wall Street
Hannah Levitt and Yizhu Wang - Bloomberg
Charlie Scharf can finally play offense. After more than a half-decade cleaning up Wells Fargo & Co.'s scandals, the chief executive officer has cleared away the firm's biggest impediment to growth: the Federal Reserve's seven-year-old cap on assets. That means the $1.95 trillion lender can once again seek to narrow the gap with larger rivals JPMorgan Chase & Co. and Bank of America Corp. - including in Wall Street business lines.
/jlne.ws/3FzszCm
We have 'surrendered more to the machines', says quant fund titan Cliff Asness; After years of scepticism, co-founder of AQR has embraced AI when determining investment strategies
Costas Mourselas and Amelia Pollard - Financial Times
Quant group AQR Capital Management is embracing artificial intelligence and machine learning techniques for trading decisions, ending years of reticence from one of the sector's historic holdouts. The Connecticut-based hedge fund that has $136bn under management, has "surrendered more to the machines" after years of experiments, its co-founder Cliff Asness told the Financial Times. "When you turn yourself over to the machine you obviously let data speak more," he said.
/jlne.ws/3T72rSl
Trump's Pick for Fed's Top Regulator Expected to Be Friendly to Wall Street; Michelle Bowman is on track for approval as vice chair for supervision
Katanga Johnson and Catarina Saraiva - Bloomberg
A red baseball cap sits above Michelle Bowman's filing cabinet in her office at the US Federal Reserve in Washington. It's emblazoned with the words "make community banks great again." The TV in her office is tuned to Fox News, and the self-described workaholic has a sticky note on her door asking visitors to knock loudly because the door is heavy and she's working hard.
/jlne.ws/43LzuQM
Texas Stock Exchange on Track to Debut in 2026
Bloomberg (video)
The Texas Stock Exchange is filing its Form 1 registration with the SEC to register as a national securities exchange. Reports indicate it has secured over $161 million dollars in funding as it aims for a 2026 launch. Jeb Hensarling, Texas Stock Exchange Strategic Adviser and Former Chairman of the House Financial Services Committee, joined Bloomberg Open Interest to talk about the new exchange.
/jlne.ws/4kkEeUA
Global Investors Have a New Reason to Pull Back From U.S. Debt; After hedging currency risk, foreign investors no longer make money buying American bonds
Jon Sindreu - The Wall Street Journal
Foreign investors have plenty of reasons to be wary of U.S. government debt at the moment. Now there is another: They can often receive better returns buying bonds in their own countries. The risk of a weaker U.S. dollar and the cost of protecting against that risk, are making American assets less attractive around the world. That comes at a bad time for the U.S. Treasury market, which is already contending with a darkening U.S. budget picture and the trade war. Foreign investors likely don't fear a U.S. default or anything close. But the premium many once received for buying U.S. debt, thanks to higher long-term rates here, has disappeared.
/jlne.ws/4dMOKkX
Should Anyone Be Buying What Glencore Is Selling? The commodities giant is trying to create a second-hand market for cobalt.
Javier Blas - Bloomberg
Commodity giant Glencore Plc produces lots of cobalt, the metal that goes into batteries. So much that it doesn't know what to do with it all. So why not create a second-hand market? Enter Cobalt Holdings Plc, a company trying to raise $230 million in an initial public offering in London. The venture's business model is simple: Raise money from investors, use the proceeds to buy about 6,000 metric tons of cobalt from Glencore, stick the metal in several warehouses and wait. Hopefully, prices will rise. Or not.
/jlne.ws/4dMtagx
Wells Fargo's Asset Cap Has Been a Good Punishment; The bank has emerged from its deserved reprimand much more disciplined. Regulators should use this tool again.
Paul J. Davies - Bloomberg
The growth cap imposed on Wells Fargo & Co. since 2019 seemed a uniquely harsh punishment by US watchdogs, constricting the bank's growth through a period when some rivals bloomed. In truth, however, it instilled a discipline and focus that would benefit many lenders, and Wells Fargo has emerged from its limbo fitter than others.
/jlne.ws/43YmqJ3
How Wells Fargo Emerged From Years of Regulatory Sanctions; Punishments imposed by the Fed after a fake-accounts scandal limited the bank's growth and prompted an overhaul of its business.
Yizhu Wang - Bloomberg
More than seven years ago, the US Federal Reserve put limits on Wells Fargo & Co.'s size to penalize the bank for misdeeds including the creation of millions of unauthorized customer accounts. On June 3, the Fed announced that it lifted the cap, ending an unprecedented punishment that had restricted the bank's ability to grow and compete with its peers. Wells Fargo was the country's 3rd-biggest bank when it became embroiled in scandals that claimed two chief executive officers and cost Wells Fargo tens of billions of dollars in fines and lost revenue. The bank spent years cleaning up the mess, steered by Chief Executive Officer Charlie Scharf, who was named to the top job in 2019.
/jlne.ws/4kMAJWL
Action in Hong Kong Equity Markets Stirs Most Excitement in Years
Julia Fioretti and Dong Cao - Bloomberg
Hong Kong's equity capital markets are seeing the most action in years, with multibillion dollar deals lifting the mood and fueling anticipation about more transactions to come. "I don't think we have seen this kind of excitement for Hong Kong and China for a long time," said Cathy Zhang, head of Asia-Pacific equity capital markets at Morgan Stanley. Initial public offerings and additional share sales in the city have fetched $26.5 billion so far in 2025, compared with just $3.8 billion a year ago and the most since 2021, which was a record year, data compiled by Bloomberg show.
/jlne.ws/4knMnaJ
Trump Is Cementing the Green Energy Transition He Loathes; A new ESG - economics, security and geopolitics - will drive countries around the world to invest in renewables.
Liam Denning - Bloomberg
"Energy dominance" is shorthand for President Donald Trump's agenda to use fossil fuels as a tool of international leverage, with the energy transition a casualty along the way. Its unintended consequence will be to strengthen the foundations of that transition, outside of the US anyway. Because even if environmental, social and governance thinking is canceled in Trump's America, his blending of energy policy with a chaotic realignment of US foreign policy brings to the fore an ESG favorable to the transition: Economics, security and geopolitics.
/jlne.ws/3FNj2Ye
Capital punishment: How Swiss bank reforms could hit UBS; Bank's year-long tussle with government will come to a head with proposals to be unveiled on Friday
Simon Foy - Financial Times
The Swiss government on Friday will lay out its long-awaited reforms to the country's bank capital rules, and the centrepiece proposal will affect just one company: UBS. Switzerland's Federal Council and financial regulators have been at loggerheads with the country's largest lender - and most systemically important company - since last year when they proposed strengthening the country's banking system in the wake of Credit Suisse's demise.
/jlne.ws/4dNYH1M
Citi scraps restrictions on dealings with gun merchants; Wall Street bank had put rules in place following Parkland school shooting in 2018
Akila Quinio - Financial Times
Citigroup has revoked a policy curbing its dealings with companies that sell firearms in the latest sign of how corporate America is shifting its approach on major political issues under pressure from Donald Trump. The Wall Street bank on Tuesday changed its code of conduct to state that it "does not discriminate on the basis of political affiliation" and revoked a rule it had put in place in 2018 to restrict its relationship with firearms sellers.
/jlne.ws/4kBDVVq
Robinhood completes $200 million acquisition of crypto exchange Bitstamp
James Hunt - The Block
Robinhood has completed the acquisition of Bitstamp for $200 million - a deal designed to better position the crypto and stock trading platform for expansion outside of the U.S. The popular trading app first announced the proposed acquisition of Bitstamp in June 2024. Just under a year later, Robinhood hit itsof closing the deal in the first half of 2025, which was subject to customary closing conditions, including regulatory approvals.
/jlne.ws/4mCPHQW
The most grimly inevitable ETF filing of 2025; Every day we stray further from God's light
Steve Johnson - Financial Times
Back in the halcyon days of August 2024, FT Alphaville argued that the launch of a leveraged single-stock ETF tracking MicroStrategy's stock was the ETF industry's shark-jumping moment. Oh how sweetly/stupidly naive we were at the time. Under new SEC chair Paul Atkins, the main US financial watchdog will "embrace and champion" innovation, an unsubtle signal to the crypto world that it can run wild once more.
/jlne.ws/43YY6qu
Electricity Prices Are Surging. The G.O.P. Megabill Could Push Them Higher; The combination of a data center boom, rising gas exports and cuts to clean energy tax breaks could spike American energy bills, analysts say.
Brad Plumer and Rebecca F. Elliott - The New York Times
The cost of electricity is rising across the country, forcing Americans to pay more on their monthly bills and squeezing manufacturers and small businesses that rely on cheap power. And some of President Trump's policies risk making things worse, despite his promises to slash energy prices, companies and researchers say.
/jlne.ws/4e6qcUx
Eastern U.S. Is Shrouded in Smoke and Dust; Smoke from Canadian wildfires and desert dust from the Sahara are creating unhealthy air quality from New York City to Miami.
Nazaneen Ghaffar and Amy Graff - The New York Times
Wildfire smoke from Canada and plumes of desert dust from the Sahara are smothering large portions of the United States, creating hazy skies and hazardous air quality from the Northeast to the Southeast. The National Weather Service issued air quality alerts on Wednesday for New York City and many surrounding areas, including New Jersey and most of Connecticut. Officials said that those more sensitive to air pollution should limit going outdoors and watch for respiratory symptoms from 11 a.m. to 11 p.m.
/jlne.ws/4jCLeem
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| Trade War and Tariffs | | A roundup of today's trade war and tariff news and the global economic ripple effects shaping markets, industries, and investment strategies. | Trump rocked as China launches its latest economic weapon
Hans van Leeuwen - The Telegraph
When or if Donald Trump gets on the phone with Xi Jinping, the tone between the two men is likely to be frosty. The US and China have in recent days both accused each other of violating their fragile, three-week-old trade truce. The two presidents are expected to speak this week in an effort to rescue the deal.But Trump has a tough pill to swallow: it is his arch-rival who looks to have the better negotiating hand. China's near-total dominance of the world's supply of rare-earth metals - which are used in the manufacture of everything from cars and computer chips to F-35 fighter jets and nuclear-powered submarines - means Xi can squeeze the US where it hurts.
/jlne.ws/4kUPK9f
Trump's trade policy is making China great again - at the US's expense, new global analysis finds
Rhian Lubin - The Independent
President Donald Trump's trade tariff policy has seen America's favorability plummet while China's has risen, a new global analysis has found. Since Trump entered office in January, "the overwhelming majority of countries simultaneously exhibit worsening views of the United States and improving views of China," according to the analysis by technology research firm Morning Consult, and first reported by Axios. America's drop in favorability among the 41 countries surveyed comes as fewer visitors are traveling to the U.S. in part because of the Trump administration's aggressive immigration policies.
/jlne.ws/3ZbRpPh
Trump Signs Order Doubling US Steel, Aluminum Tariffs to 50%
Josh Wingrove - Bloomberg
President Donald Trump has raised steel and aluminum tariffs to 50% from 25%, following through on a pledge to boost US import taxes to help domestic manufacturers. Trump cast the move, which took effect at 12:01 a.m. Washington time on Wednesday, as necessary to protect national security. An order signed on Tuesday said the previous charge had "not yet enabled" domestic industries "to develop and maintain the rates of capacity production utilization that are necessary for the industries' sustained health and for projected national defense needs."
/jlne.ws/3HrC9rq
Trump Wants America to Make Things Again. Does It Have What It Takes?; President Trump wants to revive factories, using tariffs as a tool. Companies that want to re-shore manufacturing are grappling with how to do it.
Alexandra Stevenson Reporting from Ho Chi Minh City, Vietnam - The New York Times
President Trump ignited a global trade war on a gamble that taxing other countries would bring jobs and factories "roaring back" to the United States. Many business leaders are skeptical. Some are incredulous. Sanjeev Bahl is optimistic. From his factory in Los Angeles, Mr. Bahl oversees around 250 people who sew, cut and distress jeans for brands like Everlane, J. Crew and Ralph Lauren. They stitch together 70,000 pairs of jeans a month. America, he insisted, can make stuff again.
/jlne.ws/4jyUmR4
Simon Jack: Tariff relief for UK but new clock ticking on US deal
Simon Jack, Business editor - BBC News
It is hard to argue the UK exemption from the doubling of US tariffs on imported steel from 25 to 50% is not good news. It was not a given that the UK would get this carve-out despite having done a deal on 8 May to reduce tariffs on the metals to zero. That agreement is not yet in force, however, and speaking to steel industry leaders and government officials right up until Tuesday night's announcement, their working assumption was that the UK would be in the same boat as everyone else - facing tariffs of 50% until that deal was finalised.
/jlne.ws/4ktBftd
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| World Conflicts | | News about various conflicts and their military, economic, political and humanitarian impact. | Ukraine Invasion
Inside the Ukrainian Drone Operation That Devastated Russia's Bomber Fleet; WSJ analysis reveals how Ukraine used homegrown tech and old-school spycraft in the attack
James Marson, Jane Lytvynenko, Brenna T. Smith and Serhii Bosak - The Wall Street Journal
KYIV, Ukraine-Ukraine's spectacular drone attack on Russia's strategic bomber fleet on Sunday began with a daunting request from Ukraine's president to his spy chief in late fall 2023. The Russian Air Force was pummeling Ukraine's power stations and cities with missiles, overwhelming meager air defenses, and Volodymyr Zelensky wanted to know: How can we fight back? Lt. Gen. Vasyl Maliuk, a 42-year-old career security officer with broad shoulders and a stern mien, has earned a reputation for innovative operations with explosive naval and aerial drones that forced Russia to withdraw much of its Black Sea Fleet from its base in occupied Crimea and damaged dozens of oil plants and military-production facilities deep inside Russia.
/jlne.ws/3T8VjVw
Almost 1 million Russian troops killed or wounded in Ukraine war, study says; Surpassing that number would be a "stunning" and grisly milestone, according to a report by a prominent Washington think tank.
Alexander Smith - NBC News
Russia will likely surpass 1 million casualties in its war on Ukraine this summer, according to one of the world's leading think tanks, reflecting the staggering human toll of President Vladimir Putin's assault on his neighbor. Around 250,000 of these Russian soldiers have died, the Washington-based Center for Strategic and International Studies said in a report Tuesday.
/jlne.ws/43Mtszw
Ukraine's valor is reminiscent of Britain's in 1940; It may be lost on Trump, but Ukraine's battle against Russia's invasion is just remarkable.
George F. Will - The Washington Post (opinion)
Ukraine's breathtaking ingenuity, the latest example of which destroyed or damaged dozens of Russia's long-range bombers on bases 2,500 miles from Ukraine, is in the service of an unflagging valor reminiscent of Britain's in 1940, when it was isolated and embattled, with the German army at the English Channel. Ukraine's resilience is inconvenient for those Americans who are eager to proclaim that the geographically largest nation entirely within Europe is inevitably doomed to defeat, dismemberment and domination.
/jlne.ws/4mLMpLb
Drone Attack Shows Why Ukraine Will Win This War; It is Kyiv's latest of many demonstrations of audacious brilliance.
Bernard-Henri Levy - The Wall Street Journal (opinion)
The Ukrainian operation on Sunday was a coordinated attack on four airports in Russia reaching as deep as Siberia. It neutralized 41 "strategic aircraft" and was a brilliant technical performance. Over more than 18 months, hundreds of drones were smuggled deep into Russia. They were loaded onto civilian trucks with double-bottomed trailers, where they were concealed inside mobile boxes. The tops of those boxes-remotely controlled by operators in Ukraine but connected to the Russian telephone network-opened at the appointed time, allowing the drones to take off. All 41 targets were carefully studied for months by Ukrainian intelligence, and they exploded simultaneously without civilian casualties.
/jlne.ws/459jevs
As Ukraine batters Russia with daring assaults, firebrand pro-Kremlin pundits rattle nuclear sabers
Matthew Chance - CNN
How will Moscow respond to the stunning Ukrainian drone strikes on its fleet of strategic aircraft? So far, the Kremlin has stayed tight-lipped, saying only that it is waiting for the results of a formal investigation into the attacks, which struck air bases thousands of miles from the Ukraine border. But fury is being openly vented across the Russia media, with pro-Kremlin pundits and bloggers seething with calls for retribution, even nuclear retaliation.
/jlne.ws/4kkWv4d
Ukraine's soldiers are giving robots guns and grenade launchers to fire at the Russians in ways even 'the bravest infantry' can't
Sinéad Baker - Business Insider
Ukrainian soldiers are increasingly arming ground robots with rifles and other weapons, letting them fire at the Russians rather than putting themselves in harm's way. The robots are part of Ukraine's ongoing innovation race with Russia, a rush to develop new technology to fight back against Russia's invasion before the enemy can.
/jlne.ws/4mMKpm1
Zelenskiy Dismisses Russian Demands, Proposes Direct Putin Talks; Ukrainian president says lower-level meetings make no sense; Another prisoner swap possible this coming weekend: Zelenskiy
Olesia Safronova - Bloomberg
/jlne.ws/3HrbKtN
Middle East Conflict
Israeli-Backed Aid Sites in Gaza Close Temporarily After Deadly Shootings; The Gaza Humanitarian Foundation said it was working to improve operations, a day after the Red Cross said at least 27 Palestinians were killed near a distribution center.
Aaron Boxerman - The New York Times
The contentious Israeli-backed group distributing food in Gaza closed its sites on Wednesday, a day after Palestinians trying to get supplies came under Israeli fire near one of the organization's aid centers. The group, the Gaza Humanitarian Foundation, said that its four centers would be shut until Thursday to work on "organization and efficiency" to better prepare for the huge numbers of Palestinians who have traveled to the sites since operations began more than a week ago.
/jlne.ws/4jFjcPr
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Farmer sentiment reaches a four-year high in May
CME Group
Farmer sentiment improved for the second consecutive month in May, reaching its highest level since May 2021. The Purdue University/CME Group Ag Economy Barometer rose 10 points to a reading of 158, up from 148 in April. Both the Index of Current Conditions and the Index of Future Expectations contributed to the increase, with the current conditions index up 5 points to 146 and the future expectations index jumping 12 points to 164. The sentiment boost was driven by a more optimistic outlook on U.S. agricultural exports and a less negative view of how tariffs will impact farm income in 2025. The May barometer survey took place May 12-16.
/jlne.ws/4ktmu9I
Inside Cboe's Derivatives Vision: A Conversation with Catherine Clay
Anna Lyudvig - Traders Magazine
As Executive Vice President and Global Head of Derivatives at Cboe Global Markets, Catherine Clay leads a dynamic and far-reaching strategy across the Exchange's global options and futures businesses. By uniting innovation, education, data, and execution under one umbrella, Clay is helping scale Cboe's capabilities across regions while expanding access to its products and expertise. In this interview with Traders Magazine, she shares insights into her leadership journey, the evolving trends in derivatives, the growing role of crypto products, and how she's working to shape a more inclusive future in finance.
/jlne.ws/4mR1Wtq
EEX To Introduce Liquidity Programme To Stimulate Nordic Power Market
Mondovisione
The European Energy Exchange (EEX) will introduce a series of tailored measures to strengthen liquidity on the Nordic power markets from 1 September 2025. The wider initiative comprises the following elements: Trading fees related to all EEX Nordic Power Futures products will be waived for a full year. Additionally, initiators of a transaction in the orderbook will receive incentives for a full year covering at least their upcoming clearing costs. New market making schemes will be launched to drive forward liquidity growth across all available EEX power products for this market. Finally, for an additional kick-starter phase of four months, attractive additional incentives will be provided for the creation of open interest via trade registration.
/jlne.ws/4jF8yIt
Reminder: SPAN Files Decommission on FTP Sites on July 14 - Effective July 14, 2025
CME Group
This is a reminder of CME plans to stop publishing all SPAN files on FTP sites effective July 14, 2025. Following the CME Notice published March 12th, CME Group will provide SPAN files only via the SFTP and CME Datamine services. SPAN files will no longer be available over the public FTP or CME Group website.This change applies to CME Group SPAN files as well as partner exchanges SPAN for BMD, XMA, SMX, CFE ... etc.
/jlne.ws/3T5MKLb
OESX Liquidity Provider (LP) scheme Q&A
Eurex
Benefit from improved pricing and increased order book depth with our new OESX liquidity program.
/jlne.ws/4dHW6WU
STOXX and ICE collaborate on New Suite of Fixed Income Indices
ICE
STOXX Ltd., part of the ISS STOXX group of companies and leading provider of benchmark and custom index solutions to global institutional investors, today announced its collaboration with Intercontinental Exchange (NYSE: ICE), a leading global provider of technology and data, to support a suite of fixed income climate indices launched on June 2.
/jlne.ws/3FpKVpo
FTSE China Index Series Quarterly Review - Q2 2025
LSEG
FTSE Russell, a leading global index provider, has today announced the results of the FTSE China Index Series quarterly review for June 2025.
/jlne.ws/43MoeUq
One in every fifty children falls victim to identity theft each year
LSEG
LSEG Risk Intelligence today publishes a report drawing attention to the global rise in child identity theft. The report calls out the impact of child identity theft, the risks to financial institutions, and highlights the growing threat of synthetic identity fraud. It outlines practical actions financial institutions may adopt immediately such as identity, age and third-party verification together with transaction monitoring for child-linked accounts and multi-layered security.
/jlne.ws/43GuKMf
Nasdaq Reports May 2025 Volumes
Nasdaq
Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for May 2025 on its Investor Relations website. A data sheet showing this information can be found at: http://ir.nasdaq.com/financials/volume-statistics.
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OCC May 2025 Monthly Volume Data
OCC
Contract Volume May 2025 Contracts May 2024 Contracts % Change 2025 YTD ADV 2024 YTD ADV % Change Equity Options 639,901,447 533,727,313 19.9% 30,428,994 24,247,199 25.5% ETF Options 438,481,707 354,784,739 23.6% 22,549,147 18,172,355 24.1% Index Options 92,352,497 84,167,071 9.7% 4,764,059 4,130,029 15.4% Total Options 1,170,735,651 972,679,123 20.4% 57,742,200 46,549,583 24.0% Futures 3,478,634 4,702,730 -26.0% 242,046 237,454 1.9% Total Volume 1,174,214,285 977,381,853 20.1% 57,984,246 46,787,037 23.9% Securities Lending May 2025 Avg. Daily Loan Value May 2024 Avg. Daily Loan Value...
/jlne.ws/43YKBai
MarketAxess To Participate In The Morgan Stanley U.S. Financials Conference
Mondovisione
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced that Ilene Fiszel Bieler, Chief Financial Officer, will participate in the Morgan Stanley U.S. Financials Conference on June 10, 2025.
/jlne.ws/457vw7B
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | One Year on From T+1
Shanny Basar - MarketsMedia
Just over a year ago the U.S., Canada, and Mexico had cut their securities settlement price to T+1, one day after a trade, by 28 May 2024. This had repercussions across global capital markets, especially for overseas investors, and other regions are now aiming to coordinate with this shorter settlement cycle. For example, both the UK and the European Union are aiming to move to T+1 in October 2027. Vermiculus, the financial technology provider, collaborated with capital market research firm GreySpark Partners on a report, Key Insights on T+1 Settlement Transition. Lars-Göran Larsson, business developer at Vermiculus, said in a statement that the shift to shorter settlement cycles is a "game-changer," forcing the industry to rethink operations and upgrade systems at speed.
/jlne.ws/3ZeMxcc
Sterling launches overnight global trading in US NMS equities; 24x5 capability available via Blue Ocean Technologies
Sterling Trading Tech
Sterling Trading Tech (Sterling), a leading global provider of technology in order management, risk and margin, and trading, today announced the launch of 24x5 global trading in US National Market System (NMS) equities. Through Sterling OMS, clients can now trade overnight via Blue Ocean ATS. This marks the latest milestone in Sterling's ongoing global expansion strategy. On the product front, Sterling continues to enhance its OMS, risk, and trading capabilities. These now span multi asset classes, including US and international equities and options, futures, fixed income, mutual funds, FX, and crypto.
/jlne.ws/3SAM28A
Oxford quantum start-up to offer high-speed arb trading in NYC; OQC to select data centre for super-fast computing in September 2025, plans to launch in 2028
Luke Clancy - Risk.net
Wall Street will have the opportunity from 2028 to further accelerate high-speed trading algorithms that exploit arbitrage strategies, using the first quantum computer to be installed in New York City.
/jlne.ws/3FEG7MT
Fintech Firm Payoneer Says China Truce Is Great for Global Trade
Emily Mason - Bloomberg
Payoneer, the global payments firm that lifted its earnings guidance due to the US-China tariffs spat, said the 90-day truce between the world's top economies will be great for trade. The US accounts for more than 40% of the global market for consumer goods, so keeping access to that market is key for companies selling the "high quality, low cost" products Americans like to buy, Payoneer Chief Executive Officer John Caplan said on Tuesday.
/jlne.ws/3ZbG6Xq
AI's Urgent Need for Power Spurs Return of Dirtier Gas Turbines
Naureen S Malik and Josh Saul - Bloomberg
If Stargate's first AI data center is completed next year as planned, the 900-acre site will need enough round-the-clock electricity to support 300,000 homes. But securing that power isn't as simple as plugging into the grid.
/jlne.ws/4kr9b9T
AI start-up Cohere seeks $500mn in effort to catch up to OpenAI and Anthropic; Canadian group seeks valuation of up to $6.5bn but rivals have soared far higher in comparison
Ivan Levingston and Melissa Heikkilä - Financial Times
Artificial intelligence start-up Cohere is seeking to raise more than $500mn in new funding, aiming to catch up in the hugely expensive race to build cutting-edge AI models alongside rivals such as OpenAI, Google and Anthropic. The Canadian start-up is targeting a valuation of above $5.5bn, according to two people with knowledge of the discussions, broadly similar to the price tag it received from its previous funding round last year.
/jlne.ws/4kNP7Ox
GlobalFoundries Plans to Spend $16 Billion to Boost US Chip Production
Ian King - Bloomberg
/jlne.ws/3FzrzOC
Data Centers Added $9.4 Billion in Costs on Biggest US Grid
Naureen S. Malik and Mark Chediak - Bloomberg
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| Cybersecurity | | Top stories for cybersecurity | Microsoft offers to boost European governments' cybersecurity for free
Supantha Mukherjee - Reuters
Microsoft is offering free of charge to European governments a cybersecurity programme, launched on Wednesday, to bolster their defences against cyber threats, including those enhanced by artificial intelligence, it said. After a surge in cyberattacks in Europe, many linked to state-sponsored actors from China, Iran, North Korea and Russia, the programme aims to boost intelligence-sharing on AI-based threats and help to prevent and disrupt attacks.
/jlne.ws/3HnXbqV
Ohio lawmakers want local governments to create cybersecurity plans
Nick Evans - Ohio Capital Journal
Ohio House lawmakers got a stark warning Tuesday from a leading cybersecurity firm: potential threats are changing "dramatically" in terms of "sophistication, speed and complexity." The presentation came on the heels of lawmakers introducing a bill requiring municipalities to develop their own cybersecurity policies. What's in the bill? House Bill 283 is a response to wave of cyber-attacks aimed at relatively low-level government agencies. The bill,s co-sponsor, state Rep. Haraz Ghanbari, R-Perrysburg, explained in April last year, the state auditor reported at least 23 cyberattacks against government offices in the last 12 months.
/jlne.ws/3T9veFO
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| Cryptocurrencies | | Top stories for cryptocurrencies | Is Trump Unveiling a Crypto Wallet? His Associates Say Yes. His Sons Say No.; The back-and-forth over a potential Trump cryptocurrency wallet on Tuesday exposed rifts among the family's web of digital currency ventures.
David Yaffe-Bellany and Eric Lipton - The New York Times
A flashy new website drew a surge of attention on Tuesday afternoon, purporting to announce the latest cryptocurrency venture backed by President Trump. The developers of Mr. Trump's memecoin, the website said, were working with a company called Magic Eden to launch "the Official $TRUMP Wallet" - a trading app for customers to buy and sell digital currencies. But the announcement soon triggered a backlash from an unexpected source: Mr. Trump's sons.
/jlne.ws/4423qta
Kraken launches full-service prime brokerage tailored for institutional crypto clients
James Hunt - The Block
Crypto exchange Kraken has launched a full-service prime brokerage solution called Kraken Prime, designed to provide institutional investors with seamless access to trading, custody, and financing. Kraken Prime aims to offer deep, multi-venue liquidity and sophisticated trading tools consolidated into a single, streamlined interface. The launch marks a key step in Kraken's push to serve growing institutional demand with the performance, reliability, and compliance standards of a traditional prime broker, the firm said in a statement shared with The Block.
/jlne.ws/3ZNaxTO
Trump-owned Truth Social files for Bitcoin ETF
Anand Sinha - The Street
NYSE Arca has submitted a proposed rule change to the Securities and Exchange Commission (SEC) under Rule 8.201-E to list and trade the Truth Social Bitcoin exchange-traded fund (ETF), a filing on June 4 mentioned. Truth Social is a social media platform owned by Trump Media & Technology Group, or TMTG (Nasdaq: DJT), the media and tech company majority-owned by President Donald Trump.
/jlne.ws/3ZiJYG6
Riot Platforms Boosts Bitcoin Output to 514 BTC as Hashrate and Expansion Plans Ramp Higher
Tom Carreras - CoinDesk
Bitcoin miner Riot Platforms (RIOT) reported on Tuesday strong production growth in May, mining 514 BTC - an 11% increase from April and a 139% jump compared to the year-ago level. The company sold nearly all the new bitcoin, generating $51.3 million in proceeds at an average price of $102,591 per token. Riot's hashrate also climbed, with total deployed computing power reaching 35.4 exahashes per second, a 5% increase over April and 142% higher than the previous year. Operating efficiency improved as well, with the fleet running at 21.2 joules per terahash - down from 28 J/TH last May.
/jlne.ws/43Ql5mF
Jack Dorsey's ultimate bet, 'we are bitcoin only'
Anand Sinha - The Street
Former Twitter CEO and Block, Inc. (NYSE:XYZ), formerly Square, founder Jack Dorsey has placed all his bets on Bitcoin. Dorsey's Block is the company behind Cash App, formerly Square Cash, which is a digital wallet offering Bitcoin and stock trading, among other financial services, to U.S. customers.
/jlne.ws/3SwkCAK
Bitcoin Miners Notch Gains as Meta Signs 20-Year AI Deal With Nuclear Plant
Tom Carreras - CoinDesk
/jlne.ws/4kTHtT1
Jacobi Bitcoin ETF's Lowers Entry Barriers Allowing European Retail Investors to Jump In
James Van Straten - CoinDesk
/jlne.ws/3T5beUS
Memecoin Platform Pump.Fun Pursues $1 Billion Token Sale
Muyao Shen and Suvashree Ghosh - Bloomberg
/jlne.ws/3Hmb34T
Tether Invests in Chilean Crypto Exchange Orionx to Drive Latin American Adoption
Oliver Knight - CoinDesk
/jlne.ws/3SxASBx
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| Politics | | An overview of politics as it relates to the financial markets | White House asks Congress to claw back all of $9.4 billion in approved spending targeted by DOGE
Josh Boak - The Associated Press via Fortune
The White House on Tuesday officially asked Congress to claw back $9.4 billion in already approved spending, taking funding away from programs targeted by Elon Musk's Department of Government Efficiency.
/jlne.ws/43LC5tU
We are witnessing the suicide of a superpower; The president's assault on science dangerously undermines America's superpower status.
Max Boot - The Washington Post
On June 14 - the 250th birthday of the U.S. Army and, not so coincidentally, the 79th birthday of President Donald Trump - a gaudy display of U.S. military power will parade through Washington. No doubt Trump thinks that all of the tanks and soldiers on display will make America, and its president, look tough and strong. But the planned spectacle is laughably hollow. Even as the president wants to showcase U.S. military power, he is doing grave and possibly irreparable damage to the real sources of U.S. strength, including its long-term investment in scientific research. Trump is declaring war on science, and the casualty will be the U.S. economy.
/jlne.ws/4dVnsZR
'They are in shock': Indian students fear Trump has ended their American dream; Those hoping to study in US are in limbo or looking elsewhere after president's targeting of foreign students
Hannah Ellis-Petersen and Aakash Hassan in Delhi - The Guardian
For weeks, Subash Devatwal's phone has not stopped ringing. Some of the calls have been from distressed students, at other times it is their panicked parents, but all have the same question - is their dream of studying in the US still possible? Devatwal runs an education consultancy in Ahmedabad, the main city in the Indian state of Gujarat. It is one of thousands of such organisations that exist across the country, helping Indian students achieve what many consider to be the ultimate symbol of success: getting into an American university.
/jlne.ws/4kJbbKc
Dutch Trump Trade Is Self-Destructing. What Now? A country that used to punch above its weight thanks to firms like ASML is now shooting itself in the foot.
Lionel Laurent - Bloomberg
The Netherlands, a country of 18 million people, is used to punching above its weight thanks to global tech firms like ASML Holding NV and the financial muscle of Amsterdam. But more recently it's been shooting itself in the foot, as demonstrated by far-right leader Geert Wilders' theatrical decision to pull the plug on his own coalition over the failure to agree to a plan to curb immigration. Wilders is painting his bid for fresh elections as necessary for the good of the country, which in his view wants the "strictest asylum policy ever." But this looks more like Machiavellian self-interest than the humanism of Dutch philosopher Erasmus. Wilders's poll numbers have been falling and cartoons portraying the bouffant-haired leader as a blonde chicken suggest he is choosing the easy way out rather than the hard work of compromise. His coalition was the most right wing in the country's history yet had little to show after barely a year in office.
/jlne.ws/3FES5WO
Bulgaria Set to Join Euro Zone in 2026 After Winning EU Support
Alexander Weber and Slav Okov - Bloomberg
The euro zone is set to continue its eastward expansion after Bulgaria was deemed ready to become the currency bloc's 21st member. The European Commission recommended on Wednesday that the Black Sea nation of 6.4 million should be allowed to adopt the common currency in 2026. The European Union's executive arm and the European Central Bank said in separate reports that all the requirements on issues including inflation and public debt had been fulfilled.
/jlne.ws/43R17In
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| Regulation & Enforcement | | Stories about regulation and the law. | Federal Reserve announces Wells Fargo is no longer subject to the asset growth restriction from the Board's 2018 enforcement action against the bank
Federal Reserve
The Federal Reserve on Tuesday announced that Wells Fargo is no longer subject to the asset growth restriction from the Board's 2018 enforcement action against the bank. The Federal Reserve determined that Wells Fargo has met all the conditions required by the 2018 enforcement action for removal of the growth restriction. Under the 2018 enforcement action, the bank was required to improve its governance and risk management program, and complete a third-party review of these improvements, for the growth restriction to be removed.
/jlne.ws/43IPmUl
Apollo Calls for 'Tailored' Private Markets Rules in Australia
Richard Henderson - Bloomberg
Apollo Global Management, Inc. has warned Australia's securities regulator against "broad brush" rules for unlisted investments and has called for regulation to instead target specific asset classes. The comments were included in one of more than 50 submissions published on the Australian Securities and Investments Commission's website on Wednesday, after the regulator in February sought industry views on the shifting dynamics of Australia's capital markets.
/jlne.ws/3T5aLlA
CFTC Alerts Traders Domain Customers to July 28 Claim Deadline
CFTC
The Commodity Futures Trading Commission's Division of Enforcement today is alerting customers the Traders Domain claims process will end July 28. Customers who believe they may be victims in this alleged fraud scheme are urged to complete the claims process by this date to be eligible for any future judgment. The Division of Enforcement is also notifying customers that prior participation in the CFTC's voluntary confidential customer survey or any other submission made to the CFTC does NOT qualify an individual as a claimant. An official claim must be filed.
/jlne.ws/3FIaou9
Testimony Before the United States Senate Appropriations Subcommittee on Financial Services and General Government
Paul S. Atkins, Chairman - SEC
First and foremost, it is a new day at the SEC. I am determined that we return to our core mission that Congress set for us more than 90 years ago. The SEC's three-part mission was enunciated by Congress in the Exchange Act: protecting investors; facilitating capital formation; and maintaining fair, orderly, and efficient markets. Investor protection is vital to our mission-holding accountable those who lie, cheat, and steal. The SEC will remain vigilant in our important role to ensure that investors have confidence to participate in the markets.
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Here to stay, here to grow: The future of Australia's public and private markets
ASIC
Remarks by ASIC Commissioner Simone Constant at the Conexus Fiduciary Investors Symposium in the Blue Mountains on 4 June 2025.
/jlne.ws/3SCBwhc
The future of Australia's public and private markets - ASIC shares industry feedback and next steps
ASIC
ASIC today released more than 50 public submissions received in response to its discussion paper on the evolving dynamics between public and private markets, released in February 2025. The paper examined the health and future of Australia's markets, including the growth in private markets, the decline in public listings, and the growing significance of superannuation funds.
/jlne.ws/3FpzQEN
ASIC Commissioner Simone Constant spoke to Conexus Financial editor-in-chief Aleks Vickovich at Conexus Fiduciary Investors Symposium
ASIC
The Conexus Fiduciary Investors Symposium was held in the Blue Mountains on 4 June. The following facilitated conversation followed Simone Constant's remarks.
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SFC bans Wong Lai Suen for six months
SFC
The Securities and Futures Commission (SFC) has prohibited Ms Wong Lai Suen, a former responsible officer (RO) and executive director of MTF Securities Limited (MTF), from re-entering the industry for six months from 4 June 2025 to 3 December 2025 for failing to properly manage credit risks and to identify and report suspicious trading patterns of clients (Notes 1 to 3). The SFC's investigation found that shortly after three cash clients had opened their accounts and deposited only $10,000 with MTF in January 2021, MTF granted each of them a trading limit ranging from $4 million to $5 million despite no application was received from the clients (Note 4).
/jlne.ws/43MuAmQ
Caution to Public
SEBI
It has come to the notice of Securities and Exchange Board of India (SEBI) that certain individuals have received communication wherein sender falsely claims to be an official of SEBI using letter head, logo and seal of SEBI. It is noted in certain instances that, sender issued notices through Social Media Platforms asking for payment of fine to prevent SEBI from taking action against the recipient, sender forged Sale Certificate to show that he was a buyer of PACL property, sender issued fake Certificate of use of third party vendor account.In view of the above, public is urged to exercise caution and to verify the authenticity of any communication that they might deem to have received from SEBI. Communication from SEBI can be verified from the website of SEBI (www.sebi.gov.in) as follows:i. Every Order passed by SEBI bears a unique reference number and is available on the SEBI website under the path Home>Enforcement>Orders.ii. Every Recovery Certificate issued by SEBI is available on the SEBI website under the path Home>Enforcement>Recovery Proceedings.iii. Every official communication such as letter, notice, Show-cause Notice, Summons etc. issued by SEBI bears a unique document identification number (UDIN).
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Virgin Australia returns to stock market with launch of $443 million IPO
Scott Murdoch - Reuters
Virgin Australia is set to return to the stock market after a five-year absence, with the Bain Capital-owned airline launching a A$685 million ($443 million) initial public offering on Wednesday amid a rebound in domestic tourism. The offering, Australia's largest for the year so far, will see Bain's stake drop to 39.4% from about 70%, while Qatar Airways, which recently bought into the airline, will retain a 23% holding, according to a deal term sheet seen by Reuters. It's one of the most closely watched deals in Australia in years as a successful listing will be seen as a vote of confidence in prospects for a solid recovery in the nation's consumer spending.
/jlne.ws/3HoFMyq
Buffett Inspires Retail Investors to Bet on Japan Trading Houses
Aya Wagatsuma and Toshiro Hasegawa - Bloomberg
Japan's retail investors have started to place their bets on trading house stocks, heavily backed by Berkshire Hathaway Inc.'s legendary investor Warren Buffett, eyeing strong business models and stellar shareholder returns.
/jlne.ws/4dX0v8D
Isda moves to fix outdated CDS obligations list; Updated process would allow for mass updates, reserving legal review for most complex challenges
Ben St. Clair - Risk.net
The process for assigning reference debt to credit derivatives contracts is set for a long-awaited overhaul, as a new proposal from the International Swaps and Derivatives Association aims to address flaws in a neglected piece of market infrastructure that helps determine whether credit default swap (CDS) contracts pay out.
/jlne.ws/43sE3Rf
Commentary: What America's default risk is costing you
Rick Newman, Senior Columnist - Yahoo Finance
For decades, investors thought the risk of the US government defaulting on its debt was essentially zero. It was nice while it lasted. There's still a low chance the US government will fail to pay principal or interest on nearly $30 trillion worth of Treasury securities circulating around the world. But global investors think US debt is getting riskier, and they also think US policymakers in Congress and the Trump administration are doing nothing about it.
/jlne.ws/457E7Hp
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | BlackRock removed from Texas blacklist after climate policy rollback; Decision allows state funds to buy shares in the asset manager and invest in its funds following three-year boycott
Eric Platt - The Financial Times
Texas has removed BlackRock from a blacklist of companies it barred from receiving the state's investment funds, three years after targeting the asset manager for its environmental policies. The decision by the state's comptroller, Glenn Hegar, will allow Texas pension and investment funds with about $300bn in assets to buy BlackRock shares and invest in its funds. State-run funds are also now permitted to turn to the New York-based group for financial advice and risk management guidance.
/jlne.ws/4jut5zj
ESG's Death Will Only Make Its Ideas Stronger
Alex Friedman and Josh Green - Barron's
ESG is dead, so they say. Investors seem to be yanking money from "sustainable" stock funds-flows to those funds hit a record-low in the first quarter of this year. Regulators appear to be backtracking on plans to require companies to report on sustainability, with the Securities and Exchange Commission scrapping its proposed climate disclosure requirement and the European Union scaling back on its planned Corporate Sustainability Reporting Directive. And the Trump administration looks hellbent on driving a stake through the heart of the whole concept of sustainability, as underscored by its attacks on anything DEI or climate-related.
/jlne.ws/459ysAu
BlackRock Escapes Texas Oil-Boycott List After ESG Retreat
Danielle Moran - Bloomberg
BlackRock Inc. was removed from Texas' blacklist of companies that boycott fossil fuels, ending a three-year standoff over the environmental policies of the world's largest asset manager. The move means pension funds and other state-run investment accounts - which manage more than $300 billion of assets - will be allowed to purchase BlackRock shares, invest in its exchange-traded funds and hire the firm for advice and risk management. Inclusion on the list resulted in some Texas entities pulling billions of dollars of assets from the firm.
/jlne.ws/3FFxIss
Europe's Wind Lull Has Pushed Up Carbon Emissions This Year
Eamon Farhat - Bloomberg
European carbon emissions have climbed this year as a wind drought forces countries to rely more on fossil fuels to power their economies. Emissions across the EU are up almost 11% so far this year compared with a year earlier, according to data compiled by Independent Commodity Intelligence Services. Should wind generation remain low through the summer and into winter, it could trigger the first annual increase in emissions since 2022, the consultancy said.
/jlne.ws/45F2D2F
Why salt is threatening America's rivers and drinking water; The biggest source of salty freshwater in D.C. and other major northern inland cities is an overapplication of road salt to thaw winter ice, which runs off into rivers or the ground.
Kasha Patel - The Washington Post
Perhaps on another day, the calm waters and green trees on the Anacostia River here would have been an escape from downtown D.C. about seven miles away. But recent heavy rains had pushed discarded bottles and wrappers to the shores. And on this unusually warm May afternoon, hydrologist Sujay Kaushal kayaked through brownish-green waters to investigate if the water quality showed signs of urban life, too. Performing a routine checkup on its salt content, he dropped a black probe into the water, and watched as his handheld monitor showed a troubling result - the reading showed salt levels were above the federal recommendations for this region.
/jlne.ws/3FEc2wS
Electricity Prices Are Surging. The G.O.P. Megabill Could Push Them Higher.; The combination of a data center boom, rising gas exports and cuts to clean energy tax breaks could spike American energy bills, analysts say.
Brad Plumer and Rebecca F. Elliott - The New York Times
The cost of electricity is rising across the country, forcing Americans to pay more on their monthly bills and squeezing manufacturers and small businesses that rely on cheap power. And some of President Trump's policies risk making things worse, despite his promises to slash energy prices, companies and researchers say.
/jlne.ws/4e6qcUx
Climate Investor Energize Raises $430 Million for New VC Fund
Paayal Zaveri - Bloomberg
/jlne.ws/3T8WHYe
Wind opponents sue Trump administration to block New York wind project
Nate Raymond - Reuters
/jlne.ws/4jB9FZA
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Wedbush's Dan Ives Joins ETF Wave Turning Analysts Into Brands
Vildana Hajric - Bloomberg
Wall Street tech analyst Dan Ives is lending his personal brand to power a new ETF riding the artificial-intelligence boom, joining a growing pack of finance names looking to monetize their industry renown with retail-friendly investment funds. Wedbush Fund Advisers is launching a product tracking the investment picks touted by Ives, whose high-conviction tech calls have earned him a sizable following among the likes of retail investors.
/jlne.ws/4kIY2ki
JPMorgan veteran Andy O'Brien to retire after 40-year stint at Wall Street giant
Reuters
Andy O'Brien, the global head of loan capital strategy at JPMorgan Chase, is set to retire at the end of 2025 after 40 years at the largest U.S. lender, according to an internal memo seen by Reuters on Tuesday. In his current role, O'Brien has been responsible for overseeing the lending portfolio across JPMorgan's global corporate and investment banking businesses.
/jlne.ws/3FDGtDr
Fed Removes Shackle Imposed on Wells Fargo After Series of Scandals; For seven years, the bank was forbidden to grow as punishment for misconduct including creating fraudulent bank accounts and mistakenly seizing homes.
Stacy Cowley - The New York Times
In early 2018, the Federal Reserve hit Wells Fargo with an unprecedented penalty for a yearslong record of misconduct: an asset cap that prevented the bank from growing. On Tuesday, the Fed lifted that restriction. Wells Fargo has improved its internal governance and risk management enough to be released from its fetters, the regulator said.
/jlne.ws/45EpfAk
Swedbank Targets Return on Equity of At Least 15%; It is in times like these that being a profitable bank matters the most, its CEO said ahead of an investor day
Dominic Chopping - The Wall Street Journal
Swedbank is targeting a return on equity of at least 15% in the next few years, but warned of uncertainty amid geopolitical tensions. The Swedish lender said the new target applies through 2027 and is in line with previous guidance that runs through this year. In a statement presented ahead of an investor day, Swedbank said it aims to grow or maintain market share for its main products while it seeks greater efficiency through new technologies, including artificial intelligence. "Efficiency is key to profitability-and it is a core pillar of the plan moving forward," the bank said.
/jlne.ws/4kOURrd
Novo Banco Shareholders Approve Step for Possible €1 Billion IPO
Joao Lima - Bloomberg
Novo Banco SA's shareholders approved steps needed for a possible initial public offering of the Portuguese lender, which is majority-owned by US private equity firm Lone Star, according to a person familiar with the matter who asked not to be named. The agenda of Wednesday's shareholder meeting included the admission of shares to trading on the stock exchange and the review of the bank's articles of association, a Novo Banco spokesman said on Tuesday. These actions are a "condition precedent" for the IPO process, but the effectiveness of the resolutions is subject to the final decision of the selling shareholders, according to the spokesman.
/jlne.ws/4n0qgsW
Wall Street Is Marketing Private Equity Investments. The Rich Are the Targeted Buyers.
Abby Schultz - Barron's
As pension funds, sovereign-wealth funds, endowments, and other institutional investors pare private-equity stakes to generate cash and rebalance their portfolios, Wall Street has gone looking for new buyers: retail investors who have long been shut out of private markets. There's a good reason this buyer base is attractive. Individual investors have a lot of cash-half of all global wealth, or roughly $140 trillion, according to Bain & Co. And they represent only 16% of assets held in alternative investments, which include private equity, the firm said in a 2023 report.
/jlne.ws/4n0o1G2
Vanguard new ex-China ETF followed push from Missouri Republicans
Suzanne McGee and Ross Kerber - Reuters
/jlne.ws/3SAzmOX
Bridgewater's New 'All Weather' ETF: Will Its Hedge Fund Approach Work in This Market?
Lewis Braham - Barron's
/jlne.ws/45CLHK7
Hamza Lemssouguer's Hedge Fund Arini Plans Abu Dhabi Office
Nishant Kumar - Bloomberg
/jlne.ws/4kJ2nE6
Private Equity to See Another Muted Year for Exits, Says Neuberger
Fion Li - Bloomberg
/jlne.ws/4jyZCEi
Janus Henderson Adds New Active Short Duration ETF in Europe
Lauren Gibbons - Yahoo Finance
/jlne.ws/3SDsKPX
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | This Stanford professor built a 'Terminator' AI fund manager that crushed 93% of human stock pickers. He says junior analysts' jobs are in jeopardy
Greg McKenna - Fortune
One way to examine AI's potential is by dropping the finance world's version of "The Terminator" on 1990's Wall Street. Researchers at Stanford University and Boston College took that approach and found their bot could significantly boost most fund managers' returns by de-risking their portfolios. Whether artificial intelligence will augment or replace human labor is fiercely debated across countless industries.
/jlne.ws/4mIU9O2
Americans Are Finally Saving Almost What They're Supposed to for Retirement; 401(k) savings rates are just a shade below the commonly recommended 15% of income
Anne Tergesen - The Wall Street Journal
Workers are putting away a record share of their income for retirement. The average savings rate in 401(k) plans rose to a record high 14.3% of income in the first three months of this year, according to a Fidelity Investments analysis of the millions of accounts it manages. That is just a shade below the 15% annual savings rate financial advisers often recommend over a four-decade career. Savings rates are increasing even though account balances fell in volatile markets earlier this year. Most are staying the course, said Mike Shamrell, vice president at Fidelity Investments, which released the data Wednesday.
/jlne.ws/3Fx8w7B
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| Wellness Exchange | | An Exchange of Health and Wellness Information | How 'Inflammaging' Drives Cancer-and Points to New Treatments; Inflammation fuels the high rate of cancer in people over 50, researchers find, leading them to test anti-inflammatories like allergy drugs to fight it
Betsy McKay - The Wall Street Journal
People are more likely to get cancer as they age. Dr. Miriam Merad has an unconventional idea of how that might be reversed: using allergy drugs and other seemingly unlikely medications to damp a condition known as "inflammaging." The immunologist and oncologist has spent years examining malignant tumors to learn why people over age 50 account for nine in 10 cancer diagnoses in the U.S. She and her research team at the Icahn School of Medicine at Mount Sinai in New York City have homed in on an answer: the aging immune system. Their studies of individual immune cells in human lung tumors, as well as in old mice, have revealed how chronic, or pathogenic, inflammation in older people-dubbed inflammaging-interferes with the immune system and fuels cancer growth.
/jlne.ws/457OCu9
COVID-19 flares up in India; 44 dead, active cases top 4,300; Experts call for wider tracking and testing as Omicron subvariant spreads
Soumyajit Saha - Nikkei Asia
MUMBAI -- India has more than 4,300 active coronavirus cases as of Wednesday, as subvariants of the relatively less-fatal Omicron variant continue to spread, mirroring a wider revival of the disease in parts of Asia. The southern Indian state of Kerala has been worst hit, with 1,373 active cases as of Wednesday, according to the government's COVID-19 tracking website.
/jlne.ws/3ZieSyd
Doritos and Mountain Dew could carry a new 'not recommended for human consumption' warning under landmark Texas bill
Sasha Rogelberg - Fortune
Texas Governor Greg Abbott will decide whether to enact a bill requiring food manufacturers to add warning labels to products if they contain ingredients like dyes that have been banned or restricted by other countries. Major food conglomerates have opposed the bill, arguing it would add greater uncertainty for consumers in a time of economic unpredictability. A Texas bill on the brink of becoming law would crack down on major food manufacturers, requiring them to label products with warnings about ingredients "not recommended for human consumption," under the standards of countries other than the U.S.
/jlne.ws/3ZeUjCQ
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Why Iranians are seeking safety in gold; Sanctions and military threats have encouraged locals to buy into bullion, but price volatility has hurt some savers
Najmeh Bozorgmehr - Financial Times
One morning in a labyrinthine Tehran bazaar, a salesman was pitching a hot investment to shoppers. "Your money is dead," he said of the country's beleaguered currency, the rial. "Buy gold." Local prices for gold in Iran have outpaced a worldwide surge over the past year, as businesses buy the metal to skirt sanctions and ordinary Iranians invest to protect their savings amid the threat of military confrontation with the US and Israel.
/jlne.ws/3FNjvcW
Galaxy's Nasdaq Debut Clears the Path for Canada-US Listings
Geoffrey Morgan - Bloomberg
Galaxy Digital Inc.'s US debut is a homecoming for the Toronto Stock Exchange-listed, New York-based company. For Canadian firms on the TSX, it could be the start of reversing a multi-year trend of domestic firms choosing to trade closer to where they're based. The crypto company led by billionaire Michael Novogratz raised $600 million in an upsized US share sale announced days after it began trading on the Nasdaq May 16. Following Galaxy's successful outing, bankers are seeing more interest from TSX-traded companies in adding US listings.
/jlne.ws/4kQS94J
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